Research paper

Every student has the dream of being able to work for a company that provides financial support and helps him or her reach personal goals. The purpose of this report is to identify a company that matches my criteria the best, such as company culture, size, benefits, and location. My major is business with concentration in accounting, so I have the option of working for accounting firms or in business accounting.

In this report, based on my criteria, I compared IBM, an American multinational technology and consulting corporation, to PwC, a multinational professional services firm. Several sources were used to gather information for comparison, including the companies’ official websites, SJSU’s electronic database, any business related articles, and other online sources. From examining each company’s background, main products and services, benefits, and their relationships with customers and competitors, I determined the advantages and disadvantages of each company. After reviewing the SWOT analysis and other critical information of each company, I decided that IBM is my ideal company for employment.

To meet my criteria, my ideal company should have several characteristics that match both professional and personal preferences. First, the company must encourage innovation. Having the ability to innovate opens the market for a business. By continuously providing new products and services, the company can have a better position than its competitors. Second, the company must promote a positive workplace. A positive work environment is vital for a company to be successful. For example, it can increase employees’ efficiency and productivity. A trusting relationship also can create a chemistry that brings employees positive energy and makes the business thrive. Working for a company that shows innovation and trust will allow me to be creative and work freely without looking over my shoulder.

Furthermore, my future company must be responsible to both customers and employees. A good company knows how to focus on its customers. Having a quick response to customers’ comments and complaints is key to gaining customers’ interest. While retaining current customers, the company has the opportunity to attract more new customers and expand its customer base. A good company also knows how to treat its employees. Offering employees good benefits packages, such as health insurance and retirement plans, is a way to show appreciation to employees so that the employees can perform their jobs well. A successful business must be responsible for everyone in society, and I would be honored if my future company had that characteristic. In addition, I believe a large company is more stable than a small company. I also prefer that my future company has multiple locations, especially in Asia. Since many of my family members live in Asia, working in Asian countries would make it easier for me to visit them.

IBM was founded in 1911, and it is the world's largest information technology (IT) company. The main products of IBM are computer hardware and software. Some of IBM’s influential hardware products include hard disk drives and mainframe computers. Also, IBM has invested heavily in software for both commercial and consumer use, including Lotus, WebSphere, and Tivoli (Taft, 2011). Besides manufacturing and supplying IT products, IBM also provides consulting and technology services. The company is the leader in the IT industry and “operates in five segments: Global Technology Services, Global Business Services, Software, Systems and Technology, and Global Financing.” Each segment performs important functions and provides services across the world (Yahoo Finance, IBM, n.d.).

Having an innovative culture is key to IBM’s success. The company has more than 100 years of business experience, but it continues to create innovative products. As a result, it has had the lead in the number of U.S. patents for many years, generating thousands of patents annually. For example, in 2008, IBM became “the first company ever to earn more than 4,000 U.S. patents in a single year.” Also, in 2011, IBM topped the list for U.S. patents for the 19th consecutive year (IBM: News Room, 2009 & 2012).

While providing excellent products and services to the whole world, IBM offers its employees a competitive benefits program to attract talent. The supplemental plans for employees and retirees are similar and cover medical, dental, and vision care. However, employees receive an additional benefit called Employees Stock Purchase Plan. The ESPP offers eligible employees IBM stock for a price 5% lower than the market price on the date of purchase, and each year employees may invest up to 10% of pay but no more than $25,000 (IBM: Employment US Benefits, n.d.).

IBM has established its leading position in the IT industry, and its blue logo is recognized as reliable and authoritative across the world. However, the brand image is not a figurehead. The company produces strong products and services. In order to improve profitability, IBM changed its business concentration from commoditized products to higher-value areas. As a result, IBM's net cash from operating activities increased approximately $4,675 million in FY 2010 compared to FY 2005. Furthermore, IBM earnings per share have nearly tripled in the last 10 years which benefits shareholders and increases investors’ confidence. IBM also has 12 research laboratories worldwide. The strong research, development, and engineering capabilities allow IBM to engage in long-term collaborations with many business forms and government agencies. Meanwhile, innovation differentiates IBM from other IT companies and competitors (DATAMONITOR: IBM, 2011, pp.5-6).

