Finance part of ibm


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  • Leave this slide in, its good to talk and show recession effects. For a short time as bank stock got hit, IBM was also affected although not as badly as it seems (they only lost a bit over $20 per share).
  • I’m just going to point out how the Net Income keeps increasing and increasing regardless of the recession. The other stuff looks good on the powerpoint, but is pretty much useless. This slide can also go in the beginning of the powerpoint but it also works right after the 5 year stock graph.
  • I’ll say that while the Liabilities are high, they are decreasing as shown. I’ll also say how they are not preventing IBM’s growth and tie that into its global expansion which is shown in the picture.
  • I explain how software and service oriented firms are not affected by recession as much. I’ll next explain how IBM does recurring maintenance, software updating, and financing for clients. This makes it attractive and enabled IBM to continue making profits. BRIC countries are Brazil, Russia, India, China. Their markets are expanding greatly and provided many new customers. I will also mention that there was little growth inside the US for IBM and say that to show how the growth is mostly coming from emerging markets. IBM has a lot of money on hand from its business dealings, this allows it to further expand its client base with good financing options that competitors suffering from the downturn are unable to provide. This last point provides a good segway to Farrukh’s analysis of competitors.
  • Sterling Commerce began IBM’s growth here in September and other acquisitions followed it to December. This along with other acquisitions also demonstrate IBM’s ability to grow in these troubled financial times. I’ll provide an example that Netezza Corporation is the big one and cost IBM almost $2 Billion to aquire. I’ll also say that Netezza creates data warehouse appliances which are related to IBM’s business with Servers and will help it greatly.
  • For this point, I’ll mention that even though this doesn’t consider inflation, IBM’s growth and success of their strategies is well represented in this regard.
  • I’ll explain the definition of crowdsourcing and say this is the result of the health care policy and other regulations that IBM is switching to this. For the 1 st point I’ll also add that IBM plans to switch to contractors and crowdsourcing for the jobs the 300k did. For the second point, I’ll say that IBM plans to cut 1000s of American jobs and move them to India. Not too sure about Macaulay Culkin, but I thought he made sense here.
  • Finance part of ibm

    1. 1. Dec 2005 – Dec 2010
    2. 2. Profit and Loss Statement
    3. 3. 2009 2008
    4. 4. Recession Survival <ul><li>Steel and high tech companies – recession proof </li></ul><ul><li>IBM is a “software-and-service-oriented” firm. </li></ul><ul><li>IBM’s integrated approach of performing multiple services to clients. </li></ul><ul><li>Very intelligent investments in BRIC countries. </li></ul><ul><li>High cash flow allows IBM to provide good financing. </li></ul>
    5. 5. Dec 2009 – Dec 2010 Current Issues - Acquisitions Sterling Commerce, Netezza Corporation, Unica Corporation, OpenPages
    6. 6. <ul><li>IBM’s Share Prices are Higher Then Ever. </li></ul>
    7. 7. Recent Government Policy Effects <ul><li>To save money on health care and pensions, IBM may cut 300,000 workers by 2017. </li></ul><ul><li>IBM outsourcing jobs to India because of strong US dollar and weak regulation. </li></ul>
    8. 8. Bibliography <ul><li> </li></ul><ul><li>2009 Form 10K Annual Report </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul><ul><li> </li></ul>