IBM and the business ethics

Aleksander Szymanski

Apr. 2011 · GRIN Verlag

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Seminar paper from the year 2003 in the subject Business economics - Business Ethics, Corporate Ethics, , language: English, abstract: In 1921 the Computing-Tabulating-Recording Co. changed the company’s name to International Business Machines Corporation- IBM was born. Under the first president, Thomas J. Watson Sr., IBM increased significantly its business and reached net earnings of $ 2 million in 1924. The driving force of the company’s success has always been an innovative product, which could make the business life easier. By doing so, electric typewriters have been introduced in the 1930s and remained the flagship product in the next ten years. After the World War II IBM kept its innovation focus, as well, producing, for instance, the first data storage devices (hard disk), which soon became the industry standard. Since the 1960s the company has switched its strategy more to the mainframe production and developed a product named “System/360”, a network of small and large computers, which could be used by all companies regardless of their industry. Because of the emphasis on central computer stations, IBM received the nickname “Big Blue” during this time. Finally, in the 1981, the first IBM PC was introduced, which was a breakthrough in the electronics business. Big Blue was always and continues to be a pioneer in the electronic business and consequently dominates the market, although competition in this industry became fierce. Besides, not only IBM’s products have been always innovative but also its management strategy – the employee focus, the environmental concern, or the philanthropic activities. This mixture of the achievement and the employee/environment orientation allowed the company to persist in business for over 80 years.