Free Essay

Chapter 14 Case - Hewlett-Packard Company

In:

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 can rely on those around them, it creates a positive, healthy and productive environment. The mistrust is evident when a board member leaks confidential information to the press which resulted in the new CEO, Mark Hurd, being called to testify before Congress on wire-tapping and espionage charges. Yet another problem is that of the idea that there must be constant earthshaking events going on within the company at all times. This type of mindset keeps chaos, confusion and conflict brewing and is counter-productive to any operation. Continuity trumps disruption in a production environment at any given time. One great event tends to outlast one hundred mediocre incidents.
2. Describe how the company should attempt to correct each of the three most serious problems. Making the company productive and prosperous would take first priority. Providing set management structures would be another step. Evaluating the weak areas to see if it would be profitable to continue to invest money into those areas would be a step toward making the company more solvent. Simplifying the bonus system is another step to eliminate confusion would help to attract new talent to the company. Prior to Fiorina’s autocratic management style, Hewlett-Packard management had the reputation of being friendly, approachable and supportive of its employees. To revert back to what had worked in the past and have management become accessible to the employees would be on the list of priorities. Transcending to a less confusing management style would help to ensure quality production and higher sales.
3. Recommend a leadership style or combination of initiating structure and consideration the CEO should adopt to address the problems of distrust and declining morale. Explain your answer.
I would recommend the participative and delegative leadership styles. First and foremost, management must develop trust by being honest with employees. Even when the information is negative, being honest about the issue at hand is the best way for management to build trust. When employees see supervisors and managers roll up their sleeves and perform the very tasks that are asked of them, the employees are much more likely to perform at their very best. Most employees view it as a sign of trust when delegated tasks by a supervisor. Many supervisors fail to delegate tasks, feeling that if they want the task completed and done correctly, they must do it themselves. Too many supervisors will assign a task to employees and then stand over them, attempting to micro-manage the employee’s every move. That type of management leads to resentment and is definitely counter-productive to the operation.
4. After having examined all of the issues facing HP, recommend whether the CEO should focus on the approach to the current strategy or on implementation and execution. Defend your decision.
I would recommend that the CEO use a combination of both the current strategy and that of the implementation and execution approach. Because of the vagueness of Fiorina’s strategic vision, it was ineffective and caused the dysfunction within the company at all levels. To eliminate the confusion and clarify the objectives will add strength to the management team and will filter down to all levels. Eliminating multiple reporting points would eliminate managers becoming complacent and developing the attitude that someone else would take care of the collection of data, which could cost the company in production and sales.
CEO Mark Hurd’s decision to recast the existing vision plan to something more concrete was definitely a wise decision. The recast visionary plan offered more concrete visionary purposes, which H-P was in dire need of. His own management style and leadership skills, which more closely resembled the traditional H-P values, helped to bring the company back to a more productive and solvent operation. According to Hurd, it is a work in progress and is still transforming. His simplifying the operational matrix and marrying sales divisions to production unit management adds to the success of making a turnaround for the company.
Reference
Williams, C. (2011). Management. Mason: Cengage Learning.

Similar Documents

Premium Essay

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

Premium Essay

Research

...Table of Contents | | Page | | Chapter 1 | | 1.0 | Introduction | | 1.1 | The background of dividend reinvestment plans in Malaysia | | 1.2 | Discussion on relevant issues | | 1.3 | Problem statement | | 1.4 | Objectives | | 1.5 | Significance of the study | | 1.6 | Scope of the study | | | | | | Chapter 2 | | 2.0 | Introduction/ An Overview | | 2.1 | Theoretical Framework of DRIP in Investors’ Point of View | | 2.2 | Theoretical Framework of DRIP in Investees’ Point of View | | 2.3 | Concluding Remarks | | | | | | Chapter 3 | | 3.0 | Introduction | | 3.1 | Data Description | | 3.2 | Theoretical Framework | | 3.3 | Empirical Model of the study | | 3.4 | Methods to be Used | | 3.5 | Concluding Remarks | | | | | | References | | | | | 1.0 Introduction: Dividend Reinvestment Plan (DRIP) is an equity investment option that allows shareholders’ dividends directly purchase shares of common stock of the paying corporation instead of receiving cash dividends without going via a stock broker. There are three different types of DRIP which are open-market DRIP, new-issue DRIP and combination of open-market and new-issue DRIPs. Open-market DRIP is where the firmuse reinvested dividends to buy its outstanding shares in the open market to satisfy the needs of participating shareholders. New-issue DRIP is where the firm raises capital by selling their authorized but unissued shares or treasury stock...

