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How HP Turns Business Catastrophes to Their Advantage

  • Jonathan Brill

hewlett packard case study summary

Lessons from the company’s “Future Unit.”

In oceanography, a rogue wave refers to a massive wave that pops up, seemingly out of nowhere, when multiple unlikely natural phenomena collide. In the deep ocean, these waves routinely sink large ships. In business, they decimate growth and risk mitigation plans. What does it take for your organization not only to stay afloat when a rogue wave hits, but to actually turn it to your advantage? In this piece, the author describes a 3-part framework for resilient growth that helped HP emerge successful after a year of several potentially business-ending challenges. This approach — which can be adapted to any organization — involves building awareness of potential threats and opportunities on the horizon, adapting behaviors based on these trends, and ensuring a culture of open communication, clear processes, and a healthy balance of hierarchy and independence.

What would you do if one of your largest competitors attempted to force a takeover, your supply chain was obliterated, and your cash cow business imploded — almost overnight?

  • Jonathan Brill is a globally recognized expert, advisor and speaker on successful innovation under uncertainty. He is the the author of Rogue Waves : Future–Proof Your Business to Survive and Profit From Radical Change , McGraw-Hill, 2021. He has been the Global Futurist at HP and the managing partner of innovation firms that have generated over $27 billion in new revenue for clients. He has taught in executive programs at Harvard and Stanford Universities. Learn more and find tools at jonathanbrill.com

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What hewlett-packard’s spying scandal tells us about the limitations of corporate boards, october 18, 2006 • 18 min listen.

The crisis at Hewlett-Packard over allegations that its chairwoman, Patricia Dunn, authorized illegal surveillance of HP board members in order to find out who leaked sensitive company information to the press, is dragging on, perhaps longer than most people first expected. And it has raised a number of important issues about corporate governance, privacy protection and surveillance of employees. Tom Donaldson, professor of legal studies and business ethics at Wharton, joins Knowledge at Wharton to talk about HP's woes as they relate to business practices both in the U.S. and abroad. Donaldson's research areas include business ethics, leadership, risk management and corporate compliance. He has consulted with companies ranging from Goldman Sachs and Wachovia to Exelon and KPMG, and is currently working on articles about corporate risk management programs and cash management practices at non-profit organizations.

hewlett packard case study summary

The crisis at Hewlett-Packard over allegations that its chairwoman, Patricia Dunn, authorized illegal surveillance of HP board members in order to find out who leaked sensitive company information to the press, is dragging on, perhaps longer than most people first expected. And it has raised a number of important issues about corporate governance, privacy protection and surveillance of employees. Tom Donaldson , professor of legal studies and business ethics at Wharton, joins Knowledge at Wharton to talk about HP’s woes as they relate to business practices both in the U.S. and abroad. Donaldson’s research areas include business ethics, leadership, risk management and corporate compliance. He has consulted with companies ranging from Goldman Sachs and Wachovia to Exelon and KPMG, and is currently working on articles about corporate risk management programs and cash management practices at non-profit organizations.

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Hewlett-Packard: The Flight of the Kittyhawk (A)

By: Clayton M. Christensen

Hewlett-Packard decided that, to grow more rapidly, it needed to design a revolutionary disk drive product that would create an entirely new market or application for magnetic recording technology.…

  • Length: 18 page(s)
  • Publication Date: Jan 26, 2006
  • Discipline: Operations Management
  • Product #: 606088-PDF-ENG

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Hewlett-Packard decided that, to grow more rapidly, it needed to design a revolutionary disk drive product that would create an entirely new market or application for magnetic recording technology. The company followed most of the "rules" good managers follow in such situations: heavyweight project team, lots of senior management support, etc. But it still failed.

A rewritten version of an earlier case.

Learning Objectives

To understand why good management isn't enough and how to manage similar situations. Can use in courses on managing innovation or new product development, especially where the general manager's perspective is paramount.

