Pulling one's weight at the new I.B.M

Article Abstract:

IBM's major restructuring has placed independence and financial management in the hands of decentralized managers. John F. Akers recognized the need for IBM to boost competitiveness in an industry where small and fast companies could steal business with more flexible contracts. IBM divided itself into 13 stand-alone businesses all of which have the autonomy to set prices and reorganize company policies to boost regional profits. IBM has cut its work force by 63,000 people, down to 344,000. In 1992 the company plans to cut another 22,000 jobs. Individual business units at IBM have cut costs, re-arranged price structures and ignored former company policies in efforts to win new contracts, maintain old contracts or boost productivity. Other computer companies are also granting independence to smaller divisions in the hopes of increasing revenues.

Variety stores, Wal-Mart Stores Inc., Contracts, WMT, Corporate reorganizations, Strategic Planning, Reorganization

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A leaner I.B.M. still must worry

Article Abstract:

IBM has reorganized its work force, sales force and product development schedule, but the company still worries about profits. IBM plans to cut up to 40,000 jobs if workers accept the proposed buyout program. It has already reduced the number of middle managers and increased the number of decision-makers on the factory floor. Analysts estimate profits for the 2nd qtr 1992 at $1.33 a share or $758 million. Despite effective cost-cutting, IBM may not experience revenue growth unless it brings products to market faster and is more responsive to customers' needs. Microcomputer revenues, excluding workstations, declined from $8.9 billion in 1990 to $7 billion in 1991. IBM can count on profits from mainframes through the year 2000, despite a corporate trend toward purchasing less expensive systems.

Finance, Business planning, Layoffs, Revenue, Layoff, Stock, Financial Report

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Another outsider is appointed at I.B.M

Article Abstract:

Gerald M. Czarnecki, chairman of the Hawaiian unit of Bank of America, assumes the post of senior VP for human resources and administration of IBM. Czarnecki, 53, is the third computer industry outsider to join the ailing industry giant's new management team. Earlier, Louis V. Gerstner Jr of RJR Nabisco became IBM chairman and president while Jerome B. York of Chrysler Corp was appointed IBM's chief financial officer. The three officials have had itinerant business careers and experiences in turning troubled companies around. Czarnecki, as chairman of Bank of America's HonFed subsidiary, transformed an unprofitable operation into a profitable bank.

Officials and employees, Appointments, resignations and dismissals, Executive, Czarnecki, Gerald M.

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