Ibm Culture

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I.B.M (International Business Machines Corp)

The culture values of Thomas Watson which made IBM corp. adopt were “THINK” and “Professionalism” in order to inspire and motivate staff, work hard and adhere to high ethical standards which were defining attributes for American professionalism. “Job security” was also a main value of IBM Corp. offering lifetime employment guarantees for its employees in order to show loyalty and motivate them in offering good services. These values not only made IBM one of the most stable and profitable company at that time but also managed to grow during the Great Depression of the 1930’s. However nothing is made to last forever as in 1992 IBM started to decline because of it’s inadaptability with the continuous changing market and loss of their relationship with customers. IBM could no longer afford generous benefits and lifetime employment and recorded losses of 5 billion dollars the highest loss in American corporate history. With the arrival of the new C.E.O IBM begin renewing interest in customer relationship. He required IBM Managers to set financial goals and to meet them. He removed those who didn't. He eliminated some products while establishing other new categories inside IBM. Massive layoffs also took place in 1993. Gerstner helped IBM turn its focal point from hardware such as mainframes to more complete offerings that included software and service. Those packages made the evolution from PCs to supercomputers. The approach is represented by IBM Global Services and has become one of IBM's best ways of selling products. In changing IBM from a hardware company that was in decline to a leading solution company in information technology industry, Gerstner renew IBM’s existing core values as to change them, returning to it’s strengths in technology and embraced it’s size as a competitive advantage.
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