Evolving Strategy at IBM IBM’s CEO, Sam Palmisano, likes to talk about the evolution of global strategy at one of the world’s largest computer enterprises. According to Palmisano, when IBM first started to expand internationally, it did so in the classic “international” pattern of many enterprises, undertaking most of its activities at home, and selling its products internationally through overseas offices. By the time Palmisano joined IBM in 1972, however, it
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Professor Amrouche October 29, 2011 IBM Case Study Description: International Business Machines or IBM is an American multinational technology and consulting corporation. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in various areas ranging from mainframe computers to nanotechnology. As of September 2011, IBM is the second largest publicly traded technology company in the world. IBM famous invented are the automated teller
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IBM Corporation In the seven years (since 1994), that Lou Gerstner reigned over IBM, the company’s earnings per share increased an average of 27% per year. This remarkable increase in earnings did not go unnoticed by the securities markets. Indeed, the company’s market value grew from less than $30 billion to over $200 billion during the period. Use the following financial statement data to: 1. Decompose IBM’s ROE (by quarter) and discuss the factors (and trends) that contribute to Big Blue’s
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for their strategic reshape? I think the most important change to lead the IBM to success is that IBM changed their business model from low margin business like PCs and hard drivers to upmarket to services and software. Because the low margin hardware market has the very competitive market with many players based on China and Taiwan. 2. If you check the stock performances of the two companies since 2005 when IBM sold off its PC division to Lenovo, the thin-margin PC business appears to have
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Case 2: IBM and Cognos: Business Intelligence and Analytics for Improved Decision Making Tags: business decision making; business intelligence software; decision support systems; management reporting systems; executive dashboards; mobile delivery platforms. Summary In this video from the National Association of Broadcasters (NAB), Dan Fulwiler and Steve Segalewitz from IBM, discuss how understanding your online data more clearly can improve decision-making. Video demonstration of IBM/Cognos
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the case of Lenovo to Acquire IBM Personal Computing Division, the way of M&A belongs to the horizontal merger which is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service. ((I) INVESTOPEDIA) Horizontal merger can expand the scale of production, reduce production cost, eliminate competition and increase market share. Payment Method Of M&A Cost：Cash & Securities & Assume debts IBM sold its PC group to Lenovo in
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College of Business Administration Florida International University December 6, 2000 IBM Personal Systems Group: Implementing ERP1 There was an eerie quiet in the IBM Personal Systems Group (PSG) plant in Research Triangle Park (RTP), North Carolina. Hundreds of forklifts sat idle in the factory. The shipping docks, usually filled with incoming supplies, were empty. The 2,500 employees who normally worked in the plant each day were gone. The plant, which normally produced 20,000 PCs a week
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Michael Santiago IBM Corporation Question 1: Decompose IBM’s ROE and discuss the factors (and trends) that contribute to Big Blue’s profitability. IBM Corp. | Dec-1996 | Dec-1997 | Dec-1998 | Dec-1999 | Net Income | $2,023.00 | $2,093.00 | $2,346.00 | $2,089.00 | Shareholder's Equity | $21,628.00 | $19,816.00 | $19,433.00 | $20,511.00 | ROE RATIO | 9.35% | 10.56% | 12.07% | 10.18% | Factors and trends that made a significant contribution to Big Blue’s profitability can include
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Interest-bearing) Net Assets Net Capital ROE Operating ROA Gross Profit Margin ROE = NOPA/Equi 1996 $ $ $ $ $ $ $ 465 6,329 11,515 17,407 1,735 28,922 23,363 27.11% 21.88% 40.2% Q1 The ratios above show that IBM increased their profits and found better operating practices to manage the IBM LIDATE STATEMENTS OF INCOME 1997 1998 1999 $ $ $ $ $ $ $ $ $ $ $ $ 78,508 47,899 30,609 4,877 16,634 21,511 9,098 657 728 9,027 2,934 6,093 33% $ $ $ $ $ $ $ $ $ $ $ $ 81,667 50,795 30,872 5,046 16,662 21,708
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* Initially IBM was a paragon of power, prestige and far-sightedness * 1994, IBM used its size as an integrator assembling systems from the mass of components provided by its own product divisions and by its competitors * Industry thinking at the same was that the future belonged to specialist technology companies that could bring new products to market quickly and change strategy in an instant * IBM was vertically integrated, they made everything from microprocessors, operating systems
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