IBM Case Study Analysis Essay Sample
IBM Case Study Analysis Essay Sample

IBM Case Study Analysis Essay Sample

Available Only on StudyHippo
  • Pages: 8 (2084 words)
  • Published: August 30, 2018
  • Type: Case Study
View Entire Sample
Text preview

In 2000, IBM's Microelectronics division faced challenges due to an unexpected increase in demand that surpassed the company's capacity. However, Chris King and her team were able to transform the Network Technology Unit into a successful entity through their determined efforts. The team set ambitious objectives aimed at achieving growth and leadership in microchip engineering. To achieve these goals, they analyzed the external environment meticulously as part of their planning process.

Before the crisis, King placed significant emphasis on identifying and comprehending their customers' requirements, scanning for potential clients and competitors, as well as seeking internally for highly motivated and skilled personnel. This contributed to their initial success.

Although it was smooth sailing with a clear path, it is always important to have life jackets on board, something that King appeared to have forgotten.

It is not the fault

...

of King for the sequence of occurrences that transpired, as she had to deal with a complex and arduous situation concerning handling the rising demand growth. The management of growth is always challenging, hence executing comprehensive strategic plans can aid in simplifying the process. In this context, "solid" pertains to plans that consider the company's external environment and Porter's five forces' effect.

One way to develop a comprehensive plan is by conducting a SWOT analysis, examining the internal situation, defining a clear mission and vision, devising a contingency plan, and addressing other relevant factors.

The goal is to attain lasting expansion and a tenable edge over competitors. Yet, King was unprepared for unforeseen circumstances that resulted in a critical situation brought about by unfavorable market conditions caused by the internet bubble burst, coupled with insufficient production readiness. Coping with rapid growt

View entire sample
Join StudyHippo to see entire essay

that is unexpected can be arduous.

Experiencing unaccounted for growth is even more difficult than failure as it places stress on various aspects such as resources and forces, whereas failure provides an opportunity to learn from mistakes and try again.

The relationship between the client and the company affects the company's future. Additionally, since the origin of this quick expansion is always outside of the company's control, it simply allows the company to adapt and adjust.

Insufficient resources and the pressure of clip force per unit area have a choking effect on the company, making it evident that unsustainable growth can have serious repercussions in the absence of proper planning. However, despite facing similar circumstances, IBM's unit was able to avoid falling prey to this situation thanks to the commitment of its employees and their proficiency in resource mobilization.

Pulling off GrowthKing and her team appeared to be successful from the beginning as they established their goals and worked diligently to achieve them through their assertive and ambitious approach. As a result, the unpredictability of the outcome caught the unit off guard.

Although they did not anticipate the rapid collapse of the cyberspace bubble, the team could have prevented some of their mistakes by developing a more comprehensive plan that accounted for all the potential effects of growth on the organization. Hence, better preparation could have averted some of their errors.

The crisis faced by King and the unit resulted from both unpredictable market conditions and planning oversights by the team. To comprehend the mistakes that caused the stressful situation in 2000, it is necessary to analyze the errors that occurred. Initially, King is likely to be held

responsible for the unit's performance shortcomings, due to her ambitious and driven personality. She often had her own approach to executing tasks, which mostly appeared effective.

Despite the fact that the header of the Network Technology Business unit was similar to what she had faced previously, it presented a real challenge. The individual possessed the required interpersonal skills, drive, and capacity to develop strong relationships with clients who were not typical for IBM. Furthermore, she was a skilled engineer with vast expertise in the industry.

Although she was missing important skills such as being organized, detail-focused, and methodical, which are essential for creating a reliable software program.

King was focused on achieving results, so once the team completed initial research and knew who their target was, they were authorized to aggressively pursue sales by any means necessary. Their ultimate goal was to become the top business leader. Although the specific strategies for achieving this goal were not yet defined, the first misstep was suggesting to the client that IBM could make anything possible.

King made commitments to provide merchandise that was still under development and agreed to supply shipments that the company did not have the ability to handle. This caused internal dissatisfaction as the manufacturing department could not meet King's requirements. As a result, there were communication problems between departments.

The clients had grown accustomed to the unit's ability to meet their every demand, but these promises were only upheld thanks to King's persuasive skills and strong relationships within and outside the company. However, cracks in the system began to show due to a lack of structure within the team and a failure to consistently follow through with

plans. The group's division of labor was informal, with the only rule being that they do whatever was necessary to achieve their goals. This focus on client demands led them to overlook important procedures that were necessary to meet those demands.

King and John Kelly decided to divide the unit into three fractional monetary units based on three chief types of engineering that they were producing due to growing concern. Following this decision, David Balkin was brought in by King to head one of the divisions and introduce new procedures for tracking and regulating sales and production.

Earlier implementation of these crucial systems could have alleviated future strain on the unit if growth had been initially accounted for. Customer companies experienced what appeared to be exponential expansion, exacerbating the inability to meet demand. As orders tripled during the bubble's growth, King and her team were unprepared for such a turn of events. A contingency plan may have mitigated some of the damage if the unit had accounted for potential mishaps.

