1.

The proposed IBM’s new vision statement:

The vision statement for International Business Machines (IBM) is to become the number one
worldwide information technology products and services provider.

2. The proposed new IBM’s Mission statement

International Business Machines (IBM) ‘s mission is to provide business (1) with Information
technology products and services (2) with high end server business technological (4) focusing on
Asia Pacific, Africa, Europe and Middle East (3) area. IBM has the concern to increase the profit
for the company growth (5) and public image (8). Our philosophy is dedicated to every client’s
success, innovation that matters for our company and the world and also trust and personal
responsibility in all relationship (6). Strive to maintain reputation as a No.1 worldwide IT
provider (7). We support workplace equity and provide anti-discrimination clause. (9)

3. The Internal assessment that have been identified, analyze from the case study on the strengths
and weaknesses (identify, analyze, discuss)

3a. Five strengths of IBM company found on the case study

1) Where the first one is over 60 percent of the employees in Research and Development
(R&D) fields of operation such as big data, cloud computing and other key growth initiatives,
which is good as IBM is an IT provider that requires them to make research in order to
develop new products or services for worldwide countries.

2) The second strength is IBM created many partnerships with other business and universities.
IBM successfully manage its 6000 partners and 1000 university partnerships, and with that
IBM is committed to evolving into a big data company.

3) Next, in terms of marketing. IBM has an excellent marketing campaign in cloud computing
segment. Currently, IBM is considered the industry leader in cloud computing through heavy
R&D and marketing campaigns. Roughly 60 percent of all Fortune 500 companies today use
IBM’s cloud services and IBM remains a leader in the area.

4) IBM provides a long term value for share partners by having huge capital investment
activities. The company has invested over $24 billion to date, made 30 acquisitions and has
15,000 consultants and 400 mathematicians in this area. Moreover, IBM is larger than both
HP and Accenture combined.

5) The gender equality is a practice among its employees shows the exemplary regarding
workplace equiality. It is no accident that IBM’S CEO is a woman, Virginia Rometty. In recent
years, IBM UK has ranked first in Stonewall’s annual Workplace Equiality. In recent years,
 IBMUK has ranked first in Stonewall’s annual Workplace Equality Index for United Kingdom
(UK) employers.

3b. However, the weakness based on the case study will also effect the company if there is no
action taken to overcome it.

1) High standardization of products make differentiation product lines difficult. This is making
many segments of IBM services/products are declining.

2) From the case study, it has mentioned that the sales keep declining from the year 2012 to
2014. In the year 2014, IBM is the worst performer among the 30 stocks in Dow Jones
industrial average. No bonuses were also given to company Executives in 2014.

3) Next weakness is the company’s official mission and vision are not constructed by the
management. Statement that stated in the case study that IBM has not constructed the
vision and mission yet is as of 2015, there is still no formal mission and vision statement
provided on any literature published on IBM’s website. Lacking written vision and mission
statement to guide strategy and direction.

4) IBM lagging behind in the private cloud market and not yet create a better super computer
than the HP Apollo 8000.

5) Lastly, the weak presence in personal IT devices production segment.

4. External assessment (identify, analyze, discuss)

4a. 5 opportunities for IBM

1) Growth in IT areas/industry especially in Asia, as it has the best growth rate in IT. As per IT
growth by geographic region, Asia has experienced the best growth rates of late, with China
up to 7.7 percent. Indonesia up to 6.2 percent, Vietnam up to 5.0 percent and India up to
3.2 percent in 2012.

2) Growth in business of data is another opportunity for IBM as the business of data analysis,
data storage and security are growing.

3) High end server business is less prone to commoditization. For example, IBM acquired SPSS
and Cognos, a data analytics software in 2009 for $1.2 billion. IBM plans to keep its high end
server business, which is less prone to commoditization by other firm’s products.

4) Another opportunity for IBM is the smartphone apps further growth, where smartphone
apps represents about 2 percent of this industry, but further growth is expected. Plus, with
 the social media revolution, IBM expects firms to double its expenses in this area by 2016.
IBM’s purchase of Skype and Facebook’s purchase of WhatsApp are two examples of
companies trying to profit off the social media revolution.

5) Lastly, the opportunity for IBM is the fast growth of use of data and the information that can
be derived from data. The use of data and more specifically the information that can be
derived from the data, has grown faster than our legal system can keep up.

4b. 5 threats for IBM

1) Lack of IT sourcing, IT consulting and IT hardware support at project. The slow growth
between 2012 and 2017 for IT sourcing, IT consulting and IT hardware support at projected
annualized growth rates of 1.3, 4.1 and 2.9 percent respectively.

2) Legal issue against big data usage. The threat of legal issues against firms using big data is
increasing daily. There are also privacy concerns risks from the public. Where in the last 5
years, the general public has become especially aware and suspicious of data usage. Privacy
concern have arisen and even rights to who owns the data presents a problem moving
forward for corporations in the data business.

3) This industry requires large R&D expenses and costly labor force for software industry to
stay current including the privacy risk threat and piracy or copyright risk.

4) Low entry barrier of the industry compounding problems, new competitors are able to enter
the industry fairly easily, creating downward pressure on prices.

5) The case study mentioned on the Europe debt crisis where it is still recovering from its
economic debt crisis, reported the smallest growth rates with the United Kingdom up only
0.2 percent and Germany up to 0.9 percent.