Essay on Ibm-Case Analysis

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IBM ANALYSIS PURPOSE In the following paper I am going to analyze the case about “IBM” and how the company changed its structure in order to develop innovative products and manage successfully its new business as well. In particular IBM moved from a bureaucratic structure with an inflexible hierarchy to a divisional structure that allowed the company to pursue emerging business opportunities and at the same time continue to develop businesses were mature and well established, and business were on the rise and were having a rapid growth. DESCRIPTION -Summary of the case IBM was founded in 1911 and it was for many years the world’s dominant computer company. All over years IBM grew constantly but in 1991, for the first time, the…show more content…
In this case in IBM is possible to observe a succesful change in the company structure that led the company to develop innovative products. The older structure of IBM, recognizable in the so called by Miller “machine bureaucracy”, could work well in stable, predicable environments. But IBM did not work in a stable and predicable environment and the company was mainly looking for the invention of innovative products. Therefore IBM wanted to reach an high level of entrepreneurial intensity, whereas with the machine bureaucracy structure had the lowest level of entrepreneurial intensity. For these reasons IBM decided to give up the structure, machine bureaucracy, used for many years and to adopt a divisional structure. Divisions on IBM were large and they were self-sufficient divisions. Each division had a different goal from the other one and for this reason there was a different level of entrepreneurial intensity in each. In particular in H3 division, focused on emerging business opportunites, there was the highest level of entrepreneurial intensity. Moreover IBM had through a divisional structure was a better centralized coordination and control than before. In fact, there was an increased senior executive time to overseeing H2 and H3 businesses. H3 led to special leadership and attention at the corporate level. Moreover in division H3, that was focused on pursue emerging
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