IBM: The Internal And Pestel Analysis Of IBM

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Human resource is important to every organization. This Report looks at strategic human resource with reference to a multinational organization, IBM. IBM is an information technology company involved in the manufacture and distribution of hardware and software around the world. This paper looks at the internal and external factors that impact on the organization. It uses the SWOT and PESTEL analysis to assess the external environment. The paper further uses three SHRM models: BRV, Best Fit and Best Practices to assess the human resource procedures of IBM. Lastly, the paper makes recommendations which the company can use to improve SHRM practices. Introduction International Business Machines Corporation (IBM) manufactures and markets computer…show more content…
An effective organization achieves what it intended to produce. One of the major strengths of IBM is organization effectiveness. IBM describes organization effectiveness as the ability to achieve goals in terms of quality, production, and efficiency. The main goal of IBM is to remain relevant in the market and be the best in what it focuses on achieving. The company was established on the foundations of change and this can be seen in the way the company has evolved and changed to adapt to market changes (Noe, 2016). IBM is always quick to respond to market changes and to come up with new technologies that make it remain on top of the competition in a very competitive industry. Innovation is one of the ways IBM measures its effectiveness. The company prides itself in innovating some of the world greatest products hence great innovations are part of the effectiveness of the organization (Bach & Edwards, 2013). IBM looks at organization effectiveness as the ability to produce desired results with minimum expenditure, time, money and human resources. The company focuses on achieving efficiency in order to be effective hence it tries to achieve minimal…show more content…
The products of IBM are recognized around the globe. The company has managed to brand its products as high-quality products. Consumers are willing to purchase the products even at a high price. The company is quick to make new innovations in the market. This gives the company an edge in technological developments. Being a fast innovator makes the brand strong since the company provides company consumers with the latest products. Weaknesses One of the major weakness of IBM is the size of the company is its size. The company has more than 400,000 employees hence it takes time communicate and respond to various changes in the human resources and the needs in the market. Being a large organization , the company’s response to changes in the market is slow. IBM also has a weakness in relying on big enterprises. The large businesses are the main customers of IBM of mainframe, services, and software. A fluctuation in the spending of the large enterprise largely affects the sales of the company. Threats Competition is a major threat to IBM. IBM competes with large technology companies such as Apple, Amazon, Google, and Microsoft. The competitors are sometimes able to create cheaper products causing the company to lose part of its market. IBM relies on Microsoft programs in their computer services. It is not independent in technology development and this a huge problem if there was a problem with the Microsoft
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