Words: 9673 - Pages: 39

Premium Essay

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 technologies...

Words: 10981 - Pages: 44

Premium Essay

Hewitt Packard Company

...Week 8 Assignment Assignment #2 Chapter 14 case Hewitt Packard Company Tracey Brown Professor Jack Sterling Principles of Management 8/20/2011 1. Discuss the three most serious problems you have identified in the case .Defend why you think they are the most serious. Hiring Carly Fiorina was a mistake because she was a broad visionary which says she looked at the company with a “wide view”. She knew she wanted to guide the company in a digital,virtual,mobile and personal way but lacked the means of communicating this vision to the rest of the company; her vision was not explained well to upper management so when lower management and their subordinates heard of this vision but with no plans of attaining it the employees moral dropped creating a struggling dysfunctional corporation, hiring a visionary for the company is a good ideal but you have to make sure the broad visionary remembers to include everyone and communicates with everyone on the plans in which to obtain those visions. Acquiring a company for 19 million dollars and then putting in another 10 million dollars to integrate the system was not a smart ideal since the company was already financially struggling; why would you buy a company that costs 10 million dollars to integrate? Why not buy a company that already has the same capability as yours? This decision only helped moral dropped lower than what it was and creates distrust. Board Members with no ethics leak pertinent information...

Words: 916 - Pages: 4

Premium Essay

R5 Growth Firm

...Building a Visionary Company James C. Collins Jerry I. Porras Above all, there was the ability to build and build and build—never stopping, never looking back, never finishing—the institution.... In the last analysis, Walt Disney's greatest aeation was Walt Disney [the company]. —Richard Schickel, The Disney Version' I have concentrated all along on building the finest retailing company that we possibly could. Period. Creating a huge personal fortune was never particularly a goal of mine. —Sam Walton, Founder, Wal-Mart^ magine you met a remarkable person who could look at the sun or stars at any time of day or night and state the exact time and date: "It's April 23, 1401, 2:36 A.M., and 12 seconds." This person would be an amazing time teller, and we'd probably revere that person for the ability to tell time. But wouldn't that person be even more amazing if, instead of telling the time, he or she built a clock that could tell the time forever, even after he or she was dead and gone?' Having a great idea or being a charismatic visionary leader is "time telling"; building a company that can prosper far beyond the presence of any single leader and through multiple product life cycles is "clock building." The builders of visionary companies tend to be clock builders, not time tellers. They concentrate primarily on building an organization—building a ticking clock— From 6u/;t to Last by James C. Collins and Jerry I. Porras. Copyright © 1994 by James C. Collins and Jerry...

Words: 10154 - Pages: 41

Premium Essay

Transformation Leadership in Hp Cor.

...the following topics: Organization background, organization culture specifically “hp way”, One of the leaders who leaded the company towards a great transformation, hp before and after the transformation and finally discussing the role of the human resource in the transformation process. | | | 1/30/2012 | | CONTENTS 1. INTRODUCTION …………………………………………………………………………………… | 03 | 2. ORGANIZATION BACKGROUND ……………………………………………………………….2.1 HP Background …………………………………………………………………………………..2.2 HP Mission Statements …………………………………………………………………………..2.2 HP Vision Statements ……………………………………………………………………………2.3 HP Workforce …………………………………………………………………………………… | 0505111212 | 3. THE RISE AND FALL OF "THE HP WAY" ……………………………...................................... 3.1 Rising the HP Way ……………………………………………………………………………….3.2 Losing the HP Way ……………………………………………………………............................ | 131316 | 4. HP SIGNIFICANT TRANSFORMATION ……………………………………………………….. 4.1 HP Before The Transformation …………………………………………………………………4.1.1 Lewis Platt ……………………………………………………………………………4.1.2 HP's Carly Fiorina: The CEO of HP …………………………………………………4.1.3 HP's Carly Fiorina: The Transformation leader ……………………………………...4.2 Hp Transformation ……………………………………………………………………………….4.2.1 Transformation Under Fiorina ……………………………………….........................4.2.2 The Company Struggles …………………………………….......................................4.2.3 Fiorina Announces a Merger …………………………………………………………4.2...

