...Risk mitigation for business resilience White paper A comprehensive, best-practices approach to business resilience and risk mitigation. September 2007 A comprehensive, best-practices approach to business resilience and risk mitigation. Contents 2 Overview: Why traditional risk mitigation plans fail 3 Build a comprehensive strategy for risk mitigation 3 Identifying types of risk 4 Business-driven risk 4 Data-driven risk 5 Event-driven risk 5 Risk reach and range: understanding risk and its impacts 6 elating value to risk: quantifying R impact 7 Resilience frameworks: analyzing current risk environments 8 Resilience strategy: designing a blueprint for risk mitigation 9 Achieve optimum business resilience with IBM 11 Look to a market leader in business resilience 11 For more information 11 About IBM solutions for enabling IT governance and risk management Overview: Why traditional risk mitigation plans fail A successful governance and risk mitigation strategy must operate at multiple levels with broad coverage. Risk mitigation plans at many organizations fall short simply because they are not comprehensive and fail to take into account the reach and range of all the risks that they actually face. Often this occurs when organizations only focus on specific areas of risk categories, only plan for certain types of risk or don’t understand all the different areas in their organization that particular...
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...On June 16, 1911, in Endicott, New York, the company International Business Machines came into existence. Today the company known as IBM, is on the Public Limited Company that is listed on the New York Stock Exchange. IBM has proved opportunity to many by proving about 400,000 people with worldwide opportunity in sales. This employment has helped the company to generate at least 100 billion dollars in sales. IBM has many subsidiaries such as ADSTAR, Lotus Software, ILOG, Saudi Business Machines, and Science Research Associates. IBM has been offering new businesses with opportunities to develop fresh new business designs that will help them to come out in full force. The company also offers technical architectures that allow their businesses the flexibility required to compete in the global business landscape. IBM has continued in expansion in adjusting its footprint toward emerging geographies, tapping their double-digit growth, providing the technology infrastructure they need, and taking advantage of the talent pools they provide to better service the company’s clients. The analysis for the return on equity was slightly higher in 2008 than it was for 2007. The global financing after the income taxes was $1049 in 2008 and $877 in 2007. The global financing after the income taxes was $877 in 2007 and $914 in 2006. The global financing after taxes fell $37 in 2007. The price rose again by $172. The average global financing equity was $3572 in 2008 and $3365 in 2007. The...
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...Risk profile Let’s start our analysis of risk profile of IBM by comparing Betas of companies who operate in Tech industry. A beta coefficient tells us how much systematic risk a particular asset has relative to an average asset (which has beta equal to 1). As we can see IBM has less systematic risk than an average asset. IBM Apple Microsoft Sony Dell HP Siemens LG Beta 0.61 1 1 1.39 1.38 1.45 1.67 0.1 Mean 1.075 If we compute the arithmetic mean of these Betas we get a value slightly more than 1. Therefore an IBM asset has less systematic risk than the overall market. In the normal course of business, the financial position of IBM is routinely subject to a variety of risks. In addition to the market risk associated with interest rate and currency movements on outstanding debt and non-U.S. dollar denominated assets and liabilities, other examples of risk include collectibility of accounts receivable and recoverability of residual values on leased assets. The company regularly assesses these risks and has established policies and business practices to protect against the adverse effects of these and other potential exposures. As a result, the company does not anticipate any material losses from these risks. The company’s debt contains an element of market risk from changes in interest and currency rates. The company manages this risk, in part, through the use of a variety of financial instruments...
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...IBM Global Business Services Executive Report Financial Management IBM Institute for Business Value Clearing the clouds Shining a light on successful Enterprise Risk Management IBM Institute for Business Value IBM Global Business Services, through the IBM Institute for Business Value, develops fact-based strategic insights for senior executives around critical public and private sector issues. This executive report is based on an in-depth study by the Institute’s research team. It is part of an ongoing commitment by IBM Global Business Services to provide analysis and viewpoints that help companies realize business value. You may contact the author or send an e-mail to iibv@us.ibm.com for more information. Additional studies from the IBM Institute for Business Value can be found at ibm.com/iibv Introduction By Robert Torok, Carl Nordman and Spencer Lin multitude of existing challenges of operating in today’s global business climate. The threat of catastrophic loss – from terrorism, natural disasters, financial mismanagement, IT security breaches, supply chain disruptions and more – demands preparedness to assure financial and business continuity. Yet recent studies suggest few companies fully understand or are properly prepared for the breadth of risks they encounter. Historically viewed as the domain of the CFO, less than 20 percent of enterprise risks are financial, legal or compliance in scope, yet all risks can ultimately have a financial consequence...
