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Case Summary
IBM, founded in 1911, based in New York, transformed over a period of about one hundred years from an international, multi-national, to a global integrated enterprise. In 2008, IBM shifted its focus to define and develop leaders for a global economy. This effort included making the globally integrated enterprise relevant to all employees through IBM values, culture, and global citizenship. The aim was to ensure IBM could compete globally. IBM realized it was necessary to examine how it functioned, while gaining a better understanding of any gaps, dilemmas, and opportunities (Moss Kanter, 2008).
IBM realized it was imperative that they relate to the diverse global population, building meaningful relationships with its customers, discussing public policy, societal issues, and their commitment to sustainability. Through localization, IBM was able to prove its commitment to the success of these markets. IBM shifted its focus from New York, developing new best practices, with fewer power holders and more integrators. The GIE effort created global resources, value for customers, offering ideas and opportunities anywhere in the world, increasing innovation, while enriching and changing IBM (Moss Kanter, 2009).
Major Issues
Many, including the public and governments, misunderstood the concept of globalization, especially in emerging markets with state owned and controlled enterprises. IBM leaders in mature markets had concerns about the impact of globalization. IBM was experiencing a rapid expansion of both workforce and revenues outside the United States. Even though IBM staffed locals in its many worldwide IBM locations, outside the United States it was still a foreign enterprise (Moss Kanter, 2008).
IBM...
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...uire civil society and its leaders to be educated on these emerging dynamics (Palmisano, 2006). A GIE can only survive if it is highly flexible and agile, in a fast-paced environment that is in a constant state of change (Rae, 2010).
Works Cited
Dewhurst, M., Harris, J., & Heywood, S. (2011). Understanding your 'globalization penalty'. Mckinsey Quarterly, (3), 12-15.
Moss Kanter, R. (2008). IBM in the 21st century: the coming of the globally integrated enterprise. Harvard Business School. Retrieved from http://hbr.org/product/ibm-in-the-21st-century-the-coming-of-the-globally/an/308105-PDF-ENG
Palmisano, S. (2006). The Globally integrated enterprise. Foreign Affairs, 85(3), 127-136.
Rae, J (2010). Innovation’s dirty little secret. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/innovate/content/jun2010/id20100621_275035.htm