The weakness of IBM is low revenue per employee. The company has 426,751 employees in over 170 countries. It reported revenue of $99,870 million in FY 2010, which yielded $234,024 of revenue per employee. However, IBM’s major competitors had much higher numbers in the same ratio, such as Microsoft with $702,067 and HP with $388,271, respectively. To improve the low revenue per employee, increasing individual contribution is a big challenge for IBM (DATAMONITOR: IBM, 2011, pp.4&7).

However, IBM has the opportunity to expand its customer base because of new demand in growth markets, especially in Brazil, Russia, India, and China (BRIC). The growth of market represents higher demand for business analysis which requires more high tech support. For example, in March 2011, IBM designed new software along with new consulting practice services called Smarter Commerce to help companies manage customers’ needs. Also, based on IBM’s estimate, Smarter Commerce will bring the company over $70 billion in the coming years (DATAMONITOR: IBM, 2011, pp.8-9).

IBM’s threats come from tough competition and fluctuating exchange rates. As the leader in the IT services, IBM has to face the strong competition from other large IT companies and small businesses. For example, Microsoft and Oracle compete with IBM in the software segment, and Dell and HP mainly compete with IBM in the Systems and Technology segment. All that tough competition might reduce IBM’s market share and customer base, and possibly affect operating performance. Because IBM’s business covers over 170 countries, fluctuating exchange rates are unavoidable risks that impact its financial condition. Even though IBM has used some financial instruments to lower the exchange risks, the volatility of currency continues to affect the company’s financial reports (DATAMONITOR: IBM, 2011, pp.9-10).

IBM has a great reputation, and its 100 years of business experience makes the company stand out in the IT industry. While it is harder for larger companies to fail, IBM’s success stems not just come from its size but also from its innovation. Job stability is less of a concern when a company produces often and well. Therefore, an innovative culture keeps IBM the leader among all competition, and it also helps me reduce the concern about job security. Besides the company culture, the company’s stock plan also attracts me. This strategy boosts the company’s business by tying its performance to the employees. I am confident about IBM and its stock. If I were an employee, I would take the advantage of the ESPP to invest in the company’s stock with the employee discount. With the increasing of company’s gross profit, the increasing of IBM stock price will directly benefit me as an investor.

PwC was formed in 1998, and the company provides industry-focused services in the area of assurance, tax, and advisory for public, private, and government clients. PwC helps companies produce financial reports under the guide of US GAAP and IFRS, so those companies can use the information to make economic decisions and to attract the investing public. With the consulting service, PwC helps clients transfer risks into opportunities. In addition, PwC provides advice on tax reporting and tax deal structuring to comply with current regulations. PwC primarily operates in Europe and North America, and its customers come from different industries, such as retail, banking, and government services. The main competitors are other three Big Four accounting firms and various consulting services (PwC, n.d.).

As a company that has been voted as one of the “100 Best Companies to Work For” in six consecutive years by FORTUNE, PwC believes that cultural diversity is an important business asset that helps a company grow and succeed. People who work for PwC come from different countries and have different backgrounds. The different point of view brings PwC the culture of diversity which benefits both PwC and employees. While PwC provides a friendly work environment for each individual, every employee adds value to PwC through working as teams and interacting with clients (Diversity Best Practices, 2010).

Employees of PwC receive both health and financial benefits which cover medical, dental, vision, and savings plans. The Retirement Wealth Builder Plan contributes a certain amount of funds to eligible employees based on their job levels from the first day they are hired. For new employees, the plan provides a one-time bonus contribution to help them establish a good starting point of retirement savings (Careers at PwC, n.d.).

One of the strengths of PwC is its leading market position and its strong client base. PwC has offices in 766 cities across 154 countries. In FY 2010, among the Fortune Global 500, PwC serviced more than 80% of the companies. Some major PwC clients include Microsoft and SuperGroup. The other strength of PwC is the company’s diversified service divisions that keep the company generating revenues and reduce the risks of failure. The main service divisions are designed to cover a different range of industry, such as audit and assurance, consulting, deals, human resources, legal, and tax (DATAMONITOR: PwC, 2011, pp.5-6).

