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Ibm Case Study

In: Business and Management

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International Business Machines

Time Context: 2007


IBM’s roots date back the 1880s, decades before the development of electronic computers. A merger of three 19th-century companies: the Tabulating Machine Company (with origins in Washington, D.C. in the 1880s), the International Time Recording Company (founded 1900 in Endicott), and the Computing Scale Corporation (founded 1901 in Dayton, Ohio, USA). The merger was engineered by noted financier Charles Flint, creates the Computing-Tabulating-Recording Company (CTR) on June 16, 1911. CTR is the precursor to IBM.

Of the companies merged to form CTR, the most technologically significant was the Tabulating Machine Company, founded by Herman Hollerith, and specialized in the development of punched card data processing equipment. The Tabulating Machine Company originally sold some machines to a railway company. In 1911, Hollerith, sold the business to Flint, who then created CTR. When the diversified businesses of CTR proved difficult to manage, Flint turned for help to the former No. 2 executive at the National Cash Register Company, Thomas J. Watson Sr.. Watson became General Manager of CTR in 1914 and President in 1915. On February 14, 1924, the CTR name was formally changed to International Business Machines Corporation, later to be abbreviated IBM.

IBM employs almost 400,000 employees called "IBMers" by IBM in over 170 countries, with occupations including scientists, engineers, consultants, and sales professionals. Its distinctive culture and product branding has given it the nickname Big Blue. Its employees have garnered five Nobel Prizes, four Turing Awards, nine National Medals of Technology, and five National Medals of Science. IBM has often been described as having a sales-centric or sales-oriented business culture. Traditionally, many IBM executives and general...

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