MBA 6356 Individual Case Assignment Paper: HP Company (Case Study Sample)
MBA 6356 Individual Case Assignment Preparation Guidelines
1. Identify the problem
2. Determine the nature of the problem or the learning issues in the case
3. Analyze the situation quantitatively and qualitatively
4. Generate or describe alternatives
5. Establish or communicate the decision criteria
6. Select the preferred alternative and predict the outcome
7. Briefly outline an action and implementation plan
8. Identify relevant missing information (if any), and
9. List the assumptions made during analysis.
HP ENTERPRISE GROUP IN 2015:
IGNITING ORGANIZATIONAL TRANSFORMATION
At any given point in time, most large corporations are going through some form of
transformation, large or small, to stay competitive. And most corporations lack an independent,
integrative function that can relentlessly help execute these transformations.
—Arun Chandra, SVP of Business Operations, HP Enterprise Group, May 26, 2015.
INTRODUCTION: SPLITTING HP IN TWO
In early 2015 HP was in the middle of a five-year turnaround effort, and in October 2014 the
company had announced it was splitting the $111 billion, 75-year old company into two
independent, publicly traded companies. HP Inc. (HPI) would be comprised of the Personal
Systems and Printing business segments, while Hewlett Packard Enterprise (HPE) would include
the Enterprise Group (enterprise technology infrastructure and technology services), Enterprise
Services (consulting and outsourcing); Enterprise Software; and Financial Services. The split
came out of HP’s desire to act with greater speed and agility so it could better compete in an
environment in which technology, market, and customer expectations were rapidly changing.
Antonio Neri, Senior Vice President and General Manager of HP’s Enterprise Group, explained
why speed mattered so much for HP: “The market is changing tremendously, and the separation
is important to give us the ability to be nimble and make faster decisions. HP was not a company
that was recognized for making quick decisions in the past but we are changing that. We have
all the assets and the elements to deliver against what the customer needs, but we have not been
good about putting it together in a way that the customer can always see the full value of our
portfolio.”1
Author’s Name: ____________________
Institutional Affiliation: ______________
Problem Identification
The problem was defined by Vice President of HP that, HP was never known for making a quick decision, but the market environment changes rapidly and customers’ needs are also getting changed rapidly. However, HP is unable to address the emerging requirements of customers effectively.
Nature of Problem
Basically, portfolio size of HP creates a problem because HP has to compete with different companies of various relevant products and services. Different businesses like printing, imaging and PC create different threats and increase the challenges of HP management because it has competitors like Lenovo, Xerox, and Canon. On the other side, HP competes with market giants like IBM, Dell, Cisco, and EMC.
Analyze the Situation Quantitatively and Qualitatively
It became difficult for HP to compete in all spheres and maintain both quality and quantity. So, in the year 2014, HP announced to split up into two segments. Number one is HPI (Hewlett Packard Inc.) which deals with the personal computer system, while HPE (Hewlett-Packard Enterprise) deals in technology services and infrastructure of technology. The split of HP was done in great urgency to increase its performance in decision making and to react quickly to market changes. Furthermore, the HP divide revealed the growth in the quality; HPI deals in PC, imaging, and printing and competes with companies like Canon, Lenovo, and Xerox. On the other side HP Enterprise deals in company’s technology and infrastructure to compete companies like Dell, IBM, and Cisco. This split of the company made it easier to compete with different organizations separately and it also increases the sales quantity up to $ 950 million initially.
Describe Alternatives
Management of HP takes an alternative to split HP into two public companies to take quick decisions concerning changes occurring in the marketplace and customer behavior in order to give hard times to a couple of competitors like Dell, Cisco, and IBM. Furthermore, the company classified the sales in different regions which added value in resolving the sales issues and different officials in different zones took up their duties and ultimately sales became streamlined.
Decision Criteria
Decision criteria was based on factors like competitiveness, knowledge of different organizations, and market share strike. The decision of sales was based on the division of sales regions in America, Middle-East, Asia-Pacific, Africa and Japan. This became easier for HP to compete in different markets separately and take quick and safe decision for that particular market. It is important to mention here that the contribution of line managers was significant in decision-making.
Preferred Alternatives
Alternatives like the division of a market into specific regions cause the demand of induction of the workforce. HP also made separate decisions about their market situa...
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