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...On May 1, 2005, the Lenovo Group acquired IBM’s personal computing division (IBM PC) for $1.25 billion, achieving the goal of its ambitious founder, Liu Chuanzhi, to create a global PC manufacturing powerhouse. By transforming itself from an upstart company focused on its domestic market, Lenovo joined an exclusive club of Chinese companies, such as Huawei and TCL, which compete head-to-head with leading multinational corporations. Without the involvement of western private equity firms – Texas Pacific Group (TPG), Newbridge Capital,1 and General Atlantic Partners (GA) – this transaction may never have been consummated. Each firm brought crucial expertise and credibility that helped mitigate the significant financial, operational and cultural risks inherent in a large scale, cross-border transaction. Many believe that these efforts opened a new chapter in the growth of China’s economy and its integration with the West. As Bill Grabe, GA’s representative on Lenovo’s board, stated: “Lenovo’s acquisition of IBM mark the start of something bigger. In the future, we will see more Chinese global giants emerging through cross-border M&A.”2 This paper examines the underlying motivations and assumptions of each party in the transaction. While this transaction had many risks, we conclude that the strategic rationale was sound, the ultimate valuation was fair, and that all players are positioned to benefit: IBM shed a resource consuming, non-core asset; Lenovo leapfrogged to global leadership;...
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...Title: The Fall of IBM Date: September 20, 2013 I. Executive Summary The purpose of this case study analysis is to analyze the situation of IBM in the 1990s, to come up with possible mutually exclusive alternatives for IBM’s management and ultimately, to recommend a possible strategy to regain back IBM’s throne in the industry. The problem of the case study is all about the survival of IBM in a much more competitive market ever encountered by the company. And also, overcoming new challenges brought about IBM’s new management and the dynamic technological environment. The methods of analysis used for this case study are the Porter’s Five Forces Model and the ANSOFF matrix analysis. Brief explanations were provided in each of the methods used for analysis. After analyzing the case study, the following three mutually exclusive alternative course of action were developed: 1. Decentralize Management; 2. Invest heavily on research and development and; 3. Partner with suppliers From the alternatives, I recommend that IBM should partner with its suppliers. Collaboration with suppliers will increase business flexibility and executive level business decision support. This will surely bring the most benefit for the company among the other alternatives course of action. The suppliers play a great role in the industry and having strong connections with them can help the company survive and even excel in the industry. Outline and Implementation: ...
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...Regulatory Risk Management Analysis: IBM Jane Doe BLAW 531 January 12, 2012 John Smith Regulatory Risk Management Analysis: IBM Global warming is a term that we have become very familiar with over the last decades. Gradually, it is disturbing human living conditions and because societies’ lack of environmental protection responsibility, more damage is forecasted to take place. Rising temperatures are expected to raise the sea level, change climate conditions, alter desserts and forests, water supplies, crop yields, harm many ecosystems of animals and threat human life. Throughout the world, there is naturally caused pollution, but the majority of the world’s pollution is caused by humanity. In the United States, as well as many other industrialized countries, the greatest source of contamination is the industrial community. At the peak of the Industrial Revolution, industries efforts were focused on profitability and how much product they push out of the assembly lines. Environmental protection was not a priority in comparison with maintaining high levels of production. Protecting the environment is a costly and a real matter to any business, but it is the ideal outcome to find that balance where companies protect the environment while still remained profitable. In the United States there is no better example of environmental conscience and profitable as International Business Machines (IBM). IBM leads the United States as the ‘greenest’ company and second...
