International Business Machine

Corporation (IBM)
NAME: Nadir Ali

BS Commerce

Semester 8th

Subject: Strategic Management

Case Study.

INTRODUCTION

IBM is considered one of the world’s biggest Information Technology Company. IBM manufactures and
sells computer hardware and software, and offers infrastructure services, hosting services, and
consulting services in areas ranging from mainframe computers to nanotechnology. Watson as IBM
when Tabulating Machine Company was merged with International Time Recording Company and the
Computing Scale Corporation in 1911.Presently, it is known as International Business Machine
Corporation. IBM develops and manufactures information technology related products and services that
help its clients to deliver business values and be more innovative. The company maintains its operations
through its five key segments: Global Technology Services (GTS)unit, Global Business Services (GBS) unit,
Systems and Technology unit, Software unit and Global Financing unit. Through the Global Technology
Services unit, IBM provides critical information technology infrastructure services and business process
services that help clients to integrate resources for continuous innovation. The Global Business Services
unit provides professional consulting services and application outsourcing services which is intended to
deliver business value for its clients.

CEO: Arvind Krishna (Apr 6, 2020–)

Founder: Charles Randlett Flint

Founded: June 16, 1911, Endicott, New York, United States

Headquarters: Armonk, New York, United States

Revenue: 73.62 billion USD (2020)

Number of employees: 345,900 (2020)

Subsidiaries: Red Hat Software, Aspera, SoftLayer, Tru

Existing,VISION:

to be the world’s most successful and important information technology company. Successful in helping
out customers apply technology to solve their problems. Successful in introducing this extraordinary
technology to new customers. Important, because we will continue to be the basic resource of much of
what is invested in this industry

Proposed Vision:
IBM highlights three basic factors in their goal alignment:
 to be the global ruler in the industry
 to be the one-stop-shop for all technological solutions
 to make the world a better place to live in through the effective use of technology
IBM reiterates the original point in its mission statement in its vision statement as well. They strive to be the
technology industry giant by attaining as much global market share as possible. They aim to do so through
constant innovation, progressive approaches to handling technology and practicing a well-oiled business
strategy that helps them always maintain a competitive edge over their counterparts.
Nine Components

Costumer Yes
Products and services Yes
markets Yes
technology Yes
Survival yes
Philosophy Yes
Self Concept No
Public Image Yes
Employee Yes
 Existing Mission:

to lead in the creation, development and manufacture of the industry’s most advanced information technologies, including
computer systems, software, networking systems, storage devices and microelectronics. And our worldwide network of
IBM solutions and services professionals translates these advanced technologies into business value for our customers. We
translate these advanced technologies into value for our customers through our professional solutions, services and
consulting businesses worldwide

Proposed Mission :
With its mission statement, IBM highlights what it does and what industry they specialize in and thrive in. IBM
may not have an official mission statement but it does have a purpose. The company’s core activities have a
glittering reflection in:
 leadership in terms of introducing new and innovative ways of information technologies
 worldwide networking in order to bring the world come together as one
 the improved standards of living for all by ensuring professional solutions and consultancy around the
globe

Strengths:
1. First mover in cloud computing solutions for enterprises
2. Brand reputation
3. Diversified business
4. Strong competency in acquisitions
5. Integration of products and services
6. High-value brand
7. Expertise in production processes and materials management
8. Extensive intellectual property portfolio
9. High economies of scale
10. . Health shareholder wealth

Weaknesses:

1. Imitable products
2. Shrinking product mix
3. Low degree of diversification
4. Expensive service and software solutions
5. Focus mainly on large enterprises
6. E x p e n s i v e s e r v i c e a n d s o f t w a r e solution
7. 1. Intense competition from other leading global IT companies means limited market share growth for
IBM
8. 2. Challenge of employee retention as attrition is high in the industry
9. 3. Being a global brand, it has faced legal issues & lawsuits in the past which have hurt its brand
image
10. Products are easily replicated.

2021 2021 2021 2020

30/09 30/06 31/03 31/12

Total Current Assets 29967 30774 34038 39165

Cash and Short Term

11131 13812
Investments
Cash - -
Cash & Equivalents 10531 13212
Short Term Investments 600 600
Total Receivables, Net 16589 19186
Accounts Receivables -
6980 7580
Trade, Net
Total Inventory 1828 1839
Prepaid Expenses 2125 1758
Other Current Assets,
2365 2570
Total
Total Assets 144214 146814 148629 155971

Property/Plant/Equipment,
13935 14726
Total - Net
Property/Plant/Equipment,
32269 33176
Total - Gross
Accumulated - -
Depreciation, Total 22817 23136
Goodwill, Net 59984 59617
Intangibles, Net 13535 13796
Long Term Investments 2125 2282
Note Receivable - Long
5922 7086
Term
Other Long Term Assets,
19090 19299
Total
Other Assets, Total - - - -
Total Current Liabilities 35832 36616 36542 39869

Accounts Payable 4140 4908

Payable/Accrued - -
Accrued Expenses 10368 11644
Notes Payable/Short Term
36 130
Debt
 Current Port. of LT
5162 7053
Debt/Capital Leases
Other Current liabilities,
16836 16134
Total
Total Liabilities 121986 124872 127240 135373

Total Long Term Debt 51206 54355

Long Term Debt 51206 54355
Capital Lease
- -
Obligations
Deferred Income Tax - 5472
Minority Interest 124 129
Other Liabilities, Total 39368 35548
Total Equity 22228 21942 21389 20598

Redeemable Preferred
- - - -
Stock, Total
Preferred Stock - Non
- - - -
Redeemable, Net
Common Stock, Total 448.8 448.59
Additional Paid-In
56339.2 56107.41
Capital
Retained Earnings
162218 162717
(Accumulated Deficit)
Treasury Stock -
-169360 -169339
Common
ESOP Debt Guarantee - -
Unrealized Gain (Loss) -1 -
Other Equity, Total -28256 -29336
Total Liabilities & Shareholders' Equity 144214 146814 148629 155971
Total Common Shares Outstanding 896.8 896.32 893.52 892.65
Total Preferred Shares Outstanding - - - -

11.