International Business Machines ( Ibm ) Case Study

International Business Machines (IBM) Case Study In 1990, IBM was the second most profitable company in the world. It recorded a net income of $6 billion on revenues of $69 billion. Even though IBM recorded such high revenues and the senior executives complacent because things seemed to be better there were uprising problems in the company (Applegate, Austin Collins, 2009). There were serious structural problems within the company. These structural problems caused the company’s earnings to drop. In between 1991- 1993 the earnings dropped continually. Some of the problems the company faced came from its blindness to hubris (Applegate, Austin Collins, 2009). The company also barely communicated with its customers. The company also got distracted by internal turf wars than market place battles. The PC group considered the rest of IBM outdated and wanted nothing to do with them. Over time the business matured and the PC group could not leverage the sales and global services strengths of the company (Applegate, Austin Collins, 2009). Executives ignored the growing problems in the organization; instead they focused on the deep levels of hierarchy. They also ignored the upcoming problems because they heavily relied on the large numbers of corporate staff. The leaders had large staffs and little direct involvement in writing their own reports. It displayed poor performance in the structure of the company. 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