Chapter 14 Case - Hewlett-Packard Company

In: Business and Management

Submitted By edurst1955
Words 963
Pages 4
Assignment # 2 - Chapter 14 Case - Hewlett-Packard Company
1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. The first problem identified is the under-management of the company. The former CEO, Carly Fiorina, while being highly visible in the press failed to provide the necessary leadership within the company. Many felt she did not provide enough direction inside the company causing the company’s operations to suffer. Being perceived as inaccessible and unreliable to those under your leadership tends to lead to distrust. Often being press-savvy and being accessible and dependable to those under your leadership are sometime at the opposite ends of the spectrum. The second problem identified is that of the company being dysfunctional and struggling. The former CEO had implemented a strategic vision without have the proper guidelines in place to ensure success of the plan. Because of the vagueness of the vision, this caused the inability to determine if it was being executed at all. With the confusing matrix structure, there was little accountability which slowed the decision-making process. With the complicated reward system in place, no one knew if their performance had any effect on their bonuses. It also caused talented executives to leave the company and held little hope of new talent coming on board to replace those who left. The third problem identified is that of distrust within the company. This seems to have come into play with the acquisition of Compaq and the integration of the two companies, as well as the lack of strong leadership of the former CEO. Trust is essential in all aspects of life, whether it a business setting or personal relationship. When people within any group…...

Similar Documents

Hewlett Packard Company Profile

...Hewlett-Packard The Company Hewlett-Packard (NYSE: HPQ), also known as HP, is a global technology company working in approximately 170 countries around the world. Over the years, HP has provided service for a billion of customers and continues to service many more every day. Many people often think of printers when thinking of HP, yet they account for much more than just printers in the technology world. HP has product lines in printers, laptops, desktops, servers, storage, and networks just to name a few. With all of the products that HP has, they also provide customer service with locations around the world on six continents. HP uses the “follow-the-sun” global workflow approach, whereas when the sun moves, the opening and closing of the service centers move with the sun. For the entire year of 2011, HP’s revenue clocked in at $127.4 billion, with $12.6 billion in profit (Kessler, 2011). Even though HP made $12.6 billion in profit last year, some would consider it a slow year for the technology giant. One of the things that had an impact on profits was the acquisition of the software company “Autonomy” for over $10 billion, in October of last year. Sometimes profits do not reflect growth, and HP understands that growing will allow them to stay competitive for many years to come. Community Difference HP believes in the community and has donated to many relief funds around the world such as the Haiti earthquake and the most recent Colorado fires. With over 300......

Words: 1407 - Pages: 6

Texas Instruments and Hewlett-Packard Case Solution

...Case Study 13-3: Texas Instruments and Hewlett-Packard Case Context: Texas Instrument (TI) and Hewlett Packard (HP) are two companies famous for introducing Electric and electronic products. Although competing in similar industries, their strategies are very much different. Problem Definition: Given the differences in strategy between two firms, what would you expect would be the differences between TI & HP in their planning and control system; strategic planning systems; budgeting systems; reporting systems; performance evaluation systems and incentive compensations systems. Inferred from the case, we expect some differences in planning and control system between Texas Instruments and Hewlett Packard. This paper will discuss and propose some strategic planning systems, budgeting systems, reporting systems, performance evaluation systems and incentive compensation system for each company. . Strategic Planning Systems: In term of corporate level strategy, both firms have the same definition of business in which the firm will participate. TI and Hewlett-Packard (HP) are both in high-technology electric and electronics. But, the second aspect of corporate level strategy, which is deployment of resources among the business, may be different for each firm depends on the objectives that they want to achieve and competitive advantages that they have. I am well known for its......

