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. One of the most serious problems I have identified in the case, the new CEO Mark Hurd, found himself in charge of a stressed, dysfunctional corporation after Hewlett-Packard fired CEO Carly Fiorina. It was unclear and no one knew if the strategic vision, that Carly Fiorina has been using to guide the company-“digital, virtual, mobile, personal” was being executed or not. The company reward system was so complex that no one knew how performance affected their bonuses. The executives were leaving and Hewitt Packard was having trouble attracting new executives. Their confusing matrix structure blurred accountability lines and slowed decision making. Another most serious problem I have identified in the case is that Hewitt-Packard was financially in trouble. It cost Hewitt-Packard another $10 billion to integrate the Hewitt-Packard and Compaq systems, after acquiring Compaq Computers for $19 billion. There was persistent disbelieve with the combined company. The new CEO Mark Hurd had to testify before Congress regarding what he knew of the situation because of a board member leaked confidential information to the press, the scandal involving spying and phone tapping. Hewitt Packard was financially in trouble because they acquired Compaq Computers for $19 billion and then it cost Hewitt-Packard another $10 billion to integrate the Hewitt-Packard and Compaq systems. And then there was persistent distrust with the combined company. Third most serious problem I have identified in this case of Hewitt-Packard that was under managed. Carly Fiorina was highly noticeable in the press, had been known as a broad visionary. Inside Hewitt- Packard many felt she didn’t provide enough direction. She didn’t have her focus on execution (management). The Hewitt...
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