Fall of Ibm

In: Business and Management

Submitted By rioliza
Words 1673
Pages 7
Title: The Fall of IBM Date: September 20, 2013

I. Executive Summary

The purpose of this case study analysis is to analyze the situation of IBM in the 1990s, to come up with possible mutually exclusive alternatives for IBM’s management and ultimately, to recommend a possible strategy to regain back IBM’s throne in the industry.

The problem of the case study is all about the survival of IBM in a much more competitive market ever encountered by the company. And also, overcoming new challenges brought about IBM’s new management and the dynamic technological environment.

The methods of analysis used for this case study are the Porter’s Five Forces Model and the ANSOFF matrix analysis. Brief explanations were provided in each of the methods used for analysis.

After analyzing the case study, the following three mutually exclusive alternative course of action were developed: 1. Decentralize Management; 2. Invest heavily on research and development and; 3. Partner with suppliers

From the alternatives, I recommend that IBM should partner with its suppliers. Collaboration with suppliers will increase business flexibility and executive level business decision support. This will surely bring the most benefit for the company among the other alternatives course of action. The suppliers play a great role in the industry and having strong connections with them can help the company survive and even excel in the industry.

Outline and Implementation: | Objective | Indicator | Target | Action | Financial | To strengthen the financial position and increase profitability of the company | ROIMarket price per shareWorking capitalAsset turnover rate | Attain industry average or higher | Monitor closely changes in financial data and submit reports on time | Customer | Improve company branding | Increase in sales | Gain new consumers and…...

Similar Documents

Ibm Leadership

...IBM Leadership University of Phoenix COM/530 COMMUNICATIONS FOR ACCOUNTANTS August 27, 2012 Mark Durand   IBM’s operations consist of two major components, technological research and development, and consulting services. “Its core values are dedication to every client’s success, innovation that matters, for our company and for the world, and trust and personal responsibility in all relationships.” (Palamisano, 2003) Taking both major operations into account, the leadership style employed can greatly influence the alignment of these values with its practices. In every organization, the utilization of the concepts outlined in transformational leadership, where leaders, “inspire followers to transcend their self-interest for the good of the organization,” and the Socialized Charismatic Leadership Theory, “leadership that conveys other centered (not self-centered) values by leaders who model ethical conduct,” (Robbins and Judge, 2011) would provide significant benefits to the organization. These theories however require the sole conviction of the individual. They are not necessarily an actionable theory of leadership in that every member of an organization should at all times be demonstrating the characteristics stated above. Of the actionable leadership theories, much good can come from employing the Path Goal Theory which says that “it’s the leader’s job to provide followers with the information,......

Words: 1299 - Pages: 6

Ibm Casestudy

...meet and create demands International Business Machines (IBM) has proven to be able to withstand the ever changing technical world. Challenges come and go, in this case study we discuss a three-prong road that IBM faced. Should they continue to be a tech services company? Or should they explore the collaborative business model, running a risk to become exploited? Is it an option to keep the acquisition spree going for growth rather than organically grow by in-house or collaborative research and development? Facts of the case Structure, management and strategic directions IBM is a multinational corporation that started its activities in 1911. Its origins however, can be traced to 1890, during the height of the Industrial Revolution. It was first known as the Computing-Recording Company, and then in 1924, it took the name of International Business Machines. Nowadays, this multinational company is known as the ¡§Big Blue¡¨ It was first known as the Computing-Recording Company, and then in 1924, it took the name of International Business Machines. Nowadays, this multinational company is known as the ¡§Big Blue¡¨ IBM main activity is to find solutions to its wide range of clients using advanced information technology. Its clients are individual users, specialized businesses, and institutions such as government, science, defense, and spatial and educational organizations. To meet and respond to its customers needs, IBM creates, develops and manufactures many of the world’s......

