Final Team Case Essay

Case minimiseCo-Fo chthonics Dave Packard and Bill Hewlett started Hewlett-Packard (HP) in 1939 inside a sm all whizz gondola railway car garage behind Packards ho map. The two finished their studies as electrical engineers at Stanford University in 1934 and became close friends. They decided to start their let disdain and involve a run for it, formalizing their partnership January 1, 1939. (The HP Way). They decide the beau mondes name with a coin toss that one car garage became the office of Hewlett-Packard. At the conviction it was started HP had $538 in working capital and little much than a couple hundred dollars worthy of assets. It was in that garage that HPs legacy was born, when Bill and Dave created the basic HP intersection point the Audio Oscillator HP200A. Following the invention of their first product, the bridge moved into a small building down the street from their non satisfactory garage and hired their first employees. Walt Disney Studios placed an order for eight HP 200B audio oscillators for the movie FantasiaHPs first big sale. (High tech Winning Success In Silicon Valley).Another milestone was reached in 1940 when HP sent out its first ever Christmas bonus in the amount of $5. This Christmas bonus set the tone for all bonuses to come, as it chop-chop turned into a production bonus and soon helped to shape the club wide profit sharing plan that HP adapts. In 1942 HP builds its first ever conjunction owned building, and in order to nourish themselves build it so that it washbasin be easily converted to a convenience store should the electronics pains fail. One of the to the highest degree important milestones for the companionship was reached in 1947, as HP became a true Corporation. HP likewise caught attention for their Management by Walking Around and Open admission Policy programs. In 1957 HP had its initial public offering of argumentation and wrote their first set of corporate objectives, which set the ton e for their management elbow room as a confederation. In 1958 HP made its first intelligent acquisition when they leveragingd F.L. Moseley Company, which that offered their product line. (Maddox).The late 50s and 60s were an extremely important m for HP as a conjunction as it was during this time that they became a orbicular company by building a manufacturing plant in Germany. It was to a fault during this time that they created their Di batch Separation structure where they separated profit and red accountabilitybetween divisions. This division was thought to help spargon employees industrious fleck fostering motivation and creativity. During the 60s HP further genuine itself by get into into the medical field with the purchase of Sanborn Company. They likewise had their stock listed on the New York and Pacific Stock ex transmutes and were listed in consequence 500s top companies at 460. It was overly during the 60s that HP created its first computer, which was used in house to control company tests. HP to a fault creates their first scientific calculator roughly this time, which also gained critical success. Further helping promote HP products Dave Packard was appointed U.S. legate Secretary of Defense in 1969. In 1977 John Young became hot seat of HP replacing Bill Hewlett. In the early 80s HP took much more interest in the individualized compute industry as it was during this time that they create the first mass grocery store placeed individualal computer. They also enter into creating refreshfulfangledspapermans for use with their personal computers, the printers HP manufactured during this time set the standard for the direction in which printers would evolve. In 1987 Bill Hewlett retired as vice chairman of the board of directors, his son Walter Hewlett and David W Packard (son of Dave Packard) step up to take his place. In 1992 Lew Platt became HP hot seat and CEO who was the first president and CEO of HP to not be a memb er of the Hewlett or Packard family.In 1993 Dave Packard relinquishes his chair of the board of directors position to Lew Platt. perchance one of the most damaging events pisss HP in 1996 when Dave Packard one of the cowcatcher founders dies. In 1999 Carly Fiorina arrives President and CEO of HP. In 2002 HP merged with Compaq Computer. This coalition created an $87 billion entity which operates in more than 160 countries and has almost 150,000 employees. (Dykman, Davis, & Lamb). kind of a potpourri from a company which 70 years agone started in a 1 car garage shack with 2 college kids who had $500 to work with (Hewlett Packard Company) Today, HP offer ups consumers a wide range of products and service from digital photography to digital entertainment and from computing to home belief. This ecumenical portfolio helps the company match the right products, service, and solutions to their nodes specific ineluctably.Hewlett-Packards Vision literary argumentWe strive to impr ove the environmental performance of our customers, our supply chain, and our own operations. We damp people the tools and solutionsto build a give way today while preparing to c atomic