The Gradual Development of Hewett Packard - Essay Example

?International Entrepreneurship Table of Contents Part A 4 Introduction 4 Background Analysis of Hewett Packard & Carly Fiorina 4 Motivation for setting up business for the company 6 Leadership Style Exhibited by Carly Fiorina 6 Future Strategy 7 Conclusion 8 Part B 8 Literature Review 8 Case Study Themes 8 Technical Entrepreneurship 10 Gender and Entrepreneurship 13 Social Entrepreneurship 14 Conclusion 16 Reference List 17 Appendix 19 Part A Introduction The increased international marketing and business activities have made it necessary for organizations to work in unification with each other, employees and government. Globalization has compelled the employees of the organization belonging to various cultures and religions to work together in synchronization with each other. The organization values are often associated with the corporate, social power and the attitude of the workers, employees and the managers. The study will give details regarding the background and the gradual development of Hewett Packard as a company and Carly Fiorina as the Chief Executive Officer (CEO). A background analysis of the company and the CEO would be given to highlight the varied situation managed by the CEO. It is observed that Carly Fiorina might have exhibited certain leadership skills in certain situations but her sole focus on attainment of goals reflects her aggressive behaviour. The organizational climate within a company becomes an essential part of the value system of an individual which helps him / her to achieve corporate goals. The author of the study will highlight the present scenario of Hewett Packard under the managerial control of Carly Fiorina and its impact on the business activities. Finally, the study will conclude with various facets of leadership that have evolved from the observation of the leadership skills exhibited by Craly Fiorina by the author. Background Analysis of Hewett Packard & Carly Fiorina Hewlett Packard (HP) is an American multinational company, which is headquartered in California, United States (Hewett Packard, 2013a). The company specializes in manufacturing products, technologies, services, solutions and software to individual and corporate customers in the government, education and health sectors. Hewett Packard is known as the world’s largest IT generation and technological company in the world especially after the launch of EcoPod. The inception of the company was in one car garage by William Hewlett and Dave Packard. It is regarded as one of the largest PC manufacturer of the world since 2007 and it specializes in manufacturing computing, data storage, networking hardware, delivering services. The major product lines include computing devices, enterprise and industry standard internet servers. The main objective of the company is to innovate high quality IT innovative products and create a niche for itself in the market. At present the CEO of the company is Carly Fiorina, who has been serving the tenure of this post since the past few years. Carly Fiorina started her career as a secretary in a small business organization and was one of the first women to lead a Fortune 500 company, Hewett Packard during the tenure 1999 to 2005. She had earned her undergraduate degree from Stanford University and MBA degree from Maryland University and Masters of Science from Massachusetts University. Her tenure at HP led to reinvention of the company with state of art innovation facilities, achievement of market leadership, transformation of the cost structure and acceleration of growth. In spite of opposition from management, Carly had successfully acquired Compaq computers, which was known as one of the biggest mergers in the company history. During her tenure, the company’s revenue had doubled to $88 billion and had almost generated 11 patents in a single day, which improved the profitability and cash flow of the company. Presently, the CEO serves as the chairman of Good360, which is regarded as the world’s largest philanthropy organization. Carly was politically active and has run for the post of Senate in the year 2008 against John McCain. Motivation for setting up business for the company It has been observed that Carly Fiorina is a fiercely protective leader, whose main objective is profit maximization of the company along with the welfare of the employees. The CEO believes that human potential is one of the most important drivers of a business organization, which has limitless resources and should not be wasted accordingly (Hewett Packard, 2013c). The main reason behind the innovative capabilities and the design of the unique IT servers would involve tapping the human potential along with guidance from varied leadership theories. One of the major reasons behind the growth and stability of the company is the powerful nature of the CEO and its exemplary ability to champion innovativeness and entrepreneurship. Carly also believed in developing organizational capabilities. Leadership Style Exhibited by Carly Fiorina It is observed that Carly Fiorina had exhibited transformational leadership style at multiple stages and various situations (Hewett Packard, 2013d). Transformational leadership skills include dealing with the complexity of the management problems effectively and with ease. Transformational theory was defined by theorist James McGregnor in the year 1978. Transformational leadership skills lead to excellent performance of the employees, which are usually beyond the expectation of the organizations. In transformational leadership the manager can exhibit exotic and charismatic traits unlike transaction leadership theory. Traditional theorist regarded leadership as integrated approach which laid emphasis on team work and had the ability to influence its followers. Traditionally, the relationship between employer and employee resembled almost man servant relationship, which has been replaced by superior subordinate relationship. The leadership theories occurred in various groups, which helped in the emergence of various innovative ideas and also in the improvement of the existing features. Carly Fiorina always promoted a congenial work environment, which helped in achievement of targets and improved the organizational culture. The leadership