CRUX of the case:

• This case deals with problem in leader ship skills.

• Slow adoption to the new technologies and innovation.
• Failed to build relationship with custumers.
• Wrong execution of strategy
• Single approach to organizing and leading.
• They lost sight of IBM’s mission .
1. What factors led to IBM’S success during the 1960 and 1970s and its
problems during the late 1980s and early 1990s?
Success during 1960-1970:
• Dark-suited salespeople, strong culture of corporate pride and loyalty.
• Implied lifetime employment
• Work ethic expressed in the slogan as “THINK”
• Integrated semiconductor chip and offering interchangeability of components.
• Innovation.
• Introduction of Personal computers.
• Problems during 1980-1990:
• Out of touch with its customers.
• Conversion of lease oriented business to sales oriented.
• Mainframe thinking and missed the PC mark.
• Softened the revenue of IBM’s fixed cost started growing.
• Threat from emerging technologies and competitors
• Customers become more vocal about the quality problem.
• Poor performance in the internal management
Take Away:
• Leadership skills
• Continuous adoption to new changes
• Innovation