number 18 for the challenges of tomorrow.MottoPurpose StatementTo lead in the commercialise placeplace by developing and delivering useful and modernistic products, work and solutions.Mission Statement committed to global responsibility by being economical, intellectual and a loving asset, demonstrate commitment to our employees by promoting creative work that reflects our values, and earn customer respect and devotion by consistently providing the highest quality and value while achieving finance process.Values StatementHPs values realize the qualities, beliefs, and principles that impart ensure organizational success. It is necessary that people work in concert in unison toward common objectives and avoid working at nonplus purposes at all levels if the ultimate in efficiency and achi evement is to be obtained.-Dave Packard Trust and respect for individualsWe work together to create a burnish of inclusion built on trust, respect and dignity for all.Achievement and pieceWe strive for excellence in all we do each persons contribution is critical to our success.Results finished with(predicate) teamworkWe in effect collaborate, always expression for more cost-effective ways to serve our customers.Meaningful asylumWe atomic number 18 the technology company that invents the useful and the world-shattering.Uncompromising integrityWe argon open, thunder mugdid and direct in our dealings.Issue StatementIn order for the company to carry on one of the worlds leading producers of the latest expert advances, HP must face the following issues head-on 1. Their ability to remain a top tier leader in the technology industry through advanced products 2. Strive in meeting the continued needs of mixed sh beholders by increasing HP shares 3. Maintain customer loyalty b y producing quality yet reason sufficient prices and exemplarilycustomer service4. purpose ways to reduce our global footprint worldwide through advances in green solutions Management Question What does CEO, Meg Whitman, need to do to oblige and recommit HP to the PC product line and reintroduce products her predecessor toss out?Stakeholder Analysis* Communities* Customers* Employees* Investors* Legislators and regulators* Nongovernmental organizations (NGOs)* Suppliers* UniversitiesStakeholder Expectations and Expectation(See Exhibit 1.1)Stakeholders Key IssuesWith the unwavering success of in the raw entrants into the market HPs stakeholders main issue is their ability to be innovative and competitive in the market. Competitors much(prenominal) as Apple has gained a signifi natest competitive returns in the technology industry forcing HP to respect how they do business. SWOTSStrengths* Hewlett-Packard (HP) is a global proposer of personal systems, imaging and printing pro ducts, and technology solutions. * It is the largest player in the inkjet and laser printer market. * HP is also one of the market leaders in the global PC market. * HP has a very strong distribution Hewlett-Packards primary speciality is its business position. The enterprise has a large amount of cash in hand about $10 billion. * Hewlett-Packard is a global enterprise and particularly after its merger with Compaq, the company became worlds biggest computer ironware and peripheralsconsort in the world and has ranked 20th in the tidy sum 500 list.* Hewlett Packard is operating in more than 170 countries including both(prenominal) developed as well as under-developed. * Being a global head of computer hardware, it gives HP many advantages like dominating printers market, both laser and inkjet. The company attracts and focuses on consumers from even vernally found markets all around the world, multinational corporations, non-governmental organizations etc. * The company debates both at local and world(prenominal) level. * It has increase its competitiveness through policies and strategies that supports free-market economies. * HP is a leading supplier in the growing IT markets.Weaknesses* HP uses the Windows platform in all its I-PAQ phones. Incidentally, I-PAQ phones film been much criticized for not being very Windows friendly in a lot of user forums. * The inability to react quickly to ever-changing market conditions and demands is a weakness of HP. * The company was in a broad end point debt for many years which kept it from investing in dissimilar growth opportunities. * The touch pads of the notebooks of Hewlett Packard like the dv series, dm3, and Envy lines needs improvement. These touch pads are either finicky, unreliable, or are hard-fought to use because of friction.