what the answer or solution based on the question? CLOSING CASETHE EVOLVING STRATEGY IBMIBM's CEO, Sam Palmisano, likes to talk about theevolution of global strategy at one of the world'slargest computer enterprises. According to Palmi-sano, when IBM first started to expand interna-tionally, it did so in the classic "international"pattern of many enterprises, undertaking mostof its activities at home, and selling its productsinternationally through overseas sales offices. Bythe time Palmisano joined IBM in 1972, however,it had already moved away from this model, andwas by then a classic "multinational" enterprise,with small branches in major national marketsaround the world. This structure made sense forIBM in the 1970s, given that many markets werestill segmented from each other by high barriers tocross border trade, and given that national differ-ences in business practices often required consid-erable localization.In recent decades, however, IBM has been mov-ing away from this model and toward one thatPalmisano characterizes as a “globally integratedenterprise." In his words: "We are locating workand operations anywhere in the world based oneconomics, expertise, and the right business en-vironment. We are integrating those operations /Nage based on a large supply of highly educated,horizontally and globally. We use to have separatesupply chains in different markets. Now we haveone supply chain, a global one. Our R&D has beenglobal for many years, with research and softwaredevelopment carried out in labs around the world.But in our professional services businesses, wherewe use to think about our human capital-ourpeople-in terms of countries, and regions, andbusiness units, we now manage and deploy themas one global asset."Thus today's IBM locates its semiconductorR&D and manufacturing operations in upstateNew York and Vermont, and its global procure-ment center is in China. Global services delivery isin India, while many of the services that supportIBM's external and internal Websites are in placeslike Ireland and Brazil. The people at each of thesecenters are not focused on their national markets;they are leading integrated global operations.This strategic shift was a response to threethings; the globalization of the world economy, theglobal nature of many of IBM's customers, whowere shifting towards a global integration strategy,and the emergence of fierce competition from en-terprises in emerging markets such as China andIndia. India is a good example; in the 1990s atrio of Indian outsourcing firms, Tata ConsultingServices, Infosys, and Wipro started to take shareaway from IBM in its core information technologyservices business. The Indians enjoyed an advan-but relative inexpensive, engineering, and manage-rial talent. IBM felt that to compete, it needed toadopt the low cost model being pioneered in In-dia. In the mid-2000s, it bought Daksh, an Indianfirm that was a smaller version of India's big threeinformation technology services firms. IBM hasinvested heavily in its Indian unit, building it intoa large global business with leading market sharethat now effectively competes on cost and qualityagainst its Indian rivals. While Palmisano notesthat the original motivation for expanding in Indiawas to gain access to low cost labor, he argues thatthe skill base in India is just as important now-ifnot more so. IBM can find a large supply of highlyskilled people in India who can staff its global ser-vices operations, and move seamlessly around theworld. It doesn't hurt that most Indians have abecome the de facto language of business in muchof the world.Looking forward, Palmisano stresses thatIBM is still fairly early in its journey to become afully integrated global enterprise. The big thrustgoing forward will be on developing the humancapital of the enterprise-helping to producemanagers and engineers who see themselves asglobal professionals and global citizens, whoare able to move effortlessly around the world,and do business effectively in a wide range ofnational contexts.43good command of the English language, which hasCase Discussion Questionsurndem1. In the 1970s and 1980s Palmisano states that IBMwas organized as a classic multinational enterprise.What does this mean? Why do you think IBM wasorganized that way? What were the advantages ofthis kind of strategic orientation?2. By the 1990s, the classic multinational strategic orien-tation was no longer working well for IBM. Why not?3. What are the strategic advantages of IBM's glob-ally integrated enterprise strategy? What kind oforganizational changes do you think had to bemade at IBM to make this strategy a reality?4. According to the strategic choice framework in-troduced in this chapter, what strategy do youthink IBM is pursuing today?oritere-isortes