style exhibited by Carly Fiorina helped in promoting active participation in decision making, moral and social support, cooperation, etc. Transformational and transactional leadership is a clear example which highlights the distinction between the managerial and leadership style. Transformational leadership style is strongly associated with the organizational culture and effectiveness (Politis, 2001).The interdependent relationship between transformational leadership and culture has an effect on the organizational outcome. The transformational leaders move in a different direction, which encompasses intellectual stimulation and individual consideration. It is evident from her managerial decision making and managerial behaviour that she exhibits transformational leadership. Transformational leadership approach focuses on accomplishment of tasks and targets of the organization in a smooth and systematic way. Hewlett Packard has implemented the Management by Objectives, which makes the company decisions effective and transparent. Although, during her tenure several employees were fired and the shareholders had filed suit against the company, Carly Fiorina had kept her composure. Future Strategy Carly Fiorina has laid emphasis that financial disclosure and sustainability accounting disclosure would be one of the main objectives of the company (Hewett Packard, 2013b ).One of the most important strategies would be to maximize the profits of the organization along with the sustainability of the environment. The company also believes in publishing the environmental reports for transparency purposes and maintaining good relations with the stakeholders. Recently, the CEO has made acquisitions worth 1.5 billion to strengthen the strategic initiatives and make it one of the leading software companies of the market. Strategic requirements are one of the key essentials of the company, which requires brainstorming sessions between the management and the employees. It also requires the evaluation of the alternatives chosen as feasible solutions and strategies. One of the most important strategies would be to maximize the profits of the organization along with the sustainability of the environment. The acquisitions were mainly done to recover the company from their losses and also maintain a strong market position. In spite of problems of high cost acquisitions, the CEO will continue to buy more companies to grow its capabilities further. Conclusion The various social entrepreneurship and leadership theories enabled the CEO of Hewlett Packard for stipulating the implementation of SMART (Specific, Measurable, Achievable, Result based and Time Specific) goals in the company. This SMART approach enables the company to attain short term specific goals and objectives (Shaw, 2004). These theories would also serve purposeful in the extensive documentation process and the protection of software technology. The company is known for completion of various exhaustive challenges and has been successful in implementing several successful changes in the structure of the organization. Part B Literature Review Case Study Themes It is evident from the above case study that leadership’s skills are instrumental for the success of the organization and helps in increasing the organizational commitment and outcome of the company. The case study dealt with varied leadership themes, which have the potentiality of managing several crisis and managerial situation. This section will highlight components of leadership, which include social, technical and gender entrepreneurship, which will contribute successfully for the smooth execution of the business activities (Pimentel, Kuntz, and Elenkov, 2010). It is observed that organizational performance and leadership is interrelated and there is a positive impact of leadership qualities of the leader on the organizational performance. The cultural traits in the leader of the organization have a positive impact on the behaviour and outcome of the employees. However, it was observed that it was not the leader but the leadership effectiveness that increased the organizational commitment and outcome of the employees. As mentioned before that the top level manager exhibits transformational leadership, which improves the organizational performance in an indirect way (Ozaralli, 2003). Transformational leadership and organizational culture are directly interrelated and lead to consistency, excellent performance and organizational effectiveness. Leadership has been defined “essentially contested concept” (Godwin, Neck and Houghton, 2000, p.161). The concept has been regarded very different from management and not for the reasons employee think but because of its exotic and charismatic traits. Traditional theorist regarded leadership as integrated approach, which laid emphasis on team work and had the ability to influence its followers. Traditionally, the relationship between employer and employee resembled almost to man servant relationship which has been replaced by superior subordinate relationship. The leadership theories occurred in various groups, which helped in the emergence of various innovative ideas and also in the improvement of the existing features. A high quality relationship between the employer and employee is actually a result of the dyadic approach between the leaders and subordinates (Chinn, 2013). The dynamic relationship between the management and subordinates would lead to positive interactions between the employers and employees (Min and Ricketson, 2013). Innovativeness is closely related to leadership as it is regarded as the key goal of the organization. It helps in the accomplishment of goals and objectives through proper and innovative methods and has a positive impact on the organizational performance. As per traditional theorists, leadership helps in creation of a congenial organizational climate. There are various facets of leadership theories and one of them is the leader member followership relationship, which helps in constructing problem solving solutions. These also help in enhancement of follower efficacy and in inculcating innovativeness among the organizational members. Technical Entrepreneurship Economic growth and development is instrumental in stemming out of varied leadership theories