Research Topics: IBM

Strategic Management Assignment – IBM

Strategic Management Introduction             Every business is subject to factors that affect the firm’s function as a whole.  These factors are the ones attributed for the success or even the failure of a business.  In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit. In this manner, the management of a certain organization should be guided by strategic management principle to be able to attain its business goal.  Crafting strategy is not a responsibility in which managers can get by with opinions, good instincts and creative thinking. Herein, the management must ensure that the industry should have competitive advantage and that the company’s must be able to utilize its own competitive capabilities, resources, internal strengths and weaknesses ( 2003).             It is also important to consider the marketing environment of a certain organization.  Herein, an industry’s marketing environment is composed of the actors and elements outside marketing which influences the ability of the marketing management in developing and maintaining the successful operation with its target market. In addition, the concept of marketing environment shows both opportunities and threats to the industry. There are two types of marketing environment: microenvironment and macro environment. The first type is composed of the forces close to the industry which affect its ability in providing service to their customers. This includes the industry’s suppliers, regulators, customers and competitors. On the other hand, macro environment includes the economic conditions, socio-cultural, legal-political, technological and natural environment. The main goal of this paper is to provide analysis for the micro and macro environmental forces which affects IBM.    a) Potential Impacts of External Environment to IBM             IBM is one of the leaders in developing, inventing and manufacturing the most advanced information technologies and systems such as software, computer systems microelectronics and storage systems.  However, before IBM had become competitive, it faces different problems and issues in the past years. With this, the company had been through many changes just to ensure that the company will be adapted to the changing market environment.  The external environments that affect IBM can be considered as one of the most important driving forces which may lead the company to become more competitive in the marketplace both local and international level.             Through these external forces, the company will be able to determine their best assets and utilized the most suitable management system to ensure that the company will adhere to its organizational goal of providing high quality products and services among its customer as well as giving them innovative and technologically advanced systems.   One of the potential impacts of this environment is to make IBM the most in-demand industry when it comes to computer and software products. Herein, the macro and micro environment of IBM make the company more adaptable from its business functions with regards to its software manufacture and to its hardware manufactures. The company can also realize that some of these environmental factors can be used to make the company a strong competitor.  As noted, one of the most important external factors is the emergence of information technology. Since, IT is the main core of the IBM’s business operations and performances; it enables the company to provide state of the art computer systems, software and hardware for the customers worldwide. Most importantly, these new information technologies also involve new deployment strategies that will bring broadband internetworking applications to the domestic mass market which may be useful for IBM.  As part of these new methods of interactions between humans and computers, more individuals have been dependent on the electronic creation, storage and transmittal of personal, financial and other confidential information which demands highest security (1993).  People rely mostly on computers because it provides them with complete access to time sensitive data, regardless of physical location. These devices includes mobile phones, office PCs, and home entertainment system that helps humans to access that information and work together in one seamless, integrated system.     Alternative Solutions             The management system and strategy of each and every organization is accountable for the maintenance of the organization’s strength and survival in the stiff competition in the world.  Having been able to analyze the potential impact of the external marketing environment of IBM, it is therefore essential that the company should consider the implementation of different approaches in management. There are many marketing and management concepts, models and ideas that an organization can choose.  Due to the existence of competitions within and outside the marketing arena, it is therefore very significant for a company to establish strategic management and set a strategic plan for its development and improvement. It is for the reason that the twenty-first-century realities of globalization, rapid changes in technology, increasing competition, a changing workforce, changing market and economic conditions, and developing resource shortages all increase the complexity of modern management. Whereas strategic planning was a competitive advantage in the past decade, it is a necessity of global thinking in this century. Successful companies are, of course, the first to consider the global marketplace as their arena for competition In this case, the two alternative strategies that IBM may use are the concept of total quality management and operations management.             Total Quality Management is a structured system for satisfying internal and external customers and suppliers by integrating the business environment, continuous improvement, and breakthroughs with development, improvement, and maintenance cycles while changing organizational culture. Furthermore, TQM is a set of management practices throughout the organization, geared to ensure the organization consistently meets or exceeds customer requirements. TQM places strong focus on process measurement and controls as means of continuous improvement (McNamara, 1999).   The TQM philosophy of management is customer-oriented which will be suitable for IBM’s mission and goal. Moreover, if the company will utilize this, all members of a total quality management (control) will have the ability to systematically manage the improvement of the organization through the ongoing participation of all employees in problem solving efforts across functional and hierarchical boundaries. TQM incorporates the concepts of product quality, process control, quality assurance, and quality improvement.             Moreover, Total Quality Management is infinitely variable and adaptable. Although originally applied to manufacturing operations, and for a number of years only used in that area, TQM is now becoming recognized as a generic management tool, just as applicable in service and public sector organizations (1998).              Although, TQM encompasses many advantages for IBM, it also has disadvantage. Herein, the company may face problems in terms the human resources.  IBM must be able to have skilful employees to meet the standards of the TQM, if the human resources will not be able to do their job effectively, the whole concept of TQM implementation will not be successful.             Operations management is all about transforming raw inputs in the form of labor, material, and capital into useful goods and services.  The value that is added by both operations management and operations strategy is fundamental to most organizations. Operational activities are central to the provision of services and/or goods. Every organization that offers goods or services has an operations activity ( 1985). As far as the organization structure is concerned, some firms will have a discrete operations function. This might be called a manufacturing department, an operations system, or have no identifiable name at all. Operations management focuses on carefully managing the processes to produce and distribute products and services. Usually, small businesses do not emphasize “operations management”, but they carry out the activities that management schools typically associate with the phrase “operations management.” Major, overall activities often include product creation, development, production and distribution. Related activities include managing purchases, inventory control, quality control, storage, logistics and evaluations. A great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc. The only disadvantage of operations management is it is very complex and the operations and activities attached into it may cause some problems and conflicts within the management of IBM.   Credit:ivythesis.typepad.com

Strategic Management Assignment – IBM

Strategic Management Introduction Every business is subject to factors that affect the firm’s function as a whole. These f...

