Free Essay

Culture Changes

In: Business and Management

Submitted By mandeejones2013
Words 551
Pages 3
HRM 87

Companies must evolve throughout the years to stay in business. They must keep up with technology demands, changes in the economy, as well as cultural changes when there is change in leadership. This paper is going to discuss. The changes that Home Depot and Hewlett Packard has gone through when they change the Chief Executive Officers and how it impacted the companies positively and negatively. Hewlett Packard announced in 2011 that they were replacing the then CEO Leo Apotheker with former EBay CEO Meg Whitman. [ (Chan, 2011) ]According to Whitman, “HP is investing in innovation, bringing cost in line with revenue, improving profits, lowering debt, optimizing cash flow, and exceeding financial performance.” [ (Takahashi, 2013) ] Instead changing the way that HP did things when Apotheker was CEO, Whitman seems to tweak the way HP will improve their businesses by investing more in business printers rather than expanding into tablets and smartphones as their competitors have done.
Home Depot replaced CEO Robert Nordelli with Frank Blake in 2007 and is reported by Reuters an improvement in the culture of the business. When Nordelli was CEO Home Depot would focus on metric c sales b y making sure that the stores would all carry the same merchandise rather than allowing the stores to order what they need. In other words, if a store sold double the snow shovels than water hoses but another store sold more water hoses than snow shovels, under Nordelli both stores would carry the same number of both regardless what sold more. Now with Blake the stores are able to order what merchandise they need so if store sells more snow shovels the employees have the ability to order as much as they need [ (Jacobs, 2007) ]. Under Blake’s leadership Home Depot have grown and exceeded goals 10 percent operating profit and 15 percent capital investment. They accomplished this with Blake’s plan stores are focused “60 percent of store hours devoted to customer service and 40 percent completing tasks. [ (Blake, 2013) ]

The approaches that the Hewlett Packard and Home Depot are vastly different while Hewlett Packard seems to slowly turning around by tweaking the previous CEO’s plan but still many are unsure that Whitman can truly change Hewlett Packard into growing. While Home Depot seems to be thriving of the change of the New CEO and making sure that they are meeting the customer’s demands

Bibliography
Blake, F. (2013, march 28). http://www.homedepotar.com/. Retrieved July 15, 2013, from www.homedepot.com: http://www.homedepotar.com/
Chan, E. (2011, September 22). http://www.huffingtonpost.com/2011/09/22/meg-whitman-hp-ceo_n_976597.html. Retrieved July 14, 2013, from www.huffingtonpost.com: http://www.huffingtonpost.com/2011/09/22/meg-whitman-hp-ceo_n_976597.html
Jacobs, K. (2007, March 16). http://www.reuters.com/article/2007/03/16/businesspro-homedepot-culture-dc-idUSN1641327420070316. Retrieved July 14, 2013, from www.reuters.com: http://www.reuters.com/article/2007/03/16/businesspro-homedepot-culture-dc-idUSN1641327420070316
Takahashi, D. (2013, may 22). http://venturebeat.com/2013/05/22/meg-whitman-says-you-can-feel-the-turnaround-taking-place-at-hp-but-not-at-dell/. Retrieved July 14, 2013, from www.venturebeat.com: http://venturebeat.com/2013/05/22/meg-whitman-says-you-can-feel-the-turnaround-taking-place-at-hp-but-not-at-dell/

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