267IBM
setting divisional strategy. The goal of the restructuring effort was to make the divisions indepen-
dent units operating under a broad IBM umbrella, thus freeing them from corporate control, freeing
up IBM’s powerful resources and make it more competitive. Division heads would have control over
long-term development and business level strategy. Akers’ plan was that each division would be an
autonomous operating unit that could freely negotiate transfer prices of inputs with other divisions
and, if a division wanted to, buy from and sell to outside companies. The divisions were to treat each
other as they would outside companies; no favorable prices were to be granted to IBM divisions.
Moreover, the performance of each division would ...