IBM ON DIVERSITY

IBM is a well-established company that begun its operation in 1924.  From then on, it has emerged as the front runner in the information technology spearheaded by modern innovations and has earned its reputation worldwide as the leading information technology company.  Among the business operations IBM has venture into includes hardware, software, services, financing, research and technology.    IBM is a company managed by values with its dedication to client success, innovation and trust and responsibility in all relationships.  With their ethics that took shape and revitalize through the direction of the executives by the implementation of IBM’s values as the core business strategy.  Since 1960’s, IBM had lay down code of business conduct as to guide IBMers to know what is expected of them.   In the advent of IBM’s business operations and employee bases are global is the need to adhere IBM’s commitment to diversity.  The IBM was one of the few companies who pioneered in making diversity a moral imperative and have incorporated diversity as the cornerstone of IBM business strategy.  The diversity of IBM can be traced back from the company’s early history.  The first step of which it started was the hiring of people with disability.  In 1924, IBM recognized three women and a black man from the workforce and nearly a decade after, IBM declares equality of pay between men and women.  The succeeding events that fosters diversity includes, the appointment of the first woman as the vice-president, funding of the United Negro College Fund, equal-employment opportunities, orientation regarding nondiscrimination and among many others that contributes to the diversity of IBM as a company.   Of course, the diversity would not be made possible without the support of the company.  Part of IBM’s corporate policies ensures that the commitment to diversity will be practiced in every aspect of the company leading to increased awareness of diversity worldwide.  The diversity of thought, culture, race, gender and geography cultivates a diversity of ideas that IBM offers to its clients and a very valuable asset that serves as IBM’s competitive advantage in the market.   Moving to the 21st century, the need to mandate that the issues surrounding diversity needs to be addressed such that it cannot pose a threat in the company’s future dealings.  As part of IBM’s corporate responsibility, woven into the fabric of IBM global business strategy are the diversity in the workforce, suppliers and client where it allows a broader view of the world.  The unique perspective of IBM about diversity enables IBM to create approaches and innovative solutions for the company, for the clients and the communities. . The commitment and leadership on diversity-related issues, surely the IBM has been able to set an excellent example to the other company that diversity is not a barrier that may hinder a company’s progress rather it is beneficial in the functions of a company.             In the years to come, IBM will continue to strive in the promotion of diversity and to maintain a standard in their diversity programs.  From the activities that engulf diversity, such as training, executive task forces, councils and network groups, IBM diversity councils and IBM diversity network groups, tells how much of importance diversity is to IBM and that they mean strengthening the diversity that will act as a focal point in their future dealings in the business. The recognition of IBM as a promoter of diversity has earned earnest awards and recognition from the different sectors.  The areas of recognition that IBM has received covers Asians, black, homosexuals, Hispanic/Latino, Muslims, mature adults, minorities, Native Americans, people with disabilities and women.  Acknowledgment from the marketplace has inspired IBM to consistently quest in maintaining and further strengthening diversity in the company.      REFERENCES   Credit:ivythesis.typepad.com

IBM ON DIVERSITY

IBM is a well-established company that begun its operation in 1924. From then on, it has emerged as the front runner in the information ...

