DB3

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DB3
Based on the reading materials, one would argue that in the 1990s the stage that best described IBM is the adult stage in the company’s lifecycle. This phase comprises a set of arrays of conduct, rules, and structure. Suppose Gerstner had not assumed leadership of the company in 1993, it is likely that it would have found itself in the decline stage. This is evident based on page 26 of the article, where the company suffered a looming disaster and the CEO John Akers was forced to resign on the 26th of January, 1993 (Harreld et al. 26). The company was destined for closure, and it required someone who could provide a distinct perspective than what Akers was offering. The change in management is one of the first strategies the company adopted in an effort to reset its lifecycle stage. An entity at the adult stage has specific attributes; it is steered by a particular pattern of thought and conduct, its role is decisively entrenched and institutionalized, and ostensibly is unwavering even though it might experience some hiccups.
The solidity is supported by evidence suggesting the company enjoyed stability in the 1990s and had even avoided laying off of workers for more than 70 years. Furthermore, the company had enjoyed 40% of the sales in the computer industry and generated a profit of 70% in the industry (Harreld et al. 26). IBM was used to the way they operated, and it did not lack talented employees as suggested by Gerstner.

Organizations that are in the adult stage in their lifecycle are flexible and often re-engineer themselves once they get to this level of maturity (Lusthaus 90). This relates to the views of Gerstner who suggests that history has taught businesses that to be grateful and successful, they must undergo a constant and at time difficult renewal phases (Harreld et al. 26). Some companies re-invent themselves, and they stay in this stage for long periods.
As a company, IBM continues aligning their business strategy around consumer needs. This has helped them to remain relevant and flexible and has enabled the franchise to avoid finding themselves in the decline stage.
Works Cited
Harreld, J. Bruce, Charles A. O’Reilly III, and Michael L. Tushman. “Dynamic Capabilities at IBM: Driving Strategy into Action.” California Management Review 49.4 (2007): 21-43.
Lusthaus, Charles, Ed. Organizational Assessment: A Framework for Improving Performance. IDRC, 2002.