<\/p>\n
\nUniversity of Phoenix Material
\nHewlett-Packard Case Study Analysis
\nHewlett-Packard Is Counting on Organization Change to Boost Revenue Growth
\nMeg Whitman became CEO of Hewlett-Packard Co. (HP) in 2011. Since the time HP\u2019s 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
\nWhitman described the job cuts \u201cas 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.\u201d Others, like UBS analyst Steven Milunovich, believe that these job cuts will erode employee morale and may lead to increased turnover.101
\n\u201cBut fixing the world\u2019s biggest tech company\u2014with $120 billion in annual revenues and 330,000 employees\u2014 is a herculean task. Bloated by more than 70 acquisitions in the past 15 years, HP isn\u2019t just sprawling and stalled out; it may actually be running in reverse.\u201d102
\nWhitman 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\u2019s 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 \u201cwhen it comes to software acquisitions, Autonomy [HP\u2019s 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\u2019 tech projects, is barely at breakeven.\u201d103 HP is currently \u201clooking for small to midsize acquisition candidates in cloud computing, security, and analytics software.\u201d104
\nThe 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.
\nStrategically, 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.
\nH-P didn\u2019t stop at just a reorganization or a new tablet strategy, according to Forbes. A survey of the company\u2019s 20,000 salespeople revealed that employees rated the internal sales tools a mere \u201c7\u201d 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.
\nWhitman also took to the road to reassure custom- ers that HP was doing the \u201cright things.\u201d In the last year, she conducted \u201c305 one-on-one meetings with customers or sales-channel partners, aides say, as well as another 42 roundtable chats with small groups\u201d around the world.
\nIt did not take Whitman long to realize that the organizational culture also needed to be changed to foster consistency between the company\u2019s 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. \u201cWe should enter the building the same way everyone else does,\u201d 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.
\nWhile HP is positive about the changes taking place, some analysts are more skeptical. Bill Shope, an analyst from Goldman Sachs, concluded that \u201cserial restructuring cannot solve HP\u2019s secular challenges, particularly following years of underinvestment.\u201d He forecasts that HP\u2019s revenue might fall to $107 billion in fiscal 2015.
\nSource: Hewlett-Packard is Counting on Organizational Change to Bookst Revenue Growth. In Kinicki, A., Williams, B.K. (Eds.), Management: A Practical Introduction (pp. 333). New York, NY: McGraw-Hill.
\nCase Analysis Questions
\nAnswer the following in up to 175- words each:
\nDescribe supertrends that are driving HP to change.
\nAssess which forces for change are causing HP to undertake major organizational change.
\nRecommend how Meg Whitman could use Lewin\u2019s and Kotter\u2019s models of change to increase the probability of achieveing positive organizational change.
\nDetermine how HP is following the four steps for fostering innovation.
\nWhat 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.
\nAssignment info attached\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
University of Phoenix Material 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\u2019s revenue peaked in 2011 at $127 billion, it has dropped every subsequent year. On the positive side, the company had two consecutive quarters […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/165257"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=165257"}],"version-history":[{"count":0,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/165257\/revisions"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=165257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=165257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=165257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}