Restructuring / Turnaround Strategies Case Study

Electronic Data Systems Corp (EDS): Turnaround Strategies

Abstract:
Electronic Data Systems Corporation EDS, was the second largest global provider of information technology and Business Process Outsourcing (BPO) services in diverse fields such as financial services, manufacturing, healthcare, communications, energy, transportation, consumer and retail industries. However, since 2001 the company has been experiencing fall in profits due to loss-making mega contracts, increased competition, reduced number of new contracts and a Securities and Exchange Commission investigation. To turnaround the company, the new Chief Executive Officer (CEO), Michael Jordan, initiated several strategies.

Pedagogical Objectives:

• To provide insights into the reasons behind EDS' troubles and highlight the efforts of the new CEO in turning around the company
• To discuss the efficiency of the strategies and the potential threats faced by the company.

Keywords : Electronic Data Systems Corp. EDS; Information technology services; Business process outsourcing services; Turnaround strategies; Restructuring plan; Michael Jordan and Richard Brown; Restructuring / Turnaround Strategies Case Study; EDS Agility Alliance; AT Kearney and Tower Perrin; Loss-making mega contracts; Incompetent managers and poor decisions; General Motors; Structural problems and cultural clashes; Computer services and software; Turnaround specialist divestments and spin-offs