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Executive Summary Tabulating Machine Company began in 1896 and changed its named to International Business Machine Corporation (commonly known as IBM), in 1924. The firm

Executive Summary Tabulating Machine Company began in 1896 and changed its named to International Business Machine Corporation (commonly known as IBM), in 1924. The firm is a multinational technology and consulting firm that specialized in technological services, developing computers, punch-card data-processing equipment, and contract relationships with government bodies, bomb-sights, rifles, and engine parts. IBM will be positioned as a web-based form of cloud computing and information technology that represent convenient, on-demand network access that share networks, servers, storage, applications, and services with minimal management. IBM will be focused on cloud-computing package developments along with executing in a timely manner with establishing means of obtaining a dominant position in the cloud-computing territory. It will be packaged as a combination of software and hardware components that provide customized, cloud based services for each client organization. It will be sold in markets that would be the most profitable market segments in the cloud-computing business. The service will be sold via targeted mailing campaigns, contractual agreements and leading enterprises. The potential market for cloud-computing is very promising. IBM has cloud centers in Wuxi, China, Vietnam, Japan, Brazil, India, Korea, Ireland, Poland, and South Africa. For creating a standard of security and the ability of the component parts of a system to operate successfully together IBM offers a certification program as an indication of expertise. The return on stockholder equity increased from 42.60% in 2007 to 80.40% in 2009. In 2009, IBM shares were $10.01 per share and $18.1 billion of pre-taxed earnings. In 2009, IBM had an $800 million dollar increase in free cash flow to $15.1 billion and a net income of $13.4 billion, up 9 percent. Management has strong qualifications and background in global services, operations, IT services, sales, leadership and enterprise and personal groups. The CEO (Sam Palmisano) is a life-long IBMer; having joined the company as a salesman. He is experienced in and held leadership positions such as a Strategist, Senior Vice President, and Senior Managing Director of Operations. IBM is going to have different options to offer from the company next door. However, cloudcomputing can help with the IT needs. It is anticipated that there will be a huge upswing in cloud computing and IBM can help manage the growth by offering reliable service, plenty of capacity, and you get name brand familiarity. Being aligned with our clients and the emerging cloudcomputing industry's needs will generate better financial outcomes; it drives the happy customers, companies can see what and how users are doing and make changes, there is no software to install, and there is no need to ship any parts or packages. IBM offers services to help clients install, configure, and deliver cloud. Mission/Obj. Strategies IBM's mission is to leverage and \"venture into new uncharted cloud territory\" (Rothaermel, 2013), to promote sustainable competitive advantage and establish a dominant position in the cloud-computing industry. The firm will provide a new platform that will deliver business value by offering transformation of internal operations, customer relationships; enhance value propositions while improving productivity. Value proposition consist of products and services with added features and attributes that will cater to a customer segment. \"Innovators significantly improve customer value through cloud adoption, resulting in new revenue streams or even changing their role within an existing industry ecosystem. Disruptors rely on cloud to create radically different value propositions, as well as generate new customer needs and segments and even new industry value chains\" (Urso, 2012). IBM has several strategies to consider besides venturing into the cloud-computing industry and gaining a dominant place in the industry, one is to execute in an intelligent and appropriate timeframe. Another strategy to consider is to focus on specific value chain activities that are needed to operate successfully and supply cloud service providers with required hardware or become a cloud service provider to organizations that do not want to implement cloud services themselves. Another strategy is to go it alone or forge key partnerships; key partnerships are created to optimize business models, reduce risk and acquire resources. Partnerships would free IBM from worries, problems, and restrictions, especially those affecting the firm's financial status. In addition, in this manner the firm could from alliance with companies like Amazon or Google. Although this would cause IBM to share created value, it could obtain necessary experienced talent. Fortunately, going it alone would allow IBM to keep the created value, but because of resources and timeframe issues it is not easy keeping everything in house. Another issue is the targeted marketplace; in the past IBM had been very successful at the enterprise level, which would cause the firm to remain private regarding cloud. IBM had made several previous carelessness mistakes, for example choosing not to build the operating system and microprocessor internally, IBM obtained vital components from Microsoft and Intel. However, this decision gave Microsoft and Intel exclusive control and fir the first time IBM reported one of the firm's largest losses. As a result, the operation of IBM did not produce the desired success in regards to the fast changing external market (Urso, 2012). Urso, D. N. (2012). Enterprise transformation: The IBM journey to Value Services. IBM Journal Of Research & Development, 56(6), 1-11

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