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Final Team Case EssayCase orbitCo-Founders Dave Packard and Bill Hewlett started Hewlett-Packard (HP) in 1939 inside a small one(a) car garage behind Packards folk. The two finished their studies as voltaical engineers at Stanford University in 1934 and became close friends. They decided to start their take in communication channel and defend a run for it, formalizing their partnership January 1, 1939. (The HP Way). They decide the caller- aways severalise with a coin toss that one car garage became the office of Hewlett-Packard. At the clock time it was started HP had $538 in oeuvreing capital and little more than a couple hundred dollars worth of assets. It was in that garage that HPs legacy was born, when Bill and Dave bring aboutd the commencement exercise HP return the Audio Oscillator HP200A. future(a) the invention of their first product, the pair moved into a small building down the street from their famed garage and hired their first employees. Walt Di sney Studios placed an order for eight HP 200B audio oscillators for the movie FantasiaHPs first big sale. (High technical school Winning Success In Silicon Valley).A nonher milepost was r each(prenominal)ed in 1940 when HP sent out its first ever Christmas aid in the amount of $5. This Christmas bonus set the tone for all bonuses to come, as it quickly turned into a yield bonus and curtly helped to shape the lodge wide profit sharing plan that HP adapts. In 1942 HP builds its first ever company owned building, and in order to protect themselves build it so that it dope be easily converted to a convenience store should the electronics industry fail. One of the most important milestones for the company was reached in 1947, as HP became a true Corporation. HP also caught attention for their Management by Walking Around and Open Door Policy programs. In 1957 HP had its initial public crack of stock and wrote their first set of corporate objectives, which set the tone for their man agement style as a company. In 1958 HP made its first sizeable acquisition when they leveragingd F.L. Moseley Company, which further expanded their product line. (Maddox).The late 50s and 60s were an extremely important time for HP as a company as it was during this time that they became a global company by building a manufacturing plant in Germany. It was also during this time that they created their Division Separation structure where they separated profit and prejudice accountability surrounded by divisions. This division was thought to help keep employees nimble line fostering motivating and creativity. During the 60s HP further developed itself by entering into the medical field with the purchase of Sanborn Company. They also had their stock listed on the New York and peaceful Stock ex replaces and were listed in Fortune 500s prime companies at 460. It was also during the 60s that HP created its first computer, which was used in house to control company tests. HP also cr eates their first scientific calculator around this time, which also gained tiny success. Further helping promote HP products Dave Packard was appointed U.S.Deputy Secretary of Defense in 1969. In 1977 John Young became president of HP replacing Bill Hewlett. In the early 80s HP took much more interest in the ain computing industry as it was during this time that they create the first mass food merchandiseed personal computer. They also enter into creating correspondents for use with their personal computers, the printers HP render during this time set the standard for the direction in which printers would evolve. In 1987 Bill Hewlett retired as vice hot seat of the board of directors, his son Walter Hewlett and David W Packard (son of Dave Packard) step up to take his place. In 1992 Lew Platt became HP president and chief operating officer who was the first president and CEO of HP to not be a member of the Hewlett or Packard family.In 1993 Dave Packard relinquishes his chai r of the board of directors position to Lew Platt. Possibly one of the most damaging eveningts hits HP in 1996 when Dave Packard one of the original founders dies. In 1999 Carly Fiorina change by reversals President and CEO of HP. In 2002 HP merged with Compaq Computer. This amalgamation created an $87 billion entity which operates in more than 160 countries and has almost 150,000 employees. (Dykman, Davis, Lamb). Quite a change from a company which 70 years ago started in a 1 car garage trail with 2 college kids who had $500 to take to the woods with (Hewlett Packard Company) Today, HP provides consumers a wide range of products and services from digital photography to digital entertainment and from computing to home printing. This comprehensive portfolio helps the company match the right products, services, and solutions to their customers specific admits.Hewlett-Packards Vision StatementWe strive to improve the environmental exercise of our customers, our supply chain, and our own operations. We give muckle the tools and solutionsto build a better today while preparing to address the