Words: 21565 - Pages: 87

Premium Essay

Dollar

...configuration of processes, product designs, and development of parterships with suppliers and channels of distribution. Although the development of analytical tools is not one of the primary objectives of the course, students should be comfortable with quantitative analysis. By the end of the course, you should have developed an appreciation for the major strategic issues trade-offs in supply chain management as well as the ability to use conceptual frameworks to make decisions. TEACHING/LEARNING METHODOLOGY The detailed course outline starting on page 6 lists, for every class session, the reading(s), case(s), assignment(s), and anything else of importance. Please read this outline carefully before every session. Because class time is our most precious and inelastic resource, please come to every class prepared. Essential preparation includes reading the assigned readings and cases and doing the assignments. Recommended Text Book1 (VM) Van Mieghem, Jan, Operations Strategy: Principles and Practice, Dynamic Ideas, Charlestown, MA, 2008. Optional Reference Chopra, Sunil and Peter...

Words: 3965 - Pages: 16

Premium Essay

Women

...ACCTG 331 – INTEGRATIVE ACCOUNTING TOPICS I FINANCIAL REPORTING MODULE FALL 2014 INSTRUCTORS: Amy Barry EMAIL: abarry@welkgroup.com or abarry@mail.sdsu.edu CLASS TIMES: W; 7:00PM – 9:40PM; SSW 2501 OFFICE: Student Services East Building (SSE) 2419 OFFICE HRS: Wednesdays: 4:00PM – 5:30PM (If students cannot make these above times, students can always make an appointment to come see me in my office.) PREREQUISITES: Admission to Accountancy major, minor, or certificate. Minimum grade of C in both ACCTG 201 and 202. Completion of General Education requirement in Communication and Critical Thinking. Proof of completion of prerequisites required: Copy of transcript. TEXTBOOKS: Intermediate Accounting, 7th Edition (with Connect access card); Spiceland, Sepe, Nelson and Tomassini (REQUIRED) Financial Accounting Exam Questions & Explanations 18TH W/ A/C Test Prep Software – Gleim (Optional) ADDITIONAL: We will be using the red Parscore forms (F-289) for ALL EXAMS AND QUIZZES. STUDENT LEARNING OUTCOMES FOR THIS MODULE: The purpose of this module of ACCT 331 is to enhance and expand your current understanding of corporate financial reporting for the subject areas covered in the module. More specifically, we will take an in-depth look at the mechanics of financial accounting and the theory behind U.S. GAAP as presented in the statement of operations (i.e., income statement) and the statement of financial position (i.e., balance sheet). We...

Words: 2342 - Pages: 10

Premium Essay

Cisco Analyzing

...Cisco System, Inc Cisco System, Inc SMIF Stock Report Information Technology – Communication Equipment Analyst: Thanh Nguyen Date 12.04.13 Ticker: ●CSCO Recommendation: ● HOLD Price: ● 21.24 (as of 12.04.13) Price Target: ● 21.74 Highlights * HOLD Recommendation: Cisco’s expected revenues for the coming quarter will be down 8 to 10% because of weak demand in emerging markets. However, the company had high earnings, and was consistently increasing revenues over recent years. It is a large-cap growth company in the technology sector and is expected to outperform the emerging markets over the next years. * Strong Financial Position: Cisco has solid fundamentals with consistent growth, high margins, and a strong balance sheet. Its gross profit margin is mostly higher than 60%, and blows away that of the S&P 500 average (around 44%). Since 2009, Cisco has kept increasing sales. It has a very strong balance sheet with more than $50 billion in cash and cash equivalents in 2013, which is higher than the total of debt ($42 billion). Besides, it has a good asset management, which has maintained to keep inventories low over years with an average of 2% of total assets. Further, Cisco commits to return a minimum of 50 percent of its free cash flow to shareholders in the forms of both dividends and share repurchases. Cisco generates a healthy amount of cash of about $10 billion to $12 billion annually in operating cash flow, it will have room to deliver...