Words: 3796 - Pages: 16

Bus 302 – Chapter 14 Case – “Hewitt-Packard Company”

...Assignment # 2 – Chapter 14 Case – “Hewitt-Packard Company” 1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. When Mark Hurd, the new CEO, took over, he found matrix structures ambiguous, confusing and inefficient. The main reason is that there is no clarity on the roles that each unit in the matrix is intended to play. Unit roles suppose, responsibilities and relationships in a way that is clear, but not excessively detailed and hierarchical. Although the matrix seems to be a logical organizational solution, Fiorina, has not found it an easy structure. She has struggled with ambiguous responsibilities and reporting relationships, been slowed down by the search for consensus decisions, and found it hard to get all the different units to work constructively together. In fact, CEO Carly Fiorina was so preoccupied with immediate issues that she lost sight of her ultimate objectives. Fiorina and her staff consider that the HP Way is an anachronism of a different, slower time, and that for the company to survive and succeed in the future it must be driven purely by a rational business strategy. After all of the layoffs, organizational changes, assertion of executive hierarchies and the destruction of traditional company rules of behavior, the HP Way that the old-timers are fighting to save is probably already dead. Fiorina and her team appear not to believe in the Way, they are now reduced to......

Words: 3419 - Pages: 14

Case: Hewlett-Packards Merced Division

...enterprise computing. ESG’s products were built based on proprietary RISC microprocessors and UNIX operating systems. ESG produced scalable, high performance computing systems, which were the backbone of corporate information networks, network servers and mainframes. Customers depended on ESG to run their businesses and to Web-enable their IT infrastructures. Around the world, ESG installed more than 1.3 million UNIX systems and in year 1997, while the total market estimated to be worth more than $60B.Since 1993, HP had been the number one position in UNIX server vendor by revenue with its HP-UX product line. In summer 1998, there was tremendous pressure on Jim Davis, manager of ESG due to the downfall in the revenues and profits. The company had the opportunity to show improved results by strategizing its technology implementation decisions. There was an issue where Davis was to recommend whether HP should continue with the proprietary UNIX based Performance Architecture (PA) based on RISC microprocessor or shift resources to develop workstations and servers based on new chip, code named Merced and IA-64 architecture. In 1994, HP joined with Intel in development of a new 64-bit microprocessor to withstand the market competition and reduce the costs. This announcement appeared to everyone in the market that HP is pulling out of UNIX business and joining with Intel and Microsoft. Sun took advantage of this scenario and gained market momentum with the......

Words: 1256 - Pages: 6

Texas Instruments and Hewlett-Packard Case Solution

...Texas Instruments and Hewlett-Packard Case Solution In: Business and Management Texas Instruments and Hewlett-Packard Case Solution Case Study 13-3: Texas Instruments and Hewlett-Packard Case Context: Texas Instrument (TI) and Hewlett Packard (HP) are two companies famous for introducing Electric and electronic   products.   Although competing in similar industries, their strategies are very much different. Problem Definition: Given the differences in strategy between two firms, what would you expect would be the differences between TI & HP in their planning and control system; strategic planning systems; budgeting systems; reporting systems; performance evaluation systems and incentive compensations systems. Inferred from the case, we expect some differences in planning and control system between Texas Instruments and Hewlett Packard. This paper will discuss and propose some strategic planning systems, budgeting systems, reporting systems, performance evaluation systems and incentive compensation system for each company.                                                                         . Strategic Planning Systems: In term of corporate level strategy, both firms have the same definition of business in which the firm will participate. TI and Hewlett-Packard (HP) are both in high-technology electric and electronics. But, the second aspect of corporate level strategy, which is deployment of resources among the business, may be different for......

