Abstract

The case examines in detail the way in which Louis V. Gerstner transformed one of the most admired companies in the US - IBM, from a loss-making one to a market leader. The case further examines the leadership qualities of Gerstner which contributed to this transformation. It also gives an account of Gerstner’s past experiences, and how he learned from those experiences. The case details several measures taken by Gerstner to turn IBM around including customer orientation, reducing work force, decentralizing decision making, developing e-business strategies etc.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Role of a leader in reviving a loss making company, change management.

Keywords

Louis V. Gerstner, US, IBM, loss-making, market leader, leadership qualities, Gerstner, IBM around, customer orientation, reducing work force, decentralizing decision making, developing e-business strategies