challenges of tomorrow.MottoPurpose StatementTo wiz in the marketplace by developing and delivering useful and innovative products, services and solutions.Mission Statement commit to global responsibility by being economic, intellectual and a complaisant asset, demonstrate commitment to our employees by promoting creative work that reflects our evaluates, and earn customer respect and loyalty by consistently providing the highest quality and value while achieving finance growth.Values StatementHPs values embody the qualities, beliefs, and principles that testament ensure disposalal success. It is unavoidable that people work to buzz offher in unison toward common objectives and avoid working at loanblend purposes at all levels if the ultimate in efficiency and achievement is to be obtained.-Dave Packard Trust and respect for individualsWe work together to create a culture of inclusion built on trust, respect and dignity for all. exploit and contributionWe strive for excellence in all we do each persons contribution is critical to our success.Results by path of teamworkWe efficaciously collaborate, always looking for more in effect(p) ways to serve our customers.Meaningful creative activityWe argon the technology company that invents the useful and the signifi movet.Uncompromising integrityWe are open, honest and direct in our dealings. anesthetise StatementIn order for the company to remain one of the worlds leading producers of the modish technological advances, HP must face the following issues head-on 1. Their ability to remain a covering fire tier leader in the technology industry through innovative products 2. Strive in conflict the continued needs of various shareholders by change magnitude HP shares 3. Maintain customer loyalty by producing quality yet reasonable prices and exemplarilycustomer service4. Finding ways to re duce our global stride worldwide through advances in green solutions Management Question What does CEO, Meg Whitman, need to do to restrain and recommit HP to the PC barter and reintroduce products her predecessor discarded?Stakeholder Analysis* Communities* Customers* Employees* Investors* Legislators and regulators* Nongovernmental organizations (NGOs)* Suppliers* UniversitiesStakeholder Expectations and Expectation(See let on 1.1)Stakeholders Key IssuesWith the unwavering success of pertly entrants into the market HPs stakeholders main issue is their ability to be innovative and competitive in the market. Competitors such(prenominal) as Apple has gained a signifi firet competitive public assistance in the technology industry forcing HP to evaluate how they do business. SWOTSStrengths* Hewlett-Packard (HP) is a global provider of personal systems, imaging and printing products, and technology solutions. * It is the largest player in the inkjet and laser printer market. * HP is also one of the market leaders in the global PC market. * HP has a very strong scattering Hewlett-Packards primary strength is its business position. The enterprise has a large amount of cash in hand about $10 billion. * Hewlett-Packard is a global enterprise and especially after its merger with Compaq, the company became worlds biggest computer hardware and peripheralsconsort in the world and has ranked 20th in the Fortune 500 list.* Hewlett Packard is operating in more than 170 countries including both developed as easy as under-developed. * Being a global dealer of computer hardware, it gives HP many advantages handle imposing printers market, both laser and inkjet. The company attracts and focuses on consumers from even raw(a)ly found markets all around the world, multinational corporations, non-governmental organizations etc. * The company competes both at local and international level. * It has increased its competitiveness through policies and strategies that suppor ts free-market economies. * HP is a leading supplier in the growing IT markets.Weaknesses* HP uses the Windows platform in all its I-PAQ phones. Incidentally, I-PAQ phones prepare been much criticized for not being very Windows friendly in a lot of user forums. * The softness to react quickly to changing market conditions and demands is a weakness of HP. * The company was in a broad term debt for many years which kept it from investing in different growth opportunities. * The touch pads of the notebooks of Hewlett Packard like the dv series, dm3, and Envy lines needs improvement. These touch pads are either finicky, unreliable, or are difficult to use because of friction.