Jan 26, 2006 (Revised: Oct 23, 2006)

Discipline:

Operations Management

Geographies:

United States

Industries:

Electronics manufacturing

Harvard Business School

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hewlett packard case study summary

GRIN

Leadership and Change Management: A Case Study of HP

Case study, 2019, 16 pages, grade: 1,3, alexander kahlert (author), list of figures, 1 introduction.

2 Strategy analysis for the company HP 2.1 Current challenges of HP 2.2 HP’s organizational complexities 2.3 Leadership approach of HP’s senior management

3 Strategic Change Plan for HP 3.1 Determination of the required type of change 3.2 Execution plan of the change path 3.3 Required leadership skills for HP’s revolution

Figure 1- Hewlett Packard's dysfunctional organisation

Figure 2- Agile organization as the new dominant organizational paradigm

Figure 3- HP's leadership issues

Figure 4- Types of Change

Figure 5- Lewin's change management model

Figure 6- HP's change path

Figure 7- HP's required leadership profile

Figure 8- HP's path to future success

The company Hewlett Packard (HP) is an international acting technology enterprise with the focus on manufacturing software, hardware and services to individual clients, corpora- tions, governmental and education sector (cf. HP Inc. 2017: I; HPE Ent. 2018: 3.).

HP had a widespread product line starting enterprise standard servers, computing devices, networking products, software and IT-consulting services (cf. Glassman / Zell / Duron 2005: 10.).

Today, HP is structured into two separate companies. HP Inc. is focused on the former hardware product line (computing products, printers, etc.) and the Hewlett Packard Enter- prise (HPE). HPE’s strategy is to use “capabilities focused on technology, people and eco- nomics to enable customer’s digital transformation” (HPE Ent. 2018: 2.). The current share prices of the two HP companies show high volatility in the share price (cf. Yahoo Finance 2019; Yahoo Finance 2019a.).

In 2012, no spin-off was conducted and HP was one IT company. HP struggled with internal structures, significant internal clashes of culture and finding a path to future success. All of these issues are related to a lack of leadership and change management skills within the enterprise (cf. Goleman 2011: 3.; Cook / Macaulay 2004: 5).

This term paper wants to answer the question:

How could a successful strategic turnaround of HP could be structured and implemented?

In answering this question, the focus lies on change management and leadership theories for a successful transformation. The paper is mainly structured in two parts: Chapter two describes the current state of HP in 2012 taking the dimensions of challenges, organiza- tional complexities and leadership issues into account. Based on that insights, a fitting trans- formation plan is derived by using modern leadership and change management tools.

As a result, all gained insights are summarized and finally assessed in the last chapter.

2 Strategy analysis for the company HP

Abbildung in dieser Leseprobe nicht enthalten

Figure 1- Hewlett Packard's dysfunctional organisation.

2.1 Current challenges of HP

In 2011, HP struggled with declining financial performances which was expressed by 19% lower profits and losing market share (cf. Bandler / Burke 2012: 1-2.). This lead to an in- creasing investor pressure on the company to perform better in the short term.

Simultaneously, HP had to deal with an intensive competition with a strong innovation ca- pability (cf. Bandler / Burke 2012: 3.). However, HP showed a significant lack of innovation (cf. Economist 2015). This lead to a vicious circle because HP was also not able to build up innovation capabilities caused by talent hiring issues (cf. Economist 2015.). This resulted in the need for external acquisitions, but significant investments could not be financed (cf. Hall 2017). Furthermore, HP had to decide which strategy it wants to follow. The hardware fo- cused strategy faced a declining market share. The combination of short term pressure from the investor base and the need to reconfigure internal capabilities and the strategy made a challenging general condition for HP. Further disturbances like ongoing law suits against HP (TomorrowNow case) averted to focus on important decisions.

2.2 HP’s organizational complexities

Modern technology companies established a new form of organizational structure: The agile organization. An agile organization consists of a network of smaller teams which are strongly customer-centered. The employees of the different sub-teams are all committed to one predefined vision (cf. Nadella / London 2018: 5.). Furthermore, it operates in fast de- cision and learning cycles so that the ability of quickly reconfiguring structures and strate- gies toward value-creating opportunities is possible (cf. Aghina et al. 2017: 3.).

