IBM to form consumer-products unit with aim of rejuvenating Aptiva line

Article Abstract:

IBM announced that it has formed a new consumer products division that will take over development and marketing for a variety of consumer-oriented products including the troubled Aptiva computer product line and multimedia software titles. The new consumer products division will be headed by James A. Firestone, a former American Express Co and Ameritech Corp executive. Firestone will report to IBM Senior VP G. Richard Thoman. Thoman has worked to consolidate IBM's PC business by eliminating units and reducing product lines, but the new consumer division marks a retreat from that policy. IBM must target the consumer PC market because it represents the fastest growing and potentially largest computer market. IBM must restructure its manufacturing operations to eliminate the inefficiencies that have plagued its PC unit in recent years, and become a high-volume, low-margin unit. The consumer unit may also be given responsibility for the Prodigy online information service.

Marketing, International Business Machines Corp., IBM, Intel-compatible system, x86 compatible computers, Company organization, IBM Aptiva (Intel-compatible system)

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Unisys plans big charge, more layoffs; old-line computer maker also intends to divide into 3 operating units

Article Abstract:

Unisys combats lagging revenues by laying off more employees and by dividing the company into three separate operating units. These changes aim to cut costs as the company shifts from providing mainframes to providing computer services, an area with lower profit margins. Industry analysts lauded the actions, but feel that these cutbacks indicate the company's sales and earnings remain low. James Unruh, chairman and CEO, declined to comment on the exact numbers of employees to be laid off or which factories would close. The newly separated business units are the fast-growing computer consulting operation, the traditional computer hardware unit and the computer support division. Each unit will now have its own management structure, sales force and financial goals. The new structure allows each business to sell more diverse products to different sets of customers while preparing the company for the possible sale of one or two divisions.

Services, Unisys Corp., UIS, Reorganization and restructuring, Layoffs, Layoff, Company Restructuring/Company Reorganization

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IBM tries, and fails, to fix PC business

Article Abstract:

IBM's PC Co looked to be headed for a comeback when G. Richard Thoman gained control 14 months ago, but the unit lost $1 billion in 1994 on $10 billion in sales. With new products and competitive pricing, many thought all that was needed was better marketing and a healthy consumer push. Thoman, a marketing whiz, appeared to be the best person for the job, but IBM dropped to second, for the first time, in worldwide PC shipments in 1994, behind Compaq. The company fell from second to fourth in the US market, trailing newcomer Packard Bell Electronics. IBM's PC business lost hundreds of million of dollars because of manufacturing snags and Thoman's overly conservative sales forecasts. It also mishandled the debut of a crucial corporate line, partially because Thoman decided to implement a comprehensive overhaul of the company in the middle of a key product transition.

Planning, Officials and employees, Market share, Company sales and earnings, Company losses, Company market share, Thoman, G. Richard, Company business planning, IBM Personal Computer Co.

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