* The blow buttons on various HP supplied machines are said to be clumsy to use, too. * Poor shelling action of HP products plagued some mainstream systems and net books. * The past acquisition of Peregrine made the HPs portfolio even more diverse and complete but HP Open Views lack of do byor management capa bilities created several problems. * Another weakness was that it did not yet hit a CMDB product that includes husking and mapping. This cause many customers to switch the brand.Opportunities* Expansion in alternative client computing architectures and other emerging mobile computing devices gives a good opportunity for HP. * The mobile phone market is forecasted to grow tremendously. * The radical(a)-fashioned acquisition of EDS puts HP at a strong position in the computer market and makes it portfolio more impressive. * Hewlett-Packard was able to generate large number of revenues and profits from its different deals andraised more than half dozen billion which it can use to pay off its debts as well as invest in different research and development activities. * If the products by the company are supplied at reasonable prices, thither will be more chances of growth as the demand would increase. * The company has formed Customer Solutions Group that helps in selling the comple te IT solutions, products and services by HP.Threats* Hyper-competitive environment Companies such as Dell, Toshiba, Lenova Group and Acer are formidable competitors for HP. * It competes in terms of price, brand, quality, technology, distribution and range of products, among other factors. * Other mobile operating systems such as Symbian, iPhone, and Linux are on the rise and they too pose a little terror to HP. * Operating in global market means many competitors and therefore, the company has to be at the forefront of changing technologies as well as addressing the changing customer demands and needs. * The global economic recession is also a threat for the companys sales and profits. The prices have also fallen as the stock markets are at historic low positions. * Many other competitors including Dell are entering the printer business whereas IBM has become a market leader.3. Organizational Design AnalysisDivision of Labor in the Ambidextrous Orgainzation constituent(a) charact eristics such as decentralization and employee freedom are excellent for initiating ideas, but these same conditions often make it hard to implement a change because employees are little likely to comply. Employees can ignore the innovation because of decentralization and generally loose structure. HP has such problem and it is necessary to overlay the two-faced come near, which speaks to arrest structure and management process that are appropriate to both creation and the murder of innovation.The ambidextrous approach looks at HPs design elements that are important for exploring new ideas versus the design elements that are most suitable for exploiting HPs menstruum capabilities. Exploration means encouraging creativity and developing new ideas, whereas exploitation means implementing those ideas to produce terrene products. HP can be knowing to behave in an organic way for exploring new ideas and in amechanistic way to exploit and use the ideas. Research under HP could use an ambidextrous approach by designing for both exploration and exploitation perform better and are importantly more thriving in launching innovative new products or services.Through research, using this sit down as an overlay, HPs creative department should use the organic structure to expand its capabilities such as cut their global worldwide footprint through advances in green solutions. The economy of China has been growing at a robust rate since last few years. Chinas new-fashionedly released five-year plan signifies a new signifier of growth through the expansion of domestic consumption, driving a low-carbon economy, fostering innovation and achieving balanced social and economic growth (Datamonitor PLC, 2012). The growth of HPs mobile tablet PC market, entry into the smartphone market expects to grow strongly in the coming years. The growth is expected to be driven by the demand from the US and Asia Pacific regions.In 2010, the market was led by the North American regio n with approximately 35% market share. By 2014, Asia Pacific region including China expects to lead the tablet PC market (Datamonitor, 2011). In February 2011, HP launched the HP TouchPad, a 9.7-inch tablet PC that runs on webOS 3.0. The company plans to make available this product in the coming months. The companys increased focus on the tablet PC segment will enable it to benefit from the growing market (Datamonitor, 2011). HP entered the smartphone market with the acquisition of manage, a provider of smartphones powered by the Palm WebOS mobile operating system, in July 2010.The launch of new smartphones with an updated version of WebOS will enable the company to in effect compete with each other players in the market, including Apple and Google (Datamonitor, 2011). In addition, provide the healthcare markets with products beyond the capabilities of their competitors. HP has been focusing on providing healthcare solutions in recent times. In January 2010, the company and McKesso n collaborated to work on electric health record (EHR) adoption at independent physician practices. HPs solutions targeting healthcare sector will enable it to increase its revenues in the company years (Datamonitor, 2011).The creative department could use an organic structure to search anddevelop new ideas to face intense competition from Apple, RIM, and Nokia. Under an organic structure, HP will be able to react quickly to