Alibaba Company Case Analysis Study
by Medio Putra (English Version)
(This Article are based on opinion)
Before knowing stand for IBM, let's see how IBM is goes to be. IBM is about computer hardware and software manufacturing and selling by United States business. International Business Machines Corporation is the stand for IBM, this stand is mainly the same as the name of the NYSE or New York Stock Exchange as the tycoon technology company who work computer intelligence which is going-public in the United States. Afterward, it needs at least 100 years for IBM to create this industry as the world's information project, also it doesn't include the misunderstanding of the computer revolution as well. In this case, this is the part to understand about IBM also could fail either.
The world initially recognized IBM as one of the initiators of the 4.0 revolution on behalf of the computer as an item that changed the circulation and cycle of human life, as a simplification, they were known for selling computer devices. However, organizational, and internal corporate changes left behind this kind of business strategy and moved on to selling its computer rights equipment to other companies. Another company known for its mobile devices and laptops that was labelled red in 2005, is Lenovo. This decision changed IBM's sales map, then what kind of landscape IBM was trying to build that changed the market and organizational strategy in this field of computers.
According to Stepan Lavrouk, author of financial & economic also analyst from The Yahoo Finance and The Motley Fool UK, publication on Gurufocus.com, entitled "IBM Has Significant Problems," the main idea said that there are difficulties with this technological leader due to lack of development, adhere to with the facts on business stated that over the past five years, IBM shares (NYSE: IBM) have declined dramatically. Since the market peaked at around $215 a share in 2013, rates fell to $140 a share, with some uncertainty. Stepan seems pessimistic in every important market area IBM has an issue with a lack of sales growth, considering the inability to produce recent expansion activities. There is a community of technology investors on the institutional and retail side who mostly invest in growth and have prevented the stock because there is no card growth for IBM. The business is not appealing to either rising buyers or investors based on the industry's competitive environment. It could be easier to skip this stock before income recovers again. This is also an effect of cost-customization, the part of the communication in-service economy. This is, why the service economy is so essential to corporate downsizing & reduction, it doesn't work when the venture capital not coming into IBM. A business may opt to provide its consumer service in the tumultuous climate, in the expectation that this will raise revenues and keep the enterprise financially competitive.
Adjustment and competitiveness are the situations where IBM affects the reasoning behind its corporate values, it appears that the platform only offers information for reasons, but there is also a disclosure of the concept behind it. Previously, Jessica Lombardo, of the Panmore Institute, wrote a retrospective article on her platform panmore.com that there is an atmosphere that is genuinely strong at IBM. IBM has a culture in industry. This form of organisation, originally called the Computing-Tabulating-Recording Organization (CTR), is based on Thomas J. Watson Sr's effort to integrate the corporation that was formed on the merging of four companies. Watson's aim was to unify and ensure the long-term survival of the whole company. His practice was the cornerstone of IBM's new organizational thinking culture. That is how Jessica demonstrated that there is also a drawback to minimal support for considerable flexibility in IBM's organizational culture in the sales process. The problem is focused on the company's emphasis on creativity and excellence. Workers have real versatility in their jobs, but this flexibility does not always translate directly into consistency in the business environment affecting employees. Another drawback of IBM's corporate culture is the lack of institutional support for group and departmental self-examination and self-examination in the business.
Jessica also explained how in theory, IBM can be dangerous to one thing, that is, radical. Jessica clarified that progressive radical thought is the primary and most distinguishing aspect of IBM's corporate culture. This radical cultural feature continues to have a significant effect on the company's growth over more than 100 years of service in the information technology industry. IBM administrators inspire workers to engage in thinking that could potentially change the status quo and deviate from conventional methods of doing business. In this way, the ethos of the business encourages imaginative and revolutionary thinking, leading to technical breakthroughs. Unfortunately, this innovative thinking has not been translated into a problem for convergent and divergent approaches to human effect in globalization that favor practicality and tempo, not just creativity.
“The strong performance of our cloud business, led by Red Hat, underscores the growing client adoption of our open hybrid cloud platform," said Arvind Krishna, IBM chief executive officer.