Words: 303 - Pages: 2

Mbo at Hewlett Packard

...GRADUATE SCHOOL OF BUSINESS STANFORD UNIVERSITY CASE NUMBER: EC-16 MAY 2000 HP E-SERVICES.SOLUTIONS The concept behind e-services is there’s a particular task, asset, or capability that you want to gain access to, that now can be made available to you over the Net, because it’s now being created as an Internet service. ––Linda Lazor, Director of Operations, ESS, Hewlett-Packard How does any large company reinvent itself? Can a company with a past have a future? I mean that’s basically the question that we’re posing because a lot of people claim that anyone who has a past does not have a future in this world. ––Nick Earle, President, ESS, Hewlett-Packard In early April 2000, Nick Earle sat in his cube on the upper level of Building 44 of the HewlettPackard (HP) campus in Cupertino, California. He wore a wireless telephone headset, which allowed him the freedom to jump up and wander about his team’s open cubes as he fielded calls from potential business partners. Earle, age 42, was President and Chief Evangelist of the 90person E-Services.Solutions (ESS) group. The group had grown out of a task force he had put together more than a year earlier. Asked to create an Internet marketing strategy, he and several other “frustrated radicals” created a plan which ultimately led to the formation of the ESS group. ESS now held the mandate to develop an Internet strategy and framework for all of HP. Earle and his team faced tough challenges. They had pulled together some great......

Words: 10981 - Pages: 44

Case Outline-Hewlett Packard

...Assessment 2 – Outline : ‘The Hewlett Packard Way” Case Study: I chose the ‘Hewlett Packard way’ as last year I spent the whole year as Store manager in a retail position. The first half of the year I managed for a company with a reputation for high staff turnover and in the second half I managed for a company with similar values to Hewlett Packard. Not only were staff members more loyal in the second company but the level of self-driven motivation was second to none. I am passionate about this management style. Contemporary management Issues in relation to this article Issue: HP consistently puts principles derived from Theory Y into practice taking a completely soft model of Human Resource Management approach. However more recently HP have been experiencing problems because of a downturn in the economy and needs to reduce costs. Should HP stick with this approach through this rough patch though more costly? The Company: Hewlett Packard company or HP is a public, manufacturing and professional services sector industry founded in 1939 by William Hewlett and David Packard. It provides It provides computer hardware/software and IT services to consumers, small- and medium-sized businesse and large enterprises. Founders Bill and Dave established a philosophy of management called the ‘HP way’ which is 100% people orientated built on recognition of achievements. Key management Issues: The problem with a purely Theory Y based approach to management saves......

Words: 785 - Pages: 4

Hewlett Packard Case Response

...GLOBAL SUPPLY CHAIN MANAGEMENT FORUM CASE: GS-4 DATE: 8/10/99 (REV’D 8/01/06) HEWLETT-PACKARD COMPANY: NETWORK PRINTER DESIGN FOR UNIVERSALITY INTRODUCTION Sarah Donohoe, manufacturing engineering manager of the network laser printer division at Hewlett-Packard Company (HP), listened intently to her colleagues at the project review meeting for the development of their latest new product. With Sarah at the meeting were Jane Schushinski, marketing manager, Leo Linbeck, head of product design, and David Hooper, the controller of the division. The main topic for this meeting was the decision of whether or not to use a universal power supply for the next generation of network laser printer, code-named Rainbow. Previously, printers in the North American and the European market have distinct power supplies and the associated fusers in the main engine of the printer. For North American printers, a 110 volt power supply was installed. For European printers, a 220 volt power supply was added. This printer engine was built by HP’s manufacturing partner in Japan. Due to the long lead time for engine manufacturing, HP had to specify the requirements of the two types of printers at least fourteen weeks ahead. The time that it takes the Japanese partner to commit the printers for shipments, the transportation times and customs clearance totals about four weeks. Hence, if a universal power supply is used, then HP would have the flexibility of postponing the specification of the printer......

