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Developing Strategic Management and Leader ship skills: A Case Study of 'The Fall of IBM' - Essay Example

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Developing Strategic Management and Leader ship skills: A Case Study of 'The Fall of IBM'

The intention of this study is IBM as one of the largest multi-national companies in the world, a global leader in information technology, with a market capitalization larger than most developing countries’ entire annual GDP at around $210 billion USD currently. IBM as a company grew from a family oriented management team under founder Tom Watson and later CEO Tom Watson, Jr. to become one of the largest international manufacturers of mainframe computers in the 1960-70’s. Garreth Jones of Texas A&M University has written a historical account of what he calls “The Fall of IBM”, detailing the strategic management and leadership styles of the former CEO’s of IBM who followed the Watson family as executives in the company. Jones highlights the changing market environment that would see mainframe computers go from the dominant product in corporate business management, to the introduction of the PC (Personal Computer), which made mainframes obsolete. While IBM managed this transition to become one of the largest makers of personal computers in the world at the time Microsoft Windows was introduced as an operating system in the 1980’s, the company would completely abandon that market within ten years to reorganize business operations around consulting services, software, research & development, and enterprise IT. This strategic transformation of IBM as a company over time to meet changing market and industry demands is taken as a case study in business management by students and scholars around the world. ...
A detailed analysis of the individual strategies employed by the leadership of IBM to meet competitive challenges can provide real business management lessons in how a large corporation can change to build situational responses and adaptations to meet strategic goals worldwide in a manner beneficial to staff, shareholders, and long-term company growth through expansion. The company Hewlett Packard (HP) is entering into a similar transition in the marketplace currently, considering the abandonment of its PC manufacturing business acquired through Compaq, and developing a larger software and services basis to its business model which has larger margins than the retail market. Such decisions mirror IBM’s previous choice to sell their Lenovo laptop division to Chinese ownership and exit the consumer PC market. While very few companies have the market share, international scope, research & development budget, or global retail sales network that IBM and HP have today, the leadership examples these companies display in managing changing marketplaces, technological innovation, and shifting consumer demands can be illustrative for business management students and industry executives who wish to prepare their own models of operation on tried and tested strategies of corporate leadership. Strategic Management & Leadership in Business Strategies of business management can be approached in two primary categories, those which are paradigmatic, or can be applied generally across business operations in a variety of sectors, fields, and industries, and those which are specialized, or focused for a particular single field of application only. It is important to consider the difference between paradigmatic and ...Show more
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The paper gives detailed information about Strategic Management and Leadership in Business; present Definition of Strategic Management and Leadership and tells about function of Strategic Management and Leadership. The paper also reviews Business Management Theory…
Author : dixie24
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