However, HP did not establish the required culture and structure to cope with similar chal- lenges of the modern companies.

HP’s culture is poisoned. HP’s employees were preoccupied with internal conflicts and power rivalries. Cross-functional collaboration was not accepted (cf. Bandler / Burke 2012: 1-5.). Overall, the culture was damaged by a significant lack of trust between employees and directors (cf. Bandler / Burke 2012: 13.).

Simultaneously, HP established an efficient and cost-saving driven internal structure. Even trash pickups were cut (cf. Bandler / Burke 2012: 4.). This Taylorism management approach was successful in an environment that was stable and predictable. McKinsey defines this kind of organization as “organizations as machines” (Aghina et al. 2017:3.). There was a strong hierarchy and efficiency management rationale established and the business units were clearly silo-thinking driven which led to dramatic misalignments of the business units. For instance, HP printer software could not be run on HP computers (cf. Bandler / Burke 2012: 11.). Modern companies are structured like an organism (flexible and responsive) with strong leadership as the core (cf. Aghina et al. 2017: 5.). HP showed a significant gap in terms of an environment fitting structure and culture which was simultaneously poisoned by internal conflicts.

Figure 2- Agile organization as the new dominant organizational paradigm (Authors own illustration based on Aghina et al. 2017: 5.).

2.3 Leadership approach of HP’s senior management

Good leadership is directly interrelated with the success of a strategic transformation pro- gram (cf. Kotter 2000: 60.). The former CEO Leo Apotheker wanted to take HP towards more software business with focus on big data analytics (cf. Bandler / Burke 2012: 10.). As described in the case, the transformation failed. The leadership approach of HP is evaluated in five dimensions of failure:

( 1) Not Establishing a Great Enough Sense of Urgency

According to Kotter, the first leadership fault in a transformation is to not seed sufficient urgency for the change in an organization. Only motivated and committed people can achieve successful change (cf. Kotter 1996: 4.).

Apotheker did not communicate the urgency in a way that the organization was committed to the change. The process was “messy and contentious” and even senior management participants were not aligned to the new strategy (cf. Bandler / Burke 2012: 10.).

(2) Not Creating a Powerful Enough Guiding Coalition

It is essential to build up a change coalition that supports the efforts. This is a process of a growing fan base of the future state after the transformation (cf. Kotter 2000: 62.).

Apotheker was clearly committed to his own vision for HP and did not seek for different perspectives (cf. Bandler / Burke 2012: 13.). Kotter says that a transformation need a co- alition throughout the hierarchy and it has to grow from the senior management down to the employees (cf. Kotter 1996: 6.). The coalition growth stopped at Apotheker and an opposi- tion gained participants which finally stopped the change.

(3) Lacking a Vision

The vision of a leader for the company plays a key role in producing change. It helps to align and inspire large numbers of people dealing with the company (cf. Kotter 1996: 7.).

Apotheker derived a strategy of how to develop HP further, but never defined a clear vision. The strategy could have been the right one, but the main reason why it was confronted with resistance was that no one saw a clear vision. A transformation without vision leads to in- compatible projects and finally to failure (cf. Kotter 2000: 63.).

(4) Not Removing Obstacles to the New Vision

To achieve a high amount of committed people, obstacles have to be removed. Obstacles can be the structure, compensation systems or middle management directors who want to stop the proposed change (cf. Kotter 1996: 10.).

HP’s hierarchical and silo-focused structure is not able to fastly change. Apotheker started with dictating the strategy without reconfigure the internal structure of HP. Apotheker and his team did not show any supportive or inspiring approaches to convince the directors to follow his strategy. Apotheker did not realize that fear is one of the most important feelings in a process of change (cf. Kotter 2000: 65).

