IBM Overview and Analysis

Running Head: IBM overview and analysis
IBM OVERVIEW AND ANALYSIS
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EXECUTIVE SUMMARY
IBM one of the pioneer brands of I.T industry which are essentially identified with computing,
having its arm spreads to all matters related to innovation whether it is about a device or the
software IBM is worlds among biggest IT organization with 2017 annual incomes of $79.7
billion (Jannesson, Nilsson, & Rapp, 2017). Initially, the company was referred to as the
Computing-Tabulating-Recording Company (CTR) in 1911 when it started.it was later renamed
to international Business machine (IBM) in 1924. Its products and services are mainly focused
on technology and innovation such as the manufacture of computer hardware and electronic
equipment, it also offers c0nsultations services in the field as well as hosting services, basically,
almost every technology device in the market has something to do with IBM either indirectly and
directly (Kotabe, & Kothari,2016). this report will conduct an overview of IBM with a further
analysis and depiction of its standing in the global market. It will also analyze the competitive
advantage it has been utilizing for close to a century in order to remain relevant and dominance
in the market, an overview of the management and organizational structure will also be discussed
in the paper. moreover, several strategies will be recommended and implanted where finally an
evaluation and control if the strategies will be done
Table of Content

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s
1. INTRODUCTION...................................................................................................................7
A.Company background..............................................................................................................7
2.CURRENT SITUATION.............................................................................................................8
A. current performance................................................................................................................8
B. strategic posture......................................................................................................................9
i. Mission statement.................................................................................................................9
ii. Vision statement...............................................................................................................10
iii. Goals and objectives.........................................................................................................10
iv. Strategies..........................................................................................................................11
v.Policy..................................................................................................................................11
3.STRATEGIC MANAGERS.......................................................................................................11
Top management.......................................................................................................................13
4. EXTERNAL ENVIROMENT...................................................................................................14
A. Natural environment.............................................................................................................14
B.Social environment -PESTLE................................................................................................14
1.political...............................................................................................................................14
2.Economical.........................................................................................................................15
3.socila cultural......................................................................................................................15
4.technological.......................................................................................................................16

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5.Ethical.................................................................................................................................17
6.legal.....................................................................................................................................17
Task Environment- Porter’s Five Forces...................................................................................18
2. rivalry among existing companies.....................................................................................19
3.Threat of substitutes............................................................................................................20
4.Bargainig power of suppliers..............................................................................................20
5.bargining power of buyers..................................................................................................21
5. INTERNAL ALAYSIS.............................................................................................................22
A. corporate structure -Functional level Strategy......................................................................22
B. Corporate culture...................................................................................................................23
C. Corporate resources...............................................................................................................23
5.ANALAYSIS SITUATIONAL FACTORS...............................................................................24
A. Situational Analysis-SWOT.................................................................................................24
1.Strengths.............................................................................................................................24
2.Weakness............................................................................................................................25
3.Opportunities......................................................................................................................26
4.Threats................................................................................................................................27
7.STRATEGY...............................................................................................................................28
A. Strategic type........................................................................................................................28
1.corporate level strategy.......................................................................................................28

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2.Business level strategies.....................................................................................................30
B. strategic group map...............................................................................................................30
8. STRATEGIC ALTERNATIVE AND RECOMMENDATIONS.............................................32
A. strategic alternatives.............................................................................................................32
B. Recommendations.................................................................................................................33
9.STRATEGY IMPLEMENTATION...........................................................................................33
10. EVALUATION AND CONTROL..........................................................................................34
11. CONCLUSION........................................................................................................................35
12.REFERENCES.........................................................................................................................36

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LIST OF FIGURES
1. Figure 1: IBM results of Q1 2018............................................................. 9
2. Figure 2: IBM board of director experience and skills ....................................12
3. Figure 3: IBM’s organizational structure .................................................... 13
4. Figure 4: porter 5 analysis of IBM ............................................................28
5. Figure 6: Strategic map brand equity.........................................................31
6. Figure 6: Strategic map brand equity.........................................................32

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IBM OVERVIEW AND ANALYSIS
1. INTRODUCTION
A.Company background
IBM one of the pioneer brands of I.T industry which are essentially identified with computing,
having its arm spreads to all matters related to innovation whether it is about a device or the
software IBM is worlds among biggest IT organization with 2017 annual incomes of $79.7
billion (Jannesson, Nilsson, & Rapp, 2017). Initially, the company was referred to as the
Computing-Tabulating-Recording Company (CTR) in 1911 when it started.it was later renamed
to international Business machine (IBM) in 1924. Its products and services are mainly focused
on technology and innovation such as the manufacture of computer hardware and electronic
equipment, it also offers c0nsultations services in the field as well as hosting services, basically,
almost every technology device in the market has something to do with IBM either indirectly and
directly (Kotabe, & Kothari,2016).
Its main headquarters are in Armonk, New York, United States, it currently has 380,300
employees in over 170 countries globally. IBM has been on the market for over a century and it
has managed to stay relevant and strong in the Market share up to now (Dietrich, Plachy,&
Norton, 2014). It has made enormous contributions and strategic innovations that have shaped
the IT world and globalization. innovations like the think pad 750 that had a major impact in
space explorations, the environmental management software developed by IBM in 1999 for the
purpose of protecting and monitoring environmental changes, development of the IBM system
390 which has paved way for innovation and advancement of powerful computing power (Lesser
& Ban,2016). Simply IBM has been the burning candle for technology innovations which has
also revolutionized businesses and increased globalization

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2.CURRENT SITUATION
A. current performance
The first quarter of 2018 saw IBM earn a revenue of 19.1 billion dollars which is an increase of
5% which reflects abroad based improvement of in year to year performance since the fourth
quarter of 2017. The continuing operations from GAAP EPS of $1.81 while in operating GAAP
of $2.45, increased by 4%.the strategic imperatives revenue of the past 12 months saw a 12$
increase which represents 47% revenue generated by IBM. There an increase in 22% from the
cloud revenue which garnered 17.7 billion dollars over the past 12 months, is exit run rate
generated revenue of$10.7b in the quarter representing a 25% increase.so far the first quarter has
done more than expected although it shocked the stock market with a 6% drop moreover an
increase in growth and revenue is expected in the coming quarters due to numerous investment
in Security and AI.