Porter 5 forces analysis

Introduction   IBM is an innovation company, serving the needs of enterprises and institutions worldwide. IBM seeks to deliver clients success by enabling their own capacity to innovate, so that they may differentiate their organizations to create unique competitive advantage. IBM draws upon the world’s leading systems, software and services capabilities to turn enterprises of all sizes, in every major industry, into on demand businesses to help its clients achieve growth, productivity, efficiency, and the realization of greater value through innovation. IBM views enterprise innovation not only in terms of products and services, but across all dimensions of a business: its business processes, business model, management systems, culture and role in society. This paper will focus on identifying the problems encounter by IBM. The paper also attempts to identify strategies through analyzing the internal and external micro and macro environment of the company.   2000’s The decade begins with a Y2K-related drop-off in customer demand and the collapse of the dot-coms. If 2000 is seen as a watershed for e-business, 2001 is the year the world’s established enterprises awake to its true possibilities — and information technology requirements. The 2000′s are also marked by a transition in IBM’s leadership. It also marked a rapid technological invention of IBM. However, it is also marked a highly competitive market for the software industry.   Problems encounter According to  (2002), IBM is currently selling off, at a huge paper loss, its disk manufacturing operations. The deal is complex and mainly secret. IBM says Hitachi is buying 70 percent of the business up front for just over billion and that it would pick up the remainder within three years. IBM is also selling its original big factory in Endicott, New York, while contracting with the group buying the plant to lease back some of the facility and to keep 2,000 people, half of the current staff, on the payroll for an unspecified period. Work done in Endicott was to be shifted to a factory in China, according to a report published by IBM has dropped out of manufacturing quite a few products, including dumb tubes, networking apparatus, printers, tape transports, and desktop PCs. In some cases, IBM has stayed in the related markets, selling equipment made by others but bearing the IBM brand. In other cases, IBM has arranged for another firm to inherit the discontinued business. While there is nothing unusual about IBM adjusting what it makes according to changes in market conditions, for most of IBM’s history it added net manufacturing capacity year after year. Unless IBM reverses a course it has proclaimed will be its route for the future that it will continue to shut down manufacturing plants, even as it strives to boost sales of both goods and services. Far more often than not, customers buying products from IBM will neither know nor care whether the machinery was made in an IBM plant. iSeries customers who have opened up their machines and seen disk drives with Seagate, rather than IBM, labels might have been a bit shocked at first, but none of them returned the equipment. Still, in the hard-hitting world of computer marketing, IBM’s competitors are going to try to turn any sign of IBM weakness into a sales opportunity. Hitachi, for example, may be able to win some storage deals by persuading prospects that its vertical integration is the basis of superior quality, value, and performance. IBM is in stormy seas and must ask itself whether it can keep all of its sails, for if it does not, it could be dismasted.   SWOT Analysis   Strengths             IBM’s diverse portfolio of products and offerings is designed to gain market share in strong and weak economic climates. The company accomplishes this by not only having a mix of offerings with long-term cash and income streams as well as cyclical transaction-based sales, but also by continually developing competitive products and solutions and effectively managing a skilled resource base. The company’s portfolio of capabilities ranges from services that include Business Performance Transformation Services to software, hardware, fundamental research, financing and the component technologies used to build larger systems. These capabilities are combined to provide business insight and solutions in the enterprise computing space. The company has exited commoditized businesses, increased its concentration in higher-value businesses and created a more balanced portfolio.             The company’s Systems & Technology Group develops leading and often pioneering technologies that can be integrated with software and services to provide client solutions.             IBM maintains an effective internal control structure. It consists, in part, of organizational arrangements with clearly defined lines of responsibility and delegation of authority, and comprehensive systems and control procedures   Weaknesses             With a large company like IBM, it has the incapability to react and reform at a speed. The company can react on the sudden changes but slower and reluctantly. In addition, nimbler companies are taking IBM’s share. The company also has trouble financially. Moreover, customers are losing their confidence on IBM. It has also currently had a huge paper loss with its disks operation in which the company is selling off.       Opportunities The company can integrate across its portfolio to create solution offerings for its global client-base, driving profit and cash growth over the long term. The company also can strategically invest in services and technologies that have the best long-term growth and profitability prospects based on the value they deliver to clients. IBM can continually transform itself to take advantage of shifting demand trends, focusing on client- or industry-specific solutions, business performance and open standards. IBM has also the opportunity to drive greater productivity, flexibility and cost savings by transforming and globally integrating its own business processes and functions. IBM can invest to improve its ability to help its clients innovate. Investment may occur in the research and development of new products and services, as well as in the establishment of new collaborative and co-creation relationships with developers, other companies, and other institutions. To deliver value that helps clients differentiate themselves for competitive advantage, IBM can move away from commoditized categories of the IT industry and into areas in which it can differentiate itself through innovation and by leveraging its investments in R&D. Areas of investment include strategic acquisitions, primarily in software and services, focused client- and industry-specific solutions, BPTS, key technologies and emerging growth countries such as China, Russia, India and Brazil. The company can refocus its business on the higher value segments of enterprise computing — providing technology and transformation services to clients’ businesses. Threats IBM has a number of competitors in the IT industry with significant resources and investments that are committed to closed and proprietary platforms as a way to lock clients into a particular architecture. This competition will result in increased pricing pressure and/or IP claims and proceedings. In addition, currency rate fluctuations of non-US currency can affect the company’s result. Currency changes can result to asset or liabilities depending on the local currency translated to dollars. Another threat is market risks associated with collectibles of accounts receivable and recoverability of residual values on leased assets     Porter’s Five Forces Model             IBM has no bargaining power over their suppliers since the company has its contracts and business to business agreement over their suppliers and switching suppliers would be costly for the company.             Buyers on the other hand have strong bargaining power since IT business has grown rapidly in the recent time. There have been many small IT businesses which are competing with IBM.             However, threats of new entrants are weak since processes of discovering new technology is patented and venturing in the same business is too expensive. Customers also tend to be brand loyal and since the company has gained its reputation in the market.             Threat of substitution is also low because IT technology is differentiated from other products and there are no substitute for IT solutions.             Rivalry in the industry is the strongest since there have been many IT businesses emerging in the market and offering new technology that is different with what IBM offer.   BCG Matrix   Source:                         Currently, International Business Machine is at the star of the matrix since the company has still it lead position in the market and a high business growth rate despite the emerging of competitors.     Strategy             From the BCG matrix, the best strategy that IBM must undergo is to invest. Investment strategy may include capitalizing on innovation on business performance or acquiring businesses.   Pros and Cons of Strategy Identified             In the pursue of IBM to invest in innovation through understanding of where technology, client requirements and global business are headed, the company continually makes strategic decisions to maintain its leadership of this rapidly changing business by focusing on high-value innovation-based solutions and services while consistently generating high returns on invested capital for its shareholders. The company utilizes its entire portfolio — hardware, software, services, technology and research to maintain its leadership. With those broad capabilities to enable enterprise innovation, the expertise and diversity of its global workforce and its large network of suppliers and business partners, it is considered that IBM can well-positioned itself to capitalize on the opportunities represented by the needs of its clients and current trends in economics and society. However, there could be a disadvantage of innovation when the strategy will not be appropriate for the company.               Another strategy to consider is acquisition of business. An advantage of acquisition of business is that in an establish business there would be less risk involved. When you purchase an ongoing business, there is an existing reputation, customer base, suppliers, equipment, leases and cash flow. The infrastructure and management team are also in place.             However, purchasing an existing business is like buying a used car. You inherit all the problems and headaches that someone else has caused.                                           Credit:ivythesis.typepad.com

Porter 5 forces analysis

Introduction IBM is an innovation company, serving the needs of enterprises and institutions worldwide. IBM seeks to deliver clients ...

