Essay on Analysis Macro And Micro Environment Of IBM

Essay on Analysis Macro And Micro Environment Of IBM

Length: 1765 words (5 double-spaced pages)

Rating: Powerful Essays

Open Document

Essay Preview

Introduction (Graphics Not Available)
The world has grown increasingly complex, resulting from the greater interdependence among world economies (Thompson, 2002). Successful organization is largely determined by how well the organization adjusts all its tangible and intangible properties to keep itself on track with its surrounding (Armenakes & Bedeian, 1999). Strategy was concerned to manage firm’s activities and resources to the environment in which it operates. This essay will analyse the micro and macro external environment in the part five years (2000 to 2006) of IBM Company by using PESTEL and five forces model to analyse in the first part. The second part will discuss about the advantages and disadvantages of the two possible alternative strategies for IBM.

Part 1: Analysis of Micro and Macro External Environment

1.1 PESTEL Analysis
The external factors can be divided into six broadly categories which are political, environment, social, technology, environment and legal (Johnson, 2005). Such external factors usually are out of the firm's control and sometimes present themselves as threats. In this case, political factor, environmental factor and technology factor will be used to analyse the computer technology industry.

Political factor
The Iraq War is an ongoing war which began with a United State led invasion of Iraq in 2003. This war affected to the world economy, especially, USA who directly war with Iraq. Fear of a possible U.S. led war with Iraq soured investors’ sentiment in U.S. stock market. Furthermore, technology stocks in European market plunged following down results from sector giants Microsoft and IBM stocks fell down (CNN.com). This is because of everyone is negative on Iraq and in combination ...


... middle of paper ...


...ion.cnn.com/2003/BUSINESS/01/17/markets.europe/index.html. Accessed on 31/5/2007

• My solution info.com IBM market share
http://www.mysolutioninfo.com/news-display.aspx?Code=960&t=IBM%20Number%20One%20in%20Worldwide%20Application%20Development%20Software%20Market%20Share. Accessed on 1/6/2007

• Network world U.S. military
http://www.networkworld.com/news/2006/101206-us-military-to-test-ibms.html?page=1 Accessed on 29/5/2007

• New.com IBM layoff employees
http://news.com.com/IBM+to+cut+almost+1%2C600+more+jobs/2100-7252_3-6187552.html?tag=topicIndex Accessed on 2/6/2007

• IBM company
www.IBM.com Accessed on 28/5/2007

• IBM transfers top buyer to China Sold PC business to Lenovo
http://news.bbc.co.uk/2/hi/business/6045482.stm Accessed on 30/5/2007

• SARS BBC News
http://www.bbc.co.uk/health/conditions/sars1.shtml#what_is_it? Accessed on 1/6/2007

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Macro And Micro Environment Analysis Essay

- Macro and Micro-Environment As a multinational, Xerox specializes in technology and services and operates under two different market environments, the macro and microenvironment. In the microenvironment, the company has influence while in the macro-environment the company cannot make market changes. Micro-Environment Strengths/opportunities The changes in the company by adopting business services industry helped the company in enhancing efficiency as well as presenting quality services to its clients....   [tags: Management, Technology, Xerox, Supply and demand]

Powerful Essays
788 words (2.3 pages)

Essay on The Micro and Macro Environment

- Environmental factors in marketing are classified into two (2) groups the macro and the micro environment. According to the investopedia Macro environment is the conditions that exist in the economy as a whole, rather than in a particular sector or region. In general, the macro environment will include tends in gross domestic product (GDP), inflation, employment, spending and monetary and fiscal policy. The macro environment is closely linked to general business cycles, as opposed to the performance of an individual business sectors....   [tags: business environment, income]

Powerful Essays
844 words (2.4 pages)

Essay Micro And Macro Environments : Factors That Affect Business Decisions

- As managers invest their resources into their company it is prudent to conduct a proper analysis of the market. Particular attention must be given to the factors that can and to pose a threat to the longevity of their enterprise. Micro and macro environments are the two major forces that affect business decisions. A strategic prospective of each entity enables the marketers and the company by extension, to stay ahead of the competition. The micro environment encompasses all the entities that affect the function ability of the enterprise....   [tags: Marketing, Marketing strategy, Business, Activism]