(5) Not Systematically Planning For and Creating Short-Term Wins

People of an organization have to see short-term wins to believe in the long-term success (cf. Kotter 2000: 65.). Apotheker’s short-term performance was insufficient and lead to doubts (cf. Bandler / Burke 2012: 10.). The occurrence of leaks show that the employees did not believe in the strategy and felt confirmed that HP does not follow the right path. Resistence was built up.

Figure 3- HP's leadership issues (Authors own illustration based on Kotter 1996: 16.).

3 Strategic Change Plan for HP

HP had to face multiple challenges that were obviously not solvable with the current state of HP. A restructuring of a company is commonly very costly and complex (cf. Katowski / Wysocki 2014: 116). Therefore, a successful transformation always has to predefine the required type of change and derive a proper change path supported by a fitting leadership approach (cf. Katowski / Wysocki 2014: 116).

3.1 Determination of the required type of change

To define the type of change, speed and extent of HP’s change is evaluated.

( 1) Speed of Change

In HP’s case, investor’s trust is decreasing caused by poor financial performances; no clear strategic path can be defined; cultural issues like leaks and mistrust are increasing dramat- ically and a significant lack of innovation is present (cf. Ibarra / Rattan / Johnston 2018: 10). Therefore, HP’s planned change has to be fastly executed. Otherwise, HP is in danger of losing the trust of workforce and investors. HP needs a “ Big Bang ” (cf. Balogun 2001: 3.).

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Title: Leadership and Change Management: A Case Study of HP

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Hewlett Packard Enterprise: The Dandelion Program

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CHICAGO DESIGN NETWORK

Hewlett-Packard | Case Study

Soon after Meg Whitman joined Hewlett-Packard as chief executive officer in 2011, she had the executive parking lot—its perimeter lined with barbed wire—torn down. She felt no one employee was above another, and that began with an equal struggle for parking in the mornings.

The parking barrier was a physical representation of the disconnection that had grown between leadership and employees. Whitman knew extreme measures had to be taken to rectify employee morale. She got rid of executive offices and moved everyone into low-paneled cubicles. There would be no more special treatment for anyone, no matter how high a title someone held.

“Symbolism is important,” Whitman said. “I learned that in politics.”

Dave Packard and Bill Hewlett sitting and looking off into the distance

The legacy of Hewlett-Packard and its offshoots have been renowned for effectively managing its employee relations since its opening in 1939. With founders Bill Hewlett and David Packard defining the “HP Way” as an employee-centered work culture, Hewlett-Packard focuses its efforts on employee efficiency, comfort, satisfaction and work-life balance.

“We feel our objectives can best be achieved by people who understand and support them and who are allowed flexibility in working toward common goals in ways that they help determine are best for their operations and their organization,” Packard wrote in “The HP Way.”

A timeline of Hewlett-Packard’s management philosophy would reveal parallels in the successful adaptation of workplace architecture and leadership. Former Hewlett-Packard CEO John A. Young (1978-1992) was in leadership when Chicago Design Network first began work for the technology giant in 1985. Hewlett-Packard’s average employee population was aging, and the company was looking for ways to appeal to younger generations.

Following Young was former Hewlett-Packard CEO Lewis Platt (1992-1999).

“Lew was a believer in the power of the worker, like many before him” Chicago Design Network Principal David McCarty said. “He’d always say something like, ‘give the worker the tools and space they need, and they will produce.’”

Both Young and Platt were known as down-to-earth, low-key engineers. They put faith in Hewlett-Packard employees and the way they preferred to work. With the help of Cornell University Professor Franklin Becker , Platt and the Hewlett-Packard team created the “Next Generation Workplace” in 1999. With employees travelling majority of the week, Platt wanted the office to be open and relaxed. The redesign created a simplified way to come into the office and use a variety of spaces as needed.

Hewlett-Packard CEO's John Young and Lew Platt speaking

“We developed this ‘Next Generation Workplace’ at a time that it should’ve been impossible to do,” then Hewlett-Packard project manager Thomas O’Connor said. “Majority of the spaces were non-assigned, but the offices still had a traditional look and feel with cubicles, offices, quiet rooms, conference rooms and community spaces.”

