Analysis of IBM's International Business Operations: A Case Study

This case study examines the international business operations of IBM, analyzing the influence of socio-economic factors, technological developments, political environments, and ecological considerations on its decision-making processes. The analysis delves into how cultural diversity, technological advancements, government policies, and environmental regulations shape IBM's strategies and market presence across various countries. The study explores the impact of socio-economic cultures on IBM's brand reach, decision-making, and customer satisfaction. It further investigates how technological advancements provide competitive advantages, expand business opportunities, and pose potential threats. The political environment, including governmental approaches and political support, is also assessed in terms of its impact on IBM's business decisions. Furthermore, the study highlights how ecological considerations, such as environment-friendly products and product recycling, influence IBM's product design and overall business strategies. The case study provides a comprehensive overview of IBM's international business operations, emphasizing the interplay of various external factors and their implications for the company's success in the global market.

International Business

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Socio economic culture affect business ......................................................................................3
Impact of technological development over international business .............................................4
Political environment consideration............................................................................................6
Ecological considerations afect the decision making in international market ............................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International business is specifies as trading good and services across the borders. It
involves of business transactions with various governments and corporate organisations in
international market. Also, it leads to exportation of goods, services and exchange of resources.
This report is based on the case study of International Business Machine Corporations
(IBM) and firm was established in the year 1911 and founded by Endicott. It is a multinational
information technology company based in America and headquartered in Armonk, New York.
Henceforth, report will put emphasis over socio economic culture and technological
development that affect business of IBM in international market. Moreover, Analysis will also be
made to evaluate the impacts of political environment over business decision of respective firm
under this report. Along with this, ecological consideration will be taken by IBM in respect to
decision making in context of international business.
MAIN BODY
Socio economic culture affect business
Socio economic refers to how socio economic aspects like religion, culture put an impact
over organisation (Vousdoukas and et.al., 2018). Impacts of social economic reflects in various
behavioural changes in the organisation culture.
IBM is a global business organisation that trades in more than 170 countries. Various impacts
has reflected by the socio economic culture of company over international business.
Diversity in brand reach: Socio economic culture has enabled the well diversified organisation
culture in IBM (Mansukoski and et.al.,, 2019). Employee's from different culture and religion
bring new creative ideas to operate the business activities that created a strong image of the IBM
in international market. Well diversified culture of IBM has improved the growth of the
company by enhancing the reach of target customer's with the support of diversified employee
structure of the company.
Improved decision making: Socio economic factors has improved the decision making process
for the IBM business operations. Socio economic aspect bring people from different religions
and culture across the globe. Employee's from different culture share different experiences that
also use by the management to take specific business decisions like marketing decisions using
new ideas for the business projection. People from different part of the world also drive the
management to take business expansion decisions with the use of experiences of the employee's

belongs to such specific part. Employee experience has guided the management to analyse about
the needs and requirement to the people in such an area. Sharing experiences empower the
management to take suitable business decisions specially in international business as experience
sharing give more dimensions to management about various aspects like market fluctuation,
economic stability in different geographical locations and the employee's come from such part
can better guide for implementing decision making related to such specific area. Well dynamic
organisation culture with the support of socio economic has guided the management to take more
productive decisions for policy making to reach more consumer base in such area that also
enabled the IBM to take more competitive advantages as compare to other competitors like
Google and others.
Enhancing customer satisfaction in international market: Socio economic factors like
religion, culture has guided the management to analyse different cultural and religious needs
across the globe (Davydova and et.al., 2019). Management of IBM could analyse about all such
religious and cultural needs with the support of employee's in the organisation to enhance the
customer satisfaction in international market. To enhance the customer satisfaction its important
for the business organisation to fulfil the needs of the customer's and socio economic factors has
guided the IBM management to reach the customer satisfaction by fulfilling the needs.
Impact of technological development over international business
Technological development is specified as upgrading the existing technology with the
support of changes in the existing technologies and also to introduce the new technologies.
Development of technology involve technological advancement by expansion of technological
capabilities.
Impacts of technological development over international business of IBM is described in the
following manner:-
Expand business opportunities: IBM has expanded business opportunities with the
technological advancement (Yap and Leow, 2019). Introducing new technologies has drive the
management to take competitive advantage in the Information technology market. With the use
of advanced technologies like software has improved data protection that caused into volatile
market for the IBM at international level. Hacking is also a big issue corporate organisations face
which enable the outsiders or other business competitors to leak various information like product
information, data, employee's information and use competitive advantage by using such data.

