However, new strategies need to be developed and existing is refined to address business changes that may occur both in internal and external business environment. PESTLE analysis is one of them and used to analyze the global business environment, within which organizations, trade and within which its market lies. A Business Analyst may be involved in the detailed analysis to involve Subject Matter Experts and to provide summary information to senior management to take strategic decisions. These factors come from the government influences and determine the degree to which a government may influence a business environment.
IBM, also known as Big Blue, succeeds by developing competencies to exploit the opportunities and overcome the threats based on these external factors. For example, the company can benefit from growth opportunities in the remote or macro-environment through the use of high economies of scale, which is one of the business strengths identified in the SWOT Analysis of IBM.
Thus, this external analysis case helps determine the strategic options for the company.
The aim should be to maximize stability and growth while protecting the business from threats in the remote or macro-environment. For instance, political uncertainty can lead to challenges and barriers to growth in the industry and related markets.
In relation, the company can enhance its innovation processes to exploit opportunities based on political support for e-technologies. These e-technologies correspond to potentially new market segments in the remote or macro-environment.
IBM can target these market segments accordingly. This external analysis also points to governmental action that improves data protection.
For example, governments are increasingly facilitating the implementation of intrusion detection systems, thereby presenting opportunities for the company in providing technological tools for such implementation. IBM must account for the following economic external factors in its remote or macro-environment: Stable economic growth in major markets opportunity Rapid growth of developing markets opportunity Rising demand for online products opportunity Stable economic growth in major markets creates opportunities for firms like IBM to continue developing their operations with minimal issues regarding undesirable economic trends in these markets.
On the other hand, the rapid growth of developing markets is an external factor that corresponds to growth opportunities for information technology firms, especially through the market penetration strategy Read: This external analysis also shows that the company can grow its business through products that specifically target online demand and online markets.
The widespread adoption of online products should prompt the company to increase its investments for targeting online markets. In this external analysis case, IBM must strategically address the following sociocultural external factors: For example, higher sales revenues are expectable, as target customers are increasingly capable of purchasing information technology products from the company.
On the other hand, the remote or macro-environment presents considerable opportunity based on the rising use of customer service in evaluating product quality and business quality.
Moreover, the increasing use of online services is marked as an opportunity in this external analysis. Technologies and related changes determine the business tools and equipment available in the information technology industry.
This trend is a threat because it attracts new entrants from other industries. These new entrants have interests in diversifying their businesses and impose a moderate threat against the company Read: However, the trend also presents an opportunity to expand business operations outside the traditional market for information technologies.
On the other hand, cybercrime is another external factor that threatens the company. This threat comes in the form of potential cyber attacks on online infrastructure. Nonetheless, cybercrime is also marked as an opportunity in this external analysis.IBM and the environment - IBM is committed to environmental leadership in all of its business activities, from its operations to the design of its products and use of its technology.
IBM’s office building in Bratislava, Slovakia. A PESTEL/PESTLE analysis of IBM reflects strategic opportunities for expansion and competitiveness based on external factors in the remote or macro-environment of the information technology industry.
Business Environment Of IBM Information Technology Essay. Print Reference this.
Macro Environment factors are the external factors which affect the company as a whole. Macro Environmental analysis can be done by PESTLE Analysis. This report has analyzed the strategies of IBM through various factors and analysis and IBM has almost.
IBM has established much software for environment management and protection like in the environment monitoring software’s. IBM’s system/ is the world most powerful main-frame computer. IBM introduced various cost effective technology like instead of pure silicon chip, introduced a blend of silicon and germanium.5/5(46).
Ibm Internal and External Environment Essay. Words Dec 9th, 4 Pages.
Show More. Rough Draft Conduct Analysis Porter’s Five Forces IBM Lisa M Schmidt Team 3 GEB Strategic Management Dr. Tristan Davison Overview of the Business. PESTLE analysis is one of them and used to analyze the global business environment, within which organizations, trade and within which its market lies.
PESTLE is an external environmental study tool to investigate external business factors.