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...Capital Asset Pricing Model (CAPM) I. II. III. IV. V. VI. Readings and Suggested Practice Problems Introduction: from Assumptions to Implications The Market Portfolio Assumptions Underlying the CAPM Portfolio Choice in the CAPM World The Risk-Return Tradeoff for Individual Stocks VII. The CML and SML VIII. “Overpricing”/“Underpricing” and the SML IX. X. Uses of CAPM in Corporate Finance Additional Readings Equilibrium Process, Supply Equals Demand, Market Price of Risk, Cross-Section of Expected Returns, Risk Adjusted Expected Returns, Net Present Value and Cost of Equity Capital. Buzz Words: 1 Foundations of Finance: The Capital Asset Pricing Model (CAPM) I. Readings and Suggested Practice Problems BKM, Chapter 9, Sections 2-4. Suggested Problems, Chapter 9: 2, 4, 5, 13, 14, 15 Web: Visit www.morningstar.com, select a fund (e.g., Vanguard 500 Index VFINX), click on Risk Measures, and in the Modern Portfolio Theory Statistics section, view the beta. II. Introduction: from Assumptions to Implications A. Economic Equilibrium 1. Equilibrium analysis (unlike index models) Assume economic behavior of individuals. Then, draw conclusions about overall market prices, quantities, returns. 2. The CAPM is based on equilibrium analysis Problems: – – There are many “dubious” assumptions. The main implication of the CAPM concerns expected returns, which can’t be observed directly. 2 Foundations of Finance: The Capital Asset Pricing Model (CAPM) B. Implications...
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...IBM- International Business Machines Corporation Background International Business Machines Corporation, or well-known IBM, is an American multinational technology and consulting corporation, with headquarters in Armonk, New York, was founded in 1911 as the Computing Tabulating Recording Company (CTR) through a merger of three companies: the Tabulating Machine Company, the International Time Recording Company, and the Computing Scale Company. In 1924, CTR adopted the name “International Business Machines”. Today, IBM is ranked the second largest U.S. firm in terms of number of employees (433,362), fourth largest in terms of market capitalization, the ninth most profitable, and the nineteenth largest firm in terms of revenue by Fortune 500. IBM employs 105,000 workers in the U.S. with more than $106.9 billion in annual revenue. IBM produces computer hardware and software, and is one of the largest technology consulting businesses in the world. It operates in five primary segments: global technology services, systems and technology, global business services, software and global financing. The global technology services segment primarily includes IT infrastructure services and business process services. The systems and technology division provides IBM’s clients with business solutions built on advanced computing power and storage capabilities. Offerings include servers and infrastructure storage products; microelectronics for IBM systems and for sale to original equipment...
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...Title: IBM and The Emerging Cloud-Computing Industry Case Study Analysis Introduction The character of a company -- the stamp it puts on its products, services and the marketplace -is shaped and defined over time. It evolves. It deepens. It is expressed in an ever-changing corporate culture, in transformational strategies, and in new and compelling offerings for customers. Those are the words that start the chronological history on the IBM website [1]. I couldn’t agree anymore with that statement. I am often very fascinated by the evolvement of technology stories I get to hear quiet often from my fellow senior coworkers. One of the stories I enjoy is about the large IBM370 computer my workplace once owned in 1970’s. From my understanding it occupied a whole room and it required several people to operate. That was less than a half century ago. Today the smart phone’s memory is much higher than that computer. For my time what I could relate to, is the floppy disk which of course is obsolete today. I am sure my kids will be fascinated by the floppy disk someday just like I get fascinated by circular slide rule that predated the calculator era. In place of floppy disks or another external memory, in the cyber world today, cloud computing is taking place of all those external memories. IBM website defines Cloud computing as, the delivery of on-demand computing resources everything from applications to data centers over the Internet on a pay-for-use basis [1]. Background...
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...iBM 1. 2. Analyze IBM strategies, to remix their businesses in order to move to the emerging higher-value spaces, in Macro and Micro environment level 3. IBM strategy PESTEL analysis in Macro level Five forces analysis in Micro level Recommendation Conclusion SOWT analysis Complexity analysis 4. o IBM understood Value was shifting in the IT industry, driven by the rising tide of global integration, a new computing paradigm and new client needs. o Economies of developing nations were growing rapidly, driven by historic investments in fundamental business infrastructure. Enterprises were looking to tap skills and expertise available all over the world and to integrate their operations globally. o Change in computing architecture was rippling across the data center and the network, along with a proliferation of technology infused into all aspects of work and life. Companies were seeking to integrate advanced technology with their business processes and operations, not only to reduce costs, but to enable innovation and growth. o IBM remixed their businesses in order to move to the emerging higher- value spaces by focusing on software and IT industry. IBM Strategies 5. IBM Strategies Hardware And Services Software IBM sold the personal computing department To Lenovo 6. PESTEL Analysis for Macro environment factors Social Political Technological Environmental Economic Legislative 7. Iraq War in 2003, affected world economy, and IBM stock fell down. Technology affects directly...
