Case Study 1 - Name: Tang Sheung Kon (Gary) Student ID:...

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Name: Tang Sheung Kon (Gary) Student ID: 1002610571 Case Study Assignments 1 IBM’s Decade of Transformation Assignment Questions 1. What factors led to IBM’s success during the 1960s and 1970s and its problems during the late 1980s and early 1990s? Ans: Developed S/360 computer, which proved to be an innovative and dominant industry design. A series of related IT innovations such as FORTRAN, IBM supermarket checkout station, and early version of ATM, helped IBM dominant in various areas in the market. Problems of IBM during the late 1980s and early 1990s Structural problem o IBM grew to an entrepreneur with complex organization structure. Some organizations worked in silos and could not leverage different each other’s strengths. o Complex IT infrastructure with 125 separate data centers and 128 CIOs worldwide. Data processing costs and operational costs were dramatically high. o Product complexity with 20 separate business units and over 20,000 products, some products were for same purpose, having duplicated business processes for the products. React to the change of market o The need to interconnect mainframe, midrange, and increasingly mobile personal computers with distributed data sources and applications led to fewer purchases of mainframes. o Used mainframe-based thought in a mid-range market, which proved to be wrong to target mid market with mainframe pricing and cost structure o With the wrong marketing strategy on PC market, IBM lost the competition to Compaq and Dell.
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Name: Tang Sheung Kon (Gary) Student ID: 1002610571 2. What did Gerstner do when he assumed the role of CEO in April 1993? Evaluate Gerstner’s approach to crisis management. How well did he perform as a
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This note was uploaded on 10/11/2011 for the course BUSINESS 201 taught by Professor Jackynell during the Spring '04 term at Acton School of Business.

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Case Study 1 - Name: Tang Sheung Kon (Gary) Student ID:...

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