IBM

Introduction   IBM is an innovation company, serving the needs of enterprises and institutions worldwide. IBM seeks to deliver clients success by enabling their own capacity to innovate, so that they may differentiate their organizations to create unique competitive advantage. IBM draws upon the world’s leading systems, software and services capabilities to turn enterprises of all sizes, in every major industry, into on demand businesses to help its clients achieve growth, productivity, efficiency, and the realization of greater value through innovation. IBM views enterprise innovation not only in terms of products and services, but across all dimensions of a business: its business processes, business model, management systems, culture and role in society. This paper will focus on identifying the problems encounter by IBM. The paper also attempts to identify strategies through analyzing the internal and external micro and macro environment of the company.   2000’s The decade begins with a Y2K-related drop-off in customer demand and the collapse of the dot-coms. If 2000 is seen as a watershed for e-business, 2001 is the year the world’s established enterprises awake to its true possibilities — and information technology requirements. The 2000′s are also marked by a transition in IBM’s leadership. It also marked a rapid technological invention of IBM. However, it is also marked a highly competitive market for the software industry.   Problems encounter According to  (2002), IBM is currently selling off, at a huge paper loss, its disk manufacturing operations. The deal is complex and mainly secret. IBM says Hitachi is buying 70 percent of the business up front for just over billion and that it would pick up the remainder within three years. IBM is also selling its original big factory in Endicott, New York, while contracting with the group buying the plant to lease back some of the facility and to keep 2,000 people, half of the current staff, on the payroll for an unspecified period. Work done in Endicott was to be shifted to a factory in China, according to a report published by Alliance@IBM. IBM has dropped out of manufacturing quite a few products, including dumb tubes, networking apparatus, printers, tape transports, and desktop PCs. In some cases, IBM has stayed in the related markets, selling equipment made by others but bearing the IBM brand. In other cases, IBM has arranged for another firm to inherit the discontinued business. While there is nothing unusual about IBM adjusting what it makes according to changes in market conditions, for most of IBM’s history it added net manufacturing capacity year after year. Unless IBM reverses a course it has proclaimed will be its route for the future that it will continue to shut down manufacturing plants, even as it strives to boost sales of both goods and services. Far more often than not, customers buying products from IBM will neither know nor care whether the machinery was made in an IBM plant. iSeries customers who have opened up their machines and seen disk drives with Seagate, rather than IBM, labels might have been a bit shocked at first, but none of them returned the equipment. Still, in the hard-hitting world of computer marketing, IBM’s competitors are going to try to turn any sign of IBM weakness into a sales opportunity. Hitachi, for example, may be able to win some storage deals by persuading prospects that its vertical integration is the basis of superior quality, value, and performance. IBM is in stormy seas and must ask itself whether it can keep all of its sails, for if it does not, it could be dismasted.   SWOT Analysis   Strengths             IBM’s diverse portfolio of products and offerings is designed to gain market share in strong and weak economic climates. The company accomplishes this by not only having a mix of offerings with long-term cash and income streams as well as cyclical transaction-based sales, but also by continually developing competitive products and solutions and effectively managing a skilled resource base. The company’s portfolio of capabilities ranges from services that include Business Performance Transformation Services to software, hardware, fundamental research, financing and the component technologies used to build larger systems. These capabilities are combined to provide business insight and solutions in the enterprise computing space. The company has exited commoditized businesses, increased its concentration in higher-value businesses and created a more balanced portfolio.             The company’s Systems & Technology Group develops leading and often pioneering technologies that can be integrated with software and services to provide client solutions.             IBM maintains an effective internal control structure. It consists, in part, of organizational arrangements with clearly defined lines of responsibility and delegation of authority, and comprehensive systems and control procedures   Weaknesses             With a large company like IBM, it has the incapability to react and reform at a speed. The company can react on the sudden changes but slower and reluctantly. In addition, nimbler companies are taking IBM’s share. The company also has trouble financially. Moreover, customers are losing their confidence on IBM. It has also currently had a huge paper loss with its disks operation in which the company is selling off.       Opportunities The company can integrate across its portfolio to create solution offerings for its global client-base, driving profit and cash growth over the long term. The company also can strategically invest in services and technologies that have the best long-term growth and profitability prospects based on the value they deliver to clients. IBM can continually transform itself to take advantage of shifting demand trends, focusing on client- or industry-specific solutions, business performance and open standards. IBM has also the opportunity to drive greater productivity, flexibility and cost savings by transforming and globally integrating its own business processes and functions. IBM can invest to improve its ability to help its clients innovate. Investment may occur in the research and development of new products and services, as well as in the establishment of new collaborative and co-creation relationships with developers, other companies, and other institutions. To deliver value that helps clients differentiate themselves for competitive advantage, IBM can move away from commoditized categories of the IT industry and into areas in which it can differentiate itself through innovation and by leveraging its investments in R&D. Areas of investment include strategic acquisitions, primarily in software and services, focused client- and industry-specific solutions, BPTS, key technologies and emerging growth countries such as China, Russia, India and Brazil. The company can refocus its business on the higher value segments of enterprise computing — providing technology and transformation services to clients’ businesses. Threats IBM has a number of competitors in the IT industry with significant resources and investments that are committed to closed and proprietary platforms as a way to lock clients into a particular architecture. This competition will result in increased pricing pressure and/or IP claims and proceedings. In addition, currency rate fluctuations of non-US currency can affect the company’s result. Currency changes can result to asset or liabilities depending on the local currency translated to dollars. Another threat is market risks associated with collectibles of accounts receivable and recoverability of residual values on leased assets     Porter’s Five Forces Model             IBM has no bargaining power over their suppliers since the company has its contracts and business to business agreement over their suppliers and switching suppliers would be costly for the company.             Buyers on the other hand have strong bargaining power since IT business has grown rapidly in the recent time. There have been many small IT businesses which are competing with IBM.             However, threats of new entrants are weak since processes of discovering new technology is patented and venturing in the same business is too expensive. Customers also tend to be brand loyal and since the company has gained its reputation in the market.             Threat of substitution is also low because IT technology is differentiated from other products and there are no substitute for IT solutions.             Rivalry in the industry is the strongest since there have been many IT businesses emerging in the market and offering new technology that is different with what IBM offer.   BCG Matrix                           Currently, International Business Machine is at the star of the matrix since the company has still it lead position in the market and a high business growth rate despite the emerging of competitors.     Strategy             From the BCG matrix, the best strategy that IBM must undergo is to invest. Investment strategy may include capitalizing on innovation on business performance or acquiring businesses.   Pros and Cons of Strategy Identified             In the pursue of IBM to invest in innovation through understanding of where technology, client requirements and global business are headed, the company continually makes strategic decisions to maintain its leadership of this rapidly changing business by focusing on high-value innovation-based solutions and services while consistently generating high returns on invested capital for its shareholders. The company utilizes its entire portfolio — hardware, software, services, technology and research to maintain its leadership. With those broad capabilities to enable enterprise innovation, the expertise and diversity of its global workforce and its large network of suppliers and business partners, it is considered that IBM can well-positioned itself to capitalize on the opportunities represented by the needs of its clients and current trends in economics and society. However, there could be a disadvantage of innovation when the strategy will not be appropriate for the company.               Another strategy to consider is acquisition of business. An advantage of acquisition of business is that in an establish business there would be less risk involved. When you purchase an ongoing business, there is an existing reputation, customer base, suppliers, equipment, leases and cash flow. The infrastructure and management team are also in place.             However, purchasing an existing business is like buying a used car. You inherit all the problems and headaches that someone else has caused.                   Credit:ivythesis.typepad.com