* The mouse buttons on various HP supplied machines are said to be clumsy to use, too. * Poor barrage life of HP products plagued some mainstream systems and net books. * T he past acquisition of peregrine made the HPs portfolio even more diverse and nail down but HP Open Views lack of central processor management capabilities created several problems. * Another weakness was that it did not yet hit a CMDB product that includes discovery and mapping. This cause many customers to switch the brand.Opportunities* intricacy in alternative client computing architectures and other emerging nimble computing devices gives a good opportunity for HP. * The unstable phone market is forecasted to grow tremendously. * The recent acquisition of EDS puts HP at a strong position in the computer market and makes it portfolio more impressive. * Hewlett-Packard was able to generate large number of revenues and profits from its different deals andraised more than six billion which it can use to pay off its debts as well as invest in different research and victimization activities. * If the products by the company are supplied at reasonable prices, there will be more chances of growth as the demand would increase. * The company has organize Customer Solutions Group that helps in selling the complete IT solutions, products and services by HP.Threats* Hyper-competitive environment Companies such as Dell, Toshiba, Lenova Group and Acer are unnerving competitors for HP. * It competes in terms of price, brand, quality, technology, distribution and range of products, among other factors. * Other mobile operating systems such as Symbian, iPhone, and Linux are on the rise and they too pose a threat to HP. * Operating in global market center many competitors and therefore, the company has to be at the forefront of changing technologies as well as addressing the changing customer demands and needs. * The global economic recession is also a threat for the companys sales and profits. The prices gravel also fallen as the stock markets are at historic low positions. * Many other competitors including Dell are entering the printer business whereas IBM ha s become a market leader.3. Organizational soma AnalysisDivision of Labor in the Ambidextrous OrgainzationOrganic characteristics such as decentralization and employee freedom are gauzy for initiating ideas, but these selfsame(prenominal) conditions often make it hard to implement a channelise because employees are less likely to comply. Employees can ignore the innovation because of decentralization and in the main loose structure. HP has such problem and it is necessary to overlay the equipoised overture, which speaks to incorporate structure and management process that are appropriate to both creation and the implementation of innovation.The ambidextrous approach looks at HPs design elements that are important for exploring new ideas versus the design elements that are most suitable for put to working HPs current capabilities. Exploration means support creativity and developing new ideas, whereas exploitation means implementing those ideas to produce second products. HP can be designed to behave in an radical way for exploring new ideas and in amechanistic way to exploit and use the ideas. Research under HP could use an ambidextrous approach by designing for both exploration and exploitation perform better and are significantly more successful in launching innovative new products or services.Through research, using this model as an overlay, HPs creative department should use the organic fertilizer structure to expand its capabilities such as reducing their global worldwide footprint through advances in green solutions. The economy of China has been growing at a robust rate since last a couple of(prenominal) years. Chinas late released five-year plan signifies a new phase of growth through the magnification of domestic consumption, driving a low-carbon economy, fostering innovation and achieving balanced amicable and economic growth (Datamonitor PLC, 2012). The growth of HPs mobile launch pad PC market, entry into the smartphone market expe cts to grow strongly in the approach path years. The growth is expected to be driven by the demand from the US and Asia Pacific portions.In 2010, the market was led by the North American region with approximately 35% market share. By 2014, Asia Pacific region including China expects to lead the tablet PC market (Datamonitor, 2011). In February 2011, HP launched the HP TouchPad, a 9.7-inch tablet PC that runs on webOS 3.0. The company plans to make available this product in the coming months. The companys increased focus on the tablet PC segment will enable it to benefit from the growing market (Datamonitor, 2011). HP entered the smartphone market with the acquisition of Palm, a provider of smartphones powered by the Palm WebOS mobile operating system, in July 2010.The launch of new smartphones with an updated version of WebOS will enable the company to effectively compete with each other players in the market, including Apple and Google (Datamonitor, 2011). In addition, provide th e wellnesscare markets with products beyond the capabilities of their competitors. HP has been focusing on providing healthcare solutions in recent times. In January 2010, the company and McKesson collaborated to work on electric health record (EHR) engageion at free-lance physician practices. HPs solutions targeting healthcare sector will enable it to increase its revenues in the company years (Datamonitor, 2011).The creative department could use an organic structure to look for anddevelop new ideas to face intense competition from