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IBM under CEO Louis Gerstner and his strategic decision to invest in services in 1993, is an example of which mode of strategic decision making?

A) adaptive
B) entrepreneurial
C) logical incrementalism
D) planning
E) none of the above

User Msmialko
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1 Answer

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Final answer:

IBM's investment in services under CEO Louis Gerstner is an example of logical incrementalism, which balances deliberate and emergent strategies through gradual steps.

Step-by-step explanation:

The strategic decision by IBM under CEO Louis Gerstner to invest in services in 1993 is an example of logical incrementalism. This approach involves making decisions through a series of smaller, manageable steps rather than through a singular, large-scale plan or drastic entrepreneurial action. Logical incrementalism allows a company to test, learn, and adapt to market changes gradually, reflecting a balance between deliberate strategy and emergent strategy as the organization learns and responds to its environment.

User Hcharge
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