IBM

Introduction IBM is an innovation company, serving the needs of enterprises and institutions worldwide. IBM seeks to deliver clients ...

IBM Case Study

Describe Gerstner’s Diversity Task-Force Initiative             Managing Diversity is the organization’s commitment to integrate and develop individuals that make up a heterogonous workforce. Diversity management is the development of organizational strategy, culture, policies and practices that support interpersonal respect, communication, and individual, team and organizations performance in a diverse environment. A diverse organization employs people with different culture.             Gerstner’s Diversity Task-Force Initiative is a diversity management program that aims to communicate to the employees the company’s commitment to diversity. Gerstner launched the diversity task force initiative to uncover and understand differences among the groups represented in the company and find ways to appeal to a broader set of employees and customers. This became a cornerstone of IBM’s human resources strategy.             The goal of the initiative is to identify the differences between demographic groups in the company and learning from these differences and improving the business. Gerstner assigned different task forces to deal with diversity related issues. These task forces represent the different demographic employee constituencies, namely: <ul style="margin-top: 0in; margin-bottom: 0in" type="circle"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Asians</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Blacks 	(African-American and of African decent)</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Gays/Lesbians/Bisexuals/Transgender Individuals</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Hispanics</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">White 	Men</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Native 	Americans</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">People 	with Disabilities</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Women</li> </ul>   Each task force comprised of 15 to 20 senior managers. The members of the task forces were chosen based on their knowledge of and experience with the top executive. Each task force also had two or more executive co-chairs who were members of the constituency. High-performing, well respected senior managers and junior executives were recruited for these roles. Each task force was also assigned an executive sponsor from the WMC, who was charged with learning about the relevant constituency’s concerns, opportunities, and strategies and with serving as liaison to top management. The executive sponsors where senior vice presidents, and most reported directly to Gerstner. Once the task forces had been set up and launched, top management sent an email to every US employee detailing the task forces and their missions and underscoring how important the initiative was to the company. The top management also encouraged employees to respond with specific suggestions for how to make IBM a more inclusive environment. The responses (amounting to 2,000) were compiled and channeled to appropriate task forces. As a result of these suggestions, the task forces focused on the following areas for evaluation and improvement: communications, staffing, employee benefits, work place flexibility, training and education, advertising and marketplace opportunities and external relations. The initial charge of the task forces was to take six months to research and report back to the CEO and the WMC on four questions: What is necessary for your constituency to feel welcome and valued at IBM? What can the corporation do, in partnership with your group, to maximize your constituency’s productivity? What can the corporation do to influence your constituency’s buying decisions, so that IBM is seen as a preferred solution provider? And which external organizations should IBM form relationships with to better understand the needs of your constituency? The task forces identified the needs and concerns of their constituencies and then compiled them and presented them to the meeting conducted on December 1, 1995. Several of the task forces shared many of the same issues, such as development and promotion, senior management’s communication of its commitment to diversity, and the need to focus on recruiting a diverse and science related positions.  Other concerns were specific to particular groups, including domestic partner benefits (identified by the G LBT task force) and issues of access to buildings and technology (raised by the people with disabilities task force). Overall, the findings made it clear that workforce diversity was the bridge between the workplace and the marketplace – in other words, greater diversity in the workplace could help IBM attract a more diverse customer set. A focus on diversity was, in short, a major business opportunity.                 Former CEO Gerstner wanted IBM and its people to ignore cultural, racial, and other differences among its vast worldwide workforce. Gartner initiated a diversity task force initiative that would uncover and understand differences among the groups and find ways to appeal to a broader set of employees.   