Reorganization of Hp: Carly Fiorina's Change Era

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Reorganization of Hewlett-Packard: Carly Fiorina’s Change Era

Tuesday, February 17, 2015

MGMT 6320: Leading Organizational Change

I. Background and History of Organization
Nature of Products and Industry
Hewlett Packard (HP) is a leader in the computer industry. HP started as a test and measurement company, however, the company began selling computers and printers in the 1970. The computer industry started to grow in the 1990s due to the growing popularity of personal computers and the introduction of the internet. While the test and measurement equipment remained one of HP’s business products, computers and printers became HP’s main source of revenue because of the rapid growth in the computer industry.
HP’s products are all innovative and fairly new to the public market. This allows HP to have a large market share in its industry. However, HP is also vulnerable because competitors will start making competing products. HP could lose market share if it does not continue to be innovative with its current products and creating new products. This is shown throughout HP’s history.
Age of Organization and History
Bill Hewlett and Dave Packard created HP in 1939. Quickly, HP became known for its management procedures and innovative products. Mr. Hewlett and Mr. Packard created a cultural norm called the “HP Way” that focused on “profits more than revenue growth, teamwork, open-door management, full employment, egalitarian pay practices, and flexible work hours” (Beers, 2005).
The first 40 years of HP’s existence focused on test and measurement equipment. HP was innovative and a leading company in the industry, therefore, HP was seeing high profit margins. In 1970, HP started selling computer and printer products. HP struggled to be innovative because the computer process is different than the test and measurement process (Spector, 2007). The company had to…...

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