BUSINESS

IBM case study



IBM case study

Introduction

IBM is said to have made a significant growth in the last few years and specifically in the last three years, as it has been able to manage to come up with new business development ideas. IBM has been able to do it due to its effective corporate strategy team and because of its line manager. After the emphasis on the business development, IBM has been able to come up with 18 new ideas and opportunities. Those were supported via funding and then were consequently implemented via the business development program.IBM being goal oriented had a target of attaining two points that is to have a healthy annual incremental growth which was also promised to the board of directors. With the development of the program, IBM now possessed a discipline as well as a structure for the management of the opportunities. The advantageous part of it is the fact that the internal as well as the external stakeholders were high motivated and enthusiastic for it. Considering that a lot of effective preplanning was done but still the business was unable to grow the way it was forecasted to be. Specifically, the corporate strategy team, was unable to forecast that the organization will not be able to fulfill the two point score and it was also expected at the same time that the business will not generate the profits that were expected. It was expected to continue until and unless the EBO's were said to be refilled as they were initially at the start of the program.

It was the corporate strategy team, that later came up with several step oriented program that could aid IBM to increase the number of EBO's to ensure that the desired or the forecasted growth is attained and that the two point growth is accomplished. In order to attain the desired the corporate team strategy further proposed that the staff of the organization be expanded and that the activities need to be broadened. There approach was said to accepted at a macro level of the organization but it was the CEO who had a concern against it. The CEO asked the corporate Strategy team several questions that questioned their actions (Christiansen, 2003).

1. What does it take for a large firm like IBM to develop new businesses within and thereby succeed with a horizon 3 strategy?

In response to the questions that were placed by the CEO of the organization the corporate strategy responded concluded that analyzing the current situation IBM is said to have one system of management which was obviously designed for businesses that is said to be large as well as established. They also gave reference to the book called The Alchemy of Growth. The book has said to mention the same two point model that has been the annual goal of IBM. The model in the book divided the two point strategy into three whole horizons and then were termed as stages based on the order that they were ...