Enhancing IBM’s Success through the Diversity Task Force Initiative             Managing Diversity has many benefits for the company. Managed well, diversity can be a positive force, spurring creativity, dynamism and excellence, renewing and refreshing the corporation, and ultimately improving the bottom line (Aronson 2002). Diversity brings differences in styles and in ways of looking at and doing things which can help organizations do more than they ever dreamed possible. Diversity can help organizations create new and more innovative products and services, better meet the needs of customers and clients, and do more for the community the organizations are part of and serve. Diversity means differences, and differences create challenges, but differences also open avenues of opportunities. Diversity: <ul style="margin-top: 0in; margin-bottom: 0in" type="circle"> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Enables 	a wide range of views to be present in an organization, including views that 	might challenge the status quo from all sides</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Focuses 	and strengthens an organization’s core values</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Is 	instrumental in organizational change</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%"> 	Stimulates social, economic, intellectual, and emotional growth</li> <li class="MsoNormal" style="text-align: justify; line-height: 200%">Helps 	an organization understand its place in the global economy (Sonnenschein 	1999)</li> </ul>               Diversity Management takes many forms in practice, but can be defined as an organization’s active investment in the integration, development, and advancement of individuals who in the collective, represent the heterogeneity of the labor force, and in the development of organizational strategy, culture, policies, and practices that support interpersonal respect, communication, and individual, team and organizational performance in a diverse environment (Burke and Cooper 2004). For the case of IBM, diversity management has been a long-standing commitment of the company. The company views diversity management as a strategy to achieve success. The company believes the diversity of its workforce means understanding and appealing to its customer base. As IBM former CEO Gerstner said “our marketplace is made up of all races, religions, and sexual orientations, and therefore it is vital to our success that our workforce also be diverse”. The diversity task force initiative helps IBM to create a good reputation as employer and therefore attract best workers. IBM is among the most diverse organizations in the United States and as its share of the labor force increases, more and more of the best workers are drawn from the ranks of women and minorities. They will naturally prefer an environment known to be friendly to their concerns. Also, IBM will gain competitive advantage from its diversity task force initiative as it will be more able to hire, retain, and promote top performers, regardless of their racial/gender status. Overcoming the factors that unduly limit employees’ potential liberates talent that may have been hindered or gone under-utilized. A third benefit that the initiative may bring to the company is it will enable IBM to have access to creativity, knowledge and talent. This benefit is founded on the belief that the more perspectives that can be brought to bear on a problem, the more better solutions that are likely to be generated. Exposure to diversity helps individuals develop more complex understandings of the world, leading to more productive and creative problems solving. Another benefit is on the area of marketing. Successful marketing requires a thorough and intimate knowledge of the culture you are marketing to. Another benefit centers on globalization. The skills, languages, and cultural competencies of America’s diverse workforce are an invaluable resource in helping firms to compete abroad (Aronson 2002).             Enacting policies to facilitate the inclusion of all employees, the employment barriers traditionally suffered by women and ethnic minority groups can be overcome. Such policies open the doors to job advancement and promotions that have clear monetary benefits to individual employees and their families. They also open channels of communication and provide real decision-making power. In the context of human services organizations, real participation in the decision-making process has been linked to job satisfaction, which in turn can potentially affect worker retention and effectiveness on the job. The benefits for the organization center around four main issues: (1) cost savings due to lower turnover, less absenteeism, and improved productivity; (2) winning the competition for talent by being more attractive to women and members of ethnic minority groups; (3) the opportunity to drive business growth by leveraging the many facets of diversity such as marketing more effectively to ethnic minority communities or to senior citizens; and (4) the positive effect that diversity management has on the company’s image and stock prices. Companies today can reap the benefits of an increasingly global market place employing workers from different nationalities in, or outside, their native countries. This expansion creates new jobs, including international job opportunities, for these companies’ employees. Multinational companies such as IBM do business with more than 50 countries. Of the 1,000 largest industrial companies in the United States, 700 expect their growth abroad to exceed their domestic growth in the next five years. With foreign production currently accounting for more than 25 percent of their domestic production, U.S. multinationals have a great stake in the international scene. These global ventures and international collaborations allow companies to expand their geographical markets and to increase their economic activities (Barak 2000).     References Aronson, D 2002, ‘Managing the Diversity Revolution: Best Practices for 21st Century Business’, Civil Rights Journal, vol. 6, no. 1, pp. 46+   Barak, M E 2000, ‘e Inclusive Workplace: An Ecosystems Approach to Diversity Management’, Social Work, vol. 45, no. 4, pp. 339+.   Burke, R J and Cooper, C L (eds) 2004, Reinventing Human Resources Management: Challenges and New Directions, New York, Routledge.   Credit:ivythesis.typepad.com

