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Unformatted text preview: Memorandum To: Daniel Cho & Lawrence Aronhime F rom: Peter Eckhoff Date: Subject: The Problem: Over the last decade or two, IBM has revived itself from a crisis and continued to grow. The way in which IBM returned to favor must be realized and understood, to avoid future crises. Also a plan must be devised to continue the growth of IBM. How and Why This Problem Arose: The Beginning: IBM was the largest computer maker in the world. I t had steady revenue growth from 1946 onwards. IBM was a model company, and was the leader of the pack. In 1989, it was first among U.S. firms in market value, fourth in total sales, and fourth in net profits. Decline of IBM: In 1992, a crisis struck and IBM reported a large loss. Many people were laid off or given early retirement packages. The company was too rigid and centrally managed, these hurt the company as it was not able to quickly jump onto the PC market and slowly reduce its dependence on mainframes. Also enlisting the services of Intel and Microsoft in the early 80s kept IBM from possessing a...
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This note was uploaded on 10/02/2009 for the course E&M ? taught by Professor Aronhime during the Spring '09 term at Johns Hopkins.
- Spring '09