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HP Change Management Case Solution & Answer

 HP Change Management Case Solution

HP changed its organizational hierarchy in the region of China. The decision was aligned with the previously designed corporate structure. The aim of the organizational change was to increase transparency in the functions of business, which were related to the strategic road map of HP. The reason for this is that HP in China wanted to focus on the customer facing businesses. Thus, the executive team involved in promotion of customer facing businesses. In addition, this will stimulate synergies that were associated with business units of HP. Nonetheless, HP will be able to avail opportunities it finds in the market for the growth of the company.

The company declared selection of a new board of director who was a professional executive prior to her appointment in this designation. Anna Live more was selected for the board of Director of HP. Furthermore, HP declared the selection as the enhanced capability for the organization. The selection of Anna Live more showed success of Live more in IT Industry and executive’s respect. Live more has spent 29 years with HP helping its customers countless times since then. She has contributed in the growth of customers and businesses transformation of HP as well.

Hierarchy of HP

In order to evolve the IT industry and foreseeing opportunities for the growth of the company, HP re-established the structure of organization. Executive Vice President  Networking and Technology Services, Dave Donatelli, had to report to the chief executive officer and President of HP, Leo Apotheker. Similarly, The Executive Vice President for Global Sales, Jan Zadak, had to directly report to the Apotheker as well. This was done in order to improve performance of HP’s portfolio in order to deliver cohesive services to the partners and customers of HP.

Apotheker states that the new series of the structure will bring drastic change to the system. Moreover, it was elaborated from the decision that HP will proceed towards amendments, which are necessary for streamline operations. This strategy will also accommodate agility, focus of drive, and position the company towards success.

This strategy was contributive towards customer facing businesses. The company tended to eliminate its executive vice president and chief administration officer, streamline operations will become more efficient through direct communication between vice president and executive vice president. Moreover, it would be appropriate for HP to leverage this strategy, as the company will be able to initiate a search for the replacement.

Problems with the management change

Apotheker  had the background of SAP. However, HP has only had the presidents who possessed experience in software products. Thus, the management became messy due to drastic change of management from hardware to software with regards to business conduct. Apotheker, carried out meetings with the marketing head and software manager of the company on almost a daily basis. He formulated regulations and control over the strategies and activities for the operations in organization. However, his control and regulations lacked at some places.

HP was a hardware company. Apotheker has changed its core business services from hardware to a software-based company. This caused devastating change in the organization’s sales, as the company has been famous for its hardware business. Moreover, the product innovations were entirely in hardware business and supply chain included the key components related to hardware business as well. Therefore, it was very difficult for the organization to shift as a whole. Consequently, it caused a great loss in the sales of the company.

The anticipation for sales of PC’s in the coming future was approx. 2 billion. A great portion of sales was dependent on the hardware products of the company. Moreover, it was of great concern that the company will need to cut off many jobs in order to remain competent in the market due to lack of profit of the company. Moreover, market share of the HP was also lowered. The stock prices of the company got down to 47% due to drastic decision making by the company……………………..

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