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Category: Technology
Word Count: 1701
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1. Changing the Business Model

a. How did IBM change its basic business model under CEO Louis Gerstner?

By March 1993, when Lou Gerstner was appointed CEO, the first order of business was making the company solvent. Under his guidance, IBM cut billions in expenses (partly through massive layoffs) and raised cash by selling assets. Having re-focused IBM on the needs of its customers, Gerstner started to reconfigure the company to emphasize its strengths. These strengths included long-term
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