IBM has served software to corporate organisations to effectively deal with hacking. All such
product development has resulted into a huge market share of IBM in international IT market.
Competitive Advantage: Technological development and improvement has enabled the
management of IBM to take competitive advantages by serving more effective information
technology products and software. Creativity also a crucial part of development and it also drives
the company to take competitive advantages in the market as the innovation causes to work
efficiency and cost efficiency (Khan and Suhaib, 2019). By providing effective and diversified
software to operate industrial data has improved the market presence of the company in IT
market. Constant support of technological advancement like updating software and technologies
has guided the company management to cope up with the expectation of customer's in target
market that also resulted into reduced competition for the company in the market.
Growth opportunities: Meeting the need of customer's in regards to IT products has brought
huge growth opportunities for the IBM (Kalu, Nto and Nwadighoha, 2017). Management of IBM
always focused over technology development to sustain in the market and also to entertain
growth and business development opportunities across the globe by expanding the target
customer base for company's products and services. The current market share of IBM is around 9
% that sufficiently justify the market presence of IBM. IBM has also installed better
communication channel;s in corporate organisations that strengthen the company presence in IT
market.. Expansion of Internet accessibility at the global is also became the major reason to
improve the growth potential for the company by meeting the customer's needs and demands.
Threat: Information technology has provided various benefits like improved productivity,
reduced cost with the technological advancement but technological advancement also served
potential threat in the society. With the emergence of technological development several issues
like data hacking, copyright issues has witnessed by the corporate organisations that created a
huge threat in the society.
Hence it can be concluded that technology play the crucial role in growth and
development of business. Business expansion, competitive advantages, growth opportunities like
many benefits technological advancement provided. Apart from opportunities threat has also
witnessed like data leakage, hacking. What motivates business to innovate; opportunities and
threats.

Political environment consideration
Political environment involves political situations of countries. IT also involve
government stability. Different aspects such as stability, governmental policies and other aspects
comprises to from a political environment in countries.
Considerations reflect political environment that also impact over decision making is as follows.
Government Approach: IN recent years government body's across the globe has focused over
technological development and advancement across the globe. Government body's and
organisation across the globe has also approached IBM to install shoftwares hat can improve
connectivity and operational hierarchy in the organisations (Matyrko, 2017). IN developing
countries like India, China government's has the huge focusd over technological advancement in
the countries that provided major business opportunities for the IBM.
Political Support: IT Play the crucial role in decision making of IBM. Political support plays
the major role in expansion process of business as if the governmental policies in the new market
is supportive enough towards the inclusion of information technology that will also resulted into
smooth and favourable policies in relation to information technology. Information technology is
one of the fastest growing market across the world due to the effectiveness and efficiency of IT
system in conducting business operations (de la Barrera and Martínez, 2018). Effectiveness of
IT systems not just for the corporate organisations but it also supported government for policy
framing, crime controlling and in many ways that resulted into improved governmental and
political support for information technology systems across the globe. Political support has
provided immense growth and development opportunities to the IBM. Political support for IT
has also seemed not just in welcoming IT but also to implement various IT systems in the
operation structure of the government that also provided major growth and business
opportunities to the IBM. Support of governments has improved the impacts of decision making
of IBM management in respect to strategical planning and operating. Advancement IT software
of IBM has generated huge political support in international market.
Opportunities:
 Growth opportunities.
 Business expansion in developing nations
 Opportunities to improve market share
Threat:

