Hp business case

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HEWLETT-PACKARD
CULTURE IN CHANGING TIMES
NEREA ESCRIBANO MS in Corporate Communication • TRACOR The Communication Arts Institute • November 15, 2011

Nerea Escribano • email:nerea.escribano@mac.com

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HEWLETT-PACKARD

CULTURE IN CHANGING TIMES

What are Hewlett-Packard traditional values?
For almost sixty years of its history, Hewlett-Packard’s (hereafter, HP) traditional valueswere a STRONG CORPORATE IDENTITY and EMPLOYEE LOYALTY, the spitting image of its owner’s values:
PROFITS

&

PEOPLE

“THE HP WAY” - Profits - Teamwork - Open door management - Full employment -Egalitarian pay practices - Flexible work hours

Are there any contradictions in their culture, strategy and business environment?
HP sold primarily test and measurement equipment for its firstfour decades, based on leadingedge technology developed inside the company, and these products provided high profit margins.. During nearly six decades, from 1930’s to mid 1990’s, HP expanded its rangeof products: it had launched computer and printer products in 1970‘s and started building lower margin PC’s in 1980’s. In my opinion, it was in late 1990’s when contradictions between culture andstrategy started to flourish: instead of economic and cultural implications, HP decided to focus on PC’s market. This decision was made (according to dates in the business case) when Lew Platt hold bothchairman and CEO positions, and while he hadn’t clearly defined HP’s strategic future. At this time, there were two shifts in industry dynamics, which force to the companies in the sector to rethinkstrategies and organizations. First, the number of mayor buyers looking for suppliers to provide technology solutions grew up; and in second term, the growth of the internet forced suppliers to developand sell products

Nerea Escribano • email: nerea.escribano@mac.com

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according with this new technology. Here it is were it seems to me that the contradiction between culture and business...
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