The tactics that HP adopted were congruent with the company's strategy. HP wanted to continue to thrive as a mass market differentiated player. The firm's industries -- PCs, servers and more -- had become commoditized, but HP realized that its brand still had value as a premium product. Part of that recognition has allowed it to move into China, where no-name brands are common and local brands dominate the market. HP realized that its brand was strong enough to enter that market despite the challenges.
HP also realized that the matrix structure was inappropriate for the company. Its businesses rely on innovation and marketing in order for the company to thrive. As a result, the company needs a streamlined organizational structure with direct lines of communication and accountability. This will focus managers on results, including innovation and cost control. The company always had the talent to succeed -- such as Ann Livermore -- but that talent was underutilized. With this talent, the firm's brand and its technology the only thing holding HP back was its strategy and focus. Hurd's moves returned that focus and allowed the company's assets to shine. Dramatic changes were not required, only the unleashing of talent on specific tasks.
It all, it was the combination of all three changes that led to HP's revival. The company's culture had deviated from the culture that had brought it success. As a result, the company benefited from Hurd's return to a more traditional HP culture and old managers began to thrive once more. In addition, the simplified...
The managers, under the new culture, enjoyed the accountability and responded well to the challenge. The controls that were used were largely numerical. Managers knew what they needed to achieve and were given the freedom to take the necessary steps to make those achievements. Again, this played to Hurd's broad strategy of utilizing the substantial talent at his disposal by focusing that talent on specific objectives and given it the resources it needed to succeed.
Works Cited:
Burrows, P. (2005). HP Says Goodbye to Drama. Business Week, New York, September 12, 2005, Issue 3950,-Page 83-86 http://proquest.umi.com/pqdweb?index=0&did=893313611&SrchMode=1&sid=16&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1236358670&clientId=29440
Burrows, P. HP's Ultimate Team Player (2006). Business Week. New York: Jan 30, 2006, Issue 3969,-Page 76 http://proquest.umi.com/pqdweb?index=4&did=976455861&SrchMode=1&sid=2&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1241033913&clientId=29440
Einhorn, B., Kharif, O., Roberts, D. (2007). Grudge Match in China; HP and Dell are exporting their rivalry and starting to challenge Lenovo. Business Week. New York. April 2, 2007, Issue 4028,-page 42. http://proquest.umi.com/pqdweb?index=0&did=1246334451&SrchMode=1&sid=17&Fmt=3&VInst=PROD&VType=PQD&RQT=309&VName=PQD&TS=1236358771&clientId=29440
