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January 28, 1988

IBM RESPONDS TO CRISES IN ITS BUSINESS WITH MASSIVE REORGANISATION, DECENTRALISATION

By CBR Staff Writer

IBM Corp yesterday responded to the crescendo of criticism on Wall Street over its poor performance with the biggest organisational upheaval in its history. Five new semi-autonomous worldwide businesses are created – Enterprise Systems for 370 type systems, big disks, tapes and printers; Application Business Systems, Systems 36 and 38, smaller disks and software; Personal Systems for workstations, displays and printers; Communication Systems – hardware and software; and Technology Products, chips, packaging. A new IBM United States under Terry Lautenbach as general manager takes overall control of the new units, who will take their own day-to-day decisions currently made at Armonk. Kap Cassani – with non-US, and Jack Kuehler, US, review responsibilities, become vice-chairmen. Ed Lucente runs US marketing and reports to Lautenbach. Review – p2.

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