Platt retired in 1999, and the Hewlett-Packard board named Carleton (Carly) Fiorina as the president and chief executive officer. As CEO, Fiorina’s primary objectives were separating Hewlett-Packard and Agilent and unifying the rest of the company’s many divisions.

“They all had everything—their own profit-and-loss, their own marketing, their own HR, their own finance, their own databases, their own web pages, their own training, their own sales force, their own everything,” Fiorina said. “We were a thousand tribes.”

Fiorina restructured 83 independent product units into six businesses “to cut costs and make it easier for customers,” according to the Chicago Tribune .

From 1999 to 2001, Chicago Design Network managed the split and redesign of over 100 sites. The open-office interior faded under Fiorina. While Young and Platt fit under the engineering-background mold Bill and Dave had created, Hewlett-Packard’s focus shifted after its split with Agilent Technologies. The company shifted its focus from engineering to computers, and with that came a shift in goals. The objective became high volume and low margins versus the original low volume and high margins, according to O’Connor.

“Bill and Dave’s culture was low paneled walls and no assigned offices,” O’Connor said. “All the executives were on the floor. Carly changed the landscape to have ‘off limits’ areas and private offices with executives in separate wings. In many ways, I think she wanted to create her own culture there.”

Hewlett-Packard announced its historical merger with Compaq in 2001. Internally, Fiorina was having difficulties being accepted by Hewlett-Packards employees. Some even blamed her for the destruction of Hewlett-Packard’s work culture, especially after the acquisition of Compaq. After the merger, Hewlett-Packard laid off nearly 30,000 workers to cut costs.

“Carly decided, in order to cut costs, that all company facilities would reduce space by 20 percent,” McCarty said.

Open office space with desks

Hewlett-Packard’s space-reduction mandate projects were completed shortly after Fiorina’s departure in 2005. Following Fiorina was former Hewlett-Packard CEO Mark Hurd (2005-2010), then Léo Apotheker (2010-2011). When former Hewlett-Packard CEO Meg Whitman (2011-2015) started with the company, she wanted to see the “HP Way” revived.

“It’s back to Bill and Dave’s culture,” Whitman said.

As one of the nation’s most prominent female executives, Whitman wanted employees to feel more connected and come back into the office. Under Whitman, Hewlett-Packard’s layout reverted to open office with enough workspace for all employees. Although Whitman succeeded in reviving workplace culture, Hewlett-Packard’s growth was still struggling. In order to save the company, she decided to split it into two separate entities.

In 2015, Hewlett-Packard made history by finalizing its split with the unveiling of Hewlett Packard Enterprise (HPE), whose focus is technological consulting. HP Incorporated (HP) continues to focus on the production and sale of computers and printers. Immediately following the split, Whitman was made CEO of HPE, and Dion Weisler (2015-2019) became CEO of HP. (Find more information on the split here ).

hewlett packard case study summary

In 2016, Chicago Design Network reimagined Hewlett-Packard’s Andover facility in support of HPE’s shift away from products and towards service consultation. The existing warehouse and repair spaces were converted into office and data lab spaces. What originally served as a large, closed-off storage space was transformed into a fresh, free-flowing environment that encourages staff to collaborate and engage in conversation.

By designing the spaces based off employee function, the environments provide far greater flexibility for different work styles and workspace needs. Workflow is often based on management style. While some business units prefer scheduling specific meeting times and locations in the office to ensure the exchange of high-level information, others may prefer more organic workflows. Overall, HPE’s Andover office provides for a more engaged and focused workforce. Employees are happy to come into the office to learn, share and add value to the company’s bottom line.

“Our Andover facility encourages collaboration and teamwork,” Hewlett Packard Enterprise Senior Project Manager Josh Bauer said. “The space really expresses HPE’s vision of being committed to all aspects of service—something Antonio Neri has emphasized as CEO. It’s very comfortable and elegant, and the local workforce loves it.”

