IBM's "On Demand Business" Strategy Case Study Memo

Case Study Recommendation Memo Assignment

At Fern Fort University, we write IBM's "On Demand Business" Strategy case study recommendation memo as per the Harvard Business Review Strategy & Execution case memo framework. If you are looking for MBA, Executive MBA or Corporate / Professional level recommendation memo then feel free to connect with us.

Other topics that can be covered in the above case memo are Reorganization, Strategy . The recommendations in the case memo are - aligned with strategy of the company, based on robust data, and provide a clear roadmap for execution.

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IBM's "On Demand Business" Strategy Description

Strategy & Execution Case Study | Authors :: Ali Farhoomand, Samuel Tsang

In the late 1990s, IBM successfully moved up the value chain and became one of the largest business and information technology (IT) solution providers in the world. To achieve such a transformation, the company made a number of strategic moves to reduce its exposure in the commoditization of IT hardware manufacturing. A key success factor was the creation of IBM Global Services and its venture into the high-margin management consulting and technology services industries. Moreover, IBM orchestrated a series of strategic acquisitions, sold ailing business units, and outsourced low-value-added manufacturing to external contractors and joint venture partners. In 2002, with the success of its business model and the introduction of new computing architecture, IBM made a high-profile announcement about its new corporate strategy centered on the concept of "on demand business." Nonetheless, followed by disappointing financial results in the first quarter of 2005, IBM's stock price plummeted and hit the lowest point since Sam Palmisano took over as CEO in March 2002. The company announced a massive restructuring in its European operations to be carried out in late 2005. Although the second quarter results had improved, some began to doubt whether the "on demand" strategy would deliver the promised results. More specifically, many started to question why and how such a strategy was justified in the first place. What difficulties would the company encounter in implementing its new corporate strategy?

Reorganization, Strategy

Purpose of Strategy & Execution Case Study Recommendation Memo

A Case Study Memo or Case Study Recommendation Memo is a routinely used document in leading organizations, and you may be writing number of such memos to executive leadership to “sell” or elevate an initiative that either you are undertaking or you wanted to kick start. Therefore, it is essential that you have a professional case study recommendation memo.

The purpose of a recommendation memo is to concisely recommend a course of action and provide rationale supporting the recommendation. The case study recommendation memo is a one-two page document (not including exhibits) that recommends your course of action and rationale. This format promotes a concise and clear strategic thought process.

Elements of a Case Study Recommendation Memo for – MBA & Executive MBA

1. First Paragraph of IBM's "On Demand Business" Strategy recommendation memo

• This paragraph expresses your intent or action that you required after reading the IBM's "On Demand Business" Strategy case study (This recommends……).
• Topic overview of the case study (the “what”, not “when” or “how”): costs, funding, etc.
  
• Ends with the hook: selling idea, the “why” or payoff: this part reveals the author’s point of view. What you intend to do after reading the case and it clearly mention your decision.

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2. Background of IBM's "On Demand Business" Strategy case study

This paragraph explains why we are talking about this today. It lays out the story. It provides us details from the case story such as -

• Historical perspective on the problem is provided. Details are elaborated that underline the given problem.
• Highlights - what brought us to this moment, why we are in this position, what brought about the need to make this decision.
• Dimensionalize the importance of the problem to the organization and how it is impacting the organization.
• Constraints – Provide a situational analysis based on case study analysis.
• Keep the background section both factual and concise. It is part of the memo where we provide a brief insight into the problem and define the problem.

Checklist

Is the background clear, concise, and easy to follow?
Does it explain why action is needed now?
Does the appropriate sense of urgency come across in the case study?

3. Recommendations for IBM's "On Demand Business" Strategy Case Memo

Recommendations section will provide details regarding what is needed to be done, how it can be done, when to do it and who will do it. It can be elaborated with scenario planning as businesses

• The details of what, when and how. NO 'why'.
• This section should be very specific (100% clear). It must be actionable (How much will it cost, when, how, who). The reader should be able to read this and know how to carry out this recommendation.
• Some cases will require more than one recommendation. It often happens that the firm will require more than one recommendations as there are numerous unknown in the market place.

Checklist

Is the recommendation clear and actionable? Does the firm has capability to implement the recommendations or does it needs to hire fresh talent?

4. Basis for the Recommendations

• Here the reader of the case memo will learn WHY each recommendation is the UNIQUE right thing to do.
• 2-3 solid reasons are typical. The reasons should be backed by clear logic, organization’s vision and mission statements, and robust data analysis.
• Orignal recommendation can be backed by few supporting roadmap to actions. In operations cases the Critical Path Method of PERT can be used to illustrate the point.
• Support includes impact on profit, share, and anything else that can affect long-term business goals of the firm.
• Analysis should address applicable quantitative issues such as NPV, break even analysis, pro forma statement of project budget, sensitivity analysis; as well as qualitative issues, such as, technology consistency, architectural conformance, innovation potential, etc.
• Appeals to precedent and anecdotal evidence in absence of data, but only in limited, carefully constrained manner.
• Shows how the recommendation will put the firm at a competitive advantage or is simply acompetitive necessity.
• The goal is to read the basis and conclude the recommendation.

Checklist

• Is the recommendation an inescapable conclusion of the basis?
• Does the basis for recommendation appropriately consider:
  1. Core competencies and consistency with mission?
  2. External customers and internal clients?
  3. Competitors?
  4. Attractiveness – quantitative measures if applicable (e.g., NPV, ROI, break-even, payback)?
• Are all assumptions explicitly stated (e.g., needs, technology trends)?

5. Discussions

• Outline other alternatives not selected and provide brief reasoning for doing so.
• Discuss risks and key assumptions for IBM's "On Demand Business" Strategy case memo (use full disclosure, reference options grid) of your recommendation.
• When you give a precise number or range, you must support the basis as well.

Checklist

• Is the analysis thorough with key alternatives fairly considered using options grid?
• Risks associated with recommendation for IBM's "On Demand Business" Strategy are properly addressed given the present capabilities and future expectations?

6. Next Steps for IBM's "On Demand Business" Strategy case study memo

• Clearly specify the roadmap of the execution. Provide specific date and action that are required to carry on the next steps.
• Task assignment, objectives, roles and metrics should be mentioned in advance to reduce ambiguity and replication. (what will be done, by whom, and by when)

Checklist

• Clear follow-up/next steps?
• If appropriate, lay out timeline with key milestones to implement recommendation.

7. Exhibits for IBM's "On Demand Business" Strategy case memo

• An Exhibit can be a data chart, map, graph, grid, or simple data table.
• While doing the calculations please mention all the assumptions. The reader won’t able to decipher each of the assumption so make them explicit.
• Exhibits should have Title, sources, footnotes to calculation. The point of the Exhibit should be instantly clear to the reader.
• Exhibits should be cited in the proper order (i.e., do not cite Exhibit 4 first in your Memo and then Exhibit 2).
  

Checklist for IBM's "On Demand Business" Strategy case study memo exhibit

• Is the analysis presented in the case memo - precise, accurate, and data-based?
• Are the exhibits clearly laid out, titled, and referenced in the case study memo?
• Is every assumption mentioned in the case memo is explicitly listed?

NOTE: Every memo may not include every element described above. The specific case will dictate what must be included. For custom case memo please email us or process the order.

You can order IBM's "On Demand Business" Strategy Case Study Recommendation Memo with us at Fern Fort University .