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    Hp women ceo Hp women ceo Presentation Transcript

    • Structure & Strategy change by the CEO of HPBuss402(03) Strategic ManagementYi Yong Sup
    • Article Introductionhttp://www8.hp.com/us/en/hp-news/press-release.html?id=1212480BUSS402(03) Strategic Management
    • Article explanation1. rationalize HPs go-to-market strategy, branding, supply chainand customer support worldwide2. better customer experience and drive innovation acrosspersonal computing and printing3. cost savings and accelerate HPs ability to pursue profitablegrowth and reinvest in the business What’s the benefits?speed decision makingincrease productivityimprove efficiencyRevenue $65 billionNet income $6.3 billion51% of total HP RevIPG(Imaging & Printing Group)PSG(Personal Systems Group)PPSG(Printing and Personal Systems Group)TSG ReasonBUSS402(03) Strategic Management
    • CEO Change at HPJohn Young(1978~1992)Lewis Platt(1992~1999)Carly Fiorina (1999~2005)Mark Hurd (2006~2010)HP Way New HP Way60years 3~4 CEOsBill HewlettDave Packard(1939~1978)13years 7changeAverage term = lower than 3 yearsLeo Apotheker(2010~2011)Meg Whitman (2011~)BUSS402(03) Strategic Management
    • StructureComplex and lots of commissions existDeveloping the new productNeeds to pass through 38 commisionsSpeed is not fastOnly Technology-orientedToo much autonomyHP WayRespectof human, Creativity, Development5Core ValuesTrustAchievement and contributionHonestyCommon goal achieve through teamworkFlecibility and innovationMBWA : management by wandering aroundCEO visit the field, open communicationProvide employment stabilityTeam base job evaluationHigh levels of wage benefitsMinimize Discriminatory benefitsProfit distribution, reward system base on the teamSince the 1930s, No staff layoffsAt crisis of 1980s all staff salaries reduce about 10%BUSS402(03) Strategic Management
    •  Structure ChangeHP Compaq M&AMake Clean room CITLayoff 6,000 and 3 management level staffDismiss 16,000 employees4 big groups and 83 divisions2 back-end division + 2 Front-end division 12 product groupHired 24,000 consultant2005 integrated the IPG and PSGCarly Fiorina (1999~2005)New HP WayExpert of Marketing, Information & CommunicationAT&T personal communication representativeAchieve global service growth 8->60%First HP outsider CEOProduct centric ->Customer needs diversifyCorresponding at unpredictable environmentFocusing all the capabilities at new technology developmentTechnology-orientedKey strategy was E-Service Quick decision makingSimplify the operating organizationsSimplify property staff and MMS staffReinvest it in customer service and R&DBad relationship with BODBUSS402(03) Strategic Management
    • Mark Hurd (2006~2010)2008 EDS M&A2009 3Com M&A2010 Palm M&A Ethical issueScandal with Marketing contractorTry to hide it but…Very diligent personMild naturePublic-friendly ownerBOD and staff supportLeading the company revenue peakedBut…Also layoff 15,000 employeesBack to HPSeparated PSG, IPG divisionAlso separated the sub divisionsex) handheld notebookFocusedRecovery of the mental stability of the organizationBUSS402(03) Strategic Management
    • Leo Apotheker(2010~)Make SAP No.1 at the software applications marketExpert of softwareReorganizationLimited careersCost reductionSend Ann Livermore to the BODDismissed Pete Bocian, Randy Mott who was the executive vice presidentChange 4 BODEach division officer report directly to the CEOSale PC business of HPAbandon Mobile BusinessM&A of ‘Autonomy’ software developerStop making Tablet PC, OS of Smart phoneReasonSales high but the profit is lowMove toSoftware information industrySoftware,40PC, 30Printer, 30Software,40, 0Printer, 30BUSS402(03) Strategic Management
    • Expectationis highEbay CEOExperienceRespect the staffHas a warm smileComfort, attractive CashcowPC and printer profits are getting lowerMarket growth speed start to slow downGrowth rate of the division decreaseGlobal market share 16% (3% reduction) RestructuringUntil 2014, plan to dismiss 29thousand peopleESSN (Enterprise server, storage, network)TS (Technology Service)EG(Enterprise Group)Meg Whitman (2011~)2014 R&D IT will show the effect2016 HP will start growing againBUSS402(03) Strategic ManagementConcentrating at Service & Consulting
    • Takeaway1. Strategy should fit with the Structure.Strategic change should be follow by Structure Organizational Structure DesignFit is the most importantFit with the Core valueFit with the Environment changeFit with the Principle, Policy, Practice‘Structure follows Strategy’ Alfred ChandlerBUSS402(03) Strategic Management
    • 2. Consideration of culture and core competences1. Conflictby GE management styleTraditional Home DepotEntrepreneur, decentralized organizational culture formed over decadesCustomer-Centric approach2. Nardelli personal natureNeglected employees and shareholdersOfficers fired and hired executives from GEPart timer employment increase3. Growth StrategyPursue excessive process-centric wholesale business modelCost saving by the lowering the quality of customer serviceEmployees’ look Nardelli as a destroyer of the traditional culture of Home DepotBUSS402(03) Strategic ManagementNardelli (2002. 12 ~ 2007.1)Revenue increase $45.7billion $90.4billionNet income $2.5billion $5.9One of the most promising CEO in USTakeaway
    • Home Depot Core competenceBuilding a partner relationship with DIY customers and builders(who are the core customers)Customer Service staff sincerely supports the customer by helping their worksChaotics Philip Kotler 20091. Talent fired2. Reducing the investment at R&D3. Crisis avoidance4. Stop developing new products5. Cost saving rather than Growth-oriented6. Evacuate at Emerging market7. Except innovation at key strategy8. Change performance indicators9. Hierarchy than Cooperation10. Block external consultingBUSS402(03) Strategic Management10 Mistakes Company make at the crisisPursuing EfficiencyService cutsStaff replacementOrganizations such as the army
    • HP is having a hard time to recover their cultureTraditions and Values of the company have collapsedIt hard to rebuild it.Designing the structure at HR officeThey can think its ideal or optimal structureBut it has gap between real lifeBUSS402(03) Strategic ManagementIdentity CrisisStructure Design
    • 3. CEO’s ability, personality is important (ethical issues)CloseLeadershipStrong attitudeMediation of attitudeFeel, behave, and perform in accordance with the attitudeDistantLeadership:Bypass & Cascading ModelsBypass-DistantWeak attitudeNo mediation of attitudeCascading DistantStrong attitudeMediation of attitudeSimple structure – functional structure – Multidivisional StructureBUSS402(03) Strategic ManagementCognitive Elaboration Model of Close and Distant leadership
    • Thank You