Case 23: Computer Associates International (2004)

• Prof. Dr. Klaus Henselmann
• Dr. Stefan Hofmann

Computer Associates International, Inc. may not be well known among consumers. The company’s software operated and maintained powerful “mainframe” computers, those generally used by big corporations and other organizations. According to the company’s annual report for the fiscal year ended March 31, 2004, more than 95% of the Fortune 500 corporations used its software products to run and manage their IT technology. At the time, Islandia, New York-based Computer Associates was the world’s fourth-largest software provider. Founded in 1976 by Charles B. Wang (an immigrant from China), the company had tremendous success during the 1980s and 1990s. However, the company’s top executives were known for their aggressive styles, which led many customers (and employees) to complain about Computer Associates’ hard-edged negotiating tactics. Ultimately, the very aggressiveness that brought them success also led to their break-up.

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