Words: 2802 - Pages: 12

Ibm Study

...have paid attention on for their strategic reshape?  I think the most important change to lead the IBM to success is that IBM changed their business model from low margin business like PCs and hard drivers to upmarket to services and software. Because the low margin hardware market has the very competitive market with many players based on China and Taiwan. 2. If you check the stock performances of the two companies since 2005 when IBM sold off its PC division to Lenovo, the thin-margin PC business appears to have worked differently for two companies. The same asset (i.e., the PC division) wasn't beneficial to IBM but the opposite was true to Lenovo. How would you explain this?  IBM has maintained strong position in IT industry. The stock price say this to me. IBM read the trend of industry very well. At 2005, IBM can’t generate profit from PC division. So if IBM did not sold out PC division and then continue operation PC division. They may be failing to come present position. IBM sold PC division at the appropriate time, and they also got reasonable money that can be used to improve IBM’s software skills and other division’s abilities  I think that in the economy, each economic unit who is the company has the competitive advantage. So same assets can be playing other role in other company. Lenovo has the competitive advantage in low margin PC and hardware industry. and IBM has the competitive advantage in advanced software and IT related service. So the selling......

Words: 434 - Pages: 2

Fall of Ibm Swot and Pest Analysis

...and System/370 mainframe series. These powerful mainframes, which fully automated a company’s manual information processing systems, became the industry standard that competitors tried to match. Apart from this, IBM’s high-priced lease strategy, backed by excellent customer service, also contributed to the rapid rise of the company’s fortunes. This leasing system tied the company to its customers, thus guaranteeing a steady cash flow. Over the years, IBM’s traditional focus on service, combined with a successful sales force, always gave it a competitive advantage. Another of IBM’s strengths is its successful alliances and joint ventures with computer, software, and marketing companies such as Intel and Microsoft. These ventures helped IBM achieve product innovation and differentiation and enter new markets. IBM’s contention system can also be considered as strength. In this system, project teams design competing product prototypes and a series of committees at all managerial levels debate the costs and benefits of each project over a time period. This resulted to the approval of generally successful projects. Furthermore, the product group structure which was implemented during the restructuring of the ‘90s proved to be very successful. In this structure, the divisions were organized around products instead of functions and each group had control over its manufacturing and marketing. Weaknesses IBM’s major weakness was its ‘mainframes were king’ corporate mindset.......

Words: 1245 - Pages: 5

Ibm Analysis

...Case Analysis: The Evolving Strategy at IBM IBM’s  CEO,  Sam  Palmisano,  likes  to  talk  about  the  evolution  of  global  strategy  at  one  of  the  world’s   largest computer enterprises. According to Palmisano, when IBM first started to expand internationally, it  did  so  in  the  classic  “international”  pattern  of  many  enterprises,  undertaking  most  of  its  activities  at   home, and selling its products internationally through overseas offices. By the time Palmisano joined IBM in 1972, however, it had already moved away from this model, and was by then a classic “multinational”  enterprise,  with  mini  IBM’s  in  major  national  markets  around  the  world.  This  structure   made sense for IBM in the 1970s, given that many markets were still segmented from each other by high barriers to cross-border trade and national differences in business practices often required considerable localization. In recent decades, however, IBM has been moving away from this model and toward one that Palmisano characterizes  as  a  “globally  integrated  enterprise.”  In  his  words:    “We  are  locating  work  and  operations   anywhere in the world based on economics, expertise, and the right business environment. We are integrating those operations horizontally and globally. We used to have separate supply chains in different markets. Now we have one supply chain, a global one. Our R&D has been global for many years, with research and software development carried out......

