Ibm Canada Ltd: Implementing Global Strategy Essay
Richard Ivey School of Business
The University of Western Ontario
IBM CANADA LTD.: IMPLEMENTING
Ken Mark wrote this case under the supervision of Professor Deborah R. Compeau solely to provide material for class discussion.
The authors do not intend to iIIustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
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Business Machines (IBM), and the whole company was renamed in 1924. Over the past century, IBM had evolved from primarily a manufacturer of computer hardware to a multinational information technology solutions finn. It maintained operations in more than 200 countries, with each country unit responsible for developing business locally and, if necessary, coordinating its efforts with neighboring units.
Under the leadership of Sam Palmisano as its chief executive officer (CEO), IBM started to leverage its presence in 200 countries to deliver services to multinational clients who had operations spread across regions. By 2008, IBM was generating more than 60 per cent of its revenues outside the United States.
In 2008, IBM generated US$12.3 billion in net income from US$103.6 billion in sales. It employed a workforce of approximately 386,000 people and was headquartered in Armonk, New York. IBM had five business segments: 1) global technology services (GTS), 2) global business services (GBS), 3) systems and technology (ST), 4) software and 5) global financing.
Under the Global Services umbrella, GTS and GBS provided clients with services that either increased effectiveness or decreased cost. These services included strategic outsourcing, business transformation outsourcing, integrated technology services and maintenance. Global