Date:September 04, 2011
To:Dr. Ken Hogan
Subject: Hewlett Packard: Poor Operational Management Impedes Global Expansion
Dr. Hogan, thank you for the opportunity to share my perspectives regarding the management and operational issues that are currently impeding Hewlett Packard’s global growth. The attached report provides some startling facts about the continued lack of leadership and the impacts it has on a HP's ability to integrate and quickly expand into emerging markets. The lack of strong leadership in the internationally competitive technology space is a growing concern for HP's shareholders and the company’s long-term direction is under scrutiny. HP's inability to successfully execute in an emerging global market and its ability to effectively penetrate China and India is also in question. HP’s new CEO has not proven he can effectively address and overcome these challenges yet and swift action is necessary to protect the integrity, growth and business viability of this organization. The following is a summary of operational management issues that will be reviewed in this assessment: * Failure to maintain focus on key emerging countries like China and India. * Poor decision making within the past decade and the resulting consequences. * Poor integration and execution over the past ten years and its effects on the company. I look forward to your feedback.
Table of Contents
List of Figures4
HP's failure to focus and expand their market share in India and China 9 HP's poor operational management within the past ten years10 HP's lesson learned from merging two supply chains11
Conclusions and Recommendations 12
List of Figures
In recent months, Hewlett Packard (HP), the largest technology company, has come under fire because they have not aggressively expanded operations into India and China, two key global markets. Many analysts say HP has lost its way and the recent downturn can be attributed to poor decisions by the company's leadership to maintain its competitive advantage.
To counter this market rumor, HP has made some significant leadership and operational changes to try and maintain its dominance in the technology market. In the last decade HP has released their former CEO's Carly Fiorina and Mark Hurd for various reasons. HP then hired SAP's CEO Leo Apotheker as their new CEO on September 30, 2011. Six months into his new position, some speculate that Mr. Apotheker is struggling to turn the company around but recent business decisions prove otherwise. His most recent decision to exit the computer tablet market and focus on consulting services proves he is changing the way HP will do business in the future.
Earlier this year, Leo Apotheker also announced that HP has put into motion an emerging market business plan to build a presence in India and China. He has also has restructured the executive teams and is redefining the corporate vision. Recently HP announced it is getting out of the consumer tablet and computer manufacturing market and focusing on services and business computer hardware. While there are many other needs that must be met, Mr. Apotheker seems to be following the guide to creating a strong international company by focusing on operational leadership, core operational excellence and expansion into global markets.
Hewlett Packard (HP) is a leading transnational technology company that provides one of the tech world's most comprehensive portfolios of hardware, software, and services. Products include PCs, servers, storage devices, printers, and networking equipment. Its services unit provides IT and business process outsourcing, application development and...