Words: 944 - Pages: 4

Rise of Ibm

...THE RISE OF IBM 1900-1970 To meet the needs of measuring population the US Census Bureau sponsored a contest to find the most efficient means of tabulating census data. The contest was won by German immigrant and Census Bureau statistician, Herman Hollerith. Hollerith formed the Punch Card Tabulating Machine Co. in 1896. In 1911 Hollerith’s company merged with Computing Scale Co. of America and International Time Recording Co. to form Computing-Tabulating-Recording Co. During the period between 1910 and 1960, it developed products from punch-card tabulating machines to room-sized calculators to mainframe computing systems for large enterprises and changed the nature of accounting, calculation and basic back-office business processes. In the 1970s and 80s, IBM product lines expanded from its traditional mainframes to minicomputer and personal computers and applications moved from backend operations to departmental operation. In 1981, the company introduced the IBM Personal Computer or PC, allowing the use of computers in schools, homes and businesses. Components for the computer were sourced from outside the company. It developed products from punch-card tabulating machines to room sized calculators and main frame computers. The company manufactured and sold products ranging from commercial scales and industrial time recorder to meat and cheese slicers, tabulators and punch cards. In the beginning the company operated in New York City only. Within a short period...

Words: 2645 - Pages: 11

Falls

...Falls have been defined as unintentional descents to the floor, which can be due to a variety of factors such as clinical and environmental factors. Fall rates are calculated as the number of patient falls divided by the number of patient bed days multiplied by 1000. Similaril, injury rates are calculated as the number of injuries due to falls divided by the number of patient bed days multiplied by 1000. Up to 12% of hospitalized patients fall at least once during their hospital stay; falls can lengthen hospital stays and result in poor quality of life, increased costs, admission to a long-term care facility, serious physical injuries, and death. Falls in hospital settings have multiple causes. Ressarch shows that patients who exhibit more of these risk factors are at greater risk of falling than those exhibiting fewer. Risk factors for falling can be classified as intrinsic (e.g., older age, balance disorders, history of falls, decreased vision, altered cognitive status, or history of arthritis, heart attack, stroke, postural blood pressure changes, syncope, dizziness, or chronic lung disease), extrinsic (e.g., polypharmacy and use of certain medications known to increase fall risk [e.g., benzodiazepines, sedatives, neuroleptics, antidepressants, anticonvulsants, class I antiarrhythmics, and diuretics]), and environmental (e.g., inadequate lighting, slippery floors, lack of handrails, and inadequate nurse/patient staffing ratio. Research studies show that fall rates vary...

Words: 259 - Pages: 2

Ibm Essay

...INTERNATIONAL BUSINESS MACHINES (IBM) International Business Machines (IBM) is a leadingcompany in global technological products and services. It specializes in services, software, systems, fundamental research and related financing. This mix of businesses and capabilities together provide integrated solutions to the company’s clients (ibm.com). IBM Business Strategy In keeping with the business strategy perspective, an organization’s competitive advantage lies in its ability to produce or get resources and competences, "take a strategic position in a market and implement a competitive strategy that takes into consideration the opportunities and threats in the external environment” (Porter, 1980). Applying a business strategy that is coherent increases competitive advantage by influencing organizational outcomes and creates superior performance. IBM has successfully incorporated this perspective. The 2014 Annual report states that IBM’s strategy continues “to be one of innovation and a constant drive to deliver higher value for our clients”. This global strategy is positioned on three pillars: data, cloud, and engagement. Pillar 1 - the company will use data to transform industry and professions. It reads: “We are making markets by transforming industries and professions with data”. According to IBM data is increasing capability, rapidity and diversity in an exponential manner and is emerging to be a novel global natural resource. It has embraced data as......

Words: 741 - Pages: 3

Ibm Case

...College of Business Administration Florida International University December 6, 2000 IBM Personal Systems Group: Implementing ERP1 There was an eerie quiet in the IBM Personal Systems Group (PSG) plant in Research Triangle Park (RTP), North Carolina. Hundreds of forklifts sat idle in the factory. The shipping docks, usually filled with incoming supplies, were empty. The 2,500 employees who normally worked in the plant each day were gone. The plant, which normally produced 20,000 PCs a week, was shut down. The date was April 6, 1999. On this date, the plant was to ‘go live’ with an implementation of the SAP R/3 system known as Production Release 2 (PR2). As John Corcoran, Director, SAP Production Project, waited for the first transaction to be processed by PR2 on April 6, he reflected on how PSG had come to this milestone event. Several years before, PSG had recognized the need for an integrated system that would allow better management of the supply chain across all of its plants and quicker response to changes in the business environment. Most recently, the success of Dell made clear to PSG the value of creating a CTO (Configure-to-Order) business model in addition to its standard MTM (Machine Type Model) business model. Having a set of autonomous plants, each with a multitude of independent legacy systems that supported different business processes was a significant obstacle to implementing this or any other new business model. On January 1, 1998, the first version......

