IBM again revamps European sector; it seeks to find proper mix as market grows tougher

IBM seeks to reorganize its European operations so that it can flourish in a computer market that is growing more competitive as the advent of the Single European Market nears. The computer maker reports a slowing down in sales growth for the 1st qtr of 1991. Some industry observers blame lagging sales on the general economic climate in Europe and to the rising value of the US dollar against foreign currencies after the end of the Persian Gulf war. The results are distressing to IBM nonetheless and pressure is mounting for the company to more successfully implement its decentralization strategy, which began poorly in 1990. IBM will focus on reorganization as a gradual process so as not to lose control of the large European market.