IBM’s Mission Statement & Vision Statement (An Analysis)

International Business Machines Corporation (IBM) has a mission statement and vision statement strongly associated with the organization and its brand. A company’s corporate vision statement sets the desired future state of the business, to guide strategic management and direction. IBM’s vision statement marks the importance of the leadership of the business in the information technology industry. In relation, a company’s corporate mission statement determines the types of actions that define the business, and guides the development of strategies and tactics. IBM’s mission statement emphasizes operations in the information technology market, inclusive of computing technologies and related services. The Porter’s Five Forces analysis of IBM shows that competition is strong, involving firms like Google (Alphabet Inc.), Amazon.com, Intel, and Microsoft. Also known as Big Blue, IBM uses its corporate vision and mission statements in developing competitive advantages against such firms in the industry. In relation, the company applies its corporate mission and vision statements to influence employees, called IBMers, to ensure leadership in contributing to the business and to embody excellence in their work.

An understanding of IBM’s corporate mission and vision statements contributes to the foundation of employees’ decisions and actions. For example, based on the components and details of the corporate vision and mission statements, employees develop solutions to challenges in the business, and address problems encountered on the job. Thus, the suitability, influence, and effectiveness of these corporate statements are factors that contribute to IBM’s success in the global information technology industry.

IBM’s Corporate Mission Statement

IBM’s corporate mission is “to lead in the creation, development and manufacture of the industry’s most advanced information technologies, including computer systems, software, networking systems, storage devices and microelectronics. And our worldwide network of IBM solutions and services professionals translates these advanced technologies into business value for our customers. We translate these advanced technologies into value for our customers through our professional solutions, services and consulting businesses worldwide.” This mission statement shows what IBM’s business does. The details cover the company’s aims and its activities on how to fulfill these aims. The following points are the main components of IBM’s mission statement:

1. Leadership in creating, developing and manufacturing the most advanced information technologies
2. Worldwide network that translates advanced technologies into business value for customers
3. Professional solutions, services and consulting businesses worldwide

IBM’s corporate mission statement highlights leadership in the information technology industry. The details of the technologies linked to such leadership are included in the first component of the statement. In the second component, IBM’s mission statement specifies the people involved in creating value for customers. For example, the company creates value for customers through its worldwide network of solutions and professionals. On the other hand, the third component of IBM’s corporate mission presents the business activities involved in creating such value for target customers. The company’s professional solutions, services and consulting businesses contain the mechanism for this value creation. This information makes IBM’s corporate mission statement specific in providing the bases for business processes. Moreover, the information is strongly linked to the company’s corporate vision statement, which also emphasizes leadership in the information technology industry.

IBM’s Corporate Vision Statement

IBM’s corporate vision is “to be the world’s most successful and important information technology company. Successful in helping out customers apply technology to solve their problems. Successful in introducing this extraordinary technology to new customers. Important, because we will continue to be the basic resource of much of what is invested in this industry.” This vision statement depicts IBM’s developmental path as the business maintains its position as one of the top players in the global market. The company also emphasizes the success and importance of its business. The following are the main components of IBM’s vision statement:

1. World’s most successful and important information technology company
2. Helping customers apply technology to solve their problems
3. Introducing extraordinary technology to new customers
4. Continue to be the basic resource of much of what is invested in this industry

In the first component of the corporate vision statement, IBM’s focus is on the highest position in the information technology industry, in terms of success and importance of the business. The company aims to maintain its business within the information technology industry. The second component of IBM’s vision statement helps define the kind of success indicated in the first component. For example, the company states that such success is based on the ability of the business to help customers use technology to solve problems. In addition, the third component contributes to the definition of this success that IBM wants to achieve. For instance, such success is also based on the company’s ability to provide extraordinary technology to customers. Furthermore, the fourth component of the corporate vision defines what business importance means in the context of IBM. The company aims to be important by remaining as the basic resource in the industry. Thus, IBM’s corporate vision statement gives details about the nature of the business and what it can offer to the industry and the target market. This information is similar to the components of the company’s corporate mission statement.

IBM’s Corporate Vision & Corporate Mission – Recommendations

IBM’s mission statement is detailed, providing specifics of what the business does. For example, the company states that it is involved in the creation, development, and manufacture of information technologies. Also, the corporate mission includes information regarding IBM’s characteristics, such as the types of people involved in the business, as well as the organizational outputs offered to target customers in the global market. Based on such information, the company’s corporate mission statement is satisfactory in serving as a guide for strategic decision-making processes. However, it is recommended that IBM adjust the statement to account for changes in the organization, including the sale of some of the company’s businesses and the refocusing onto core competencies.

As one of the biggest technology firms in the global market, International Business Machines Corporation has a vision statement that states leadership in the information technology industry and market. The company’s corporate vision contains sufficient details about what such leadership means in terms of success and importance. For example, the corporate statement defines success and importance in terms of being a basic resource in the industry. In this regard, IBM’s corporate vision statement is satisfactory and ideal. However, a recommendation is to enhance it by including recent, current and potential changes in the business. This recommendation is based on IBM’s recent strategic repositioning and reform efforts, which included the divestiture of some of its businesses.

References

• Abiodun, A. J. (2010). Interface between corporate vision, mission and production and operations management. Global Journal of Management and Business Research, 10(2), 18-22.
• D’Urso, S. C. (2018). Towards the final frontier: Using strategic communication activities to engage the latent public as a key stakeholder in a corporate mission. International Journal of Strategic Communication, 12(3), 288-307.
• Ekpe, E. O., Eneh, S. I., & Inyang, B. J. (2015). Leveraging organizational performance through effective mission statement. International Business Research, 8(9), 135.
• International Business Machines Corporation (IBM) – Form 10-K.
• International Business Machines Corporation’s Website.
• Kirkpatrick, S. (2016). Build a Better Vision Statement: Extending Research with Practical Advice. Rowman & Littlefield.
• Kirkpatrick, S. A. (2016). Toward a grounded theory: A qualitative study of vision statement development. In Academy of Management Proceedings (Vol. 2016, No. 1, p. 10225). Academy of Management.
• Marjanova Jovanov, T., & Fotov, R. (2014). Corporate mission: Much ado about nothing or essential strategic step? International Journal of Arts and Sciences, 170-182.
• Pace, S. (2017). Shaping corporate brands: From product features to corporate mission. International Studies of Management & Organization, 47(2), 197-205.
• Singal, A. K., & Jain, A. K. (2013). An empirical examination of the influence of corporate vision on internationalization. Strategic Change, 22(5‐6), 243-257.
• Slack, F. J., Orife, J. N., & Anderson, F. P. (2010). Effects of commitment to corporate vision on employee satisfaction with their organization: An empirical study in the United States. International Journal of Management, 27(3), 421.
• U.S. Department of Commerce – International Trade Administration – Software and Information Technology Services Industry Spotlight.