However, creativity impact is lack also often provided by the top party operating IBM internal execution. Robert X. Cringely, Former Contributor and Tech Silicon Valley iconoclast in Forbes, confirmed that early in his time as CEO, Sam Palmisano had made adjustments that had caused IBM's current issues. IBM consumers are buying less goods and services. Income has been declining quarterly for the last ten years. Sam's move alienated IBM clients, many of whom terminated a multi-decade relationship in many instances. Whatever the promised sales, whatever the financial engineering, is going to solve this dilemma. Under Sam's leadership, IBM started to reduce efficiency, cut corners, and fall short of its obligations. IBM squeezes every penny out of every contract, regardless of the customer's effect. And those consumers paying dearly. The prestige IBM had acquired for more than a century has been lost in a few short years.
THEORITICAL AND CONCEPTUAL DESCRIPTION
One theory that can take control that the IBM incident to the Customer is a fatal error is in the understanding of a theory related to the Veblenian Social-Psychological Model. The economist Thorstein Veblen argues that humans are social beings who conform to the standards of the culture and subgroups in which they live. He believed that individual needs and wants were created and influenced by group membership. Veblen focused his theory on members of the "recreation class" of society, who, according to his hypothesis, were influenced by the desire for prestige rather than the fulfilment of utilitarian needs. This suggests that marketers must understand the social influences that have an impact on consumers to better understand product demand. Social influence and utilitarian needs in prestige as a form of maintaining the performance and influence of organizations in the world are underlined and this statement can be connected with Laissez-Faire Capitalism because it is related to the cause of the global economy. It assumes that a free market economic system has sufficient checks & balances to ensure that the legitimate interests of all members of society will be met. That is how the concept works to IBM suppose to be, the society is also important to construct the organization formerly, not just the economical perspective.
This is also combined, because the service economy is not felt to be very deep in understanding the level of IBM events experienced not in terms of employees, but innovation and organizational creativity, especially the trend of creativity in the economy. Erlan Bakiev, from Zirve University, raised the question of the Economic Organization Theory (EOT) which is a combination of organizational and economic theory, this can also be referred to as transaction costs. Erlan underlines the transaction cost in this case as an approach that changes the course of the organization. Transaction cost in this case is not on production, but changes in product output and services provided in the exchange management. The concept is that IBM in this case must be able to organize changes in the economic way in the realm of services and products with the influence of the rationality limits of innovation, the benefits of society's attitude, society, in this case as an institution, is needed to fall into the market as the largest pool. IBM seems unable to do this, only a few institutions have chosen such as Lenovo, this means that there is a lack of transaction costs provided, so that it slows down IBM's internal transactions itself, so that IBM just stands in a place waiting for changes.
It is evaluated briefly, analysing that the individual and organizational approaches actually already exist, there is already an influence there. However, the thing that becomes a problem is how to take advantage of the influence and limitations that will be taken from every individual who works at IBM. The events and decisions made by the CEO of IBM are not actually based on the impact caused by the customer, this is due to their historical viewpoint that it has been fulfilled, only a matter of capital, but it is wrong, and leads to the breakdown of economic communications that have been formed for more than 100 years conducted by IBM. The burden of prestige is one of the forms that has become the power of falling for IBM itself so far, this is reinforced by how the internal economy influences the organization, such as the inter-organizational transactions that do not run properly, this is also because the institutions and communities that join are certainly not moving. Movement in the organization, especially the economy is important, in every aspect, in every corner of the marketing sector of the organization especially.
The global economy is also an important thing, IBM is indeed a global company engaged in technology, and technology is a formation in a revolution which is an important thing to be influenced by every element of society. Thus, IBM's capitalization did not work with a check and balance system. The balance does not occur with losing stocks and customers. Focus on stock performance, forget about customer needs, as well as focus on organizational assurance, forget about organizational profit. This makes IBM useless for the market intensity, which runs it is only cut off at the entrance to the market but has not been able to reach that market. Laissez-Faire emphasizes on a legitimate society, so that IBM in this case does not legitimately play the market society, especially, simply, people still don't really understand what IBM is now selling? Is it still a computer device, or is it just selling data storage.
It was concluded, IBM needed a new strength, which meant a new strength not from the object of its people, but the power of a new vision and mission to be carried out. Left behind by radicalism in the world of computers is only a past item for IBM, so IBM must be able to face disruption with new forces in terms of innovation. Innovations like this are related to customer service, building trust for the marketing sector transactions, which are under this structure, so that it is not only for the market, but for the IBM market, which makes IBM companies organizationally able to run according to the principles of the technology economy they want combined.
Bakiev, E. (2011). Economic Organization Theory. Presentation, Zirve University.