Consultants Report Telecommuting at IBM Indiana Essay

Consultants Report Telecommuting at IBM Indiana - Essay Example Half of the company’s business volume was spread out worldwide. It was in the mid-1980s, however, that the company started to have problems. The profits of the company had started to plunge down. Analysts concluded that the reasons behind the downfall were not many but were strong enough to shake an established company. They were: the bureaucratic and slow-moving setup of the company, maintenance of old business strategies and reluctance to replace them with newer ones, incorrect assessment of business risks. As said by Ducker (1993), it is a business sin to sacrifice tomorrow’s opportunity on the altar of yesterday. This was precisely the reason why IBM got off-track its road to success. Though IBM did try to cope up with the growing trends of the market by introducing a PC in the market almost overnight after Apple introduced the first PC in the mid-1970s but they could actually never get out of the MAINFRAME mask that they had put on themselves. Then the time came wh en IBM was being administered by JOHN AKERS who was a career IBMer in the ear 1985. Since the downfall of the company had already begun several steps were being taken by the administered in order to downsize the company. A summary of the downsizing of the company can be viewed in the attached table. The administered however resigned in the year when despite all his efforts the company continued to lose stocks and suffered major losses in the year 1992.Louis V. Gerstner then replaced the former head of the company. Further downsizing of employees was then consented upon by the management of the company. The establishment of the company’s office in the state of Indiana was an evident example of the problem the company was facing overall. The Indiana office reduced its number of employees to about 30% in the year 1992. The General Manager Operation s for the State of Indiana was foreseeing another cut in the number of employees.