An Analysis of the Ibm Case
Table of Contents
SUMMARY OF INTERNATIONAL BUSINESS MACHINES (IBM) 2
IMPORTANCE OF HISTORY IN MANAGEMENT 3
THE IMPORTANCE OF TECHNOLOGY IN ECONOMIC DEVELOPMENT 4
JOHN AKERS WAS A PRACTITIONER OF SCIENTIFIC MANAGEMENT 5
HOW BUREAUCRACY IN IBM RESULTED TO INEFFICIENCY 7
HENRI FAYOL’S PHILOSOPHY 10
THE MAIN LEADERSHIP PROBLEMS IN IBM 13
OTHER MANAGEMENT ISSUES/LESSONS IN THE CASE 15
SIMILAR CASE – UCHUMI SUPERMARKET 16
SUMMARY OF INTERNATIONAL BUSINESS MACHINES (IBM)
In the early 1900s (1924), IBM was known as “Computer-Tabulating Recordings” that used to primarily make scales, coffee grinders, cheese slicers and time clocks. IBM PC was a great success and the profits were high. IBM also known as “Big Blue” was ranked as the world’s largest company in terms of stock market value, as well as creating jobs around the world.The Watson’s led IBM for 57 years, (1914-1971). During their time, they introduced the System/360 family of mainframe computers. Also, six different models launched simultaneously hence new factories were required because the demand was high and this also created jobs. The leaders who followed them were not visionary as them, but they inherited a strong company.
Due to poor leadership and a bureaucratic management system, IBM did not respond quickly to the changes in the computer market. IBM did not change with the times. The company chose to play it safe and did not take advantage of new technology the company had invented. Rather than keeping up with the fast-paced world and being a leader in technological creativity and innovation, IBM opted to play safe. This is seen by their delayed response into tapping into the personal computer market.
IBM’s leadership was not visionary and could not see the potential in spear-heading innovation. They simply forgot that IBM’s success was as a result of innovative ideas in the computer industry. Instead of hanging on to former inventions,
SUMMARY OF INTERNATIONAL BUSINESS MACHINES (IBM) 2
IMPORTANCE OF HISTORY IN MANAGEMENT 3
THE IMPORTANCE OF TECHNOLOGY IN ECONOMIC DEVELOPMENT 4
JOHN AKERS WAS A PRACTITIONER OF SCIENTIFIC MANAGEMENT 5
HOW BUREAUCRACY IN IBM RESULTED TO INEFFICIENCY 7
HENRI FAYOL’S PHILOSOPHY 10
THE MAIN LEADERSHIP PROBLEMS IN IBM 13
OTHER MANAGEMENT ISSUES/LESSONS IN THE CASE 15
SIMILAR CASE – UCHUMI SUPERMARKET 16
SUMMARY OF INTERNATIONAL BUSINESS MACHINES (IBM)
In the early 1900s (1924), IBM was known as “Computer-Tabulating Recordings” that used to primarily make scales, coffee grinders, cheese slicers and time clocks. IBM PC was a great success and the profits were high. IBM also known as “Big Blue” was ranked as the world’s largest company in terms of stock market value, as well as creating jobs around the world.The Watson’s led IBM for 57 years, (1914-1971). During their time, they introduced the System/360 family of mainframe computers. Also, six different models launched simultaneously hence new factories were required because the demand was high and this also created jobs. The leaders who followed them were not visionary as them, but they inherited a strong company.
Due to poor leadership and a bureaucratic management system, IBM did not respond quickly to the changes in the computer market. IBM did not change with the times. The company chose to play it safe and did not take advantage of new technology the company had invented. Rather than keeping up with the fast-paced world and being a leader in technological creativity and innovation, IBM opted to play safe. This is seen by their delayed response into tapping into the personal computer market.
IBM’s leadership was not visionary and could not see the potential in spear-heading innovation. They simply forgot that IBM’s success was as a result of innovative ideas in the computer industry. Instead of hanging on to former inventions,