Individual Case Study - Vision Statement of BNM PDF

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Vision Statement of BNM...

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From the case you are to: 1.

Develop a vision statement for IBM Vision Statement IBM’s vision statement is “to be the world’s most successful and important Information Technology Company. Successful in helping out customers apply technology to solve their problems. Successful in introducing this extraordinary technology to new customers. Important, because we will continue to be the basic resource of much of what is invested in this industry.” The keyword ‘successful’ throughout its vision statement to signify its developmental journey. The company considers maintaining a consistent winning the business profile for lead its leadership position in the information technology sector. The vision statement has the following factors: Best global giant. The first factor in IBM’s vision statement is all about the influential position the company fights to occupy. IBM wants to rival all other information technology companies to the top seat. The company has been doing this through progressive success and well-strategized business branding. Today, IBM has demonstrated it is the ideal company every other business and customer should be looking out for with its advanced products and related systems such as the internet of things, security, mobile and automation, all with immeasurable potential to impact lives of people. Improving communities. IBM simply looks to apply its complex products to make the world better in this factor of its vision statement. For instance, the company indicates that introducing extraordinary technology is one of its primary visions, and these inventions all seek to make life easier and societies better. The same case applies to the impact the activities of the company are poised to have on the general business landscape.

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Develop a mission statement for IBM Mission Statement IBM’s mission statement is “to lead in the creation, development, and manufacture of the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices, and microelectronics. And our worldwide network of IBM solutions and services professionals translates these advanced technologies into business value for our customers. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.” The company outlines all the operations that it capitalizes on to define its position in the information technology. It also points at its commitment to ensuring that these operations are run in such a way that they add value to the lives of its clients. The mission statement gives rise to the following major points. Leadership in Information technology. The mission statement by IBM reiterates its leadership responsibilities within its sector. The company holds this as an important duty ever since it was founded, and it has done its best to achieve it through various operations. Some of these include overseeing the design and development of tech-related products and other components. In fact, the first section of the mission statement outlines some of these efforts. Others are breakthroughs that IBM has stimulated in the information technology are defined in the ‘Our Industries’ section. The variety and comprehensiveness of the impacts the company has on various sub-areas affirm its leadership in the sector. Networking the world. In this second factor, IBM focus is on the workforce that it has brought together and the difference it creates in the overall success of the company. IBM stresses that these diverse professionals are the source of the value that the consumers enjoy. Essentially, IBM shows that it is an inclusive company that pools its experts from the larger global market, something that also makes its products fit for global consumption as they are sensitive to global needs. Improvement of life. The emphasis placed on professional solutions at IBM demonstrates how serious the company is when it comes to leaving an impact on the users of its products and services. That is why IBM leaves nothing to chance by ensuring that its business is value-oriented and that this value is customer –leaning

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Perform internal assessment/audit to identify, analyse and discuss the following from the internal factors: 5 strengths

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Worldwide employees around the world which can provide information technology products and services.

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Wide range of partnership with other companies and collaboration with university which can develop IBM to be Big Data Company.

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Provide workplace equality, provide health benefits equality for each gender makes IBM is first ranked in Workplace Equality Index.

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Taking investment in Globalfoundaries for nano chip.

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Superb Performance in New Markets – IBM has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in.

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Successful track record of developing new products – product innovation.

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Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks.

5 weaknesses

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Financial planning is not done properly and efficiently. The current asset ratio and liquid asset ratios suggest that the company can use the cash more efficiently than what it is doing at present.

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Expensive service and software solutions. IBM offers expensive integrated custom solutions for enterprises that want to build reliable IT infrastructure in their companies. This often involves buying hardware, software and services from IBM at the same time, which is very costly expenditure for any size of enterprise.

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Organization structure is only compatible with present business model thus limiting expansion in adjacent product segments.

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Limited success outside core business – Even though IBM is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture.

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Focus mainly on customized products. IBM focuses on providing customized solutions for large and medium enterprises. This is a very profitable business model but captures only a small share of the market. The rest of the market is often satisfied with off-the-shelf software products and services. The lack of these products makes IBM less approachable by the rest of the market, where competitors like Oracle and SalesForce thrive.

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Perform an external assessment/audit to identify, analyse and discuss the following from the external factors: 5 opportunities

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Expand services and software divisions. IBM provides various services (cloud, security and infrastructure) and enterprise solutions (servers, networking and storage), which are the most profitable IBM’s businesses at the moment. New trends in the consumer behavior can open up new market for the IBM. It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.

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Stable free cash flow provides opportunities to invest in adjacent product segments. With more cash in bank the company can invest in new technologies as well as in new products segments. This should open a window of opportunity for IBM in other product categories. The opportunity to diversify IBM’s business in various industries is directly linked to the company’s weakness of having a low degree of diversification. The opportunity to rapidly innovate supports the company’s competitiveness based on its research and development expertise and the strength of having an extensive intellectual property portfolio.

5 threats

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Wrong collaboration with Apple which helping competitor to grow profits in wide reaching tech turnover. Liability laws in different countries are different and IBM may be exposed to various liability claims given change in policies in those markets. Imitation of products is an issue that faces IBM. This threat is based on the weakness of product imitability, which is due to the company’s focus on cost leadership with minimal product uniqueness. Cybercrime is a significant threat, especially because of the company’s extensive online operations involving servers for its clients. IBM sales heavily depend on the enterprises’ willingness to make huge investments into IT infrastructure, which is far from the first option during the times of slow economy growth. While this scenario is not forecasted for the whole world during 2013 and 2014, some regions, like Europe, will still struggle to grow....