outline essay gbh

7/24/2019 Outline Essay GBH

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Outline

Research Question : Diversifcation, good long-term strategy or not?

Title : The Struggle o I!

Introduction

1. Introduction about IBM, research question, theory that will be

used

Body

2. IBM as multinational company, explanation about M-Form

Theory. !ow they becomin" M-Form company# $The di%ersi&cation'

Theory

(. The process o) their di%ersi&cation. $*+ history' Theory. In%estin" too much in *+, bi" mistae because it taes IBM

down/. The way IBM sur%i%e $0ro%e' )rom manu)acturin" to ser%ice

"losing

. onclusion

#ach $art ma% &'' (ords

)in*

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htt$:++(((or.escom+&''0+0'+01+0'01i.mhtml

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htt$:++(((oregonlivecom+.usiness+inde%ss+&'00+'1+its/i.ms/0''th/.irthday/

ho(/ithtml

htt$:++(((gs.stanordedu+insights+ho(-did-i.m-avoid-.ecoming-e%tinct

htt$:++(((or.escom+sites+stevedenning+&'00+'2+0'+(hy-did-i.m-survive+

htt$:++(((-'0i.mcom+sot(are+ino+television+html+34'224'T52''67html

htt$:++(((8dnetcom+article+.usiness-diversifcation-(ont-guarantee-success+

htt$:++en(i*i$ediaorg+(i*i+I!/9ersonal/"om$uter

htt$:++(((e%tremetechcom+com$uting+027&-i.m-leaves-the-%51-mar*et-at-

long-last-signalling-the-end-o-%51s-$rofta.ility

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htt$:++;8com+21&15+in-selling-server-unit-to-lenovo-i.m-goes-urther-do(n-the-

solutions-ra..it-hole+

htt$:++(((theregistercou*+&'04+0'+&+i.m/.ac*ing/a(ay/rom/hard(are+

htt$:++(((i.mcom+$roducts+us+en+

htt$s:++(((gartnercom+doc+2471+diversifcation-hel$s-i.m-(eather-tough

htt$:++(((imdorg+research+challenges+diversifcation-glo.al-e%$ansion-

morrisoncm

htt$:++(((ris*sanddecisionscom+learning-rom-history-%ero%-vs-google-ocus-

vs-diversifcation
http://qz.com/76268/in-selling-server-unit-to-lenovo-ibm-goes-further-down-the-solutions-rabbit-hole/http://qz.com/76268/in-selling-server-unit-to-lenovo-ibm-goes-further-down-the-solutions-rabbit-hole/http://www.theregister.co.uk/2014/10/29/ibm_backing_away_from_hardware/http://www.ibm.com/products/us/en/https://www.gartner.com/doc/374563/diversification-helps-ibm-weather-toughhttp://www.imd.org/research/challenges/diversification-global-expansion-morrison.cfmhttp://www.imd.org/research/challenges/diversification-global-expansion-morrison.cfmhttp://www.risksanddecisions.com/learning-from-history-xerox-vs-google-focus-vs-diversificationhttp://www.risksanddecisions.com/learning-from-history-xerox-vs-google-focus-vs-diversificationhttp://qz.com/76268/in-selling-server-unit-to-lenovo-ibm-goes-further-down-the-solutions-rabbit-hole/http://qz.com/76268/in-selling-server-unit-to-lenovo-ibm-goes-further-down-the-solutions-rabbit-hole/http://www.theregister.co.uk/2014/10/29/ibm_backing_away_from_hardware/http://www.ibm.com/products/us/en/https://www.gartner.com/doc/374563/diversification-helps-ibm-weather-toughhttp://www.imd.org/research/challenges/diversification-global-expansion-morrison.cfmhttp://www.imd.org/research/challenges/diversification-global-expansion-morrison.cfmhttp://www.risksanddecisions.com/learning-from-history-xerox-vs-google-focus-vs-diversificationhttp://www.risksanddecisions.com/learning-from-history-xerox-vs-google-focus-vs-diversification


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One o the most challenging decisions a com$any can ma*e is (hether to

diversiy, in (hich the outcome can result in e%traordinary re(ards or ris*s I!

or instance, had to ace this situation in order to develo$ the com$any .etter

I! (as frstly esta.lished as "om$uting-Ta.ulating-Recording "om$any in 000

I! manuactures and sells com$uter hard(are and sot(are, .ut currently

ocusing on sot(are as its strategic assets It also o>ers inrastructure services,hosting services and consulting services in areas ranging rom mainrame

com$uters to nanotechnology

In this essay, (e (ould li*e to .ring several to$ics regarding I! 6e (ill

start .y tal*ing a.out im$ortant things ha$$ened to I!, a.out I!s com$any

structure (hich is related to the diversifcation that I! did, more details a.out

the R@D de$artment and $roo o the (ay I! survived

One o the most im$ortant things to remem.er regarding I!s history

(as in 0 (hen I! (as near its disaster I! core .usiness had .een

disru$ted .y the advent o the $ersonal com$uter and client server =nother

reason (as also .ecause the com$etitor had managed to su.stitute I!s

dealers and sales orce .y selling directly to the consumers =s a result, I!

recruited a leader rom outside or the frst time 3erstner ado$ted a triage

mindset and too* ;uic*, dramatic action Ae reverse the move to s$in o> I!

