This report pertains to the current business position of Hewlett Packard (HP),its current business problems and the way ahead for this business organisation.My first impression at the outset of ESS (E-Services Solution)group is to point out that this venture may be a successful at the outset given the period 1999 until 2000 but it has all the ingredients of becoming a victim of its own success and potentially damaging the work culture of HP with the so called aim of "infecting" the entire spirit.I would reach such a bleak conclusion for many reasons which I will discuss below but the pith and substance of my analysis as a management consultant is that "small is beautiful" but once it gets large it becomes ugly. And this is true for HP's future if the ESS is allowed to grown into its organizational management culture.At the outset of the case study we are made aware that in 1999 alone through the efforts of the ESS ,HP has achieved the status as a leading manufacturer of computer products, including printers, servers, workstations, and personal computers and is generating a revenue of $42.4 billion and net income of $3.1 billion.It has over 80,000 employees worldwide and a strong local presence in Silicon Valley and the Bay Area.
The problems of HP and the role of ESS.The case study has given us a bird's eyes view of the historical problems with the management strategy of HP as follows.
1. In 1939 Bill Hewlett and Dave Packard, found HP and were an instant success with the and wanted to pursue theirs own unique way of doing business: "The HP Way." The evolution of the HP Way began early. Even though their decentralized management style was a success in the earlier dealing and by 1957 Hewlett and Packard had their own corporate objectives, underling the "The HP Way" through management strategies like Management By Wandering Around, Management By Objectives, and the Open Door Policy inspired later additions, including Open Communication and Total Quality Control .These practices cannot be seen anywhere today and later on the conservative attitude of HP with in a decentralized company and was more product oriented than customer oriented.
2. So far another reason HP has suffered is its insider hiring.Although Young and Platt were good leaders and displayed some good leadership qualities.However by 1998 HP was facing low stock prices and a lot of criticism pertaining to having missed the Internet market.There were other problems likecomplexity, and a loss of accountability and there was an over all lack of focus on the HRM issues.