Hewlett-Packard Case Study Analysis

Hewlett-Packard Is Counting on Organization Change to Boost Revenue Growth

Meg Whitman became CEO of Hewlett-Packard Co. (HP) in 2011. Since the time HP’s revenue peaked in 2011 at $127 billion, it has dropped every subsequent year. On the positive side, the company had two consecutive quarters of growth in 2014. HP also is trying to right-size and reduce costs by planning to lay off 16,000 employees. HP earlier decided to lay off 34,000 people, resulting in a total reduction of 50,000 employees.100

Whitman described the job cuts “as an opportunity to streamline the company further and make it more nim- ble. An expected $1 billion in cost savings in fiscal 2016 would allow HP to invest in new technologies and skills to revive growth.” Others, like UBS analyst Steven Milunovich, believe that these job cuts will erode employee morale and may lead to increased turnover.101

“But fixing the world’s biggest tech company—with $120 billion in annual revenues and 330,000 employees— is a herculean task. Bloated by more than 70 acquisitions in the past 15 years, HP isn’t just sprawling and stalled out; it may actually be running in reverse.”102

Whitman decided to change the organizational structure to fuel growth. She created two clusters of businesses. One focuses on corporate technology customers. This group, which sells servers, storage, and networking, delivered 43% of the company’s overall operating profits according to Forbes. Unfortunately, the software and services that accompany all this hardware have not been as successful. HP tried to build the software side of the business via acquisitions, which according to Forbes have not been very successful. The magazine noted that “when it comes to software acquisitions, Autonomy [HP’s enterprise software company] was merely the most high-profit misstep. All told, over the past decade HP squandered nearly $19 billion to buy myriad outfits that contribute only 7% to overall profit. The services unit, which staffs other companies’ tech projects, is barely at breakeven.”103 HP is currently “looking for small to midsize acquisition candidates in cloud computing, security, and analytics software.”104

The second structural cluster sells printers, PCs, laptops, and mobile devices to people worldwide. This segment of the business contributed 29% of operating profits in 2013. The problem here is that the lucrative printer business is shrinking. Technology is simply moving more toward ink-free photo and document sharing, which benefits companies like Google, Face book, and Dropbox.

Strategically, HP also is trying to get back into the fast-growing tablet market. The company attempted to gain entry in this market in 2011 with the TouchPad model, but it was a failure. Since February 2013, the company has introduced new models, and they are being well received in the market. In a similar vein, HP has created an overall vice president for design. This was done to create a strategic focus on product development.

H-P didn’t stop at just a reorganization or a new tablet strategy, according to Forbes. A survey of the company’s 20,000 salespeople revealed that employees rated the internal sales tools a mere “7” on a scale of 1 to 100. For example, it took HP as much as three weeks to prepare a sales quote, when competitors could do it in a matter of days. The company decided to upgrade its sales process by using new tools from Salesforce.com.

Whitman also took to the road to reassure custom- ers that HP was doing the “right things.” In the last year, she conducted “305 one-on-one meetings with customers or sales-channel partners, aides say, as well as another 42 roundtable chats with small groups” around the world.

It did not take Whitman long to realize that the organizational culture also needed to be changed to foster consistency between the company’s strategies and culture. According to Forbes, she eliminated the barbed wire fence and locked gates that separated parking lots for the executives and the general employee population. “We should enter the building the same way everyone else does,” she said. She also decided to work from a cubicle, like most employees, instead of from a larger, more private location. She keeps a picture of her mother in her office. She also role models when she travels by staying at more modestly priced hotels.

While HP is positive about the changes taking place, some analysts are more skeptical. Bill Shope, an analyst from Goldman Sachs, concluded that “serial restructuring cannot solve HP’s secular challenges, particularly following years of underinvestment.” He forecasts that HP’s revenue might fall to $107 billion in fiscal 2015.

Case Analysis Questions

Answer the following in up to 175- words each:

  1. Describe super trends that are driving HP to change.
  2. Assess which forces for change are causing HP to undertake major organizational change.
  3. Recommend how Meg Whitman could use Lewin’s and Kotter’s models of change to increase the probability of achieveing positive organizational change.
  4. Determine how HP is following the four steps for fostering innovation.
  5. What has happened with HP since this case was written? Determine whether the implementation of these changes has been successful. Explain what could have been done differently.

B6025 Finance Course – All Discussions With Sample Answers

B6025 Week 2 Discussion

Cialdini (2001) provides many compelling insights into how choices  are influenced. Even though marketers are barred from outright  deception, you can still find examples of information or promotions  designed to lead customers in a direction that may not be in their rational best interest.

