Who Says Elephants Can’t Dance (Louis V. Gerstner, Jr.)- Inside IBM's Historic Turnaround -List the various implementation issues Lou Gerstner faced when he became CEO of IBM?In the early 1990s, IBM was in a devastating slump. Stock prices had dropped from $43 in 1987 to $12 in 1992. System/390 mainframe sales were at an all time low. IBM Europe, Middle East and Africa (EMEA) reported a dismal gross profit margin of 38% in 1992, down from 56% in 1990.When Louis V. Gerstner became CEO of IBM in 1993, the company was on the verge of collapse. Hired for his successful management of RJR Nabisco and American Express, Gerstner had no background in technology, but during his seven-year tenure, he transformed the company into a “company that mattered” of the computer industry.He immediately faced lots of obstacles that need to overcome when he had come to IBM. Before he arrived, IBM was suffered from inconsistent global policies which cause unproductive communication, the strict white-shirt hifrom the perspective of finance.No Marketing expertiseWith human resource and finance department, Marketing also had a problem. Brand had not been managed in the view of IMC. IBM hired approximately 70 marketing agencies, they sent all different image and message of IBM. That made customers confused.Incentive system based on work position not performanceEmployees had received their salary based on a salary class not performance.Too much cost for employee’s welfare packagesIBM Employee’s welfare packages were well above the average of the industry. It was too costly and extravagant.Process-driven company not Customer driven.IBM did not care about customers, it produced products what they wanted and delivered it to the market. No customer-oriented mind. They only cared about the internal process and policy.Nominal Management Committee (MC).For each of the following topics below, state what the issues were and how Lou Gerstner changed it.Organizational StructureIn terms of strict and hierer opted to preserve the real strength he believed IBM brought to customers. Gerstner took hold of the company and demanded the managers work together to re-establish IBM's mission as a customer-focused provider of computing solutions. Gerstner made the hold decision to keep the company together, slash prices on his core product to keep the company competitive.In addition, he developed IBM to not highly depend on the main frame computer but suggested integrated computer solution to create the new value to the customers. This was an attempt to converse IBM and to become a market leader again.Marketing was not a strong and generally accepted competence in IBM. But Gerstner tried to integrate the marketing activities as well. As part of this and to project a single voice, all advertising relationships were consolidated into a single agencyIncentives (Rewards) & ControlsIBM’s incentive system was not able to motivate the employees. It was designed as following.Most of employees received fis performance of each business unit and new ideas from the holistic view of the firm. All these efforts were an attempt for Gerstner to be a center of communication. He wanted to control IBM directly and know what’s going on with IBM.CultureWhat underpinned IBM culture and tradition from the days of founder Thomas Watson Snr, was a commitment to excellence including, superior customer service and respect for the individual. Somehow, over time, this culture contributed to IBM’s dilemma. Gerstner saw how the original IBM basic beliefs had been distorted. For example, the belief "Excellence in everything we do" led to delayed releases and loss of the market to competitionNot customer-oriented - ICRUS ParadoxIn the late 1980s, IBM was never intimidated by competitors. There was no threat from competitors and competition thanks to success of system/360. IBM basically did not need to be sensitive to outside environment. Huge success of system/360 created self-sufficing IBM world. It was likeas a great decision maker. I mean I was generally fascinated by his execution.Nevertheless, if I have to pick, I would say that I would not approve the decision that reduce welfare packages. Because I think it could de-motivate the employees and cause internal resistance. It was true that it cost a lot. On the other hand, I believe it can also act on motivating employees in some way. And, it could be a good tool of promotion when IBM recruits smart people. A welfare package is an important factor to employees when they consider the future job. Abundant benefits of welfare packages might be the reason that the employees choose to work for IBM. If a talent does not want to work for IBM due to low welfare package’s benefit, it could be a real loss for IBM.Find 2 actions that Lou Gerstner took that you do not approve of and explain why you do not approve of it.In my personal opinion, Although Gerstner tried to renew IBM continuously and possess sustainable competitive advantage, he failed 1