Words: 4431 - Pages: 18

Hewlett Packard Kittyhawk Case Analysis

...In 1992, Hewlett-Packard introduced the Kittyhawk, which was the smallest hard disk drive in the world at the time at 1.3” in diameter. The initial product held 20 megabytes of storage and could withstand a three-foot drop without losing any data. For HP, the possibilities of such a product seemed endless. As a result, the company launched the project with a rather ambitious goal; that is; for the project to succeed, it would have to meet the following requirements, as specified by Bruce Spenner, HP’s Disk Memory Division (DMD) General Manager: it would have to be ready for market in 12-months, generate $100-million in revenue within 18-months after launch, and make the break-even point within 36-months. However, by June 1994, after only two years of effort, the project’s sales failed to meet the projected forecast and Rick Seymour, the project leader, was left having to make some big decisions. Why did Kittyhawk fail? By applying course concepts, some of the reasons become clear. The Disk Memory Division was essentially an OEM supplier in high-performance markets and had technical competencies in sustaining technology improvements in disk drives. Under Spenner’s leadership, the Division was to become a major player in the growing disk drive market. Spenner’s “big-business fast” strategy is ultimately what caused the project to fail. Since HP was a company that specialized in sustaining technological enhancements, it managed the Kittyhawk project as though it was a......

Words: 1421 - Pages: 6

Hewlett-Packard

...1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. One of the Hewlett-Packard’s most serious problems its lack of management. CEO Carly Fiorina didn’t provide enough direction. The strategic vision she was using to guide the company was unclear, and nobody in the company has any idea if it was being carried-out or not. Without a well-defined strategic vision for the company, employees had no motivation and no sense of organizational purpose. As a result it can lead to a number of symptoms such as poor image, slow growth and a decline in sales, which is a direct connection to lack of leadership and imprecise strategic vision. The second of the H-P’s most serious problems was its confusing matrix structure, which blurred accountability lines and slowed decision-making. A matrix structure focuses on integrated teams and involves reporting to multiple managers. It can be highly effective, but it can be confusing to work within and it can also create conflict between project bosses in different parts of the matrix. According to Williams (2011), some of the common problems are disagreements or misunderstandings about schedules, budgets, available resources, and the availability of employees with particular functional expertise. A matrix structure requires a high level of coordination to manage complexity involved with running large, ongoing projects at various levels of completion and it also requires......

Words: 1384 - Pages: 6

Case Study on Hewlett Packard

...MBA6100 Managerial Accounting TEXAS I & HEWLETT PACKARD JAHZUYAN SAWO 10/01/2011 Hewlett Packard commonly referred to as HP; the HP was founded by Hewlett and Packard in a one car garage in Palo Alto. HP is one of the world’s largest information technology (IT) operating in nearly every country. HP specializes in developing and manufacturing the world computing, data storage, and networking hardware, designing software and delivering services. Major product lines include personal computing devices, enterprise, and industry standard servers. HP markets its product to households, small to medium –sized businesses and enterprises directly as well as via online distribution, consumer-electronics and office-supply retailer, software partners and major technology vendors. Approximately $40 billion of their sale are coming from services. In 2007 HP posted net revenue in 2010 was $126.3 billion, in 2009 net revenue was $115 billion, with making HP the first IT company in history to report revenue exceeding $100 billion in 2008 HP retain its global leadership position in inkjet, laser, large format and multi-function printers market, ad its leadership position in the hardware industry, Also HP become No.2 globally in IT services. HP leaders have an......

Words: 778 - Pages: 4

Tim 685 Strategic Planning Company Audit Hewlett Packard

...TIM 685 STRATEGIC PLANNING COMPANY AUDIT HEWLETT PACKARD Contents Abstract 3 HP Background 3 Company Mission 4 HP’s Corporate Objectives 5 Mission and governance Analysis 5 Recommendations 6 HR Report on HP 7 Recommendation 8 Internal Analysis 8 Recommendation 8 Mergers Acquisitions and Spin-offs 9 Recommendation 9 External and Global Environment 9 External Analysis 10 Recommendation 11 Porter five forces Analysis of HP 12 Recommendation 14 SWOT Analysis 14 Conclusion / Recommendation 15 Reference: 16 Abstract This Company audit was conduct using publicly available information about Hewlett-Packard. The Audit includes mission statement, company philosophy, PEST SWOT, Financial Analysis, market position analysis, corporate governance analysis. The analysis uses industry standards for company audits such as, Porter, SWOT, and PEST as a guideline for the areas to be assessed. HP Background Hewlett Packard is a publicly traded company on the New York Stock Exchange. The firm was started by Bill Hewlett and David Packard. The merger with Compaq was one of HP’s major strategic moves recently. Even in naming the new company the two founders flipped a coin in the famous garage, Dave Packard won the coin toss but conceded to pit Hewlett name at the front. "It is...

