Corporate Strategy Caso 1

Corporate Strategy – caso 1 Elementos das decisões estratégicas © Copyright Richard Lynch 2006. All rights reserved. This case was written by Richard Lynch from published sources only. Page 1 of 7 Disaster and recovery: 1 Corporate profit disaster at IBM In... More

Corporate Strategy – caso 1 Elementos das decisões estratégicas © Copyright Richard Lynch 2006. All rights reserved. This case was written by Richard Lynch from published sources only. Page 1 of 7 Disaster and recovery: 1 Corporate profit disaster at IBM In the early 1990s, the world’s largest computer company, International Business Machines (IBM), suffered one of the largest profit disasters in corporate history. Essentially, its problems were rooted in poor corporate strategy. This case study examines how IBM got into such a mess. Over the period 1991–93, IBM (US) suffered a net loss of almost US$16 billion (half the total GDP of the Republic of Ireland at that time) – see Figure 1 During this period, the company had many of the characteristics of a supposedly good strategy: a dominant market share, excellent employee policies, reliable products (if not the most innovative), close relationships with national governments, responsible local and national community policies, sound finan Less