MALAYSIAN GRADUATE SCHOOL OF ENTERPERENEURSHIP &

BUSINESS

Presented by: Group 2AZHAR NAIMA MUTLAK p14 d487fSHIVAN SALEEM KHALID p15d082fWIJDAN IBRAHIM ABDULHAMEED p15d088fKHALDOON FATHI MAHMOOD p15d089fAWS SALAH ABDULLAH p15d085f

History 1911: Founded by a merge of 3 companies. 1914: Thomas J. Watson joins. 1924: Company re-christened to IBM. Birth of slogan THINC 1952: Watson Jr. called at the helm, it emerges as a

superpower in the next 20 years. 1981: PC launched a $50 billion market 1984: IBM captured

70% of industry's profits. 1990: 2nd most profitable in the world, net income of $6

billion on sales of $69 billion. 1991 to 1993: Structural problems emerged leading to

aggregate losses of $16billion.

Introduction

International Business Machines Corporation, abbreviated IBM, is a multinational computer technology and IT consulting corporation headquartered in Armonk, New York United States. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software (with a focus on the latter), and offers infrastructure services, hosting services and consulting services in areas ranging from mainframe computers to nanotechnology. It has been nicknamed "Big Blue" for its official corporate color.

Thomas J. Watson, Sr.

Became president of IBM (then C-T-R) in 1914.

Built IBM into a global corporation by investing in his employees and research.

Hired disabled WWI vets to work for IBM.

Thomas Watson, Jr.

Became president of IBM in 1952

Moved IBM away from punch cards and into electronic computers.

Q1: Few companies have had such a long history of ups and downs as IBM. What were some of the keys to its recent success? Can its plans to solve some of the world’s most challenging problems succeed? Why or why not?

The key to their recent success is focusing on big problems that

might affect business and consumers. Yes, I believe that IBM is

able to solve some of the world’s problem, such as pollution.

By hiring scientist, engineer, consultant, and sale professional,

they can help solve big problem and make people’s life easier

and healthier. They have been putting 30% of their annual

budget into R&D we can expect them to come up with

something that will fix some of the problem we are facing. By

researching new ways to fix big problem, it allow.

Q2:Who are IBM’s biggest competitors today, and what risks do they face with their current strategy?

IBM’s biggest competitors are tech and consulting firms that are related to

hardware and software. These other firms might be able to come up with an

answer that can solve a major problem before IBM. These firms might have

a change to climb up the market ladder by attempting to fix major issue

faster than IBM. Today, IBM is the largest and most profitable information

technology company in the world and as a result should consider Microsoft,

Apple, Google, and other information companies as competitors. As for a

risk with their current strategy, their targets are huge problems like pollution

and congestion. Success in tackling these problems would be considered low

—but if they are successful IBM could reap huge profits.

Recommendation

They are spending too much of cost R and D activities, it is considered to be a good for the future for developing and innovating and remodel the product but the same time $50 billion for R & D cost it too much high and they want to decreased that out of $50 billion reduced up to 35 to 40 billion and use $3 billion to any other marketing and promotional activities and can save $ 5 to 10 Billion as profit.

Conclusion

How many years of experience which the Company had though faced some draw backs, why means it was the time to learn new things for company and try to stay updated their product across the universe, after loss they also started to think in product design and features changed and increased the same after certain period of time, trying to innovating the new things, The company focused not only on innovated because it was concentrated into other auxiliary activities such as consultant etc. It is good move of the IBM.

Thank you