Impact of Socio-economic, Technological, Political, and Ecological Factors on IBM International Business

This case study explores the impact of socio-economic, technological, political, and ecological factors on the international business decisions of IBM. It discusses how socio-economic cultures and technological developments affect IBM's operations, and how political and ecological considerations influence their business decisions. The study highlights the opportunities and challenges faced by IBM in the global market.

International Business
(IBM Case Study)

Table of Contents
INTRODUCTION...........................................................................................................................1
IDENTIFY AND ILLUSTRATE....................................................................................................1
Socio-economic cultures affect IBM international business..................................................1
Technological developments affect IBM international business............................................2
ANALYSE AND EXPLAIN...........................................................................................................3
The political environment considerations affect IBM international business decisions in the
markets they operate...............................................................................................................3
Ecological considerations taken by IBM affect their international business decisions in the
markets they operate...............................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
International business is defined as the practice of conducting commercial activities at a
global level. In an instance whereby an entity functions on an international scale, it is necessary
to take into account certain external factors as they place a significant influence over the
company (Chang, Witteloostuijn and Eden, 2020). The external factors that need to be
considered by an international business are identified to be politics, economic conditions,
technology, socio-economic, laws and environment. The present project is based on the case
study of International Business Machine Corporation which is a renowned multinational
corporation operating within the confines of technology industry. This entity has its headquarters
based in New York. IBM operates within a total of over 175 nations across the globe. The
present report consists of impact of socio economic, political, technological and ecological
aspects over the functioning of International Business Machine (IBM) Corporation.
IDENTIFY AND ILLUSTRATE
Socio-economic cultures affect IBM international business
Socio-economic factor is regarded as one of the most prominent aspects of macro
environment which place a significant influence over the operations of a business (Shams and et.
al., 2020). This factor is concerned with the preferences, attitudes, beliefs, ideologies and
customs of people of a market. It is essential for an organisation to take into account all of these
in order to ensure that it produces products which are capable of catering to the needs and
demands of people. In an instance whereby the entity is unable to identify and analyse the socio
economic patterns and culture of the country, the company would have to face severe
consequences. With reference to International Business Machine Corporation, it is identified that
the corporation operates within the confines of information technology sector. This is why it is
quite important for the enterprise to take into account the preferences of society and work in
accordance with them. Public at large places a number of requirements in front of IBM, which
are difficult to be considered by the respective organisation. This enhances the level of difficulty
for IBM in the long run.
Further, it is recognised that there are several opportunities which are linked to socio
economic factors. One of the most effective one in this regard is acknowledged to be the use of
online facilities (Dimitrova and et. al., 2020). Further, the increasing expectations of customers
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influence an entity to inflate the existent level of quality of offerings. To counter this situation, it
was analysed that the top management of International Business Machine Corporation
emphasized upon building networking with public at large. Through this, firm would be
successfully able to gain knowledge of the needs and requirements of people and thereby work in
accordance with them. The consumers have over the course of time shown shift in preference
towards better cyber security which is why the entity is focusing towards enhancement of
performance accordingly to cater to the demands of public.
Technological developments affect IBM international business
Technological factor is related to the advancement and innovation in technology that
directly places affect over the work of industry as well as market in favourable or unfavourable
manner. This factor is also associated with the latest equipments and tools used by business
managers for performing their business associated responsibility in rapid manner. The present
era is regarded as the era of innovation as presently almost every corporation intends to come up
with rapid innovations at market place with a view to gain the attention of large number of
people. Technology enhances the organisational efficiency as well as capability of the company
to attain goals and objectives in due course of time.
Technological integration with several industries as well as market could be seen as the
opportunity for the IBM as the company can easily develop new IBM technology oriented
products with support of other industries. This will directly help International Business Machine
Corporation in the attracting number of customers towards them who will provide effective
business to them and also contribute in gaining competitive edge. Apart from this technological
factor might also place negative influence over the performance of IBM.
Here, cybercrime is determined as another influential factor which places negative impact
over the performance of International Business Machine Corporation. It can be said that
cybercrime is increasing day by day which simply means that there is major threat for
International Business Machine Corporation to acquire latest technology as there are higher
chances that their data might get trapped from any hacker which could leak their confidential
information (Chow and Schoenbaum, 2020).
With reference to International Business Machine Corporation, cyber crime is major
threat for this company which will directly place negative influence over their performance
which could also lead to decline in its working capability. In order to overcome this in
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appropriate manner, International Business Machine Corporation could go for effective measure
of acquiring cyber security which will secure overall information of this company. This will also
support them in maintaining their confidentiality effectively at each and every level (Marinov
and et. al., 2020). Along with this, it can also be said that advanced technology has improved
internet accessibility for IBM as well as business that operates business activities at international
market place. This simply helps them out in executing their business activities in rapid manner
that support business operators in accomplishing their respected goals as well as objectives in the
quicker manner.
From the overall information specified on technological factor, it can be said that this
