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The Evolving Strategy at Ibm Case Essay

Exercise 1

The top management of your company, a manufacturer and marketer of laptop computers, has decided to pursue international expansion opportunities in Eastern Europe. To achieve economies of scale, management is aiming toward a strategy of minimum local adaptation. Focusing on an eastern European country of your choice, and using the Countries section of globalEDGE (select Countries on the main menu), prepare an executive summary that features those aspects of the product where standardization will simply not work and adaptation to local conditions will be essential.

Exercise 2

Read the Evolving Strategy at IBM case and answer the following questions.

1) In the 1970s and 1980s Palmisano states that IBM was organized as a classic multinational enterprise. What does this mean? Why do you think IBM was organized that way? What were the advantages of this kind of strategic orientation?

2) By the 1990s the classic multinational strategic orientation was no longer working well for IBM. Why not?

3) What are the strategic advantages to IBM of its globally integrated enterprise strategy? What kind of organizational changes do you think had to be made at IBM to make this strategy a reality?

4) In terms of the strategic choice framework introduced in this chapter, what strategy do you think IBM is pursuing today?

Use the globalEDGE Resource Desk {http://globalEDGE.msu.edu/ResourceDesk/} to complete Exercise1.

Exercise 1
Your company is considering opening a new factory in Latin America and management is evaluating the specific country locations for this direct investment. The pool of candidate countries has been narrowed to Argentina, Brazil, and Mexico. Prepare a short report comparing the foreign direct investment (FDI) climate and regulations of these three countries, using the Country Commercial Guides prepared by the U.S. Department of Commerce.

Exercise 2
Read the Spain Telefonica case and answer the following questions:

1) What changes in political and economic environment allowed Telefonica to start expanding globally?

2) Why did Telefonica initially focus on Latin America? Why was it slower to expand in Europe even though Spain is a member of the European Union?

3) Telefonica used acquisitions rather than greenfield ventures as an entry strategy. Why do you think this has been the case? What are the potential risks associated with this entry strategy?

4) What is the value that Telefonica brings to the companies it acquires?

5) In your judgment, does inward investment by Telefonica benefit a host nation? Explain your reasoning.

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