IBM (an MNC) has subsidiaries worldwide. It faces fierce competition from competitors with overlapping business areas. As a result, IBM management implemented a decision-making structure that is flexible in nature. IBM incorporates IS within most of its operations so that employees can offer valuable inputs to an issue, enabling decisions need to be made in a timely manner.
Appraise the application of organisational strategy, analyse how IS can be used to support the various organisational designs, and discuss the impact of cultural factors in business, IS and organisational strategies. Do so by using the managerial levers framework that is defined in terms of three categories of organisational design variables: organisational variables, control variables and cultural variables. Specifically, answer each of the following three (3) sub-questions below and providing case facts to justify your answers.
(i) Organisational variables – Formal reporting relationship
Specify the formal reporting structure that is most suitable for IBM and describe the type of IS that can be employed to support such a formal reporting structure.
(ii) Control variables – Data
Describe the data that are collected and used by IBM developerWorks.
(iii) Cultural variables
As IBM further expands, discuss two (2) ways that national culture can impact IS in the organisation.