Hewlett Packard

Topics: Hewlett-Packard, Management, Strategic management Pages: 10 (3740 words) Published: April 18, 2011
Case Study Analysis: Briefly identify Hewlett-Packard's ‘strategic agenda’, i.e. what are the fundamental questions  and problems that concern organizations and their successful development” (, 2002,).  Overview of the Company 

            Hewlett Packard is the world's leading producer of test and measurement instruments and the world's third largest computer company. It has become a major player in the personal computer market, and at in a 1999 survey was the sixth biggest in terms of market share, having moved up from fourteenth largest in 1992. It is also the second largest player in the computer workstations market, and holds the dominant position in the laser printer business.  The company was the only major computer manufacturer which remained profitable during the recession. The corporation employs 96,200 staff worldwide, of which 20,200 are employed in Europe and 2,000 in the UK (in the UK Computer Systems Organization). Underpinning the Hewlett Packard culture is the HP Way, developed by founders, which emphasizes clearly stated and agreed overall objectives but gives people the freedom to work towards these goals in ways they determine best for their own areas of responsibility (1999).             The HP Way is probably best illustrated from a number of words and concepts extracted from Hewlett Packard’s own publications. These are love of the product, love of the customer, innovation, quality, open communication, commitment to people, trust, confidence, informality, teamwork, sharing, openness, autonomy, responsibility (2001).  Other pillars of the HP Way include an emphasis on selecting individuals on the basis of their creativity and their enthusiasm, and the need for cooperation between organizational levels. A sophisticated performance management process and clear organizational values, together with a single status culture, has brought strong identification with the company on the part of employees.     Hewlett Packard breaks up units that grow beyond a certain benchmark. Hierarchy and status are taboo. Even the company president only reluctantly took that title. Any "perks" or status symbols are immediately dispensed with. The plants are periodically polled anonymously to ensure that the company lives up to its ideals (1992). The organization has traditionally had a decentralized structure, but with the growth of the computer business a more centralized approach was taken to reflect the systems nature of the business.

 Background of the Case Study
      It  is credited to be one of the forerunners who tried to turn around a sprawling, $90 billion technology company, following years of lackluster performance. One year after he took the job as chief executive officer at Hewlett Packard, following the forced departure of the flashy but flawed, Mr has started to revive the fortunes of a legendary Silicon Valley firm.  The new chief executive is an understated operations geek, the type of manager that excels at HP, the epitome of an engineering-driven company. “Vision without execution is nothing,” he says. “Whenever anyone asks me about vision, I get very nervous. You've got to be able to tie it back to strategy; you've got to tie accountability to things.” Mr prefers to stand when he talks rather than sit; he wears crisply knotted ties while his managers are allowed open-collared shirts. At 49 years old, his hair is cropped short and every strand is perfectly in place, as one might expect from a man who spent the past 25 years ascending the ranks of a century-old business in Dayton, Ohio called NCR—originally National Cash Register.  When joined Hewlett-Packard, what he found was a firm spread thin with many units losing money and propped up by the sales of printer-ink cartridges. Its activities spanned both the consumer and business market, selling everything from high-end software to flat-panel television screens. Yet instead of shedding business units, Mr....
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