HP Palm Outputs
In the Nadler-Tushman Congruence Model, outputs comprise everything that derives from the organization's activities. Thus, there are many categories of outputs. These include financial outputs (revenue, costs, profit), operational outputs (products, efficiency), human resource outputs (wages, benefits, employee turnover) and market outputs (market share, stock price). The congruence model seeks to explain a firm's relative success by analyzing its output performance in the context of the organization's goals. When the organization's inputs are aligned with its goals, it should be expected that the outputs would also be congruent with the goals. If the outputs are not congruent with the goals, the organization has not been successful, and at that point the inputs and throughputs need to be analyzed in order to determine where the organization failed. This paper will focus on the outputs at Palm, in particular those that are determined to be most important to the company's success.
In terms of financial measures of organizational performance, Palm uses many of the standard measures for all firms, including revenue, profit, margins and changes thereof. With respect to these outputs, Palm has performed poorly. The company saw revenues decline 15.5% in 2008 and a further 44.2% in 2009. Profits declined 296% in 2008 to a net loss and then declined a further 579% in 2009. Palm's equity fell from $1.062 billion in 2007 to negative equity of $413 million in 2009. During this period Palm added long-term debt totaling $394 million. Overall, Palm's financial performance over the past couple of years can only be termed as dismal.
In terms of operating outputs, Palm was able to launch two new products, the Pre and the Pixi and these were met with positive reviews from industry experts. The WebOS platform is considered to be highly accomplished (Topolsky, 2010) and was one of the main reasons why HP purchased Palm. Indeed, HP's purchase of...
In the short run, the company has an uphill battle to establish itself in a tough market -- Palm's past successes in the industry are almost irrelevant at this point -- but in the long run the potential exists for HP/Palm to develop game-changing technology. The overall strategic fit therefore is only partially congruent. Internally, the three factors are congruent with each other. The resources, environments and histories of these
MSFT Skype The Nadler Tushman Congruence Model is an organizational diagnostic tool that can help to provide insight into the underlying reasons why a company is or is not enjoying success. For Skype, this model is ideal for understanding the transactional aspects of the company, most particularly how Skype can be made to be profitable. It is important for Microsoft, if it is to keep the core Skype business going, that
HP Palm Generic Strategy Porter's generic strategy typology highlights that firms succeed either by being a cost leader, a differentiated producer or by being a niche player, again with either a cost or differentiated focus (QuickMBA, 2010). Palm's approach is mass market, and the company is essentially competing as a differentiated player. With its proprietary operating system and lack of ultra-low price points, Palm is clearly adopting the same differentiated strategy with
The problem is that the people who are in charge of these activities are not very good at what they do. They are simply being outcompeted by other individuals in other organizations. The Nadler-Tushman Congruence Model implies that when there is a high level of congruence between the activities at the individual, group and organizational levels, the company should succeed. Palm is an interesting case study because it counters the
Organizational Diagnosis of Palm Palm Computing had reinvented the hand held computer market overnight with the line of PalmPilot and similar devices geared to the mobile gadget industry. According to Clancy (1999), "Palm Computing ultimately sold faster than the videocassette recorder, the color TV, the cell phone, even the personal computer that was its great-grandfather. Introduced in April 1996, within 18 months Palm Computing had shipped more than 1 million units
The third important environmental input that Palm will need to analyze and consider is the technological elements. Other than being a consumer-driven industry, this is also a technology-driven market and achieving the declared corporate strategy depends a significant deal on whether Palm can deliver new technological solutions for its users, solutions that will allow the clients to benefit more efficiently from the products that Palm offers. Other important environmental inputs that
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