Even though PwC has the prominent market position, the fact that several lawsuits filed against it might reduce the client base and weaken PwC. For example, in 2009, the company had its image tarnished because its clients, DSQ Software and Global Trust Bank, were involved in scandals. Also, in 2010, because PwC failed to catch its client JP Morgan’s mistake of placing “nearly $23.3 billion of client funds into the wrong bank account,” PwC was reported to its regulators by the Financial Services Authority in the UK (DATAMONITOR: PwC, 2011, pp.6-7).

As the global marketplace expands, emerging markets begin to play key roles. PwC has aimed toward growing markets and started investing in those countries, such as China and India. For example, in 2010, PwC promises that over the next five years, it will hire more people in emerging markets to meet the growing demand for professional services. As a result, PwC expects that revenues generated from the emerging markets will increase from 20% to 45%. In addition, the adoption of IFRS standards may sustain demand for PwC’s services. According to a survey in 2010, an increasing number of companies are willing to switch from the current GAAP to IFRS. As one the companies that provides professional services in accounting issues, PwC will benefit from the change (DATAMONITOR: PwC, 2011, pp.7-8).

However, PwC is not the only company that provides professional services in accounting. It has to compete for the market share with other companies including the other three Big Four accounting firms, Deloitte, Ernst & Young, and KPMG, along with other consulting services. Furthermore, because of the collapse of Enron and WorldCom, the IRS has issued more rules and regulations to limit accounting firms’ services. Those processes make it hard to keep clients and gain investors’ confidence back (DATAMONITOR: PwC, 2011, pp.8-9).

I like PwC’s diverse company culture. It not only helps the company attain a multicultural workforce, but also makes employees think that their value is recognized by the company. I am willing to work for a company that respects and appreciates its employees’ different cultures. It allows me to be creative and increases my attachment to the company. The fact that PwC started to emphasize emerging markets, especially in China, is another reason that I am fond of this company. As an immigrant from China, being able to work for a company that has marketing in US and China can fulfill my dream to balance the relationship between my career and family. Third, my major is accounting, and taxation is one of my favorite subjects. Choosing PwC will definitely bring me more chances to work in the tax area. However, the company only has 10 years of business experience, so I am concerned about the company’s survival during an economic downturn.

Both IBM and PwC are multinational companies and have strong leadership in their respective industries. Because both companies have multiple locations worldwide, I will have the same opportunity to work in Asia, regardless which company I pursue. However, by weighing each company’s advantages and disadvantages, I choose IBM as my ideal company. Looking at each company’s history, IBM has more than 100 years of business experience, which is remarkable in the IT business. The company survived the Great Depression and went through a downturn during 1980 to 1990. It showed me the company has the ability to adjust to the current market and economic environment. By changing its business strategies and introducing new products to the market, IBM established the leadership in its own industry. I believe IBM’s hard experience benefits its future.

Another reason that IBM won me over is its Employees Stock Purchase Plan. Not all employees will receive stock options during the period they work for IBM. For the employees who trust IBM and want to invest in its stock, ESPP offers an opportunity for them to do so at a lower than market price. I would join the plan if I were an IBM employee. The fact that my personal benefits are tied to the company’s performance will motivate me to work harder. As a return, when the company generates more profit, it distributes more benefit back to investors and employees. The plan not only helps employees be better financially prepared, it also insures that the company will have more support from employees and investors. I have no doubt that IBM will be the right choice.

Since I decided to choose IBM as my ideal company, I will work hard to make my dream come true. Maintaining my high GPA will be the first step to reach my goal. Secondly, I will use networking to increase my chance of being hired by IBM. For instance, several of my neighbors have been working for IBM for many years, and I have good relationships with them. I will let them know my career plan and my desire to join their company. Also, I will pay attention to any IBM recurring news and try to participate in all the events that I am able to. Opportunities exist for the people who are prepared, and I definitely want to be one of them. Overall, I will follow the recommendations and do what I need to do to earn my future in IBM.

DATAMONITOR: International Business Machines Corporation. (2011, May 19). IBM Corporation. SWOT Analysis, Retrieved October 8, 2012, from Business Source Complete database.

DATAMONITOR: PricewaterhouseCoopers International Limited. (2011, March 4). PwC LLP. SWOT Analysis, Retrieved October 8, 2012, from Business Source Complete database.