Some theorists suggest that rationality only plays a part in  one’s decision toolkit. Outside influences (one such example is  authority figures hawking goods or services) bear upon the choices you  make. It is a susceptibility to these outside pressures and social  constructs that may lead you, as a decision maker, away from  well-reasoned optimization. The ability to manipulate an individual  along these lines leads to the use of nonrational techniques, which are recognizable in the marketing efforts that can inundate your life.

Review the article “Harnessing the Science of Persuasion” by R. B.  Cialdini (2001) from this module’s assigned readings. Consider  Cialdini’s insights on nonrational techniques.

To access the following article follow the steps listed below:

Cialdini, R. B. (2001). Harnessing the science of persuasion. Harvard Business Review79(9), 72–79.

  • Launch the Online Library
  • Click on the Find Articles and More button on the library homepage
  • Next, click on the link for Business Source Complete
  • Enter in the complete title of the article with quotation marks into  the search box and then click search (i.e. “Harnessing the science of  persuasion”)
  • Click on PDF Full Text to read the article

Respond to the following:

  • Consider the last two major purchases you made, and list the  techniques that may have swayed your choices. Why do you think these  techniques impacted your decision?
  • What would you do in the future to avoid these psychological pitfalls?

B6025 Finance Course – All Assignments With Sample Answers

B6025 Week 2 Assignment

Sometimes social influences and societal pressures can influence  decision making for the better and sometimes for the worse. In addition  to these pressures, there are risks that need to be evaluated and  measured when making decisions. In this assignment, you will reflect on  decisions you made using social influence, persuasion, and risk taking  that went awry.

Examine a time when you were involved in decision making that went  awry as a result of protocols, social norms, or persuasive techniques.  If you do not want to use an example from your business or personal  experience, you can select a journal article on which you can base your  assignment. Here are some key words to help you find an article for this  assignment:

  • Decision making
  • Risk taking
  • Persuasion
  • Social heuristics

Write a 3–5-page paper in Word format that addresses the following:

  • Describe a decision-making scenario using your business experience,  personal decision making or cited journal article; include an example of  the decision-making process, describe the risk, and whether persuasion  was used. What were the social heuristics?
  • Explain the incentives in this scenario. Were they effective?
  • Identify the risks and the potential decision biases in your  scenario. Propose the corrective steps that should have been taken to  overcome these biases. If a risk assessment was conducted how did this  affect the decision-making process?
  • Analyze your scenario for what happened in terms of social  heuristics. Explain how decisions were made and the social factors that  shaped the decision-making environment.
  • Discuss the greatest challenges to sound decision-making in your scenario.
  • Critique the decision-making process used by the sponsor(s) and  leader(s) of the decision. Identify the mistakes made by the sponsor(s),  leader(s), and team members or others impacted by the decision during  the implementation of the decision.

Support your statements with scholarly references and appropriate examples. Apply APA standards to citation of sources.

B6025 Week 2 Assignment

How Information Systems Affect The Firm’s Strategic And Competitive Position

Apple Inc. is known for its state-of-the-art designs for products  such as the iPhone, but most are unaware that Apple has used technology  to streamline its supply chain management and operational systems to  provide competitive pricing. This use of technology has allowed the  company to under price its competitors and yet maintain a 25 percent  margin on their products. The use of IT has provided Apple with a  strategic and competitive position which most of their competitors find  difficult to match or exceed.

Using your company or a real-world example from your research,  analyze how information systems affect the firm’s strategic and  competitive position.

Using the assigned readings and the Argosy University online library resources, explain how information technology:

  • Impacts competitive rivalry, such as pricing, promotion, and distribution
  • Enables or dissuades new entrants
  • Enables customers to achieve greater bargaining power
  • Enables suppliers to gain more bargaining power
  • Gives rise to substitute products or services that threaten the existing market

Can Xerox Corporation Survive ?

With the advent of scanners and the universality of the portable document format (PDF), the market for optical copiers is shrinking rapidly. Can a company such as Xerox Corporation survive? In this assignment, you will address this question.

Research the issues faced by Xerox Corporation from 2000–2010 and the solutions found using the assigned readings, the Argosy University online library resources, and the Internet. Specifically review Xerox Corporation’s annual reports

Respond to the following:

  • Identify multiple business pressures on Xerox Corporation.
  • Describe some of the company’s response strategies.
  • Identify the role of IT as a contributor to the business technology pressures (for example, obsolescence).
  • Identify the role of IT as a facilitator of Xerox’s critical response activities.
  • Support your positions with reasons and examples based on your research.

Write a 3–5-page paper in Word format.