IBM

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how LOUIS GERSTENER the CEO of IBM made the giant to prosper

WHO SAYS ELEPHANTS CAN’T DANCE?

“An Inside Review of IBM’s Historic Turnaround” BY ARINDAM CHatterjee,PRATIM DAS,SUBASISH MUKHERJEE,KUSHALENDU TALUKDAR,sharmistha pal, sudhanshu chatterjee FACULTY : prof. b. d. gupta

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APPOINTMENT as CEO of IBM ANALYSIS of IBM RESTRUCTURING IBM EVALUATING DIFFERENT PROSPECTS OF IBM IMPACTS ON IBM

4 5 6 7 8

Appointment as ceo of ibm
It was in 1993 that Louis V. Gerstner took up the challenging task of rebuilding the “elephant” of the corporate world. ? He thought twice before taking the offer because he lacked the degree of technical competence.
?

Analysis of ibm
? Loss

of customer trust, low quality ratings. ? Rush for decentralization. ? Slow response to cross-unit issues. ? Confusing performance measurement system. ? Array of questionable and senseless alliances. ? IBM was fully bankrupt.
?

Restructuring ibm
? To

keep the company intact. ? To place clear cut objectives. ? Make the work-environment friendly. ? To sell non-essential assets. ? Job cuts.
? ?

Evaluating different prospects of ibm
? Technological

change as per customer requirements. ? Visiting clients personally. ? Service sectors-IBM Global Services. ? IBM’s O/S vs. Microsoft Windows. ? Open market operation. ? E-business.

Impact ON ibm
? Gerstner

left IBM with 65,000 more employees than when he had joined. ? IBM is back on its feet, recording a profit of $8 billion. ? He actually proved that "Elephants can dance”.

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