IBM Case Study

Describe Gerstner’s Diversity Task-Force Initiative Managing Diversity is the organization’s commitment to integrate and deve...

Strategic Business Analysis: IBM

Strategic Business Analysis: IBM   Table of Contents  TOC \o “1-3″ \h \z \u Internal and External Factors Affecting IBM.. PAGEREF _Toc29163772 \h 2 SWOT Analysis. PAGEREF _Toc29163773 \h 3 Strengths. PAGEREF _Toc29163774 \h 4 Weaknesses. PAGEREF _Toc29163775 \h 5 Opportunities. PAGEREF _Toc29163776 \h 6 Threats. PAGEREF _Toc29163777 \h 7 Strategic Choices of IBM.. PAGEREF _Toc29163778 \h 8 Openness. PAGEREF _Toc29163779 \h 8 Reduction of the Cost of Service. PAGEREF _Toc29163780 \h 10 Justification of Strategic Resources. PAGEREF _Toc29163781 \h 11 Openness. PAGEREF _Toc29163782 \h 11 Reduction of the Cost of Service. PAGEREF _Toc29163783 \h 12 References. PAGEREF _Toc29163784 \h 13 Appendices. PAGEREF _Toc29163785 \h 14 Appendix A: IBM: Background Information.. PAGEREF _Toc29163786 \h 14 Table of Figures  TOC \h \z \c “Figure” Figure 1 SWOT Analysis of IBM.. PAGEREF _Toc217382641 \h 4 Figure 2 Openness Strategy. PAGEREF _Toc217382642 \h 9 Figure 3 Reduction of the Cost of Service. PAGEREF _Toc217382643 \h 10     Introduction             As of now, there are different internal and external factors that are affecting the performance of each and every individual in an organization and the overall performance itself. In addition, it can be seen that those companies that are operating in the global market are the one that are directly affected due to the different changes. The said change is driven by transformation of local and international market such as the financial and economic situation of the world, trends in the local and international market as well as the changing tastes, preferences and behaviors of the customers. All of the said factors are considered as connected with each other, thus creating changes that are important in order to sustain the position of a company in the global market.             As a result, more and more companies are focusing on the process of evaluation of their current position in the local and global market which focuses on analyzing their internal strengths and weaknesses as well as the different external environment factors that can cause threats and opportunities for the company. All of the said factors can be used in the process of decision-making in different activities and plans that are needed to be done in order to ensure competitive advantage and position in the market.   Internal and External Factors Affecting IBM             International Business Machines Corporation (IBM), also known as the Big Blue is a multinational computer technology and consulting corporation that is located in Armonk, New York, USA. IBM is considered as one of the few Information Technology (IT) companies with a continuous history that dates back to the19th century. The company sells computer hardware and software and offers different infrastructure services, hosting services as well as consulting services in different IT areas from mainframe computers to nanotechnology. Aside from that, IBM is considered as the world’s largest computer history and considered as the largest IT employer in the world with 355,000 employees (Loyola Institute of Technology & Management n.d.) (see Appendix A).   SWOT Analysis             SWOT analysis is a strategic planning tool that is use n order to evaluate the strength, weaknesses, opportunities and threats that are involved in a project, business venture or in any other situation that requires a decision. Thus, the process of sizing up the internal strengths and weaknesses as well as the external opportunities and threats helps to provide a quick overview of the strategic situation of an organization (Spalding & Case 2007, p. 110).      Figure  SEQ Figure \* ARABIC 1 SWOT Analysis of IBM                                                           Figure 1 shows the SWOT analysis of IBM, showing the current strengths, weaknesses, together with the opportunities that can be exploited and the threats that must be prevented. Strengths             The most important advantage of IBM is its image or brand. This is due to the fact that IBM was the first important player in the industry or in the field. The said aspect gives the company their competitive advantage due to the fact that they have already established a name as well as relationship with their customers. In 2003, IBM topped the study regarding the brand perception of IT services. Buyers of different IT services perceive IBM as the top brand in all vital aspects of the market. The result of the study had showed that most of the 197 respondents and consumers of IT services that were surveyed by Gartner put Big Blue as the top company in the business and IT consulting, systems development and integration, as well as IT outsourcing (Sharma 2003).             Another advantage is the strong global presence of the company. The IBM Business Continuity and Resiliency Services has a worldwide presence across four important geographies and provide consulting services as well as recovery support for the large systems, midrange and even distributed environment customers. In addition IBM brings their customers the convenience of doing business in their customer’s own language and culture because it can help to reduce efforts, time and cost of traveling, that enables an easy access to a business environment where in their customers will be comfortable (IBM).             In connection to the long history of the company, it enables them to get hold of different valuable intellectual property, software, patents as well as ideas due to the fact that they have established and gathered group of people with wide knowledge and skills regarding computers and application of IT. This enables the company to have a vast research and development aspect. Weaknesses             The most important weakness of the company is that it is starting to show a declining share in the market, due to the growing competition in the national as well as global business industry. In 2007, the market share of the company had decline, making HP its leading competitor to gain the previous number one place of IBM in the worldwide market share. HP narrowly beat IBM in terms of worldwide market share, showing a 29.6% points, compare to the 28.9% points to IBM. It is important to consider that HP’s gain over the year was IBM’s loss, which shows that the companies are switching places. However, both of the manufacturers had been able to report positive revenue growth per year (Harushka 2008).             It was mentioned in the strength of the company, that its human resource of work force is considered as the primary factors that drive the success of the company, however, it is always important to consider that too much of everything is bad. Thus, in the case of IBM, it has a huge employee population, and they are all highly paid. The said aspect can affect  the entire operation of the company in terms of the production cost. Aside from that, it can also affect the communication process and management activities inside the company because of the huge population. Opportunities             Currently, there are so many opportunities that can be exploited by the company in order to maintain their competitive advantage and eventually helps to continue the growth of the company in terms of size, sales and market share. One of the most important factors is the aspect of globalization. This can be done by market development, where in the company will focus on looking for new possible market. In addition, innovation is a very important aspect, thus it can be done by have a collaborative or partnership with other IT-related company in order to produce new products that will support the ever-changing needs of the clients. With connection to that said aspect, it will be important for the company to focus on the growing demand of the public and other organizations towards open source software. This is due to the fact that some of the competitors of the company and other players in the software and IT-services industries are offering products and services that are too high that cannot be afford by the clients, primarily those small businesses, but IT is considered as a must in most of the businesses.             Another opportunity of the company is the growing demand for IT and Information Systems. This is due to the fact that most of organizations, companies and businesses in the world are becoming more aware regarding the importance of application of technology, particularly IT in their processes.   