Clicker Question In your opinion, would you say that IBM has

done an effective job of tapping into many markets while maintaining a firm grip in the world of technology?

Yes No IBM could do more with their technology I am unsure at this point, let’s hear more about the

company

IBM is the largest technology and consulting employer in the world. It is a global technology and innovation company and its headquarters is located in Armonk, NY.

Approximately 427,000

employees serving to clients in over 170 countries.

Introduction

IBM offers a wide range of technology, R &D expertise and consulting services.

Offer a broad portfolio of middleware for collaboration, software development, predictive analytics, systems management etc. ◦ Has the world's most advanced

servers and supercomputers. Help many clients to

become "smarter" as the planet becomes more digitally interconnected.

Products

Primary Stakeholders Secondary Stakeholders

Employees Governments

Stockholders Organizations

Customers Communities

Suppliers General Public

Creditors Media

Wholesalers, Retailers, Distributors

Business Support Groups

Who are the relevant stakeholders?

What are the interests of each stakeholder?

What is the power of each stakeholder?

How are coalitions likely to form?

Stakeholder Analysis

Stakeholder MapHIGH

Low

Stakeholder Salience

Position on the Issue

Against For

Community

creditors

Employees

Local Gov.

Stakeholders

IBM focused for decades on recycling its nonhazardous waste.

Nonhazardous wastes include paper, metals, plastics, deionized resins and chemicals.◦ Goal includes end-of-life IT

product waste generated by IBM and equipment returned by external customers at the end of lease.

Of the nonhazardous waste IBM generated in 2010, 79% of it was recycled.

Environmental Issues

IBM’s Company Culture

“Even in the current economic downturn, IBM continues to invest in our workforce – providing our employees with skills training, health and wellness programs, and opportunities to gain global experience.”

IBM’s Company Culture Ahead of the Curve

1st to provide Life Insurance, Survivor Benefits and Paid Vacations

Hiring of Women and African Americans Workers equality 11 years before the Civil Rights

Act

IBM’s Code of Ethics

“IBM is committed to principles of business ethics and lawful conduct. It is IBM's policy to conduct itself ethically and lawfully in all matters and to maintain IBM's high standards of business integrity.”

IBM’s Code of Ethics Mixture approach Ahead of the Curve

Management Implemented Policies Tomas Watson Jr. Controversial Letter Lead by example

IBM’s “Corporate Peace Corps” sends employees to 9 emerging countries (Brazil, China, Malaysia and South Africa, Ghana, the Philippines, Romania, Tanzania and Vietnam) to work on projects that intersect economic development and information technology.

Corporate Service Corps worked on 36 projects that helped local businesses, non-profit organizations and governmental institutions improve their use of new technologies and expand their global reach.

Global Citizenship

In Ghana, helped launch a center for business development.

Offered workshops to prepare students and women entrepreneurs

In Romania, worked to identify small and medium enterprises with high growth potential requiring business training to tap into regional and global trade networks.

Teams worked with the Africa Wildlife Foundation in Tanzania

Overhauled financial management practices Develop strategic plans for wildlife

management.

Global Citizenship

In your opinion, is IBM doing enough to help promote environmental and social wellness?

Yes No IBM needs to do a better job of advertising their

efforts I did not know IBM is part of all the efforts in the

video

Clicker Question

Two examples of IBM crisis management:

IBM Saw it’s lowest revenue since 2009, climbing on 0.3 percent. The Personal computer market contracted for the first time since 2001.

IBM settled with their technical support employees for a sum of 65 million. They were found guilty of not paying overtime.

Crisis Management

Desired revenue not met

IBM decided to cut funding from less profitable areas. They plan to sell only the most profitable software and groomed shareholders to look primarily at the EPS.

IBM paid their employees where they were found guilty.

They also changed their company policy on how overtime is handled.

How It Was Handled

Comparing these two problems:◦ First, it is all about

maximizing profit. IBM is willing to drop anything that has not provided the revenue they desired.

◦ Second, they will do what they want with the people who work there, until someone says something and the law has to intervene.

What Does It Say

Pros:◦ Good with

environment

Cons:◦ Employees treated

unfairly◦ Crisis Management

Weighing the Good and Bad

IBM should have a committed R&D department, which if given enough time, could come out with something that would earn them more money in future endeavors.

They should also redo their polices concerning their employees to improve overall morale.

How To Improve

http://www.businessweek.com/news/2012-04-18/intel-ibm-see-sales-stall-as-europe-crisis-crimps-orders

http://www.webpronews.com/ibm-crisis-averted-suit-settled-2006-11

Sources