They did this through identifying hindrances that prevented the company from growing from where they could workout possible solutions, which would assist the company to get back to its feet. There was need for radical changes, and for introduction of a strategy that would allow the company to systematically adopt the new measures that would ensure the growth of the company. Through a series of deliberate measures to check on the problematic issues within the company and efforts to change the dumb situation, IBM managed to get positive results for their efforts, since their sales gained momentum and they felt that they were in the right track.
The greatest or umbrella concern here was the growth of the emerging businesses hence it became necessary to come up with strategies that could handle the issue of the emerging businesses, and ensure that their growth would be experienced and sustained to the reach the profit making level. The essay below is an analysis that shows the trend adopted by IBM to regain footage in the computer industry.
The greatest issue that concerns the growth of large business units like IBM through creation of new businesses is the rigidity of structural creations of leadership within the companies. This is achieved through development of practices that only act negatively to their growth often leading to the stagnation in growth of the companies.
Another reason that can account for lack of creation of new businesses is preoccupation with existing markets and the products offered thus concentrate much on the performance of existing system and overlook the possibility of creating new businesses to expand the existing system. This problem also blindens the company to possible new opportunities in the market (Pugh 2001p36).
Development of systems that encourage attainment of short term results through insisting on the near-term performance of the specified short term goals is a barrier to the success of the big companies like IBM. Meeting of the specified goals discourages the leadership from taking challenges of better things to engage in as their performance within stated confinements are recognized and rewarded.
Presence of rigid bureaucracies that often delay or steps into the way of development of new business marks the other problem hindering development of new businesses. This happens when an attractive opportunity is cited but has to be approved by a number of leaders before it can be implemented. Some of the leaders, might for some reasons, be opposed to this new development then fail to approve of them, thus forcing the company to discard the issue.
Lack of a deliberate strategy for encouraging development of new businesses is another barrier. Development of new strategies might entail the need to encourage spotting opportunities, experimentalism, funding the opportunities among others. A case scenario of IBM can illustrate this. IBM would diligently fund existing businesses, and then fail to sponsor ideas for new businesses, fail to give them attention and cut them off from budgets when funding was hurdled.
Biased information gathering for evaluation and decision making is another barrier. The biased system of information gathering means information gathered is necessarily biased as well