Words: 7767 - Pages: 32

Ibm Corporation

...IBM Corporation In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per share increased an average of 27% per year. This remarkable increase in earnings did not go unnoticed by the securities markets. Indeed, the company’s market value grew from less than $30 billion to over $200 billion during the period. Use the following financial statement data to: 1. Decompose IBM’s ROE (by quarter) and discuss the factors (and trends) that contribute to Big Blue’s profitability 2. Evaluate IBM’s Revenue growth, Receivables, and Gross margins and over the period. Be sure to control for seasonality (e.g., compute the same quarter to same quarter change in these items). 3. Evaluate IBM’s Earnings per Share (basic), and Identify the factors most responsible for the increase in IBM’s earnings Write your answers in Standard English. Be specific in your references, provide details of your computations, and be thorough in your explanations – I cannot read your mind. EXHIBIT 1 IBM Selected Earnings Per Share Data For the Quarters Ended: Earnings Per Share (from continuing operations) Analyst Expected Earnings Per Share Difference % Surprise Jun-00 1.06 1.00 0.06 6.00% Mar-00 0.83 0.77 0.06 7.79% Dec-99 1.12 1.06 0.06 5.66% Sep-99 0.90 0.90 0.00% Jun-99 0.91 0.88 0.03 3.41% All of the financial data in the tables that follow (except “per share figures”), are in millions. EXHIBIT......

Words: 1882 - Pages: 8

Fall

...September 2015 Fall, A.K.A, the Best Season Imagine waking up and walking outside and hearing the crunch of leaves beneath your feet and smelling the crisp fresh and cool air. Fall makes me so happy and I am anxious for it to come every single year. Everything during fall is absolutely wonderful, I love it! Some of the best times that I have had in my life, oddly occurred during the fall season; and I sometimes wonder if that may be part of the reason(s) that I cherish it so much. Fall is such a beautiful and blissful season; it is the best season of the year. Fall is so wonderful mainly because of the beautiful scenery it displays. Here in Arizona, the summers are very hot and dry, and it almost feels dreadful at times; but the fall here is absolutely beautiful. You can start to notice the transition into fall around mid- September because the mornings are sort of wet from the precipitation and you can feel the cool air gently fan across your whole entire body. Not only that, but later in September, the leaves start to turn into the beautiful array of sunburst orange, medallion yellow and cherry red, and when the leaves start to fall onto the cold hard ground, you can feel and hear the crunch of the leaves beneath your feet. The cool air is so crisp and refreshing; you can feel the slight wind of the cool air tingle your cheeks lightly. The weather is not to cold and not too warm, it is just the perfect measure of both. It is lovely. Not only is the sight of fall......

Words: 1104 - Pages: 5

Turnaround at Ibm

...Lou Gerstner was entrusted by IBM to take a faltering business and turn it into the multi-billion dollar corporation that it is today. In the early 1990’s, IBM sales were declining at a rate, which would undoubtedly force the company into bankruptcy. This trend was largely caused by IBM’s lack of diversification and primary focus on building and selling computer systems with an emphasis on mainframes. As new corporations began to flood the market with cheaper versions of IBM’s computers, the Board of Trustees recognized the need to alter their strategic plan to ensure IBM would remain in the forefront of the computer industry (Allen, Attner, & Plunkett, 2013, p. 124-125). Gerstner knew the value of service and returning customers, and with these ideals he created a new branch of IBM which would focus on specific problems for each of their customers. The new IBM would help customers with everyday tasks such as shipping, purchasing, networking, and marketing. Gerstner realized that IBM’s true potential was deeply imbedded in its strengths, which were research and integrated computers. Within about 1 year of Gerstner taking charge, IBM developed software which would allow computer systems to “talk” or network, and this change would cement IBM’s fate and allow the computer giant to remain at the top of the industry (Allen, Attner, & Plunkett, 2013, p. 124-125). Questions 1. Work with another student to answer the following questions. What strategy changes......

