B.

INTERNAL ENVIRONMENT ANALYSIS

A. 1. The Functional Areas
FUNCTIONAL AREAS STRENGTHS WEAKNESSES
Finance IBM is the largest and most Expensive service and software
profitable information solutions
technology company in the
world, with over $103 billion in
sales, and holds more patents
than any other US-based
technology company.
Marketing Built the SAGE computer Focuses mainly on large
system for air defense in enterprises
collaboration with the
government. Launched the
breakthrough System/360
computers, which account for
almost 70% of all computers.
Organization & Management Founded some of IBM's most Both in 2014 and 2013, the
prosperous business techniques stock was the worst performer
like outstanding customer among the 30 in the Dow Jones
knowledge service a sales force industrial average.
and an emphasis on large-scale
fixes for companies.
Production IBM has maintained the record Both revenues and profits
for most patents produced by a decreased annually from the
firm for 22 years running. $127 billion and $30 billion,
Lenovo purchased from IBM in respectively, reported back in
2005 and 2014, respectively, for 2011.
$1.25 billion and $2.3 billion.
HR Saw the expansion of Poor Customer Service
Internet, followed by assisting
clients and utilizing it for their
companies, using their
eBusiness projects.
R&D IBM has made significant Management mentality and Lack
investments in its R&D sector of product differentiation
and will continue to do so.
About 30% of its yearly R&D
budget is allocated to long-term
research.
Information Tech Globalfoundries obtained Imitable Products
IBM’s global commercial
semiconductor technology
business, including intellectual
property and technologies
related to IBM
Microelectronics.