IBAX--A Management Organization Study

Background

The strategy behind the IBAX venture was to combine Baxter¡¦s experience in software applications with IBM¡¦s expertise in the computer related business. This partnership, however, failed to produce the financial and strategic aims of both Baxter and IBM. In order to turn IBAX around the partnership sought out a new CEO who could affect the kind of changes necessary to make the company a success. As a result, IBAX hired Jeff Goodman, a MBA graduate from the University of Virginia with a background from GE.

As the case reported, the problems with the company were substantially understated. In order to better analyze IBAX and make appropriate recommendations, we performed a SWOT analysis detailed below:

Strengths:
¡P IBM reputation brings credibility to partnership
¡P Market Leader with 12% market share

Weakness:
¡P Poor product quality (Series 3000, 4000, 5000)
¡P Poor customer service
¡P Low employee moral
¡P Overstaff...