Component Check OBJECTIVES & STRATEGIES
IBM is repositioning itself from a computer company to an information technology service company through a series of acquisitions and divestitures. Thirteen acquisitions of approximately $4.8 Billion were completed enabling IBM to expand its business. Since then IBM concentrated on becoming stronger in high-added businesses. It concentrates on development and manufacture of the advanced information technologies, including computer systems, software storage systems and microelectronics. It engaged 50,000 employees in an online intranet discussion over a period of three days using its Jam technology IBM generated over 46,000 ideas through this. IBM’s Mission Statement Proposed Mission StatementCustomersProductsMarketsTechnologyConcern for survival, growth & profit ability Self-concept Concern for employees
INTRODUCTION TO INTERNATIONAL BUSINESS MACHINES
International Business Machines or IBM was founded in 1888 as ³Herman Hollerith and the Tabulating Machine Company´. Its name was later changed to IBM in 1924 when it became a Fortune 500 company. It is known to have more patents than any other American tech company. It was taken by the US government at the beginning of World War II in the war effort and given a one percent profit, which it used to fund war victims and orphans. IBM was one of the leader brands of I.T industry which is basically related to computing various dimension of technology weather it is about gadget or the software. It developed products from punch-card tabulating machines to room sized calculators and main frame computers. In 1980, the company introduced IBM Personal Computer (PC) in which the processor came from Intel and operating system from Microsoft. In 1992, the company introduced laptops which were named ThinkPad. IBM introduced cost effective technologies like instead of pure silicon chip, they introduced a blend of silicon and germanium. IBM has On Demand Innovation services where different teams offer business transformation and technology consultation services. Today, IBM is the largest information technology company and the eight largest companies in the world with workings in over 170 countries. More than 60% revenue of the company is generated from outside of US.
1. Us the five key elements of strategic decisions to evaulate IBM's corporate strategy. What conclusions do you draw for these and added value?
2. What are the strengths and weaknesses of IBM? And what are the opportunities and threats that it faces from the competitive environment surrounding the company?
3. What was the strategic significance of IBM's decision to obtain supplies of computer chips and software from other manufactures rather then make them itself?
4. How big a part did the change in computer technology play in IBM's problems? Could this have been predicted by IBM? What is the significance of your answer for corporate strategy?
5. What was the significance of IBM's suppliers spending marketing funds to brand their products? What strategic significance does this have for the late 1990s in computer markets?
6. What strategies would you have adopted in 1993 to turn around the situation at IBM?
A couple of clarification questions for you:
* is this based on a printed case study (Harvard Business School or other)? * you case question #1 is it: "use the 5 key elements of strategic decisions"? * can I assume that you're referring to Michael Porter's 5 forces in question #1? * is #5 really about IBM's competitors and branding? Or is it referring to Microsoft and Intel during the 1980s, in particular?
You'd also better let researchers know if there's a deadline because this is really a pretty complex question -- and I know IBM pretty intimately from the 1980-2000 period from...
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