IBM’s Decade of Transformation: Turnaround to Growth
Case I – 1 (Applegate et al. Textbook p5-38)
IBM’s Decade of Transformation case study
Jumpstarting Innovation: Using Disruption to your advantage (http://hbswk.hbs.edu/item/5636.html). Assignment Questions:
What factors led to IBM’s success during the 1960s and 1970s and its problems during the late 1980s and early 1990s? What did Gerstner do when he assumed the role of CEO in April 1993? Evaluate Gerstner’s approach to crisisa How well did he perform as a turnaround manager? What challenges did he face as he attempted to position the company for growth? Why do large established companies, like IBM, find it so difficult to build successful and sustainable new businesses? Evaluate IBM’s approach to leading mature, high growth, and emerging business opportunities. What are the organization design and leadership models required to manage each type of business? How should a company like IBM (or AT & T, for example) manage the innovation process? What challenges did Sam Palmisano face as he assumed control of IBM in March 2002? Can a company like IBM (or AT & T) be organized for both innovation and efficient operation – can it be both “big” and “small”? What advice would you give Palmisano at the end of the case?
After reading the case respond to the above questions. Be specific to in your responses to each question and provide sufficient details and rationale for any suggestions you provide.
MIS 685 MIS Capstone
Summer I 2011
Mayur S. Desai: JHJ School of Business, Texas Southern University
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