.usiness units into se$arate com$anies as he recogni8ed that one o I!s

enduring strengths (as its a.ility to $rovide integrated solutions or customers

Then a $ro.lem (here the com$any (ould have destroyed that uni;ue I!

advantage occurred

6e no( discuss a.out the fndings regarding diversifcation and relate it(ith I! situation eore diversiying, there are several things that need to .e

considered .y managers Birst managers need to *no( a.out (hat the com$any

does .etter than its com$etitors in its current mar*et Second, they need to *no(

the strategic assets that they need in order to succeed in the ne( mar*et Then

they also have to *no( (hether they can catch u$ to or lea$rog in the

com$etitors game Bourth, is to *no( (hether diversifcation (ill .rea* u$

strategic assets that need to .e *e$t together, (hich is directly related to I!

situation in 0 =ter that they need to fgure out (hether they (ill sim$ly a

$layer in the ne( mar*et or (ill they emerge as a (inner =nd last .ut not least,

they have to *no( (hat can their com$any learn .y diversiying and are theysuCciently organi8ed to do it

=*ers $revious "#O .eore 3erstnerE had s$lit I! into autonomous

.usiness units in order to com$ete more e>ectively (ith com$etitors, (hich

resulted in (orse ailure The ne( "#Os initial ste$s (or*ed ut then he had to

come u$ (ith a (inning strategy, (hich is shiting the com$anys management

system into radical management

I! did the diversifcation .y se$arating the com$anies instead o

.usiness units The !-orm com.ines the distinct .rand and economies o scale

advantages o the large com$any (hile maintaining the o$erational Fe%i.ility !-orm system also allo(s each su.sidiary to o$erate autonomously 6hile the


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division may still .e *e$t under central managements e%$ectation to ma%imi8e

$rofts, each su.sidiary can .e Fe%i.le and act inde$endently

=s I! diversiy in the 07's, I! $ut a lot o investment or research anddevelo$ment centers This move, made I! .ecome one o the frst mover in the

com$uter industry, and it is needed to reaCrm their $osition in the industry I!

got this o$$ortunity since, the Third Industrial Revolution created di>erent

entre$reneurial reaction This made com$anies try to adGust themselves to the

com$etition in the ne( mar*et The $ur$ose o this frst investment is to

encourage their engineers to im$rove their hard(are $roduct es$ecially

com$uterE and sot(are

H$ until no( I! has 0 research centers around the (orld, (hich called

as I! research This research de$artment has invented a lot o innovative

$roduct that is the source o I!s diversifcation They also .ecome home or 7o.el )aureates, HS ational !edals o Technology, 7 HS ational !edals o

Science, 1 Turing =(ard, and 0 Inducees in the ational Investors Aall o Bame

Some o their nota.e develo$ments rom this research center are data ecry$tion

standard, ast ourier transorm, magnetic dis* storage, and one-transistor

dynamic random access memory ut, this move made I! .ecame one o the

.iggest s$ender in research and technology Related to their System 1', I!

s$ent 2 .illions dollar in 01 This investment made them su>er or a great loss

until the end o 01's Investing in .ig $roGect .ecome one o s$ecifc .ehavior

o I!

In 0, fnally I! came to their lo(est $oint (hen they su>ered rom 01

.illion dollars over fve years Its stoc* (as dro$ to 2' $ercent, and they lost 2'

.illion dollars on shareholders value The caused o this turn do(n the frst one

(as, they cant com$ete (ith smaller com$etitors that are less diversifed than

them These com$etitors (ere a.le to du$licate their technology, and one o

them (as Dell The second $ro.lem (as, they ound diCculties in integrating

di>erent technologies, and their customer (as acing the same diCculty

It is o.vious that the core $ro.lem o I! is .ecause they diversifed too

much I! (as tra$$ed in so called e%$ertise $arado% .ecause they tra$$ed in

their o(n com$etency They lose their o(n ocus, and lose their o(n $ersonality

In this case I! need to .ac* to the right trac* This is (hen the

deconglomeration ha$$ened =s the $ur$ose o the deconglomeration is to cut

cost and increased $rofts , their ne( "#O at that time, )ouise J 3ertsner saed

I! rom their nearly death .y remade the organi8ation

ac* then, )ouie J 3ertsner turnaround the I! ocus and do the

deconglomeration Ae tried to ullfl customer needs a.out technology integrated

system (hich ma*es I! no( more ocus on services rather than to

manuacturing hard(are, (hile *ee$ trying to cut the cost =s I! moving rom

manuacturing to service it is sho(n that I! successully aced intensifedinternational com$etition


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ut remade the organi8ation and get the ne( ocus o it, is not enough or

I! i they (ant to survive another 0'' years Related as their title as a .ig

s$ender in reserch and develo$ment and the crisis in 0, I! should consider

(hether it is a good long term decision or not Since long-term investment

should .e ta*e care .y government, as they also got indirect su$$ort rom HS

goverment =s (hat )ouis J 3ertsner did in 0, to *ee$ survive it is true orI! to ocus on customer needs

To conclude, I! (as diversifed and .ecoming a multidivisional com$any

ut as I! .ecome more diversifed and s$ent a lot on research and

develo$ment, they lost their identity and aced some challenges rom its

com$etitors that (ere less diversifed Their s$ending on research and

develo$ment also made them su>er rom loss and .rought them to their lo(est

$oint in 0 Then )ouise J 3ertsner came to the com$any and saed I! .y

changing the ocus o the com$any as a service com$any, and cutting cost ut

in order or I! to survive, they need to consider more a.out s$ending a lot omoney on research and develo$ment Instead, they need to .e ocus more on

customer

outline essay gbh

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