Powerful Essays
1026 words (2.9 pages)

People and the Environment: Levels of The Ecological Model Essay

- Ecological model is a view of people and their interaction with the environment around them. Some of the examples that are viewed are social and cultural conditions that are measured to evaluate the health status and illness prevention. Another that is viewed is illness related. This could be either perceived or actual illness. These illnesses could have frequent disruptions of personal and family life and hinders ones coping abilities. Often time medical treatment alone is impossible to help any without the support of others; such as social support and counselling services (Gorman-Smith, Tolan & Henry, 2000)....   [tags: Micro, Meso and Macro]

Powerful Essays
609 words (1.7 pages)

A Comparison of Micro and Macro Songs Essay

- Sociology, as a practice, can be applied to almost every human exchange. The realm of lyrical song is no different, offering numerous venues for sociological perspectives to be expressed by the artist(s) about the shared environment around them. For the purposes of exemplifying the possible connections which can be made in this context we chose two unique songs: “Prayer of the Refugee” by Rise Against and “The Dreaming Tree” by the Dave Matthews Band. In the following examination, both songs demonstrate the diverse principles of the sociological perspective on a macro and micro level, respectively....   [tags: Music Analysis ]

Powerful Essays
1498 words (4.3 pages)

Essay about A Micro Macro View Of The World

- I thought the artist might have a micro-macro view of the world and this was his attempt to depict the beauty of both realities. I also thought that had Alan Turning, who at his death was trying to determine the math behind patterns on animals like leopards, tasked with making art would he have been the ultimate outsider because he saw patterns in the world the rest of us would never imagine in 10,000 lifetimes. And would Turing have been any more original than Picasso or Braque, because he had a more unique view of the world than either of them or would he have been more creative because he was more curious....   [tags: Thought, Mind, Psychology, Creativity]

Powerful Essays
704 words (2 pages)

The Unknown Micro And Macro Nutrients Essay

- Unknowns Prac. The aim of the above practical is to identify the unknown micro and macro nutrients that reside in three unknown solutions using a series of biochemical tests. Introduction Micronutrients, as opposed to macronutrients (protein, carbohydrates and fat), are made up of vitamins and minerals which are required in small doses to ensure normal metabolism, growth and physical well‐being. • Vitamins – Which are essential organic nutrients, most of which are not made in the body, or only in insufficient quantities, and are mainly acquired through food....   [tags: Vitamin, Nutrition, Vitamins, Essential nutrient]

Powerful Essays
1604 words (4.6 pages)

Micro and Macro Economics Essay

- Economics is basically the understanding of how different economies function. Economics is the study of how to best allocate scarce resources among competing uses. Scarcity in the economy is the main problem. There are not enough resources to keep up with the demand for them. Within the discipline of economics, there are two areas of study: Micro and Macro Economics. Microeconomics is the study of an individual economy, or of the different segments within the larger economy, while macroeconomics is the study of aggregate economic behavior, or the economy as a whole(Madura 103)....   [tags: Economics Essays]

Free Essays
569 words (1.6 pages)

Differences in Macro and Micro Level Theories Essay

- There are many differences between macro and micro-level theories. Micro-level focuses on individuals and their interactions. For example the relationship between adult children and their parents, or the effect of negative attitudes on older people. Some criticize on micro-level theories becuase they focus on what older people do rather than on social conditionsand policies that cuase them to act the way they do. Macro-level focuses more upon social structure, social processes and problems, and their interrelationships....   [tags: Sociology, Relationships]

Free Essays
317 words (0.9 pages)

Essay about Macro-Environmental Analysis

- In analyzing the macro-environment, it is important to identify the factors that might in turn affect a number of vital variables that are likely to influence the organization's supply and demand levels and its costs (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The "radical and ongoing changes occurring in society create an uncertain environment and have an impact on the function of the whole organization" (Tsiakkiros, 2002). A number of checklists have been developed as ways of cataloguing the vast number of possible issues that might affect an industry....   [tags: Economics Macro Analysis Research Paper]

Free Essays
1056 words (3 pages)