In 2018, Whitman was succeeded by Antonio Neri (2018-present) as CEO of HPE. Neri still serves as the company’s chief executive today. HP announced Weisler would be stepping down and returning home to Australia effective November 2019 due to a family health matter. Weisler was succeeded by Enrique Lores (2019-present) as CEO of HP.

From Hewlett-Packard to all its spin-offs, the technology conglomerate has managed to adapt to the everchanging business landscape. Through different generational preferences, economic cycles and political landscapes, Bill and Dave’s endeavor is still alive and well.

View Hewlett Packard Enterprise Chicago project here . View Hewlett Packard Enterprise Andover project here .

Chicago Design Network is officially a certified Women's Business Enterprise (WBE) through WBENC!

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A Case Study of Hawlett-Packard

Profile image of Dr. Joseph  Aluya, PhD (D.B.A.)

The pertinent question was how does HP culture enhanced leadership styles within an organization? What did leadership and learners deduced from the colossal debacle of HP/Compaq merger. In this research and findings what was the HP-Way and what were the glue technologies? Read more here at http://www.jofdt.com/product/a-case-of-hewlett-packard/

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Hewlett-Packard Settles Spying Case

By Matt Richtel

  • Feb. 14, 2008

SAN FRANCISCO — Hewlett-Packard has agreed to a financial settlement with The New York Times and three BusinessWeek magazine journalists in connection with the company’s spying scandal that stemmed from surreptitiously obtaining private phone records.

The parties to the dispute declined to disclose the amount of the settlement, which was reached privately and not as a result of a lawsuit.

The settlement brings to a close one of a few unresolved aspects of a spying scandal that tarnished Hewlett-Packard and brought down its chairwoman, Patricia C. Dunn, and several high-ranking executives.

To trace what Ms. Dunn and others considered disloyal and risky leaks from the company’s board, H.P. retained investigators who engaged in a wide-ranging investigation in 2006. The inquiry involved "pretexting," a practice that had someone pretending to be someone else to obtain private records from phone companies.

Phone records compromised included those of the three BusinessWeek staff members — Ben Elgin, Peter Burrows and Roger Crockett — and the family phone records of The New York Times reporter, John Markoff, and his wife, Leslie Terzian Markoff.

"What H.P. did was an affront to the free press," said Terry Gross, a San Francisco lawyer who represented the reporters for BusinessWeek, part of the Mc-Graw-Hill Companies, their families and The New York Times. "They didn’t like what reporters were writing, and they broke into their private telephone accounts to identify who their sources were."

In a written statement, Hewlett-Packard said it was pleased to have resolved the matter.

Previously, the company agreed to settle a lawsuit by the California attorney general, paying $14.5 million in fines and promising to change its corporate governance practices.

News organizations have customarily been hesitant about pursuing financial settlements with companies or people they write about, wanting to avoid the perception that coverage could be tied to compensation.

In a statement, The New York Times said it pursued a claim against Hewlett-Packard in part to send the message that "corporate misconduct aimed at silencing the press is not acceptable and will not be tolerated." The Times pursued the claim on Mr. Markoff’s behalf, and he did not individually seek compensation.

The Times donated its money from the settlement to groups including the Center for Investigative Reporting and the Investigative Journalism Program at the journalism school of the University of California, Berkeley.

Mr. Gross said the BusinessWeek reporters also planned to give some of their settlement money to charity.

The company still faces five lawsuits brought by other journalists and their families, who assert that Hewlett-Packard used pretexting to illegally obtain their phone records. Those cases, filed together in August 2007 in San Francisco Superior Court, are pending, the plaintiffs’ lawyer, Kevin Boyle, indicated.

Two reporters for The Wall Street Journal were also targets of Hewlett-Packard investigators, but The Journal has said it will not take part in legal action or settlement talks.

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Hewlett Packard Buys EDS Case Study

Case summary.