Words: 4742 - Pages: 19

Premium Essay

Business

...McShane−Von Glinow: Organizational Behavior, Second Edition Part Four Organizational Processes Organizational Culture © The McGraw−Hill Companies, 2002 C H A P T E R 15 Organizational Culture AFTER READING THIS CHAPTER , YOU SHOULD BE ABLE TO : Learning Objectives I Describe the elements of organizational culture. I Discuss the importance of organizational subcultures. I List four categories of artifacts through which corporate culture is communicated. I Identify three functions of organizational culture. I Discuss the conditions under which cultural strength improves corporate performance. I Discuss the effect of organizational culture on business ethics. I Compare and contrast four strategies for merging organizational cultures. I Identify five strategies to strengthen an organization’s culture. McShane−Von Glinow: Organizational Behavior, Second Edition Part Four Organizational Processes Organizational Culture © The McGraw−Hill Companies, 2002 C arly Fiorina is taking Hewlett-Packard back to the future by reformulating the California-based technology company’s legendary culture, known as the H-P Way. “The H-P Way is about innovation; trust and respect and integrity; contribution to community; and performance,” says Fiorina, H-P’s first CEO hired from outside the company. The problem, she argues, is that employees have distorted these values over the years. “The H-P Way has been misinterpreted and twisted as a gentle bureaucracy...

Words: 12594 - Pages: 51

Premium Essay

Training

...A STUDY ON EFFECTIVENESS OF TRAINING PROGRAMME TABLE OF CONTENTS ACKNOWLEDGEMENT……………………………….i ABSTRACT………………………………………………ii LIST OF TABLES……………………………………....iii LIST OF CHARTS………………………………………iv CHAPTER | TITLE | PAGE NO | I | 1.1 INTRODUCTION1.2 INTRODUCTION TO THE STUDY | 110 | II | REVIEW OF LITERATURE | 11 | III | OBJECTIVES OF STUDY | 16 | IV | RESEARCH METHODOLOGY | 17 | V | DATA ANALYSIS AND INTERPRETATION | 20 | VI | FINDINGS OF THE STUDY | 44 | VII | 7.1 SUGGESTIONS AND RECOMMENDATIONS7.2 CONCLUSION | 4546 | VIII | 8.1 LIMITATIONS OF THE STUDY 8.2 SCOPE FOR FURTHER STUDY | 4748 | ANNEXURES I. QUESTIONNAIRE……………………………………….. II. BIBLIOGRAPHY…………………………………………. ABSTRACT Training is a learning experience, in that it seeks a relatively permanent change in an individual which will improve his (or) her ability to perform on the job. We typically say training can change the skill, knowledge, attitude and social behavior. It means changing what employees know, how they work, their attitude towards their work or their interaction with their co-workers or their supervisors. THE EXPECTED RESULTS OF TRAINING PROGRAMME HIGHER PRODUCIVITY: Training helps to improve the level of Performance. Trained employees perform better by using better method of work. BETTER QUALITY OF WORK: In formal training, the best methods are standardized and taught...

Words: 7921 - Pages: 32

Premium Essay

Business Strategy

...FIRST PAGES Part One Overview of Strategic Management The first chapter of this book introduces strategic management, the set of decisions and actions that result in the design and activation of strategies to achieve the objectives of an organization. The chapter provides an overview of the nature, benefits, and terminology of and the need for strategic management. Subsequent chapters provide greater detail. The first major section of Chapter 1, “The Nature and Value of Strategic Management,” emphasizes the practical value and benefits of strategic management for a firm. It also distinguishes between a firm’s strategic decisions and its other planning tasks. The section stresses the key point that strategic management activities are undertaken at three levels: corporate, business, and functional. The distinctive characteristics of strategic decision making at each of these levels affect the impact of activities at these levels on company operations. Other topics dealt with in this section are the value of formality in strategic management and the alignment of strategy makers in strategy formulation and implementation. The section concludes with a review of the planning research on business, which demonstrates that the use of strategic management processes yields financial and behavioral benefits that justify their costs. The second major section of Chapter 1 presents a model of the strategic management process. The model, which will serve as an outline for...

