The organization I am familiar with is
International Business Machine (IBM). IBM is operating as the single industry
consisting of several segments to generate the values offered for the
solutions. The corporate level strategy is adopted by IBM and concentrates on
the single business unit. There is no general type of corporate strategy as
related to the needs and combination of single business strategy (Ibm. com, 2013).
The concentration of strategy is especially on
the competing for the requirements of the organization. The special advantage
for selecting the strategy is that IBM provides complete focus on collective
resources as well as total resources that are dominating in the business area. In
case of pursuing the strategy for instance diversification, they can spread in
the successful business area (Panmore. com, 2018). Another advantage of using a single
business unit strategy is the great deals with the competence and experience.
The likelihood decreases in the venture of the unsuccessful areas.
The strategy increases existing resources and the
capabilities to contribute to the development of the organization. The generic
strategy of IBM is the cost leadership (W-05.ibm.com, 2018). The generic strategies are basically
the conditions that the company uses to improve the competitive advantages. The
cost leadership of IBM develops the supports for the cost effectiveness and the
operations. The objective of the company strategy was to reduce the cost for
the production. The lower cost strategy of the company is to keep the profit
margins higher and to maintain the prices.
The competitive advantages of the company induce
emphasis on the cost leadership. Through the years IBM has shifted the generic
strategy and company uses the differentiation focus for the competitive
strategy (Seekingalpha. com, 2017). The products are
unique and according to the values of the customers. In the case of cost focus
generic strategy, a number of market segments are involved but cost
minimization ensures the competitive advantages (Panmore. com, 2018).
I have generated some new
strategies for the IBM as in my opinion, IBM must allow me to consider the
upsides of the case and possible turnarounds that are not risky. I consider
some positive signs for the turnaround. Even if the process is slow but the
turnaround is happening it could be beneficial to the company. I will find the
growing divided in the meantime and the strategic imperatives are shared by the
50% of the revenues. The benefits for IBM are doubted but I believe that this
strategy will bring positive signs and it will generate support to the share
prices.
References
Elearningindustry. com. (2013, 11 21). How To
Deal With Poor Employee Performance. Retrieved from
elearningindustry.com:
https://elearningindustry.com/how-to-deal-with-poor-employee-performance
Forbes. com. (2018, 11 06). The Top Challenges
CEOs And Leaders Face And How To Overcome Them. Retrieved from
www.forbes.com: https://www.forbes.com/sites/forbescoachescouncil/2016/11/06/top-challenges-ceos-and-leaders-face-and-how-to-overcome-them/#596c3df46441
Ibm. com. (2013). And we are leading by example.
Retrieved from The IBM Strategy :
https://www.ibm.com/annualreport/2013/bin/assets/2013_ibm_strategy.pdf
Inc. com. (2018). What Should a New CEO Focus on
First? And Just as Importantly, Next? Retrieved from www.inc.com:
https://www.inc.com/jeff-haden/what-should-a-new-ceo-focus-on-first-just-as-importantly-next.html
Mindtools. com. (2018). Dealing With Poor
Performance Lack of Ability, or Low Motivation? Retrieved from
www.mindtools.com: https://www.mindtools.com/pages/article/newTMM_80.htm
Panmore. com. (2018, 08 28). IBM’s Generic
Strategy & Strategic Choices, SWOT Analysis. Retrieved from panmore.com:
http://panmore.com/ibm-strategic-choices-strategic-management
Seekingalpha. com. (2017, 06 23). My IBM Strategy.
Retrieved from seekingalpha.com:
https://seekingalpha.com/article/4089701-ibm-strategy
W-05.ibm.com. (2018). IBM Strategy and Change
Services —Business Strategy. Retrieved from www-05.ibm.com:
https://www-05.ibm.com/services/bcs/at/bcsserv/strategy-change/download_stch/sc_business_strategy.pdf