Planning for Change - A History of IBM Essay

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Planning for change

Before looking at how the internal and external environments affect an organisation such as IBM. It is important to distinguish between each environment.

 The external environment can be broken down into two categories,

Mega: technological, economic, legal/political/sociocultural, international elements

Task: Governments and regulators, competitors, customers/clients, suppliers, public pressure groups, the employment market

The external environment is one in which the organisation (IBM) has no degree of control over: Included in the external environment are the opportunities and threats for the organisation and against the organisation (of the SWOT analysis).

 The internal environment
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- Technological, economic, socio cultural/ customer relationships.

"IBM scored a huge win when it was by U.S. federal government to help star up and automate the Social Security system in the 1930's."

Technological advances in the next 20 years saw the main frame computer being developed where IBM had a strong hold with an internally designed product called system/360 that had a hold on the market for the next 20 years.

- Technological

System/360 was a fully compatible computer system with integrated circuits and the invention of semi conductor chips miniaturised components, reducing size yet making computers more efficient. These meant computers were accessible to more businesses and enabled customers to upgrade as their needs grew. The computer industry is forever growing and expanding.

- Technological advances, economic stability

"The franchise was a gold mine. IBM's share of the computing market skyrocketed. Competitors reeled; many disappeared."- Louis Gerstner

IBM had little in the way of competitors in the early years with a 60% profit and held 30%market share; this however was probably what attracted the antitrust law suit. - Competitive environment, legal/political, government regulators

The antitrust suit filed by the United States department of justice definitely shaped IBM in dramatic ways having a
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