Words: 2849 - Pages: 12

Hewlett Packard Case

...efficient? The three components for design for logistics are: 1. Economic packaging and transportation 2. Concurrent and parallel processing 3. Postponement/delayed differentiation By packaging the product so that more products can be shipped and stored more efficiently will lower transportation costs and storage costs. Concurrent and parallel processing focuses on modification of the manufacturing process with the desired out come of shorter lead times, improved forecasting and reduction of safety stock requirements. Design for delayed differentiation can be used to address the uncertainty in final demand, even if forecasts cannot be improved. What is delayed differentiation and can Hewlett-Packard use delay differentiation to address the problem described in the case? The Institute of Supply Management’s glossary of key supply management terms defines delayed differentiation as: The strategy of producing and shipping generic products as far down the supply chain as possible before customer-required customization is added. This process would help lessen lead time and the amount of safety stock required by the European DC. By shipping a generic product and allowing the DC to assemble the appropriate power supply module and package it with the working printer and manual in appropriate language, would allow the European DC to have the appropriate inventory for wherever demand was greatest. How can the advantages of delayed differentiation be......

Words: 459 - Pages: 2

Hewlett-Packard Company Case Study

...CASE: Hewlett-Packard Company: Network Printer Design for Universality (p. 358-363) Question 1 It allows HP to postpone (product standardization, postponement) the allocation of laser printers (or specification of printer engine) to specific regions by about two months. Thus, in these two months the decisions can be made based on the aggregate demand forecast (US & Europe) in all regions. Production team believes universal power supply can enable HP to better respond to regional demand (US & Europe) and reduce its inventory costs. Question 2 1. Disadvantages / costs of the universal power supply include: i. Increase material cost (USD 30/unit) ii. Possible power play among warehouses / Distribution centers (DCs) when transshipment is facilitated by the use of the universal power supply. 2. Advantages of the universal power supply include: i. Improved forecast accuracy ii. Less frequent (and cost of) stock-outs due to improved forecasting (especially at the beginning – product ramp-up stage - of the PLC) and risk pooling (for both US & Europe). iii. Lower safety stocks and inventory holding costs for a given service level due to improved forecasting. iv. Lower transshipment costs (approx. conservative estimate $250 (re-configuration) per printer - because expensive rework can be avoided, and safety and conformance regulations (Underwriter’ Laboratory certification process costs) can be eliminated. v. Easier transshipment (less hassle free, as......

Words: 1050 - Pages: 5

Hewlett Packard Kittyhawk Case Analysis

...Digital Distribution and the Music Industry in 2001: a Case Study of Napster By Julius Danjuma IS650: Telecommunications Management Summer 2012 Overview: Shawn Fanning created Napster in his dorm room at Northeastern. It was the fastest-growing application in the history of the Internet which changed the world but failed to achieve business success. Napster started out as a free download tool but the goal was to make it into a real business in partnership with the record labels. The goal at Napster was to be the online distribution channel for the record labels, much like iTunes for example. There were several offers made to the labels that would have given them the vast majority of all of the revenue. The numbers were staggering. There were over 50 million users, many of whom were willing to pay $5 per month or $1 per download for digital music. That translates to about $250M a month or $3B per year. Even if Napster kept just 10% of the revenue that would be $300M per year against expenses of less than $10M. At the stock market multiples of the day that would have been a $15B IPO. The economics of the record industry are puzzling and their accounting methods are very creative. At the time CD’s were sold for about $17 at retail. The retailer and distributor took more than half of the price as their mark-up. The manufacturing costs took another couple bucks. The promotional costs of advertising, music video, payola to radio stations, and other PR......

Words: 2678 - Pages: 11