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Hp Leadership

In: Business and Management

Submitted By SakshiD
Words 555
Pages 3
Hewlett and Packard(HP) was started in 1936 by two electrical engineers from Stanford University, William Hewlett and David Packard in a garage. It started as an electronic measuring and testing instruments company and then it expanded into imaging, printer, personal computer and technology business. Traditionally when the company was under the CEO John Young in 1978, it produced wide array of products and managed to shine out as the market leader in printer business but then gradually its growth became stagnant due to various reasons.

The organizational structure was too decentralized and complex. At that time HP had more than 130 products, which were managed by multiple divisions. These divisions lacked coordination thereby wasted time and effort in duplication of resources. Since they did not make most of the e-business revolution, companies like IBM and Sun Microsystems gained advantage over them. Their inability to cope with the changing conditions in the industry and recession in US by the end of 1990s had a further negative impact on their growth.

In order to bring about changes in the organization, Carly Fiorina was appointed as the CEO in 1999. She had a clear vision and she concentrated on marketing to increase the company's profit. She restructured the organization by dividing the firm into 4 groups with 2 groups focusing on sales for business and customers and other 2 for manufacturing for each printing business and personal computer and IT business. While under her leadership the issue regarding lack of clear direction and complexity of the organization structure improved, there were numerous other issues, which eventually led to decreasing company's revenue.

The biggest mistake made by Fiorina was merging HP with Compaq. There was never any real synergy in this merger from the beginning and after the merger also Fiorina could not effectively

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