I.B.M.'s plan can work, experts say

Article Abstract:

Industry observers agree that IBM's plan for reorganizing and decentralizing its structure can work. IBM notes numerous examples of large organizations that have successfully streamlined their bureaucratic structures. This newest plan, which comes after various previous attempts, envisions a reorganization that will result in several smaller, focused companies that will operate independently, manufacturing hardware for particular markets. IBM will sell parts of these companies to joint ventures or to the public. IBM plans to eliminate 20,000 jobs in 1992, taking a $3 billion charge for associated costs. Computer industry experts say IBM's attempt to transform itself from a monolithic and centralized organization into a group of related but independent companies reflects changes that have occurred in the industry itself. The computer industry is not any longer the homogenous, unsophisticated and passive collection of customers that is was in the 1950s, 1960s and 1970s, when success came easily to IBM.

Planning, Bureaucracy, Downsizing (Management), Personnel Management, Organization Structure, Feasibility, Decentralization

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IBM faces a harsher world in 90's

Article Abstract:

IBM is attempting to reorganize itself to take advantage of new trends in the computer industry. Observers believe that executives at the manufacturing giant are becoming increasingly concerned that the company is moving too slowly in its efforts to become a pared-down entity capable of competing in the global marketplace. The company has recently announced lower-than-expected revenues for the first quarter of 1991. The results shocked the computer industry, which had anticipated considerable IBM profits. Even as IBM has reduced staff by tens of thousands, it has found itself stretched to provide the kind of services and expertise on which it became such a market leader. The trend towards open systems, and away from proprietary mainframes, has hurt IBM the most. The company is now struggling to adapt products to support open systems in an effort to regain market share.

Market share, Mainframe computers, Mainframe Computer, Financial Report

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A prescription for troubled I.B.M.; I.B.M.'s problems will worsen unless it takes strong medicine

Article Abstract:

IBM's financial problems will get worse unless it changes some of its policies. At the heart of its problems seems to be the inability to change with the changing computer trends. Mainframes are still at the core of its business, but the era of mainframes and minicomputers is ending. IBM should change its policy for cutting back its workforce and stop giving incentives that make the best and the brightest workers want to leave. IBM should also grow stronger in the desktop microcomputer area and team up with NeXT Inc's Steven Jobs to rival Microsoft's domination of the software arena. In addition to these measures, IBM should abandon its preoccupation with account control or proprietary products that lock a customer into its systems.

Guidelines, Losses, Critique

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