Hewlett-Packard (HP) is a company that specializes in the manufacture of various electronic devises and provision of technological solutions. The company faces stiff competition from IBM and various Indian companies. The company strives to improve its competitiveness and market share through acquisition.

However, the company has not been successful in improving its competitiveness using this strategy. HP acquired Electronic Data Systems (EDS) in order to improve its competitiveness in the market. When HP was acquiring EDS, EDS had the second largest second largest market share in the tech services market.

IBM was the market leader, with HP coming at a distant fifth (Wheelen & Hunger, 2012). Therefore, acquisition of EDS would have improved HP’s competitiveness significantly. However, the acquisition did not increase the HP’s competitiveness due to various factors.

One of the major factors that reduced the effectiveness of the acquisition is the differences between the organizational culture of HP and EDS. Frequent change in HP’s organizational culture created several problems to the company. Engineering excellence was one of the major attributes of HP.

However, change in leadership of the company led to significant changes in the organizational culture. In addition, the management structure of EDS and HP did facilitate the integration of activities of different highly skilled employees within the organization (Wheelen & Hunger, 2012).

The case provides a clear illustration of the importance of the organizational culture for the success of an organization. The organizational culture is the unspoken code within an organization aids the activities of the organization. Therefore, it is vital for the organizational culture to improve the efficiency of the organization.

The case also shows the importance of change management. A company should ensure that it does not undertake changes that contravene its organization cultures. Carleton Fiorina introduced changes that contravened HP’s organizational culture. This necessitated the employees to undertake drastic changes in their activities. Having efficient change management would have enabled HP overcome some of the problems it was facing (Nilakant & Ramnarayan, 2006).

An organization should have efficient strategic management. Strategic management enables a company to make decision that would improve its efficiency and competitiveness. HP lacks efficient strategic management. Acquisition does not advance the goals of the company. The company should undertake strategic decisions that would improve the company’s identity.

Differences in the organizational structure of EDS and HP created several problems. The organizational culture may empower employees or give more control to the managers of the organization. EDS managers had vast powers, which enabled them control the activities of the employees. On the other hand, HP empowered its employees to enable them perform their activities better. Differences in the organizational structure hindered the integration of the activities of both companies.

Did acquisition of EDS improve the competitiveness of HP?

The acquisition of EDS did not improve the competitiveness of HP. This is because EDS continued to advice clients to buy systems from other vendors. HP should integrate EDS activities into HP’s operations. In so doing, the company will use the EDS expertise to improve the sale of its systems. However, HP has not integrated the activities of EDS into its activities.

Should managers consider the organizational culture of a company before acquisition?

Organizational culture is one of the most important factors that determine the success of a company. Manager should consider the organizational culture before acquiring a company. This is because clash in the organizational culture may pose several problems to the acquisition. It is critical for an organization to have efficient change management. This would guarantee the success of various changes within the organization.

Nilakant, V. & Ramnarayan, S. (2006). Change management: Altering mindsets in a global context . London: SAGE publications.

Wheelen, T.L. & Hunger, J.D. (2012). Strategic management and business policy: Toward global sustainability , thirteenth edition. Boston, MA: Pearson.

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IvyPanda. (2020, April 30). Hewlett Packard Buys EDS. https://ivypanda.com/essays/hewlett-packard-buys-eds/

"Hewlett Packard Buys EDS." IvyPanda , 30 Apr. 2020, ivypanda.com/essays/hewlett-packard-buys-eds/.

IvyPanda . (2020) 'Hewlett Packard Buys EDS'. 30 April.

IvyPanda . 2020. "Hewlett Packard Buys EDS." April 30, 2020. https://ivypanda.com/essays/hewlett-packard-buys-eds/.

1. IvyPanda . "Hewlett Packard Buys EDS." April 30, 2020. https://ivypanda.com/essays/hewlett-packard-buys-eds/.

Bibliography

IvyPanda . "Hewlett Packard Buys EDS." April 30, 2020. https://ivypanda.com/essays/hewlett-packard-buys-eds/.

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