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How a New Strategy Saved and Created a Bright Future for Ibm in 90s.

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Submitted By dream187kimo
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Term Paper Proposal
To: Dr. Vijay Karan
From: Ming-Tzu Chou
Date: 13 February 2012
Subject: Management control system
Proposed Research Topic: How a new strategy saved and created a bright future for IBM in 90s.
Statement of problem: In the early 1990s, IBM suffered in dramatically declining in the revenue of the mainframe sales, and the stock price also dropped. During the period, the personal computer was the most popular products in Information Technology market, and the mainframe was already outdated. Last but not least, IBM could not reduce its cost according to its size and bureaucracy. As a result, many people believed that IBM could only fell or be divided to smaller companies. Louis V. Gerstner, Jr., who was the new CEO, saved IBM and implemented different strategies in the company.
Objective & Method: The purpose of the study is to evaluate how a new strategy affected IBM. Except the abstract, the term project will be separated to four parts: problem statement, strategy formulation and strategy planning of solutions, the summary of results, and recommendations. The term project should reach the following goals through in the four sections.
1. Problem statement will describe IBM’s previous business situation and introduce how problems had generated before Gerstner arrived.
2. The solutions from Gerstner will be deeply analyzed according to the theories from strategy formulation and strategy planning in the textbook.
3. The summary of results will be presented after IBM transferred.
4. The project will offer some recommendations to IBM in the last section.
References: The main data resources will contain financial statements from IBM’s website, company and competitors’ analysis from Mergent online, analysis passages from Wall Street Journal, business theories from Management control systems twelfth edition, which is written by Anthony and

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