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Stories of Chanhe - Essay Example

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In today’s global and growing economy, which is greatly influenced by globalization, organizations (both domestic and multinational) are struggling hard to attain their most favorable market share. For this reason, the business professionals and the management of the…
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Download file to see previous pages Furthermore, with the help of Kotter’s model, the paper will highlight the main errors that were by these companies during the change along with some recommendations.
Hewlett Packard (HP) is one of the leading IT corporations in the world. In 1999 when Carly Fiorina was recently appointed as the CEO of HP, the company was facing serious competition in the computer industry and therefore needed guidance. The market share of the company was at stake because of its rivals such as Dell, etc. Fiorina wanted to change the functions and operations of the company. She believed that it could be changed by ‘going back to the roots of the place’. She restructured the company into front end and back end departments. Many opposed the merger that took place between HP and Compaq in 2002 however Fiorina did not lose hope and stayed focused. The merger made HP the biggest personal computer manufacturer in the world. However, the sales did not grow, and the company lost half of its share. The CEO was fired and was replaced by Mark Hurd. Mark incorporated some new strategies and in 2007 HP claimed its highest sales for seven years (Gruver, Young, & Fulghum, 2012; Palmer, 2005).
Although Fiorina restructured the company and divided it into quadrants the major reasons behind its failure were quite prominent. As according to Dr. John Kotter, 70% of major change efforts fail in organizations. According to Kotter’s model, Fiorini was unable to develop a sense of urgency within the workforce therefore majority of the workforce was not in agreement with Fiorina’s decision. Secondly she was unable to create a guiding coalition. For this reason, she was failed to develop a change vision effectively (Palmer, 2005).
If the CEO of the company would have engaged the entire top management of HP and have attained their concerned the change policy would have worked in an effective manner. It is recommended that in order to effectively implement ...Download file to see next pagesRead More
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