Ibm: Challenge to America

One of the major challenges facing Apple was to get the appropriate replacement of the company’s visionary Chief Executive Officer (CEO) Steve Jobs who died on October 2011. The CEO was responsible for turning Apple into what it is today. Apple is in this case challenged to purse the strategies employed by Steve, that propelled the company to new heights, and which saw the company become a

Meanwhile, IBM, who was Intel’s star customer, decided to produce own proprietary components. This was an inflection point for Intel. It partnered with Compaq and Microsoft, to break the hegemony of IBM. Though Microsoft products did not

In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per

In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per

Kathryn McNeil’s was recently hired and her undertakings as an IBM product manager were complex and extensive. She dealt with the stream of stock for all IBM PCs across the nation, which arrived at the averaged to $40 million every month. To do this, she spoke with the IBM Corporate Headquarters Team regularly to place requests and ensure that each retail outlet had a six-week supply of PCs available. The procedure included arranging conveyance dates and guaranteeing that conveyed items met client details. When IBM reported another product, McNeil evaluated the plausible effect it would have on current items and decided the amount of the new change that ought to be bought. She additionally gave the Sayer administration staff with every day, week by week, and month to month examinations of the product offerings as reports and spreadsheets. At last, McNeil remained in near contact with the field delegates who sold the PCs at the different Sayer-claimed retail outlets all through the nation. She issued declarations to the field delegates when there was a change or an issue with an item, and her phone was an open line for any illustrative who had a question or consumer loyalty issue that required McNeil 's consideration. Her reports were dependably on time and sensibly elegantly composed, great

4. What might explain the stock price drop that occurred in 1990 and how does that influence your evaluation of Oracle Systems’ financial health?

XYZ after it was one of the best and most major players in the electronic market, had started to lose its touch when it refused to run with the big flow of change, innovation & creativity that have invaded our business world. After a thorough thinking, they’ve decided that time has become to reinvent themselves and adapt their Resources, processes & values with what the current business world requires. (Christensen C.M. and Overdorf M, 2000).

IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace.

Obviously, in one perspective the initial primary objective of IBM’s advertising is to RECAPTURED the brand equity to increase its diminishing market share. Plunging from one of the market leader during 70’s and 80’s to almost a market looser in the 90’s, IBM’s rebranding aims at the value proposition in the mind of the consumers. Defeated by the slicker and responsive rivals such as Microsoft, Dell and Oracle, IBM had to push the awake call alert to reposition itself as one of the significant player in the industry. This all been done through the ingenious and new paradigm

* In 1985, Compaq and IBM do a research and development (R&D) and make move Apple into the mainstream by becoming low-cost producer and joint venture with IBM. This’s one of Apple failure moment and Apple Gross margin drop to 34%.

Question 1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service-centric’ organization?

IBM was founded in 1911. It had a strong market in computing business that focused on the Main Frame Computing. IBM reached its great success when IBM PC came out in the 1980s, but it failed in the 1990s, mainly because it did not keep up with clients’ needs. Lou Gerstner, IBM CEO, in 1993 came on board and fixed the problem. He focused on effective marketing and product lines. Under his leadership, IBM experienced its success once more and was profiting from the growing Internet business. Gerstner passed his baton of IBM leadership to a young, 31 year old, Sam Palmisano as an IBM CEO in March 2002. Before his position as a CEO, Palmisano had run IBM’s integrated global services group from 1996-1999. Under his leadership and the legacy of Gerstner, IBM was on solid footing and had acquired PWC Consulting from the Price Waterhouse Cooper organization. IBM became global innovator in services: integrated, available on demand, locally innovative, and globally synergistic.

IBM has weaknesses in the transformation of its business model. It is lack of flexibility in the transition because of its large company

All employees affected by this action were notified as of December 31, 2002. The portion of the liability relating to IBM people and space was approximately $318 million. The portion of the liability relating to acquired PwCC workforce and leased space was approximately $283 million and was included as part of the liabilities assumed for purchase accounting.

In comparison with the loss of 4 billion in 1992, what Gertsner did was amazing. He coped with IBM problems by solving the most severe to the less one. At that time, problems of products and customers was the most serious which cost IBM billion dollars in loss. Gernstner focused on getting cost out as quickly as possible and ‘clean sheet’ the process and redesign it for global use.