CASE STUDY ANALYSIS OF LOUIS V. GERSTNER- THE MAN WHO

TURNED IBM AROUND

Made by

Binu d Pandey

WHAT IS TURNAROUND STRATEGIES

Implementation of a set of actions required to save

an organization from business failure and return

it.

Analyse the current position. -- Where are we

now?

Analyse the current position. -- Where are we

now?

( for instance, transform IBM from a loss making

company to a profit generating company)

STRATEGIES USED BY LOUIS V (POINT TO BE NOTED)

Acquisition and merger

Turnaround

organizational change (oc)

Decentralized to centralized decision making

MAJOR MEASURES GERSTNER UNDERTOOK TO BRING IBM TO

SUCCESS

Customer orientation,

Reducing work force

Changing employee compensation structure

Decentralizing decision making

Developing e-business strategies

Focusing on problems at hand

Minimizing restrictions over employees

SWOT ANALYSISSTRENGTH• Self- belief• Immediate problem

solving• Visionary • Competent leadership• Discipline

WEAKNESSES• Long term plan setting• Impulsive decision

maker

OPPORTUNITIES• Diversified strategies• Betterment of own

product

THREATS• Risky decision marker• Dotcom crash• Recession • Competitors