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...IBM Global Center for Smarter Analytics Fundamentals of Business Analytics Case Study IBM Global Center for Smarter Analytics ________________________________________________________________________________ Licensed Materials - Property of IBM © Copyright IBM Corporation 2013 Published May 2013 IBM, the IBM logo and ibm.com are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. This case study set contains proprietary information which is protected by copyright. No part of this document may be modified without a legal license agreement from IBM Corporation. Any references in this information to non-IBM Web sites are provided for convenience only and do not in any manner serve as an endorsement of those Web sites. The materials at those Web sites are not part of the materials for this IBM product and use of those Web sites is at your own risk. 2 IBM Global Center for Smarter Analytics Case Analysis 1: Cincinnati Zoo Business Objectives • • • IBM Global Center for Smarter Analytics Company Company Background The Cincinnati Zoo & Botanical Garden is one of the most popular attractions and a Top Zoo for Children according to Parent’s Magazine. Each year, more than 1.3 million people visit its 71-acre site, which is home to more than 500 animal and 3,000 plant species. Although the Zoo is a non-profit organization...
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... 2013 Louis Wallen Strategic Initiative IBM has played a strong and significant technological role in shaping the world in interconnection, intelligence, and new instruments. The information technology industry is highly competitive and the need for strategic initiative planning is an essential element for the organization to continue to prosper and remain an industry leader. According to IBM’s annual report one of the strategic plans is Smarter Computing designed for Big Data (IBM, 2012). IBM has committed to reshape their investments and lead the market in strategies to accomplish this strategic initiative. IBM states in their annual report that “Every two days, as much data is now generated as in all of human history up to 2003” (IBM, 2012, p. 5). Smarter Computing encompasses software-defined environments to handle the vast amounts of information housed through data centers. The infrastructure will be programmable and have individual systems capabilities as the first round of this strategic plan. This portion of IBM’s strategic plan will transform businesses and civilization giving the precise technology and correct capabilities to all aspects of organizational operations. IBM has a commitment to financial planning, sales examination, cost analysis, funding options, and has weighted the risks and the potential impact to the company in Smarter Computing strategic planning. IBM is an organization leading in technology and strategies. Implementing...
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...PHOTOGRAPHY NETWORK DESIGN PROPOSAL STRAYER UNIVERSITY CIS 532, Network Architecture and Analysis JANUARY 19, 2014 Abstract The analysis and proposed expansion of an existing network can be a daunting task for any company small or large. To be a truly successful company there should be the ability to manage not only the company, but to look to the future and investments in that future. This type of analysis and investment no matter the size of the company should not only be successful, but should be a seamless and virtually transparent operation. This paper will briefly address some elements of this analysis and proposed expansion upgrade starting with a brief history of what will be named the RDI Photography Company or RDI in future reference. This will be followed by a basic introduction for the consulting company followed by their proposed actions. This will include a brief project description and proposal breakdown of services, plan for merging the existing small networks and preparations for a possible company merger. Also included is possible considerations needed to meet project equipment needs, budget and time constraints, and conclusion. An inclusive plan if completely fleshed out could also incorporate the five process areas and nine knowledge areas of the Project Management Body of Knowledge (PMBOK®), as well as a brief description of the projects risk and risk assessment and the monitoring and control plan. For this paper, this information will not be...
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...Case Analysis: Bharti Airtel | | Introduction Bharti Airtel Limited is a major Indian telecommunications firm, with a particular focus on operating in the mobile services market. Founded in 1995, the company quickly tried to exploit growth opportunities arising from the liberalization of Indian telecommunication markets. The family owned business was soon able to generate profits and extend market shares. However, the pace of company growth challenges the firm in terms of being able to setup the necessary infrastructural elements, both within the firm as well as outside the firm. Therefore Bharti considers “reverse outsourcing” of IT infrastructure and network setup and maintenance to well-established firms from developed countries, such as IBM, Nokia and Siemens. This case analysis examines the proposed outsourcing deal both from the perspective of Bharti and from the perspective of potential vendors in order to find the most appealing solution for both parties. First, we talk about the success factors in the Indian mobile phone market and Bharti’s core competencies. Second, we will look into the outsourcing agreements outlined by Gupta and discuss the advantages and disadvantages of such agreements. Furthermore, we will discuss the question of how the contracts might affect Bharti’s core competencies. Third, we want to elaborate on the major concerns about entering in an outsourcing agreement with Ericsson, Nokia, Siemens and IBM respectively. Additionally...
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