1.0 Introduction
The brief for this report is to analyse the benefits of a potential partnership with IBM and to come to a conclusion as to whether or not to go into partnership with the company. The reason IBM is a suitable candidate for this venture is due to of its reputation for management and innovation. The company has become world famous for its success in the business to business (B2B) market, and is credited with several crucial technological innovations.
In order to critically assess the suitability of a partnership we will look at a number of important factors concerning IBM, including the company’s reputation, main activities, ownership, current financial status and relevant achievements. However, it is also necessary to look at some of the controversies as well as criticisms surrounding the company so that there is a balanced argument. Following the findings, a conclusion can be drawn to inform a strategic decision.
2.0 Brief History, Recent News Coverage and General Reputation
2.1 Brief History
For nearly 100 years, IBM has been working in the information-handling field, such as the recording, processing and storing of information, and pioneering information technology (IBM, 2013a). IBM’s history can be traced back to the 1880s, where several separate companies were formed who would later merge to form the Computer-Tabulating-Recording Company, or CTR (IBM, 2013b).
In the 1930s, IBM began using their technology to design and create calculators, which, in 1944, lead to them helping with funding and building the first large-scale calculating computer which could “compute long calculations automatically”, the Mark 1. (IBM[f], n.d). However, they were refused public credit (Byron, E. Phelps). Subsequently, they decided to build the Selective Sequence Electronic Calculator, the SSEC, which was the “first large, operating, general-purpose computer to embody many of today’s programming concepts” (Byron E. Phelps, 1980).
In 1953 they were