external force has both the positive as well as negative influence over the business operations of
International Business Machine Corporation (Gabrielsson, Rollins and Ojala, 2020). It is
essential for the company to acquire every possible advance technology related to their business
for the motive of attracting new customers and also serving them facilities as well as services in
adequate form. This will directly help businesses in execution of their work in rightful manner
and accomplish their predetermine goals and objectives in quicker manner.
ANALYSE AND EXPLAIN
The political environment considerations affect IBM international business decisions in the
markets they operate
Presently, carrying out business operations at global scale pose the business to
vulnerability of being affected by the external environment in which it operates. Politics is one of
the most significant factors that has a substantial impact over the company and its functioning. It
is concerned with the regulations and rules out forward by the ruling party for the businesses
operating within the confines of a country. In this regard, it has been recognised that the politics
associated with a market can alter the whole operational structure for a company (Vandenberg,
2020). In this relation, it is analysed that there are a number of considerations which can be taken
into account by International Business Machine Corporation to ensure long term sustainability at
market place. Such opportunities are explored in a brief manner as underneath:-
 Government is willing to improve the overall structure of digitalisation which is one of
the greatest opportunities for the companies like International Business Machine
Corporation.
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 Each of the political parties us supporting e-technologies which can uplift the standard of
working and even it will allow the organisation to work in a more fluent manner.
 Even government is working on some of the important aspects which can allow bringing
improvements in the overall process of data protection (Peterson and Muratova, 2020).
The opportunities generated by government for IT companies such as International
Business Machine Corporation allow the entities to operate at a larger scale (Jaklič and et. al.,
2020). Besides this, it has even allowed International Business Machine Corporation to make
decisions through which entity can gain a top position at market place. If the above mentioned
opportunities are taken into consideration by the firm, it will enable the firm to enhance its
productivity in due course of time. By capitalising upon such opportunities, the concerned
company can easily appeal to a large number of individuals prevailing at market place. Through
provision of high quality offerings to them, the entity will be able to execute increment in
revenues as well as profits in the long run.
Ecological considerations taken by IBM affect their international business decisions in the
markets they operate
There are several business entities that perform their operations on a wider scale yet they
are not able to deal with the adversities. This owes to the lack of efforts put in by an entity to
take environment as an aspect into consideration while performing its business activities and
practices. It is important to take ecology into consideration while executing day to day business
activities. When a business undertakes measures or initiatives with a view to contribute to
preservation of environment, it secures its positioning in market for a long run. This is because
customers, local community and government support only the growth and development of such
companies which operate in an environmental friendly manner and do not cause any harm to the
nature by any of their business practices or activities.
With reference to International Business Machine Corporation, it is identified that the
entity is taking such decisions through which the availability of renewable can be effectively
inflated. In this regard, their prime focus needs to be upon recycling process in order to ensure
reduction in expenditure on unnecessary expenses. Apart from this, this will also allow the firm
to gain the attention of new customers as people in the modern era appreciate and support
companies which work in an eco friendly manner (Reeb, Sakakibara and Mahmood, 2020). IBM
has a wide scope as it is dealing in information technology sector whereby the chance of damage
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caused to ecology is almost negligible. Further, paper work within such entities is already low
which further decreases the harm to nature. This aids the entity in gaining support from
customers as well as government. In this regard, it can be easily stated on the basis of analysis
that ecology is one of the factors which place positive influence over the functioning of tech
businesses such as International Business Machine Corporation.
CONCLUSION
On the basis of above discussion, it can be determined that business entities that function
at an international scale need to take into account certain external factors, as they place impact
over the functioning of the company. In addition to this, it has been analysed that improvements
have to be introduced in some aspects to ensure smooth functioning of business. By effectively
dealing with the impact of external factors, a company can ensure least harm being caused to its
operations. Political, socio economic, legal and technological are the aspects which need to be
especially taken into account by a company for long term sustainability within the market place.
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REFERENCES
Books and Journals
Reeb, D., Sakakibara, M. and Mahmood, I.P., 2020. Endogeneity in International Business
Research. In Research Methods in International Business (pp. 359-375). Palgrave
Macmillan, Cham.
Cavusgil, S. T. and et. al., 2020. Risk in international business and its mitigation.
Vandenberg, R .J., 2020. Multilevel models in international business research: A commentary.
In Research methods in international business (pp. 433-438). Palgrave Macmillan, Cham.
Jaklič, A. and et. al., 2020. Evolution of Central and Eastern Europe related international
business research. Journal of Business Research, 108, pp.421-434.
Chang, S. J., van Witteloostuijn, A. and Eden, L., 2020. Common Method Variance in
International Business Research. In Research Methods in International Business (pp.
385-398). Palgrave Macmillan, Cham.
Gabrielsson, M., Rollins, M. and Ojala, A., 2020, January. Introduction to the Minitrack on
Culture, International Business, and Knowledge Systems. In Proceedings of the 53rd
Hawaii International Conference on System Sciences.
Dimitrova, M. and et. al., 2020. Forgotten travelers: Adjustment and career implications of
international business travel for expatriates. Journal of International Management, 26(1),
p.100707.
Chow, D. C. and Schoenbaum, T. J., 2020. International business transactions: problems, cases,
and materials. Wolters Kluwer Law & Business.
Shams, R. and et. al., 2020. Strategic agility in international business: A conceptual framework
for “agile” multinationals. Journal of International Management, p.100737.
Peterson, M. F. and Muratova, Y., 2020. Distance in International Business Research: A
Commentary. In Research Methods in International Business (pp. 499-505). Palgrave
Macmillan, Cham.
Marinov, M. A. and et. al., 2020. International Business and Emerging Economy Firms: Present
Characteristics and Future Trends. In International Business and Emerging Economy
Firms (pp. 1-15). Palgrave Macmillan, Cham.
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