Apple, RIM, and Nokia. Under an organic structure, HP will be able to react quickly to those competitors having a positive effect on revenues and profitability of the company in the long run.Looking at the mechanistic structure HP could exploit capabilities and pass on routine implementation of innovations. An example of this looks at HP leading market position in the global printers market. HP ships more than one millions printer per week. Strong ma rket position in various market segments provides economies of ordered series for the company, including increasing their customer base (Datamonitor, 2011). The Four Types of Change Provide a Strategic Competitive Wedge Managers can focus on quaternion types of change within organizations to achieve strategic advantage. These four types of change are technology, products and services, strategy and structure, and culture. These factors provide an overall context within which the four types of change serve as a competitive wedge to achieve an advantage in the international environment. HP has an unique configuration of products and services, strategy and structure, culture, and technologies that can be focused for maximum impact upon the its chosen markets.Technology changes are changes in an organizations production process, including its knowledge and skill base, that enable distinctive competence. These changes are designed to make production more efficient or to produce greater volume. Changes in technology involve the techniques for do products or services. They include work methods, equipment, and workflow. In the case of HP, the competitive-intelligence (CI) chief of HP has focused his intention to offer free shipping for printer cartridges, its growth of print status monitor software which will prompt customers to purchase replacement cartridges, and numerous technical specifications. Only but a few minor errors, the CI team had nailed everything prices, specs, software details (Varchaver & Burke, 2007).Products and services changes adjoin to the product or service outputs of HP. New products and services are ordinarily designed to increase the market share or to develop new markets, customers, or clients. If correctlyapplied, HP can bring together exist technologies in a new way to serve a new market. HP has a broad product portfolio. HPs services segment offers consulting, outsourcing and technology services across infrastructure, applications an d business process eye sockets. Its services encompass the data center and the workplace (desktop) network and communications and security, configuration business continuity warranty support technology consulting and systems integration solutions (Datamonitor, 2012). dodging and structure changes pertain to the administrative domain in an organization. The administrative domain involves the supervision and management of management, policies, rewards systems, labor relations, coordination devices, management information and control systems, and account and budgeting systems. Strategy, structure, and systems changes are usually top-downthat is, mandated by top managementwhereas product and technology changes often come from the bottom up. To make the strategy successful, they set a new set of key performance metrics to span how effectively the company was meeting goals of competitive costs, high quality, and great service. This change also proved to be successful in the long run.A culture change refers to changes in the values, attitudes, expectations, beliefs, abilities, and behavior of employees. farming change pertains to changes in how employees think these are changes in mindset rather than technology, structure, or products. Culture change can be particularly difficult because people dupet think their attitudes and beliefs easily.The four types of change are interdependent a change in one often means a change in another. The structural change was an outgrowth of the technology change. HP is an independent system, and changing one part often has implications for other parts of HP. ostiarys Competitive Strategies- Michael E. Porter studied a number of business organizations and proposed mangers can make the orgainzation more profitable and less vulnerable by adopting either a differentiation strategy or a inexpensive strategy.Appling a low-cost leadership strategy means managers choose to compete through lowercosts, whereas with a differentiation str ategy the orgainzation compete through the ability to offer unique or distinctive products and services that see a premium price. Each strategy can vary in scope from broad to narrow. That is, an organization can choose to compete in many market and customer segments or to focus on a specific market or buying group.Appling this model to HP revels the organizations focuses on low-cost leadership strategy with a broad scope where HP provides goods and services to customers at cheaper prices. HP uses the low-cost strategy with their printer / copier product line where tight controls to produce products more efficiently than its competitors. cheap leadership strategy using a broad scope is concern primarily with stability rather than taking risks or seeking new opportunities for innovation and growth. For HP, this means it can achieve higher profits than competitors because of it can efficiency and lower operation costs. Also, this strategy puts HP in a better position to prevent loss of market share. 