Words: 302 - Pages: 2

Article on Ibm

...IBM, i-flex bag Canara core banking project Article by Business standard * Computer maker and IT services firm IBM has won the bid to implement a core banking solution for Canara Bank. In a deal, which market sources estimate at some Rs 250 crore, IBM will implement Flexcube, supplied by i-flex solutions in some 1,000 branches of the bank. * The hardware part alone will cost Rs 100 crore, M B N Rao, Canara Bank's chairman and managing director told reporters here on Friday. The IBM - i-flex combination beat competition from multinational rival Hewlett Packard and a desi system integrator, Wipro, both of whom had offered to implement Finacle, supplied by Infosys Technologies, a senior bank official said. * IBM's services business, IBM Global Services, will do the system integration work, said Shankar Annaswamy, managing director of IBM's Indian subsidiary, IBM India Limited. * IBM will also supply all the hardware required for the project. It will build a data centre at Bangalore, where the bank is headquartered, and a disaster recovery centre at Mangalore, the official said. * It will take some eight months for i-flex to customiseFlexcube to Canara Bank's requirements. By that time one branch, at the headquarters will go live with the core banking solutions. In the next five months, 1,052 branches will be hooked up. * These branches have been chosen to account for the bulk of the bank's business. They will cover "about 83-84 per cent of our business",...

Words: 356 - Pages: 2

Falls

...Falls A medical surgical unit where falls began to jump, and we don’t know why. Was it that we weren’t assessing correctly, were we not putting the right interventions in place, or was it that our patient population changed—or a combination? That’s the question that started us down this road. A record called a hybrid version of several other falls risk assessments. During the next several months, the committee has the following four goals: • Decrease falls at North Adams by 10% 12 months after plan implementation • Review and revise falls policy and procedures based on evidence-based data • Recommend necessary education for staff members • Develop ongoing performance improvement monitoring Once the falls problem was identified and brought to the attention of the hospital’s patient safety committee, a falls subcommittee was formed and staff nurses recruited. The committee has representation from inpatient and outpatient areas of the hospital and meets weekly to discuss current practice and published research on the subject. The committee discussed various journal articles and literature found online and evaluated models used by other healthcare organizations. The committee examined the assessment, Morse and Hendrick models, used by a handful of neighboring organizations. The committee started by analyzing its current falls assessment process, including interventions. A revised model for assessing a patient’s risk and preventing falls based on the research and......

Words: 497 - Pages: 2

The Fall

...The Fall is a film featuring two main characters, Roy and Alexandria. The film[‘]s black and white opening scene introduces us to Roy and also prevails [presents?] his injury while acting as a stunt man in silent films. Alexandria on the other hand, had fallen and is suffering a broken her arm. The cripples find each other within the hospital where Roy begins to tell Alexandria an epic story, a story which brings color into their dull, sick lives. Throughout the movie, the fantasy world of the story and the reality of Roy and Alexandria’s life [lives] begin to mesh into one, and through this, it is evident that they’re friendships [their friendship] with each other is what brings the color and life back into one another’s once lonely lives. The film begins with Roy’s fall while working as a stuntman for black and white films. Not only is the colorless, silent film making it evident that the film is taking place in a time before colored film existed, perhaps the 1930’s, the black and white is significant to the scene because that is when Roy becomes crippled, which in a sense takes the color out of his life. After that scene, the film then cuts to a beautiful mansion, which happens to be the hospital Roy and Alexandria are resided at. Outside of the hospital, we are shown both vibrant cool and warm colors, the bright blue sky, the intensity of the orange in the oranges and greens in the landscaping, which makes it appeal as a happy, lively place. When the scene shoots to......

Words: 869 - Pages: 4