Threats             The major threat that must be analyzed by the company is the current changes in the global economic and financial status. This is important because it will affect not only IBM, but also other businesses in the world. As a result, it will affect the individual performance of each and every client of IBM that will affect their buying behavior. The company will be hurt by the slowdown in the Systems and Technology business (Kanaracus 2008).             Another important aspect is the increasing competition. Due to the fact that computer is already considered as one of the basic needs of most of the individual, there are many IT companies that are entering the industry. And although the major competitor of IBM is Hewlett-Packard, it is also competing in some of small players or competitors such as Dell and Accenture.   Strategic Choices of IBM             Based on the said internal capabilities, the strategic choice of IBM must focus on two important aspects: the openness; and the reduction of cost of services. Openness   Figure  SEQ Figure \* ARABIC 2 Openness Strategy                                                       It is important to consider the vitality of the current strength of the company and how it can be used in order to exploit the opportunities that can be found in the external environment. In the case of IBM, the primary strengths focus on the different technologies as well as knowledge that are available for the employees in order to start doing their innovation. In addition, the company also holds a strong team that focuses on research and development of the company.             On the other hand, the primary opportunity focuses on the fact that there is a growing demand for open-source products and services, in addition to that standards in the economic expansion. The said aspect is important due to the fact that customers from different part of the globe are looking for an integrated solution in order to solve their application development needs (Novell 2006).             The said action will be done by different partnership with different IT-related companies that are engaged in developing different open-source software and application. Open source is a human-readable source code that was made available under a copyright license that meets the Open Source Definition, where in it permits the users to use, change as well as improve the software, and then redistributes it. More often, than not, it is developed publicly and collaboratively. The reason behind the growth of demand for open source software is that it enables the customers to save up to billion every year (Rothwell 2008; The Standish Group 2008).             The said strategy will help IBM to focus on the greater demand of the customers, thus, making the company more aware regarding the behavior of the customers. It is also important to consider that the said strategy will help to boost the image of the company towards their customers, due to the fact that the company is helping their clients to save money and effort. Reduction of the Cost of Service   Figure  SEQ Figure \* ARABIC 3 Reduction of the Cost of Service                                           Figure 3 shows the reduction of cost and services strategy of IBM. The main weakness of the company focuses on the huge population with very high salary or pay. There is nothing bad about offering high salary or payment for the service or effort of the employees due to the fact that it is considered as one of the major driver of motivation inside an organization. As a result, it can help to improve the performance of each and every individual, and then later on reflect on the overall performance of the company. However, due to the different changes that are happening inside and outside the environment of the company, particularly during the time of global economic and financial crisis, it is important to focus on the negative impact of huge population and high salaried employees of the company, even though, they are considered as very talented and skilled employees. The company must focus on the fact that the human resource cost can affect the entire pricing strategy towards the products and services that the company is offering, as a result, the company will not be able to compete in terms of price.              On the other hand, the company can also take advantage of the low labor cost in China. This can be done by establishing production sites and headquarters in China. The per-hour cost for an employee in an American or European plant is between and or evens more, and this is mainly dependent on the decision of the workers’ union in the plant, the location and degree of welfare the plant provides. On the other hand, in China, the average per-hour cost for a worker in a Chinese plant is below 1 dollar, showing a dozen times lower compare to the two first mentioned nations (People’s Daily Online 2004).   Justification of Strategic Resources Openness   The said strategy will help the company to lessen their labor cost that will later on reflect in their production cost. In addition, it can help the company to focus on the competitive advantage that will focus on price differentiation. This is due to the fact that more and more people, especially those from developing countries that are looking for computers and IT-services that are affordable. By doing this, the company will be able to hit two birds in one stone, where in first it will help to lessen their production cost that will help to focus on the pricing strategy of the company; at the same time, focuses on the changing demands and behavior of the customers regarding their products and services.   Reduction of the Cost of Service             The reduction of the cost of services, particularly the outsourcing can help the company to save money or cost in terms of human resource, especially today that the world is facing financial problems. In order to prevent the said future problem regarding the financial negative impact of having huge human resource, it will be important for the company to lessen the number of employees. On the other hand, outsourcing can be applied in order to save time, money and effort. Outsourcing is considered as a contracting activity with another company or person in order to do jobs function. As of now, most of the company is outsourcing in some and different ways. More often than not, the functions that are being outsourced are considered as a non-core activity to the business (Sourcingmag.com 2008). The said strategy will help the company to save money due to the fact that the outsourcing company will be directly responsible in the process of selection, hiring and positioning employees to a given project.     References   Harushka, J 2008, HP Passess IBM in Server Market Share as Segment Booms, Ars Technica, viewed 18 December 2008, <http://arstechnica.com/news .ars/post/20080523-hp-passes-ibm-in-server-market-share-as-segment-bo oms.html>   IBM, Worldwide Presence, viewed 18 December 2008, <http://www-935.ibm.com/services/us/bcrs/html/worldwide.html>   Kanaracus, C 2008, IBM Q3 Rises, But Signs of Downturn Loom, viewed 18 December 2008, <http://www.techworld.com.au/article/264158/ibm_q3 _revenue_rises_signs_downturn_loom>   Loyola Institute of Technology & Management, IBM, viewed 18 December 2008, <http://www.litam.ac.in/companies/ibm.html>   Novell, IBM and Novell Join Forces to Support Growing Demand for Open Source, viewed 18 December 2008, <http://www.novell.com/news/press/i bm-and-novell-join-forces-to-support-growing-demand-for-open-source/>   People’s Daily Online 2004, China’s Advantage in Low Labor Cost will Remain in Coming Decade, Report, viewed 18 December 2008, <http://engli sh.peopledaily.com.cn/200409/07/eng20040907_156220.html>   Rothwell, R 2008, Creating Wealth With Free Software, Free Software Magazine, viewed 18 December 2008, <http://www.freesoftwaremagazine.com/com munity_posts/creating_wealth_free_software>   Sharma, D 2006, IBM Top of IT Services Brand Perception Study, Silicon.com, viewed 18 December 2008, <http://management.silicon.com/itdire ctor/0,39024673,10006300,00.htm?r=2>   Spalding, G & Case, G 2007, Continual Service Improvement: Continual Service Improvement, The Stationery Office   Sourcingmag.com 2008, Outsourcing – What is Outsourcing? Viewed 18 December 2008, <http://www.sourcingmag.com/content/what_is_outs ourcing.asp>   The Standish Group 2008, Free Open Source Software is Costing Vendor Billion, viewed 18 December 2008, <http://www.standishgroup.com/news room/open_source.php>         Appendices   Appendix A: IBM: Background Information   Credit:ivythesis.typepad.com

Strategic Business Analysis: IBM

Strategic Business Analysis: IBM Table of Contents TOC \o “1-3″ \h \z \u Internal and External Factors Affecting IBM .. PAGEREF _...