Preliminary

Analytics
CONCEPCION, GUETA, NACIONALES, PADLAN,
RODRIGUEZ, ROQUE, VELASQUEZ, VER
 Over 105 years old, IBM does not need any introduction. Known as
Big Blue, the company has its headquarters in New York, United States. As
of 2016, the company’s revenue was $79.9 billion and is listed on the New
York Stock Exchange with the name ‘IBM Corporation.’
IBM has successfully transitioned from Information technology to
several other industry verticals. The services include, Aerospace,
automotive, banking, defense, consumer products, education, financial
markets, healthcare, government, travel, retail, telecommunications,
manufacturing and banking. Realizing that this age of disruption in
technology is going to continue, IBM believes in researching and
developing services to provide the best customer experience to its clients
as well as end users.
 The company provides innovation to the next level simplifying
the process of doing business, increasing network, reducing overhead
costs and enabling its clients to grow simultaneously.
The services provided include development of mobile apps that
are innovative, analyzing businesses so that client can form stronger
strategies and breaking down complex data to let clients know where
they stand in the market. Apart from these, IBM also offers services such
as global process services, cloud business solutions and digital
operations among many others.
 EXTERNAL ENVIRONMENT
OPPORTUNITIES THREATS
 Governments’ move for digitization x Technical integration in various
 Political support for e-technologies industries and market
 Improving governmental efforts for data x Cybercrime
protection x Weak legal protection for intellectual
property in developing markets
 INTERNAL ENVIRONMENT
STRENGTHS WEAKNESSES
 Strong brand recognition x Expensive labor cost
 Composed of more than 430,000 expert x Focus mainly on customized products
employees x Innovation of products that can easily
 Expansive approach to research and be imitated
innovation x Litigation
 Extensive intellectual property
 EXPECTATIONS
• High labor cost in the financial statements
• High PPE and software accounts because of automation trend
• Brings innovation to existing clients, improve productivity and regain a
labor cost advantage.

• AI and machine learning-based marketing tools

• While humans still are in the driver's seat with respect to strategy and
creative, machines can analyze, process and deliver personalized
content at a massive scale.

References:
https://biz30.timedoctor.com/business-process-outsourcing-industry/
https://www.ibm.com/watson/marketing/resources/2019-marketing-trends/
EXPECTATIONS
COMPARISON OF FIGURES (PROFITABILITY)

Client’s Net Profit Margin Ratio: 4%

IBM ratio: (8,728/79,591) 11%

COMPARISON OF FIGURES(EFFICIENCY
RATIOS)

Client’s Receivable turnover ratio: 2.13

IBM ratio: 3.26

EFFICIENCY RATIOS(CONTINUED

Client’s FAT: 3.99

IBM ratio: 2.43
 STABILITY RATIOS

Client’s Debt/Equity(2017): 20% Client’s Debt Ratio(2017): 17%

IBM ratio: 16% IBM Ratio: 86%
LIQUIDITY RATIOS
Current Ratio(2017): 8.36
IBM Current Ratio(2018): 1.29

Quick ratio(2017): 8.05

IBM Quick ratio(2018): 0.42
POSSIBLE ISSUES
REFERENCES:

• https://www.ibm.com/annualreport/assets/downloads/IBM_Ann
ual_Report_2018.pdf

• https://outsourceaccelerator.com/company/ibm-business-
services/