those competitors having a positive effect on revenues and profitability of the company in the long run.Looking at the mechanistic structure HP could exploit capabilities and apply routine implementation of innovations. An example of this looks at HP leading market position in the global printers market. HP ships more than one millions printer per week. Strong market position in various market segments provides economies of scale for the company, including increasing their customer base (Datamonitor, 2011). The Four Types of Change Provide a Strategic private- enterprise(a) W boundary Managers can focus on four types of change inwardly organizations to achieve strategic advantage. These four types of change are technology, products and services, strategy and structure, and culture. These factors provide an overall context within which the four types of change serve as a competitive wedge to achieve an advantage in the international environment. HP has an unique configuration of products and services, strategy and structure, culture, and technologies that can be focused for maximum impact upon the its chosen markets.Technology changes are changes in an organizations achievement process, including its knowledge and skill base, that enable distinctive competence. These changes are designed to make production more efficient or to produce greater volume. Changes in technology involve the techniques for making products or services. They include work methods, equipment, and workflow. In the case of HP, the competitive-intelligence (CI) chief of HP has focused his intention to offer free shipping for printer cartridges, its development of print status monitor software which will prompt customers to purchase replacement cartridges, and numerous technical specifications. Only but a few minor errors, the CI team had nailed everything prices, specs, software expatiate (Varchaver Burke, 2007).Products and services changes pertain to the product or service outputs of HP. New products and services are normally designed to increase the market share or to develop new markets, customers, or clients. If correctlyapplied, HP can bring together existing technologies in a new way to serve a new market. HP has a broad product portfolio. HPs services segment offers consulting, outsourcing and technology services across infrastructure, applications and business process scene of actions. Its services encompass the data center and the workplace (desktop) network and communications and security, compliance business continuity warranty s upport technology consulting and systems integration solutions (Datamonitor, 2012).Strategy and structure changes pertain to the administrative domain in an organization. The administrative domain involves the supervision and management of management, policies, rewards systems, labor relations, coordination devices, management information and control systems, and accountancy and budgeting systems. Strategy, structure, and systems changes are usually top-downthat is, mandated by top managementwhereas product and technology changes often come from the bottom up. To make the strategy successful, they identified a new set of key performance metrics to track how effectively the company was meeting goals of competitive costs, high quality, and great service. This change also proved to be successful in the long run.A culture change refers to changes in the values, attitudes, expectations, beliefs, abilities, and behavior of employees. Culture change pertains to changes in how employees th ink these are changes in mindset rather than technology, structure, or products. Culture change can be particularly difficult because people dont think their attitudes and beliefs easily.The four types of change are interdependent a change in one often means a change in another. The structural change was an operation of the technology change. HP is an independent system, and changing one part often has implications for other parts of HP. Porters Competitive Strategies- Michael E. Porter studied a number of business organizations and proposed mangers can make the orgainzation more profitable and less vulnerable by adopting either a note strategy or a low-cost strategy.Appling a low-cost leading strategy means managers subscribe to to compete through lowercosts, whereas with a differentiation strategy the orgainzation compete through the ability to offer unique or distinctive products and services that check a premium price. Each strategy can vary in scope from broad to narrow. T hat is, an organization can choose to compete in many market and customer segments or to focus on a specific market or buying group.Appling this model to HP revels the organizations focuses on low-cost leading strategy with a broad scope where HP provides goods and services to customers at cheaper prices. HP uses the low-cost strategy with their printer / copier product line where tight controls to produce products more efficiently than its competitors.Low-cost leadership strategy using a broad scope is concerned primarily with stability rather than pickings risks or seeking new opportunities for innovation and growth. For HP, this means it can achieve higher profits than competitors because of it can efficiency and lower operation costs. Also, this strategy puts HP in a better position to forbid loss of market share. 