Corporate Strategy Case Study

EDS in 2005: Jordan’s Challenge

OR

Abstract:

EDS, the second largest global technology services company in the world has been in a financial mess since 2001. After three years of putting out fires, Michael Jordan (Jordan) CEO EDS, who had been brought in two years ago to turn EDS around, has finally unveiled a plan to revive growth. He has cut costs and streamlined processes, but the changes have not been visible in the firm’s balance sheet

In 2005, Jordan has come up with a novel idea of selling EDS as the leader of a federation dubbed the Agility Alliance. The 10 key partners in the group push each others' products. Jordan hopes his new initiatives would succeed in reviving growth otherwise EDS may enter a "downward spiral”. Can Jordan turn around EDS by 2006?

Pedagogical Objectives:

• The case traces EDS’ growth, its decline and Jordan’s turnaround strategy of cutting costs and streamlining processes—(but the changes have not been visible in the firm’s balance sheet.)
• It also discusses EDS’ new strategy, the advantages of the agility alliance and persisting challenges before the company

Keywords : EDS (Electronic Data Systems Corporation); Corporate Strategies Case Study; Michael Jordan; Strategy; Growth