that helps in shaping up the values, norms and codes of conduct. Every nation aspires to become fully developed and equipped with all the advanced amenities. The basic beliefs and assumptions shared by a group of individual helps in the orientation of corporate strategy. One of the most important things that can lead to the success or failure of the strategy is the technical training imparted to the individuals. Technical training acts as an important enabler for a particular engineering set of knowledge and scientific techniques applicable for invention, perfection and solving variety of problems. These engineers assist in developing solutions, which have the potentiality of generating welfare. The effectiveness helps in perceiving opportunities and then exploits them, which are related to connect different spheres like society, art and technology, social and culture. Technical training has a profound impact on all areas of society and involves the process that helps in gathering high potential commercial opportunity, resources like talent and capital and then understanding the procedure of selling the market idea. Technical entrepreneurship helps in articulation of a process for initiation of technology idea and understanding the advantages and disadvantages related to market idea. It also helps in creation and verification of a business model and then develop ideas on how to gather resources with the help of technology and capital resources (Kang and Stewart, 2007). Technical entrepreneurship also helps in the generalization of process for an entrepreneurial technological development. Technology entrepreneurship is an integral theory that facilitates growth in individuals, organization, regions, and nations. The study of technology entrepreneurship serves purposeful in acting as a guide to employees and also inculcating intellectual curiosity. The distribution and creation of technological services through industrial research is very important for the growth and development and also for the entrepreneurial innovation. Based on this endogenous growth the Griliches-Jaffe-Model of regional knowledge production was developed to help in investigation of industrial activities as determinants of technologically oriented entrepreneurship facilities (Hautala, 2008). The entrepreneurial innovation has been strongly related with the driving force of economic growth and their attention on various aspects, which tend to improve the entrepreneurial activities and its effect on economy. Research industrial production has helped in technology transfer and other orientation facilities. Technology entrepreneurship facilitates the smooth execution of business activities, growing organizations, economic development and selection of most of the appropriate stakeholder to take certain ideas and educating manager, scientists and engineers. Technological entrepreneurship helps in facilitating prosperity in an individual, organization, regions and nations. Figure 1: Technology Formation (Source: Lee, 2008). Corporate entrepreneurship includes the analysis of leadership approaches adopted by managers in medium sized organization and does not lay emphasis on small sized organizations (Kang and Stewart, 2007). It has been observed that the theory focuses more on the formation of technology, characteristics of technology and external events that help in creation of technological opportunity for various entrepreneurs (Chong and Leung Tak-Wing, 2003). Technological entrepreneurship affects the socio economic development, relationship between the regional economic development and the technological entrepreneurship and management (Koslowsky and Stashevsky, 2005). It also helps in understanding the various dimensions of entrepreneurship and its related activities that help in adding value to the managerial functions of the organization (Bolen, 2004). Technological entrepreneurship has helped in investment in the project that assists in assembling and deployment heterogeneous assets that are related to technological advancement for the purpose of creation of value to the organization. Technological entrepreneurship basically depends upon four basic elements like: Ultimate Outcome: Value creation and capturing are regarded extremely important for the increase in the organizational outcome because the sources help in creation of value. However, the sources may not be similar in the long run and helps in creation of long term value of the organizational services. Target of the Ultimate Outcomes: It is defined as the ultimate outcome, which includes the investment in a project mobilized to create value for the organization (Bayne, 2000). Mechanism used to deliver the Ultimate Outcome: A project is regarded as a combination of resources meant for specialized individuals committed for the delivery of the organizational outcome. Interdependence of this Mechanism with scientific and Technological Advances: The individuals are involved for the project influence and also are influence considerably by technological and scientific advancement. The project influence and exploits scientific and technological knowhow. External and internal individuals of an organization help in increasing the organizational outcome (Theimann, April and Blass, 2002). Thus, it is observed that technological entrepreneurship helps in the collaborative experimentation that leads to manufacturing of new products, assets, attributes which are directly linked to the technological and scientific advances as well as the organization ownership rights. It specifies that technology may help in entailing of projects that help in searching of projects for a particular technology, launching of new ventures, and introduction of new applications that totally rely on scientific knowledge (Anthony, 2013). Gender and Entrepreneurship The gender roles are very well defined and helps in the sociable constructions based on the cultural norms and certain customized roles that can be called as informal institutions (Svensson and Wood, 2008). Mostly people consider the gender roles as constraints rather than the enabler of women entrepreneurship as role responsibility. Moreover, entrepreneurship is considered as a big role reverse responsibility that leads to structural support and lower normative for female