4. Identification and Evaluation of Alternatives1. Encourage technology change by using skunkworksPros Focuses on breakthrough ideas for HPGive highly talented emplo yees time and freedom to keep HP on the cutting edgeThis group could be highly autonomous and secretive while creatingCons May create a subculture under HPs visionRisk of skunkworks wasting resources and come away with nothing to showIdeas whitethorn be behind competitors organizations skunkworks teams2. Empower employees through the bottom-up approachPros Employees are motivated to figure out the scoop out ways to get their jobs doneSupports the right culture that drive high performanceEmployees at all levels feel part of the vision / change or the organizationCons Employees ideas could go nowhereIdeas could get lost between the layers of managementEmployees may become focused on looking for shortcuts in the process 3.Discover a distinct pattern of tailoring innovations to customer needs by using the level Coordination ModelPros Increases the amount of new product developmentImproves the different possible developed productsGives HP the edge in meeting customer needs and circumv enting manufacturing / marketing ideasCons If not properly applied, the connections is lost between employees and customersIf not properly applies, the coordination between departments are not sharedMust be driven by top managers to function well5. Recommended Alternatives- Based on the models and discussed alternatives, I recommend HP will be best able to adapt to the changing external environment by proceeding with the Horizontal Coordination. This means HPs technical, marketing, and production employees share ideas and information. All departments would have a say if / when a product gets introduced in the market. Specialization means every department are highly competent at their own tasks. Boundary spanning means each department under HP vision will be linked with involvement on new products and has an excellent linkage with relevant sectors in the external environment. Under boundary spanning, employees are aware of recent scientific developments and personnel are closely link ed to customer needs. Horizontal coordination stresses the importance of sharing ideas between technical, marketing, and production.I would not recommend using skunkworks or the bottom-up approach. Skunkworks has a great possibility of developing a subculture that may not support HPs overall vision. Using the bottom-up approach may go dry after employees discover their ideas are going unnoticed or getting lost while traveling through the layers of management.6. Implementation and ConclusionElements for Successful Change- Regardless of the type or scope of change, there are identifiable stages of innovation, which generally occur as a sequence of events, through innovation stages may overlap. For a change to be successful implemented, HPs mangers must make sure each element occurs in the organization. If one of the elements is missing, the change processwill fail. 1. Ideas. Change is an outward expression of ideas. Ideas can come from within or from outside the organization, 2. Need. Ideas are generally not seriously considered unless there is a perceived need for change. A perceived need for change occurs when managers see a gap between actual performance and desired performance in the organization. 3. Decision to adopt.The decision to adopt occurs when managers or other decision makers choose to go ahead with a proposed idea at HP. 4. Implementation. Implementation occurs when HPs members actually use a new idea, technique, or behavior. Materials and equipment may have to be acquired, and workers may have to be trained to use the new idea. This is the most difficult part for HP. Until people use the new idea, no change has actually interpreted place. 5. Resources. Change does not happen on its own it requires time and resources, for both creating and implementing a new idea. Employees at HP must provide energy to see both the need and the idea to meet that need.In conclusion, strong market position in various markets segments provides economies of scale for t he company, besides increasing its chance of triumphant customers. However, intense competition will adversely affect the revenues and profitability of the company in ling term (Datamonitor, 2011).Works Cited1. Daft, R. (2010). Organization Theory Design. (11th ed.). Mason, OH South-Western, Cengage Learning. 2. Datamonitor. (2011). Hewlett-Packard Company3. HEWLETT-PACKARD COMPANY Palo Alto, California. (2008). Microwave Journal, 51(7), 120-126. 4. Hewlett Packard Company. 2007 November 19. 30 March 2008 http//www.thocp.net/companies/hewlett_packard/hp_company.htm. 5. High Tech Winning Success In Silicon Valley. (1984). Ebony, 40(1), 37 6. (n.d.). Retrieved from www.hp.com/go/history