 Competition in the market from other IT company's
 Unstable political situation in developing countries.
Data Protection policies drives business opportunities: Emergence of information
technologies has also supported to corporate organisations and governments across the globe to
protect all the associated data of such body's. Governmental awareness related to the data
protection has driven several business opportunities for the IBM towards installation of advanced
systems for collecting and storing data. IBM also provide services to upgrade de the old systems
that enable more growth opportunities for the company.
Ecological considerations affect the decision making in international market
Ecological factors influences the organisations to consider environmental protection laws
while operating their business. For this purpose, they are required to take actions which promote
sustainability, gain customer appreciation by offering eco-friendly products, etc. In context with
international business like IBM, considering the factors like social pressure for clean business,
ecological laws and regulations, technological advancement to reduce carbon footprint and more,
help in earning a sustainable corporate image at global level.
Various aspects of ecological factors put impacts over decision making of IBM at international
level.
Focus over environment friendly products: Governments and corporates across the world
focus over installing and channelizing renewable and environment friendly products for
protecting the environment against ecological problems like non sustainable products.
Government's in developing countries like India, China also promote environment friendly
products by giving advantages like tax saving and other advantages to promote environment
friendly products and services (Real, 2017). Environment friendly approach of society has
influenced the decision making of IBM related to the designing of products and services.
Improved awareness towards environment protection enable the IBM management to take
decisions to promoter environment friendly products and also launch services to improve the
awareness in respect to environment protection in the society.
Decision making of product recycling and advancing: Governmental decision making across
the globe has supported ecological considerations that also reflect in governmental policies in
respect to promoting product recycling and other policies. Decision making of IBM has initiated
the recycling aspects of products by giving services in respect to advancing the existing installed

systems to support the product recycling initiated by governments. Product recycling also drive
the management to upgrade the existing information technology products that also improved the
productivity of such products. Recycling of old products involved decision making in respect to
reinforcement and restructuring of existing systems to improve the sustainability and usability of
such existing technologies and IT systems of IBM.
Decision making of new product designing: Ecological consideration also reflect in decision
making of IBM in respect to designing of new products (Li and Qiu, 2016). IBM management
create more focus over launching of environment friendly products and also launch new
technologies like cloud based services that can reduces the negative effects over environment by
using such products. Decision making related to the environment friendly products has improved
the growth opportunities for the IBM across the globe and has also provided major business
opportunities across the global information technology market. IT product's has created various
positive impacts like technologies like weather forecast has improved the environment
protection.
CONCLUSION
From the above report is it concluded that international business involved business
operation with corporate and governmental organisations across the globe. Hence, socio
economic aspects like religion, culture has improved the decision making of company in respect
to international market has concluded. This report also concludes the effect of socio economic
factors over company's approach for taking decision in relation to meeting the customer's needs
with the support of diversified organisation culture.
Competitive advantages taken by IT companies with the technological advancement has
also summarised with the use of creativity that enable the companies to reduce cost, improve
productivity with the support of new technological development. Growth created by IT
companies by meeting customer's needs and demands with the launch of software, cloud based
services has also concluded in this report. Government approach towards technological
advancement has also analysed. Ecological consideration like focus over environment friendly
products has also concluded that supported IT companies to expand the business.

REFERENCES
Books and Journals
Vousdoukas, M. I. And et.al., 2018. Climatic and socioeconomic controls of future coastal flood
risk in Europe. Nature Climate Change.8(9). pp.776-780.
Mansukoski, L. and et.al.,, 2019. Four decades of socio-economic inequality and secular change
in the physical growth of Guatemalans. Public Health Nutrition. pp.1-11.
Davydova, O. and et.al., 2019. Economic activity of enterprises: methodical aspects of
assessment. In SHS Web of Conferences.(Vol. 67, p. 06012). EDP Sciences.
Yap, C. K. and Leow, C. S., 2019. Social factors for coastal management: A short review and
some insights.
Khan, S. S. and Suhaib, M., 2019. Evaluating an International Human Resource Management
Strategy for New Telecommunication Group in Developing Countries, Concentrating on
Pakistan (A Case Study of Vodafone). Science International-Lahore.31(3). pp.457-461.
Kalu, A.O., Nto, C.P. and Nwadighoha, E.E., 2017. Environmental Forces as Catalysts in
Electronic Marketing, the 21st Century Trends in Nigeria. Kuwait Chapter of Arabian
Journal of Business and Management Review.33(81). pp.1-11.
Matyrko, M., 2017. Basic Approach for Evaluation of Foreign Market's Potential and
Attractiveness.

de la Barrera, E. and Martínez, R.O., 2018. Socio-ecological considerations on the persistence of
Mexican heirloom maize.Maydica.61(4). p.10.
Real, L. ed., 2017. Ecological genetics. Princeton University Press.
Li, F.F. and Qiu, J., 2016. Incorporating ecological adaptation in a multi-objective optimization
for the Three Gorges Reservoir. Journal of Hydroinformatics.18(3).pp.564-578.
Online:
International Business, 2020. [Online]. Available Through:
<https://www.internationalrelationsedu.org/what-is-international-business/>.