Assignment IBM is Both an Outsourcer and a Major Outsource for Others

Refer to textbook case, Analyzing Management Decisions, IBM is Both an Outsourcer and a Major Outsource for Others, on page 352 of the course text (chapter 9).

Read and analyse the case following the format outlined below. (The questions posed simply help to focus your analyses and approach. They guide you in exploring stakeholder perspectives and possible alternatives/solutions.) Support any assumptions that you make (use citations), and remember to apply terms and concepts from the text. The objective of any assignment is to demonstrate what you have learned in the course! Format Use the following standard report format to organize your analyses: Introduction in a paragraph, briefly summarize the issues. (0.5%) Problem Statement in a sentence, describe the major problem that must be resolved. (0.5%) Stakeholder Analysis Consider the complexity of the situation and the potentially conflicting perspectives of at least three various stakeholders (refer to chapter 1), applying concepts from the text. (4%) Alternatives analyze the solutions proposed in the case, as well as two or more of your own suggestions, which must be supported by concepts in the text, or external research. (2%) Recommended Solution what would you advise? How will you implement your recommendation? (1.5%) Conclusion briefly summarize why your solution best resolves the problem. (0.5%) [Format, References and style (1%)] Written Report Your written report should be no more than two pages in length (1.5 spacing) excluding reference pages and appendices, and submitted on LMS. Use at least three sources/references to support your analyses, and remember to document them properly, using either APA or MLA format. Appendices can be used for any additional details to support your arguments.

IBM Is Both an Outsourcer and a Major Outsource for Others Few companies are better known for their manufacturing expertise than IBM. Nonetheless, even IBM has to adapt to today's dynamic marketplace. In the area of personal computers, for example. IBM was unable to match the prices or speed of delivery of mail-order firms such as Dell Computer. Dell built machines after receiving orders and then rushed the computers to customers. IBM, in contrast, made machines ahead of time and hoped that the orders would match its inventory To compete against firms like Dell, IBM had to custom-make computers for its business customers, but IBM was not particularly suited to do such work. To address this issue IBM entered into a relationship with Lenovo whereby Lenovo became the manufacturer of IBM personal computers and over time replaced IBM in the personal computer market. IBM's long-range strategy was to move away from hardware toward software development. It acquired PricewaterhouseCoopers Page 353 to put more emphasis on services rather than hardware. As a result, IBM dominated the IT industrm. They offered outsourcing for IT infrastructure, application development, and IT support services. They spent over $6 billion annually on research and development and held the most patents of any US, technology company While growing this side of their business they outsourced a number of obs to India in sales, semiconductor and finance groups, resulting in the layoff of 4600 US-based employees in these positions in 2009 Today IBM continues to face many challenges. While revenues from cloud computing have helped the company major competitors such Amazon Google and Microsoft have gained ground in this area. The drop in server hardware sales led IBM to sell this part of its to Lenovo and focus upon business acquisitions to capitalize on growth within cloud computing While generating profit for the the switch to acquisitions led to a de-emphasis upon innovation stating three strategic areas-clients innovation and trust-decision making was diiveli be a desire to earn more for focus upon investment returns referred to as "Roadmap 20 led to massive Cost-cutting measures that created High led to further emplovee layoffs Still finds was to innovate IBM Research has defilled the future of information technoloer with more than nefoss 6 continents IBM Inventors la deived over to patents bomarking the companys 25th Eshitted Hinge brukes