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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
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