Words: 9310 - Pages: 38

Premium Essay

Pharmaceutical Marketing Strategy

...Silberman College of Business Administration Marketing and Entrepreneurship Department Course Description: Survey of sales and marketing practices, constraints and promotion tools in the pharmaceutical and related industries, including new product development and licensing. Prerequisite: MKTG5532 Strategic Marketing and PHAR6605; The Pharmaceutical Industry: Structure and Government Regulations. Outcomes: Upon completion of this course, students should be able to: Understand segmentation and targeting marketing practices and opportunity analysis utilized by the pharmaceutical and related healthcare industries Understand the impact of social, political, legal/regulatory, and cultural environments on the marketing and brand planning processes Apply the fundamental 4P's of marketing (Product, Price, Place, and Promotion) to the pharmaceutical and related industries Understand the approach taken to create and manage pharmaceutical marketing and brand plans Relation to Silberman College of Business Mission: In keeping with the mission of the Silberman College of Business this course provides students an opportunity to develop real-world business skills, namely, develop within students an enhanced facility for applying sound decision-making, problem-solving, and analytic techniques in addressing a variety of the most important pharmaceutical marketing issues. Course Topics: Fundamental marketing management issues involving: ...

Words: 1087 - Pages: 5

Premium Essay

Ksyllab

...or being withdrawn from this course by your instructor, School of Business Dean’s Office or by the Graduate Studies Department. The course syllabus provides a general plan for the course; deviations may be necessary. COURSE PREREQUISITE: All MBA Foundations classes must be completed or waived before enrollment in FIN 611. REQUIRED MATERIALS: 1. Textbook – Corporate Finance: The Core, by J. Berk and P. DeMarzo, published by Prentice Hall, ISBN (10‐digit) 0132153688. Available in loose leaf (3‐ring) format in the U Tampa bookstore. Textbook are also available as an e‐book from coursesmart: 1 Revised 08/21/2012 2. Cases and readings: available from www.study.net – available by 8/27/12 3. Additional files and readings will be distributed via Blackboard 4. Calculator - A financial calculator is required for this class. A Hewlett Packard 10B or a Texas Instruments BAII+ is ideal. Other brands/models may also suffice. Bring your calculator to class every day. Be sure you know how to use it. 5. Laptop computer – Many students find it useful to use their laptop computer during class. This is not required. Any student using a laptop during class is expected to stay fully focused on the subject at hand at all times – no e-mail, internet, etc....

Words: 2490 - Pages: 10

Premium Essay

Competition Rivalry

...a competitor will respond to actions taken against it. 6. Explain competitive dynamics in slow-cycle, fast-cycle and standard-cycle markets. CHAPTER OUTLINE Opening Case Competition Between Hewlett-Packard and Dell: The Battle Rages On A MODEL OF COMPETITIVE RIVALRY COMPETITOR ANALYSIS Market Commonality Resource Similarity DRIVERS OF COMPETITIVE ACTIONS AND RESPONSES Strategic Focus Who Will Win the Competitive Battles Between Netflix and Blockbuster? COMPETITIVE RIVALRY Strategic and Tactical Actions Strategic Focus Using Aggressive Pricing as a Tactical Action at Wal-Mart LIKELIHOOD OF ATTACK First-Mover Incentives Organizational Size Quality LIKELIHOOD OF RESPONSE Type of Competitive Action Actor’s Reputation Dependence on the Market Popped the Top? COMPETITIVE DYNAMICS Slow-Cycle Markets Fast-Cycle Markets Standard-Cycle Markets SUMMARY REVIEW QUESTIONS EXPERIENTIAL EXERCISES NOTES LECTURE NOTES Chapter Introduction: The competitive landscape of the twenty-first century will be characterized by increasing globalization, advanced technological development, and other factors that will lead to an environment that is more dynamic and charged with rivalry. Firms will act and react in a dance of sorts, but one involving very high stakes—even survival. This chapter introduces terms and concepts...

Words: 11328 - Pages: 46