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: IBM - Case Study Example

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Case Study: IBM Table of Contents Table of Contents 2 IBM 3 Tushman-O-Reilly Congruence Model 4 4 Strategy Frame Work 11 References 14 Appendix A 15 Force Field Analysis 15 IBM International Business Machines Corporation or IBM is an USA based multinational technology and consulting company…
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Case Study: IBM
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Download file to see previous pages Three participants for merger activity were the international time recording company, computing Scale Company and the tabulating machine company. On the other hand in the year 1924, CTR or Computing Tabulating Recording Company changed its name to IBM (International Business Machines Corporation, 2012). In accordance with Fortune 500 list published in the year 2012, the company is ranked at the 19th position. Major competitors of IBM are Hewlett Packard, Accenture, Toshiba, Microsoft, Xerox and Dell among others (Yahoo Finance, 2012). Tushman-O-Reilly Congruence Model (Source: Tushman & O'Reilly, 2002, p. 59) In 2002, Tushman and O’Reilly proposed congruence model in order to set a sustainable strategy to solve change management issues. IBM needs to use the congruence model in order to solve perplexity of the situation. Stepwise congruence model for IBM can be explained in the following manner using organizational problem solving model proposed by Tushman and O’Reilly. (Source: Tushman & O'Reilly, 2002, p. 59) Opportunity Gaps The computing business has become commodity affair due to hyper competitiveness. IBM is facing challenge from various competitors such as Dell, HP, Toshiba and Apple hence market leadership position of the company gets perturbed over the course of the time. For example, business growth rate (approximately 30%) of Dell is much higher in comparison to single digit growth rate of IBM. Palmisano is planning an escape strategy of moving into new business such as consulting instead of battling in hypercompetitive computer industry. IBM will face competition from various companies such as Wipro, CTS and Accenture Ltd in consulting business. They will face major threat from Accenture Ltd due to its strong presence in business process outsourcing. Problem for IBM deepens due to the fact industry knowledge and service expertise of Accenture is far superior to their non technical expertise. Opportunities for business consulting seem lucrative enough for the company to change their strategy. Market researcher IDC has estimated a market volume of half trillion for IBM. Experts have predicted that consulting business will grow at an annual rate of 8% to 11% for coming years. Merrill Lynch's Milunovich has figured out growth potential of almost 9% for IBM global services. Critical Tasks Gaining expertise in the field of business consulting can be termed as major challenge for IBM. IBM is genetically built for providing technology solution but they need something more than technical expertise in order to break the ice in consulting business. Mayo is the strategic partner (read bio medicine section) for the company in the field of business consulting but matter of the fact is that existing engineers of IBM need skill re integration in order to create valuable impact. The company needs to design robust knowledge session for their engineers in order to recapitulate them with knowledge of business consulting. Strategic tie ups with universities are needed in plenty of number in order to design sustainable skill transfer model. Organizational Congruence In this section IBM needs to examine congruence of the organization in terms of structure, culture and people. Organizational structure of IBM is more focused on research of development of new technology but in consulting industry they need to be multidimensional. Top down approach of management is needed in order ...Download file to see next pagesRead More
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