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Essay about Case Study 1

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* Given name | * Lawrence | * Surname | * Lau | * Student number | * 16012143 | * Email | * lawrencelkh1989@gmail.com | * Unit name | * Strategic Marketing 310 | * Unit code | * 3900 | * Assignment title | * Case Study One | * Date submitted | * 8th of April 2013 | * | * | * | * | * Marker’s comments | * | * Recorded mark | * | * Marker | * | * Comments | * |

Question 1. What competences has IBM had to invest in arising from its transformation from a ‘product-centric’ to a ‘service-centric’ organization?
To adapt to the fast changing pace of business, IBM CEO Louis Gerstner took the …show more content…

et all, 2012).

Question 2. How would you describe Louis Gerstner’s implementation style of IBM’s competitive strategy in the early 1990s? In my opinion, Louis Gerstner’s was a brilliant strategist which turn the table around for IBM. A successful strategist are people who can gain better understanding and critically analyze the situation and able to develop strategies to match their competitors. As the CEO of IBM, first thing Louis does was to perform a corporate appraisal of the company. Corporate appraisal is a process where company review their entire organization to gain an understanding of its readiness to interact successfully with the external environment in which it operates and develop the best strategies to stay competitive in the market (Jain,S.C. et all, 2012).
There are five areas in corporate appraisal. There are categorized senior management, corporate culture, corporate publics, corporate resources and review of past performance (Jain,S.C. et all, 2012). After performing the corporate appraisal, Louis discovered that the cost were excessive, lose touch with the customers, organization structure was too decentralized and bureaucratic and stayed with their old strategy for too long therefore caused IBM to be losing out in the current competitive market (Jain,S.C. et all, 2012). First of all, Louis realizes that the market is

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