According to a recent report by Wall Street, International Business Machines (NYSE:IBM) is the worst run American company during the year 2014. The company, in response to the report, said that IBM’s operations were harshly analyzed and that the company should be given a say. This did not change the situation any further; in fact Bloomberg released a report 2 days back in which it criticized the management of the company.

The important question to ask is as to what it was that made IBM the worst run company of the year. Surely, businesses make mistakes all the time. Sometimes the management has to make hard decisions and those decisions are criticized most of the time. Sometimes, even the market leaders can break and be on the lower end of spectrum. Why then was IBM given so bad reviews?

Companies report lower fundamentals sometimes, such as the profits and revenues; however it is the market that decides as to whether the company is well run or not. The report of Wall Street identified 8 businesses that were not well run during the past year. What is interesting to note here is the fact that almost all of them shared some common aspects, which included share prices, revenues and earnings per share. Most important aspect was the staples of the company.Most of these companies were taken over by outside traders and investors.

In order to be given a status of ‘poorly run,’ a company has to have a huge record of missing opportunities, bad operational choices, risks that were mismanaged, and executive troubles. To sum up, a company must have taken such decisions that call the ability of its management into question. Similarly, the company should be unable to provide enough returns to the investors.

Where the stock market of the United States had seen a boost in the last 5 years, International Business Machines (NYSE:IBM) failed to keep up with the Standard & Poor’s 500 gains. The companies that were declared to be poorly run lost most of their market value during that period of time.The best example is Avon Products (NYSE: AVP). The company lost around 74 percent of its share value during the last 5 years. Moreover, its China business was a huge growth opportunity, but the management of the company turned it into nothing but a boondoggle.

But wait, this was not it. International Business Machines (NYSE:IBM) also saw a decline in its revenues and diluted EPS on yearly basis. The company missed numerous opportunities that could have helped the company expand further. The company’s financial position was also quite weak during the year 2014. The management of the company failed to properly address the concerns of the investors.

Coming to the stock prices of International Business Machines (NYSE:IBM), the company, during the last trading session of January 01, 2015, started its stocks at a price of $160.41 and closed at a price of $160.44, after hitting the highest price of $161.50.

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