Return to the firm that you discussed in Week 1 (SEE BELOW). Reflect on the firm’s core competency and its competitive advantage, incorporate the observations made by your classmates during the week 1 discussion. Now consider what four performance factors that are most important to monitor. Rank order them from most to least important. Justify why each performance factor should be monitored and suggest a means to monitor it. Use in-text citations and Reference list to support your answer.

Week 1 Discussion:

The International Business Machines (IBM) company has recently experienced a growth in its performance after acquiring Red Hat, a cloud-computing and software firm. The situation shows IBM as a company with an increased core competency in cloud computing and software options. According to an article in the channel daily news website, IBM’s core competencies are financing, security, Watson IoT (internet of things), and the IBM cloud. The security function aims to protect customer’s essential data from access from unauthorized parties. Financing assists IBM partners to engage in commercial activities securely and faster (Radu, 2017).

On the other hand, the IBM Cloud helps customers move large data volumes to transfer data over private and public networks. Lastly, the internet of things fosters innovation. Another core competency of the company revolves around cost-effectiveness and differentiation of its products.

A core competency is an activity that the company can perform well. Therefore, having a unique core competency creates a competitive advantage to a company since the organization identifies itself as the only firm with the capability to offer the services. IBM’s core competencies are an advantage due to the combination of business practices with technology. In this regard, IBM identifies its core competencies as an advantage due to its unique capabilities (Thompson, 2018). On this matter, IBM’s advantage is sustainable due to the amalgamation of business functions with information technology to enhance its quality of services.

On another note, IBM’s strategy relates to Mintzberg’s strategic framework in various ways. According to Mintzberg, a strategy has 5Ps: ploy, plan, position, pattern, and perspective (“Mastering Strategy: Art and Science,” 2020). In this regard, IBM plans to enhance its cloud and software functions by acquiring Red Hat and implementing cost-effective measures to improve its market share. Moreover, the acquisition of Red Hat is a ploy that aimed to eliminate its competitors. Concerning the position, IBM positions itself as a cost-effective company that offers unique services and products due to the industry’s perception as highly competitive (Radu, 2017). Lastly, the company responds to its competitive pressures by constantly developing high-quality products at an affordable price and focusing on the global market.

References:

Mastering Strategy: Art and Science. Saylordotorg.github.io. (2020). Retrieved 23 August 2020, from https://saylordotorg.github.io/text_mastering-strategic-management/s05-mastering-strategy-art-and-sci.html.

Radu, A. (2017). Five new IBM competencies target cognitive computing. Channel Daily News. Retrieved 23 August 2020, from https://channeldailynews.com/news/four-new-ibm-competencies-target-cognitive-computing/53004.

Thompson, A. (2018). IBM’s Generic Strategy & Strategic Choices, SWOT Analysis – Panmore Institute. Panmore Institute. Retrieved 23 August 2020, from http://panmore.com/ibm-strategic-choices-strategic-management#:~:text=At%20present%2C%20IBM’s%20primary%20generic,cost%2Deffectiveness%20of%20its%20operations.

Weekly Readings

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