IBM Under Gerstner

Since he took the helm at IBM in March, 1993, Louis V. Gerstner Jr. has:

--Continued a cost-cutting drive begun by his predecessor and dramatically improved the company’s financial performance.

--Reversed the gradual decentralization of the company and reaffirmed a commitment to remain in all major segments of the computer business.

--Eased out some veteran senior executives, including James A. Cannavino and Ellen M. Hancock, and installed outsiders such as Chief Financial Officer Jerome B. York.

--Eliminated the legendary IBM dress code and discouraged the use of transparencies in management presentations.

--Launched a hostile bid, a first for the company, for Lotus Development Corp. and brought the deal to fruition quickly and cleanly.

But skeptics say that before his tenure can be declared a success, he must:

--Reduce the company’s continued dependence on mainframe computers.

--Restore IBM’s deeply troubled personal computer operations to health.

--Successfully digest Lotus and demonstrate that IBM can run a PC software business.

--Make clear his vision and technical strategy for the company that shows where growth will come from.

Earnings

Quarterly, in billions of dollars:

1995: $1.3

Stock Price

Monthly highs, except latest, since March, 1993:

Friday: $92.625

Sources: Times reports, TradeLine, wire reports

Researched by JENNIFER OLDHAM / Los Angeles Times