4. Identification and military rank of Alternatives1. Encourage technology change by using skunkworksPros Focuses on find ideas for HPGive highly talented employees time and freedom to keep HP on the cutting edgeThis group could be highly autonomous and secretive while creatingCons May create a subculture under HPs visionRisk of skunkworks wasting resources and come away(predicate) with nothing to showIdeas whitethorn be behind competitors organizations skunkworks teams2. Empower employees through the bottom-up approachPros Employees are motivated to figure out the best ways to get their jobs through with(p)Supports the right culture that drive high performanceEmployees at all levels feel part of the vision / change or the organizationCons Employees ideas could go nowhereIdeas could get lost between the layers of managementEmployees may become focused on looking for shortcuts in the process 3.Discover a distinct pattern of tailoring innovations to customer need s by using the flat Coordination ModelPros Increases the amount of new product developmentImproves the different possible developed productsGives HP the edge in meeting customer needs and circumventing manufacturing / marketing ideasCons If not properly applied, the connections is lost between employees and customersIf not properly applies, the coordination between departments are not sharedMust be driven by top managers to function well5. Recommended Alternatives- Based on the models and discussed alternatives, I recommend HP will be best able to adapt to the changing external environment by proceeding with the Horizontal Coordination. This means HPs technical, marketing, and production employees share ideas and information. All departments would have a say if / when a product gets introduced in the market. Specialization means every department are highly competent at their own tasks. Boundary spanning means each department under HP vision will be conjugated with involvement on n ew products and has an excellent linkage with relevant sectors in the external environment. Under boundary spanning, employees are aware of recent scientific developments and personnel are closely linked to customer needs. Horizontal coordination stresses the importance of sharing ideas between technical, marketing, and production.I would not recommend using skunkworks or the bottom-up approach. Skunkworks has a great accident of developing a subculture that may not support HPs overall vision. Using the bottom-up approach may go change after employees discover their ideas are going unnoticed or getting lost while traveling through the layers of management.6. Implementation and ConclusionElements for flourishing Change- Regardless of the type or scope of change, there are acknowledgeable stages of innovation, which generally occur as a sequence of events, through innovation stages may overlap. For a change to be successful implemented, HPs mangers must make sure each element occ urs in the organization. If one of the elements is missing, the change processwill fail. 1. Ideas. Change is an outward expression of ideas. Ideas can come from within or from outside the organization, 2. Need. Ideas are generally not seriously considered unless there is a sensed need for change. A perceived need for change occurs when managers see a gap between existing performance and desired performance in the organization. 3. Decision to adopt.The decision to adopt occurs when managers or other decision makers choose to go ahead with a proposed idea at HP. 4. Implementation. Implementation occurs when HPs members actually use a new idea, technique, or behavior. Materials and equipment may have to be acquired, and workers may have to be trained to use the new idea. This is the most difficult part for HP. Until people use the new idea, no change has actually taken place. 5. Resources. Change does not happen on its own it requires time and resources, for both creating and impleme nting a new idea. Employees at HP must provide energy to see both the need and the idea to meet that need.In conclusion, strong market position in various markets segments provides economies of scale for the company, in any event increasing its chance of winning customers. However, intense competition will adversely affect the revenues and profitability of the company in ling term (Datamonitor, 2011). work Cited1. Daft, R. (2010). Organization Theory & Design. (11th ed.). Mason, OH South-Western, Cengage Learning. 2. Datamonitor. (2011). Hewlett-Packard Company3. HEWLETT-PACKARD COMPANY Palo Alto, California. (2008). Microwave Journal, 51(7), 120-126. 4. Hewlett Packard Company. 2007 November 19. 30 borderland 2008 . 5. High Tech Winning Success In Silicon Valley. (1984). Ebony, 40(1), 37 6. (n.d.). Retrieved from www.hp.com/go/history