entrepreneurship abilities and skills. The European policy suggest the inclusion of entrepreneurship education among the higher education intuitions to lay emphasis on the importance of women entrepreneurship and challenging the women employees to showcase their entrepreneurial skills for the improvement in global knowledge economy. It is observed that the business administration developmental skills in strategic planning and financial analysis help in accounting, marketing and communications. Women entrepreneurship helps in creation of employment opportunities for themselves and for the society itself providing different solutions to the management, business organization and the organization itself (Mullins and Linehan, 2005). The women participation rates in inception of an enterprise are comparatively lower than that of men however, their management techniques is entirely different from each other that help in the management techniques. Women entrepreneurship activities are important to consider while developing multidimensional leadership models for the growth and development of business organization. It is also observed that women entrepreneurs are mainly responsible for the start and growth of the business and unlike the men entrepreneurs, who are responsible for the acceleration of the growth of the organization. Social Entrepreneurship Entrepreneurs and entrepreneurship are entirely two different concepts, which are positively used and have a positive connection (Quenk, 2009). The modifications can be utilized for further expansion of the organization on a wider scale (Jogulu, 2010).Social and community entrepreneurship are sometimes initiate with social and positive intentions that have large community dimensions (Groves, 2006). Entrepreneurship helps in understanding the social dimensions of the profitable business organization and creation of personal wealth as a result for creation of social value (Xenikou and Simosi, 2008). The dimensions of social entrepreneurship are quite multi functional and also have strong commitment to increase the outputs and express their standpoint to a large extent. It is also described as a continuous and collective process which requires involvement of varied different actors. According to author Shaw and Actor, (2000, cited by Evans, 2003) any kind of entrepreneur starts their organization with a mission to meet the desired social objectives. There has been varied comparison between the commercial and social entrepreneurship, which require the analysis of four basic dimensions like resource mobilization, market failure, performance measurement and mission of the company (Erkutlu, 2008). Market failure includes close contact and relationship between the commercial and social organizations of the entrepreneurship facilities. Mobilization of resources helps in the performance measurement and also leads to the initiation of idea and creation of positive organizational structure (Stamm, 2009). It has been observed that the failure of a commercial organization leads to the creation of a positive social organization. A social entrepreneur needs creation or protection of an idea that help in invitation of various factors that are responsible for the growth of the business (Bolden, 2004). Social returns are rarely quantifiable and tend to be compared always with the profitable returns of the profitable business enterprises. Community and social entrepreneurship are quite similar and help in understanding the collective dimension, which are more individualistic (Tagoe, 2010). The collective dimension includes components like actors, motives, process and also includes autonomous aspects like taxonomic outline”, where the difference between the communities is well defined by the scholars (Dastmalchian and Blyton, 2000). One of the key concepts of social entrepreneurship would be the market orientation problems and its related activities that would be either by choice or something that has been imposed by the actors in an appropriate way that helps in attainment of primary objectives (Bolden, 2004). Social entrepreneurship is different from management, it is the way the manager execute the functions in different manner. According to some theorists social entrepreneurship theories have nothing in common with the traits and characteristic portrayal of the managers but it is the execution abilities of the managers. Leadership has always been associated with growth, development and commitment (Carneiro, 2008). Although various theorists have associated leadership with followership, influential power, community and social entrepreneurship help in the attainment of goals of the organization, maximization of profit and also develop strategies for the social welfare of the community. Conclusion Thus, it is observed that the influence of leadership is profound on the entrepreneurship activities and inculcates self direction and motivation among employees, which is required for enhanced performance among the employees. The prime focus of the managers would be to inculcate self regulation and management within employees, which help in smooth accomplishment of goals and objectives. The various entrepreneurship theories discussed above are gender, social and technical theories which help the employees to attain the goals of the organization in unification and in reduction of the deviations. It also ensures compliance with the existing organizational standards and objectives. 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Description Response 1.1 Company age 1939 1.2 Size (no. of employees/sales turnover) Not Available 1.3 Industry sector Main offerings (try and get on-line brochures, materials etc) Information Technology 1.4 Main Markets Domestic/International B2B B2C Domestic & International 1.5 If international, no. of markets Percentage of sales as exports N/A operating in more than 80 Countries Demographic profile of Entrepreneur Ref. Description Response 2.1 Age, gender, education, marital status, etc 58, Masters of Science from Massachusetts University and married 2.2 Prior work experience/s Worked for/owned another business? AT&T and Lucent 2.3 Personal interests, specialist training, etc. Running for Political Elections 2.4 Other relevant/interesting information Not Available Read More