Virtual Organisations : Assignment
Added on 2020-11-12
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Table of ContentsINTRODUCTION...........................................................................................................................1MAIN BODY...................................................................................................................................1CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8
INTRODUCTIONIn current business scenario, There are various threats as well as opportunities that arelying within the business environment. Thus it is of paramount importance that right kind ofbusiness strategies are being followed that will allow an organisation to grow as well as prosperin the longer run. A virtual organisation is a co-operation that works mostly on digital structureand thus the business will have the necessary implementation of digital tools and technologywhich will further help in overall growth and prosperity. It has become possible only byinformation and communication technology that a new era of Virtual organisation has beendeveloped in the recent past. IBM, is an international company which can be regarded as a bigvirtual organisation and is operating since decades, established in United States, The companyhas successfully able to grow and prosper in an efficient manner. The company operates inaround 170 countries with a net income of around 5 billion dollars (Camarinha-Matos ed., 2013).The company is having avast number of employees of around 380,000 and is increasing quiterapidly as well.MAIN BODYVirtual organisations plays a very important role in the overall growth as well asdevelopment of any economy, thus it becomes even more important to implement right kind ofgrowth strategies so that these companies can prosper and generate a larger employment andcontribute in the overall economic growth. An industrial market consist of various organisation,and every organisation has different business operations as well as business activities. There arevarious benefits that can be derived by a virtual organisation in the longer run. These benefitsinclude cost saving by taking help of outside experts for the purpose of effectively performingthe necessary business activities in the longer run. The expenses of travelling, logging as well asdowntime can be reduced to quite an extent and thus eventually higher profitability can beexpected from the same. The dynamism within the team members, makes it possible for them toswitch from one project to another in an effective as well as efficient way. The variousemployees of the organisation can be assigned to different or multiple teams very easily. Thevirtual teams allows an organisation to expand their overall labour markets which would enablethem to hire the best possible people irrespective of their location where they physically exist.The organisations also plays a very important role in developing the standard of living of people,1
which further enhances the economic activity within the economy. IBM is a big IT Company andis engaged in the business of manufacturing Hardware products like computers and laptops alongwith their accessories and along with that it also offers IT Solutions to individual organisationand government which has gained it reputation over longer period of time. The company hasbeen able to successfully establish itself in the business of cloud computing. This particular areaof the company is contributing effectively in the business growth of the organisation. IBM ismaking sure that right kind of business opportunities can be developed, which will enable it togrow and prosper and at the same time capture a higher marker share over its competitors likeOracle and Intel (Huet, 2012). The company has seen a consistent growth in the overall profitsover the decades and thus is looking to make the same quantum of profits going forward as well.The nature of business is such that its dynamism can not be ignored in any way and thusplanning shall also be made accordingly.Benefits of a Virtual OrganisationThese virtual organisations spends a hefty sum on the overall research and developmentaccounts for around 7 billion dollar a year, which is beneficial for the economy in longer run.The need is to develop business opportunities for such kind of business organisations over longhaul, so that higher growth can be achieved. The information and technology is basically oxygenfor a virtual organisation, it can not survive for a longer period of time without having adequateinformation as well as Knowledge. There is a higher need that these organisations takes care oftheir employees in a manner which will enable them to grow. Employees are a crucial part of anyorganisation and virtual organisations is a no exception, in fact they are responsible for makingthe whole business to grow as they posses the necessary knowledge and information that areneeded to develop an IT business. There are various disadvantages or limitations also, whichmakes it difficult for a virtual organisation to effectively run and manage a business. Thesedifficulties can be a lack of physical interaction among associates, which stands out to benegative for these organisation as there is a lack of synergies and face to face interactions. Themembers usually does not even meet each other and work sitting miles apart by never reallyseeing the face of each other. Thus, it is quite necessary that a reduction in these disadvantagesare sought by the managers of virtual organisations, which will be positive for the company(Sandhu, 2012).2
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