history of the founding of IBM

IBM established in 1911 as the company CTR (computing tabulating recording). In 1890 this company is a merger of three companies. Three years ago, Thomas J Watson, 40 joined this company, not so long ago became president and instituted several symbolic and practical IBM has been known in history, among others; adjust the sales department, emphasizing the company pride and loyalty, is applied (although this This bias does not guarantee) of lifetime employment, and work ethics that are expressed with the slogan THINK. The company expands internationally and adopted that name in 1952, he changed the leadership / succession (transfer of power to his son, Thomas, Watson, Jr..

Under Watson, Jr., IBM emerged as the dominant computer company in the world. Over the next 20 years, the company produces a complete series of automatic calculation of storage innovation and information, including one from the English-language computer (FORTRAN), brother of the first product offering interchangeability of components to produce a computer system (System/360).

Based on several journal authors find lots of information on how IBM's strategy of restructuring:

According to the journal contains a conversation titled "Lou Takes the Gloves Off the IBM CEO on the Turnaround and on his critics (Business Week)" illustrated that less than two months away the leadership of Louis V. Gerstner Jr. of IBM. will retire. Gerstner, has written his life experiences in the journal entitled "Who Says Elephants Can not Dance? In the interview for the first time to answer criticism addressed to him how the restructuring strategy that builds upon the initiative of the financial work. He also handles compensation for the CEO, as well as a discussion about what is wrong with the industry in the future. Gerstner believes the mechanisms of government regulation / company in fact by way of actively involving the owners. He also said that compensation is needed to direct the company's performance. Compensation for the CEO will affect their performance, I believe in the IBM case will not be one would deny this thought.
 

One month after replacing CEO John F. Akers makes Gerstner most surprised to see the condition of IBM. When entering the company, Gerstner believes that the main problem faced by companies is the strategy and execution. Among others, if the rules are vague IBM unclear and less baik.Ini not mean to question the election rules and words such as 'charge'?! Amda should conduct surveillance but no one was following you. That is how to make people / employees are not aware of what they will, so that the views of the organizations if there's nothing interesting for me, I will not participate, the problem is not the strategy but what about the execution of the strategy tesebut.

Gerstner's success in making acquisitions is the opinion as follows: If life is so easy you just buy success mending it, in fact the success of a company in this world could be calculated. Success of a company built from the base / bottom. Uniting the company in the acquisition means to bring the problems of existing companies. There are a few companies but the PC will offer the same view. Why do we have to double the PC business? Telecommunications companies in nearly all the world filed a joint venture or affiliate. There are many people who argue that doing this means bringing the business content, we are changing the business from the roots and make the acquisition and matching of existing strategies.
 

The process of technology integration will achieve profits almost unbelievable so painful enterprise. Though the industry was going so fast, does more. There are different views key customers and key standards of interchangeability. It is true if the media says is not possible to send machines into general motors in different forms to other companies.

According to Gerstner's revenue growth is not the size of the company's success. According to this now so many companies over values ​​about revenue vs. profit. People wrong to generalize revenue. I really like the revenue growth. But I prefer to position ourselves how we seemed to build the company (IBM) has for nearly 5 to 10 years, and more focus on new strategies, new culture. I will not feel nervous when people say that revenue this year rose a little higher.
 

Gerstner double issue highlights the growing problem of financial reporting techniques (financial engineering). On the one hand, IBM had to pay taxes every year, but how tax rate from year to year should go down, this is where the responsibility of management to create cost down (cost of IT, real estate, etc.). Many who argue here that the role of financial engineering. Next is how to share buybacks, there are differences of opinion between the owner and sector analysts, according to their owners do not like to save in cash ataupunmelakukan acquisition. According to what I make a lot of cash but we need more profits will be better focused on increasing compensation, pushing the company to reduce debt in cash. Later we provide to their shareholders benefit not only the dividend but the share buy back.

According to Gerstner to keep the behavior of firms (corporate behavior), we're not just talking about morality but about having an independent audit committee. Furthermore, to protect the interests of investors and convince companies follow the rules of the real mechanism of corporate governance (GCG) by involving the owner (owner).

Gerstner opinion about CEO compensation, with a look at how company performance, performance driven, so naturally compensate for their height for their work, meaning that if the CEO has failed to provide benefits to shareholders billions of course the CEO will get the millions, and vice versa if not of course do not expected to earn that much, maybe just bahka My current salary is still the same in 10 years.
 

According to the Journal "Who Says Elephants Can not Dance: Inside IBM's Historic Turnaround". This journal tells how the regime or era Gerstner (Reinventing Education) for 9 years as CEO of IBM how to love her grief post-crisis conditions, and corporate restructuring efforts. Post abandoned by him and IBM changed its CEO RJR Nabisco. Gerstner found a whole insular culture, do not want changed since the beginning (resistant to change) is therefore a strategy that was based on, refocus energy on historical IBM mainframe business, repetitive process, focusing attention on the desire of consumers / customers, so IBM must immediately change market and reduce the urge IBM's world wide.

Furthermore, the journal "IBM Discover The Power of One", While IBM as a leader of high-tech industry, but does not escape facing a crisis (disaster in the summer of 2003). Units of semi-conductor company, has bet on a strategy to compete by issuing a variety of chips as a newcomer, but instead of IBM lost $ 1.2 million, nearly 18 months. So on the moon July 15, 2003 CEO Samuel J. Palmisano, Zeitler and nearly 70 others have to separate themselves between the chip division and computer division. In the end the company decided to focus primarily on one family of chips, Power microprocessors, initially did not get a response more important goal to generalize successfully so that investment profits are expected to be better again.

Based on the journals' Dynamic Capabilities at IBM: Driving Strategy into Action ".During the period of 15 rahun IBM company premises marked the transformation of the struggle in selling hardware to be a successful solution providers. Underscoring this change Disciplined foresighted strategy and execution are related. In connection with the change strategy backed the idea of ​​dynamic capability, namely the company sensitive to changes in both the marketplace and gauge the opportunities that exist and do the reconfiguration of the existence of assets and competencies. In this journal described how the ability to be dinasmis in IBM's case shows how the strategy process both encourages the possibility of exploration of new markets and technologies so as to produce a mature product with a good and marketable unexplored (mainframe computers, middleware).

Journal titled "The New IBM," describes how 15 years ago exactly on this month, Lou Gerstner came to IBM, and found that the company is not blind trust with his own future. This is where Gerstner started doing surveillance. Tactics used by, among others; service (shif) as a business base, further deepen the Internet and Linux, and shouting that IBM will not lock customers in the narrow view. When IBM's mainframe business will face disintegration happened is the collapse, Microsoft faces disintegration if Window collapse. But it needs to be understood both have in common that do not believe in the future. According to The future is change. Windows experience permasalaham when Microsoft did not change. This means that corporate IT professionals are needed to guide Microsoft on the changes.

Next Journal titled "Analysts Predict IBM's Turnaround Plans May Yield Earlier Than Expected pay-off"Although the road through the second quarter consensus predicted IBM would get $ 1.86 share, down $ 2.12 early this year, some analysts now think would spend $ 2 share, and Daniel Mandresh (Merrill Lynch) predicts an increase in this quarter.