Question

what the answer or solution based on the question? CLOSING CASETHE EVOLVING STRATEGY IBMIBM's CEO, Sam Palmisano, likes to talk about theevolution of global strategy at one of the world'slargest computer enterprises. According to Palmi-sano, when IBM first started to expand interna-tionally, it did so in the classic &#34;international&#34;pattern of many enterprises, undertaking mostof its activities at home, and selling its productsinternationally through overseas sales offices. Bythe time Palmisano joined IBM in 1972, however,it had already moved away from this model, andwas by then a classic &#34;multinational&#34; enterprise,with small branches in major national marketsaround the world. This structure made sense forIBM in the 1970s, given that many markets werestill segmented from each other by high barriers tocross border trade, and given that national differ-ences in business practices often required consid-erable localization.In recent decades, however, IBM has been mov-ing away from this model and toward one thatPalmisano characterizes as a “globally integratedenterprise.&#34; In his words: &#34;We are locating workand operations anywhere in the world based oneconomics, expertise, and the right business en-vironment. We are integrating those operations /Nage based on a large supply of highly educated,horizontally and globally. We use to have separatesupply chains in different markets. Now we haveone supply chain, a global one. Our R&D has beenglobal for many years, with research and softwaredevelopment carried out in labs around the world.But in our professional services businesses, wherewe use to think about our human capital-ourpeople-in terms of countries, and regions, andbusiness units, we now manage and deploy themas one global asset.&#34;Thus today's IBM locates its semiconductorR&D and manufacturing operations in upstateNew York and Vermont, and its global procure-ment center is in China. Global services delivery isin India, while many of the services that supportIBM's external and internal Websites are in placeslike Ireland and Brazil. The people at each of thesecenters are not focused on their national markets;they are leading integrated global operations.This strategic shift was a response to threethings; the globalization of the world economy, theglobal nature of many of IBM's customers, whowere shifting towards a global integration strategy,and the emergence of fierce competition from en-terprises in emerging markets such as China andIndia. India is a good example; in the 1990s atrio of Indian outsourcing firms, Tata ConsultingServices, Infosys, and Wipro started to take shareaway from IBM in its core information technologyservices business. The Indians enjoyed an advan-but relative inexpensive, engineering, and manage-rial talent. IBM felt that to compete, it needed toadopt the low cost model being pioneered in In-dia. In the mid-2000s, it bought Daksh, an Indianfirm that was a smaller version of India's big threeinformation technology services firms. IBM hasinvested heavily in its Indian unit, building it intoa large global business with leading market sharethat now effectively competes on cost and qualityagainst its Indian rivals. While Palmisano notesthat the original motivation for expanding in Indiawas to gain access to low cost labor, he argues thatthe skill base in India is just as important now-ifnot more so. IBM can find a large supply of highlyskilled people in India who can staff its global ser-vices operations, and move seamlessly around theworld. It doesn't hurt that most Indians have abecome the de facto language of business in muchof the world.Looking forward, Palmisano stresses thatIBM is still fairly early in its journey to become afully integrated global enterprise. The big thrustgoing forward will be on developing the humancapital of the enterprise-helping to producemanagers and engineers who see themselves asglobal professionals and global citizens, whoare able to move effortlessly around the world,and do business effectively in a wide range ofnational contexts.43good command of the English language, which hasCase Discussion Questionsurndem1. In the 1970s and 1980s Palmisano states that IBMwas organized as a classic multinational enterprise.What does this mean? Why do you think IBM wasorganized that way? What were the advantages ofthis kind of strategic orientation?2. By the 1990s, the classic multinational strategic orien-tation was no longer working well for IBM. Why not?3. What are the strategic advantages of IBM's glob-ally integrated enterprise strategy? What kind oforganizational changes do you think had to bemade at IBM to make this strategy a reality?4. According to the strategic choice framework in-troduced in this chapter, what strategy do youthink IBM is pursuing today?oritere-isortes

Accepted Answer

1) The classic international pattern of IBM: 
In Between the 1970 to 80's when IBM following The…