1. What struggles does Lou Gerstner face in his plan to make
IBM network-centric? Consider internal and external
In order to make Lou Gerstners plan effective he had
to make many changes with in the IBM company. Gerstner set
up a team with Jerry York and Richard Thoman along board.

Some changes that were made with in IBM were, a cut back on
employment, reduced expenses, and a stronger customer
service. Gerstner and his new team based their plans on
computer networks and the products needed to help IBM reach
their future goals for the company. Some struggles Gerstner
faced would be, the cut back in employment, I think this
would have hurt his plan because I would have slowed down
the production of the IBM products also high costs with no
revenue would hurt his plan until he could work and fix the
problems. Another problem Gerstner was faced with would be
the process of getting lost customers back to buy IBM
2. Must IBMs basic corporate culture change in order to
I think that IBMs corporate culture would have changed
because IBM is following a new structure in order to achieve
Gerstners goals.. Since employment would be cut back that
means that the workers that did stay would have longer hours
. Another thing that would change would be the quality and
advancement of the products, since the expense cost would be
cut down , the quality of the products would decrease. Being
the expense cost declined the would be no room for advancing
the products and keeping up with the competitors.

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3. What strengths does IBM possess that make Gerstners plan
achievable? How do Gerstners strategies incorporate those
IBM is a well known name and its been around for a
long time. I would buy a product from a company who has a
good reputation rather then from a brand new company Ive
never heard of. Cutting costs, improvement of customer
relations, and teaming up with other companies to cut cost
of technology are strategies used by Gerstner. Gerstner
counted on IBMs ability to provide outsourcing and systems
integration to get its customers involved. By doing this IBM
customers think that IBM is more responsive to their needs.

IBMs sales have increased at great deal since Gerstnerss
plans went into affect. Sometimes it pays to take a risk in
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