The team was unprepared and lacked knowledge about other facilities that could help produce their fries. Additionally, they only found out about the manufacturing capacity of their company after the crisis had hit, as a specialist was able to bring together their sales and manufacturing systems to determine the actual capacity. This remained unknown until the fortunate discovery that an IBM facility in France had enough capacity to assist in meeting the overwhelming demand.

Despite working under a strict deadline, the employees actively listened to their clients' needs and dedicated time to comprehend the intricacies of their tasks. However, they encountered distractions that prevented them from

promptly addressing the clients' concerns.

This lack of focus on item orientation and tendency towards distraction resulted in difficulty executing certain procedures. As a result, crucial issues were left unaddressed and problems were not effectively resolved. Chris neglected to include individuals in her team who possessed skills and qualities aligned with what IBM refers to as the "Horizon 1" (mature) business approach. These individuals would be capable of managing repeatable processes with stability and incremental innovation.

In stating that she recognized the need to diversify her team, the speaker emphasized the importance of including individuals from varying backgrounds. This realization stemmed from a desire to move away from her tendency of selecting team members who were similar to herself. As a result, procedures aimed at ensuring stability or growth were not effectively implemented due to the lack of diverse perspectives. Despite this hurdle, the Network Technology Unit operated as a successful, high-volume producer - a goal that had been set by King and her team, who had projected billions of dollars in sales.

Despite the absence of production and capacity tracking systems, there was a need to address limitations and accommodate a rapid transformation in a short amount of time. The lack of planning and the external environment's chaotic changes resulted in an ideal setting for failure. Under these circumstances, King and her team should be commended for managing relatively well.

Enhanced Planning Process

The main issue with King's leadership was the lack of organization and structure in the Network Technology unit. Although Chris identified a growth opportunity and potential new clients, there was no proper plan in place to facilitate this expansion.

Prior to beginning the

unit, King performed a comprehensive analysis by evaluating IBM's capabilities and examining the competitive landscape as well as potential customers. This analysis was carefully scrutinized and identified IBM's strengths in microchip production, enabling King to identify key clients. Although this information was sufficient to confidently make ambitious predictions and serve as a motivating tool for the team, it only represented a portion of what constitutes a comprehensive strategic plan, as it is missing several essential steps.

King could have been better prepared for market conditions and rapid growth by setting up clear goals and tactics with her team beforehand. To achieve this, it would have been necessary to analyze IBM's strengths, weaknesses, and limitations, as well as their manufacturing capacity before placing orders. Additionally, a thorough analysis of market trends would have been helpful in anticipating the growth of the internet bubble and understanding customer demand to eliminate surprises.

Additionally, the team needs to plan for expansion and hire the necessary expertise to implement systems that can support high volume manufacturing. To effectively execute this strategy, the management must assign responsibilities, allocate resources, and enforce accountability based on clearly defined goals.

King's weakness lied in delegation, as she tended to surround herself with like-minded individuals and did not bring in important specialists to assist with growth. Proper research and allocation of resources was necessary, as King's sales team often operated with insufficient resources. However, King excelled in demanding results.

Although everyone on the team was focused on results, the most important aspects were unity and clarity of roles. By working together with a clear understanding of what each person needed to do, the organization could function

effectively. IBM also emphasized the importance of continually improving through an understanding of their customers' needs and consistently offering superior products.

In order to effectively meet customer demands in manufacturing and product development, a monitoring system called the Plan Do Check Act (PDCA) problem-solving procedure is necessary. The first phase of planning would align final goals with the necessary procedures to achieve them, providing King and her team with a clear understanding of how to manage production. The second phase, Do, involves the actual implementation of the decision made during the planning phase.

The third Check phase involves comparing the obtained outcomes with the planned ones and identifying major variations, while the fourth Act phase includes analyzing the reasons for these differences and ways to improve. These two steps would have enhanced communication between the sales team and manufacturing, enabling the unit to identify the critical issues it faced earlier. Despite lacking essential planning tools, the Network Technology department managed to overcome the crisis and reach its predicted sales, which is an accomplishment that would not have been feasible otherwise.

Despite this, the unit would not have succeeded without the commitment of those working within it, as well as support from others in the company. Fortunately, King was able to gather a motivated team who may not have had everything planned out on paper, but they instinctively knew how to get the job done. Nonetheless, some of the issues could have been prevented if the team had established a contingency plan that outlined strategies in case of unforeseen events.

Earlier research could have disclosed the market's potential fluctuations, customer management strategies, and recommendations for resource allocation. The team

faced difficulties making crucial decisions during the crisis due to the lack of this information, which added to their already stressful situation. Nevertheless, they persisted and demonstrated that real-life situations can differ unexpectedly from theoretical expectations. Source: http://www-01.

The link to the top stories of IBM's software success can be found at ibm.com/software/success/cssdb.nsf/topstoriesFM?OpenForm=corp=en_ushttp://www-935.ibm.The URLs for two case studies are:

- http://www.com/services/uk/bcs/html/bcs_casestudies.html
- http://www.aflcio.org/corporatewatch/paywatch/retirementsecurity/case_ibm.The link to case 06 on the ODIS website at domino.Watson.ibm.com can be found at cfmhttp://domino.Watson.ibm.com/odis/odis.nsf/pages/case.06.

Hypertext Markup Language

Get an explanation on any task
Get unstuck with the help of our AI assistant in seconds
New