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Hewlett Packard (HP) - Introduction to Business Organization - Coursework Example

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Hewlett Packard (HP) is one the world’s largest and leading IT and technology company. It deals in manufacture and supply of laptops, printers, PC’s and variety of range of computers. HP operates a large network for the manufacture and supply of technological products…
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Hewlett Packard (HP) - Introduction to Business Organization
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Hewlett Packard (HP) - Introduction to Business Organization

Download file to see previous pages... It deals in manufacture and supply of laptops, printers, PC’s and variety of range of computers. HP operates a large network for the manufacture and supply of technological products; it operates in 170 countries of the world fulfilling the technological needs of millions. (HEWLETT PACKARD. 2012) HP was founded in 1939 by two of the classmates of Stanford University- Bill Hewlett and Dave Packard. It’s first ever product was an electronic test instrument and one of its early customers who boosted their sales initially was Walt Disney. (HEWLETT PACKARD. 2012) HP operates in 170 countries of the world which makes it operative in America, Asia Pacific, Europe, Middle East and Africa (EMEA). Its head office is located in Palo Alto, California –USA. Further it has installed HP Solution Centers in over 80 locations all around the world which provide technical support regarding the products to million of customers. (HEWLETT PACKARD. 2012) HP operates as a public listed corporation and is listed on New York Stock Exchange. Financially, HP is a very sound company with an annual turnover of $127,245 million, generating a profit of $7,074 million. HP has a diversified portfolio of products and operates many different segments. Region wise it mostly generates its sales- 45% of it from America (which includes US, Canada and Latin America) the rest is generated from EMEA and Asia Pacific. Its most revenue generating segment is that of personal computers products and services which generates around 60% of the revenue. Other segments which are operated are imaging and printing group, enterprise server, storage and networking, HP software and HP financial services. The company is currently headed by Meg Whitman, the CEO and President of HP who was appointed on the posts recently in late 2011. (HEWLETT PACKARD. 2012) Organizational Structure: An organization’s structure plays a great role in executing its strategies. HP’s organizational structure has grasped international attention from past decade. In 2000 Carly Fiorina was appointed as the Chief Executive Officer at HP, at that point Fiorina changed the organizational structure of HP which had been there for last 64 years. She dismantled the decentralized structure of HP and introduced a more modern concept of structuring the organization in which HP was to operate with a front-back approach in which back-end unit was to deal with manufacturing while the front-end dealt with sales, marketing and customers. That was the first time a large company with numerous production lines adopted this structure which requires high level of coordination. (PEARCE & ROBINSON. 2000) However this structural strategy was a fail and in 2005Mark Hurd was appointed as the CEO and he changed the structure back to it what it was before Fiorina, that is, a decentralized structure with independently run smaller units with a narrow product focus. The current organizational structure at HP allows for greater accountability, high sense of responsibility, aids in cost reduction and accountability of spending and better control on production to sale activities. The decentralized structure at HP is basically made up of seven divisions/segments which are either organized on the basis of products or functions. Such a structure enables HP to have greater insight about the environment in which it operates as a technological business is highly dynamic, the divisions and units have to be adaptable and agile to the changes which is done by resting the power to plan day-to-day activities to the segments. However major strategic decisions are held with the higher level. Such a structure also supports a giant like HP which serves a market of trillions all around the world to execute more effectively. HP has ...Download file to see next pagesRead More
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