Company Review 2017

Gaetano Martinelli
Cesar Martinez
Fabian Tibambre
 IBM History

 On June 16, 1911 in New York State by Charles Ranlett Flint forming he Computing-Tabulating-
Recording Company(CTR) based in Endicott, New York. They manufactured machinery for sale and
lease, ranging from commercial scales and industrial time recorders, meat and cheese slicers, to
tabulators and punched cards.

 In 1914 Thomas J. Watson, Sr. joined CTR as General Manager then, was made President. Watson
implemented sales conventions, "generous sales incentives, a focus on customer service, an insistence
on well-groomed, dark-suited salesmen and had an evangelical fervor for instilling company pride and
loyalty in every worker”.

 Watson favorite slogan, "THINK", became a mantra for each company's employees. "Watson had never
liked the clumsy hyphenated title of the CTR" and in 1924 chose to replace it with the more expansive
title "International Business Machines”. By 1933 most of the subsidiaries had been merged into one
company, IBM.

 In 1949, Thomas Watson, Sr., created IBM World Trade Corporation, a subsidiary of IBM focused on
foreign operations.

https://en.wikipedia.org/wiki/IBM
 IBM Modern Times

 In 1952, he stepped down after almost 40 years at the company helm, and his son Thomas Watson, Jr.
was named president.

 In 1956, the company demonstrated the first practical example of artificial intelligence when Arthur
L. Samuel of IBM's Poughkeepsie, New York, laboratory programmed an IBM 704 not merely to
play checkers but "learn" from its own experience.

 In 1974, IBM engineer George J. Laurer developed the Universal Product Code.

 In 1981 IBM and the World Bank first introduced financial swaps to the public when they entered into a
swap agreement.

 In 1981 IBM PC, originally designated IBM 5150, was introduced, and it soon became an industry
standard.

 In 1991, IBM sold printer manufacturer Lexmark.

https://en.wikipedia.org/wiki/IBM
IBM 21 Century

 In 2002, IBM acquired PwC consulting.

 In 2003, it initiated a project to redefine company values, hosting a three-day online discussion of key
business issues with 50,000 employees.

 In 2005, the company sold its personal computer business to Chinese technology company Lenovo

 In 2011, IBM gained worldwide attention for its artificial intelligence program Watson, which
was exhibited on Jeopardy! where it won against game-show champions.

 In 2014, IBM announced it would sell its x86 server division to Lenovo for a fee of $2.1 billion.

 Also, in 2014, IBM began announcing several major partnerships with other companies, including
Apple Inc., Twitter, Facebook, Tencent, Cisco, Under Armour, Box, Microsoft, VMware, CSC, Macy's,
Sesame Workshop, the parent company of Sesame Street, and Salesforce.com.

 In 2015, IBM announced two major acquisitions: Merge Healthcare for $1 billion and all digital assets
from The Weather Company, including Weather.com and The Weather Channel mobile app.

https://en.wikipedia.org/wiki/IBM
International Business Machines

USA Company Founded CEO Employees(IBMers)

June 16, 1911; 106 years

ago (as Computing-
American multinational Tabulating-Recording
technology company Company) Endicott, New
headquartered in York, U.S. and was 380,000 (2016)
Armonk, New York United renamed "International Virginia M (Ginni) Rometty, Worldwide
States, with operations in Business Machines" in Chairman, President and
over 177 countries. 1924. Chief Executive Officer
Founder : Charles R. Flint

“We remain dedicated to leading the world into a more prosperous and progressive future; to creating a world that is fairer,
more diverse, more tolerant, more just”.
Ginni Rometty,
Chairman, President and Chief Executive Officer
• International Business Machines Corporation – 2016 IBM Annual Report.
• http://panmore.com/ibm-vision-statement-mission-statement-analysis-recommendations
IBM Vision-Mission-Values

IBM’s Vision Statement IBM’s Mission Statement Shared Values in action

“to lead in the creation, development and

manufacture of the industry’s most
advanced information technologies, • ForDedication to every client's
“to be the world’s most successful and
including computer systems, software, success.
important information technology company.
networking systems, storage devices and
Successful in helping out customers apply • Innovation that matters - for our
microelectronics. And our worldwide
technology to solve their problems. Successful company and for the world.
network of IBM solutions and services
in introducing this extraordinary technology to
professionals translates these advanced • Trust and personal responsibility in all
new customers. Important, because we will
technologies into business value for our relationships.
continue to be the basic resource of much of
customers. We translate these advanced
what is invested in this industry.”
technologies into value for our customers
through our professional solutions, services
and consulting businesses worldwide.”

• International Business Machines Corporation – 2016 IBM Annual Report.

• http://panmore.com/ibm-vision-statement-mission-statement-analysis-recommendations
SWOT for IBM

Strengths (Internal Strategic Factors) Weaknesses (Internal Strategic Factors)

• High-value brand • Imitable products

• Expertise in production processes and materials management • Shrinking product mix
• Extensive intellectual property portfolio • Low degree of diversification
• High economies of scale

Opportunities (External Strategic Factors) Threats (External Strategic Factors)

• Business diversification in various industries • Imitation of products

• Alliances with firms from different industries or markets • Competition
• Rapid innovation of new products • Cybercrime

• International Business Machines Corporation – 2016 IBM Annual Report.

• http://panmore.com/ibm-vision-statement-mission-statement-analysis-recommendations
 IBM Worldwide Estrategy

• Enter alliances worldwide

Market Alliances
with firms from other
industries to exploit
technological integration
penetration is to opportunities.

maximize the
company’s market • Diversify the business to
spread risk and reduce risk
share of each Diversify exposure in the
information technology
product line or market.

Estrategy
• IBM’s primary intensive
product type. For growth strategy is product
development. A strategic
example, IBM aims Innovation
objective in implementing
product development is to
to maximize its grow the business through
continuous innovation to
introduce new products to
market share for the target market. .

cloud platform • This strategy entails

maintaining low costs in

products. Pricing
business processes, so as
to establish competitive
pricing or to maximize
profit margins..
• International Business Machines Corporation – 2016 IBM Annual Report.
• http://panmore.com/ibm-vision-statement-mission-statement-analysis-recommendations
Numbers 2016

https://en.wikipedia.org/wiki/IBM
 References

 International Business Machines Corporation – 2016 IBM Annual Report.

 https://en.wikipedia.org/wiki/IBM
 http://panmore.com/ibm-vision-statement-mission-statement-analysis-recommendatio
ns
 
 
 
“We remain dedicated to leading the world into a more prosperous and
progressive future; to creating a world that is fairer, more diverse, more
tolerant, more just”.

Ginni Rometty,
Chairman, President and Chief Executive Officer