Hewlett-Packard to review its operations; comprehensive look stems from poor performance over the past 2 years

Article Abstract:

HP announced that it would evaluate nearly all areas of its business in an attempt to cultivate growth, according to a mid-Nov 1998 company memo circulated by CEO Louis E. Platt. The $45 billion computer maker, which has struggled with growth problems since 1996, said the internal review had already begun. Among the areas under consideration are HP's business lines, marketing strategies, organization and overall corporate culture. Platt's move followed HP's recent 4th qtr 1998 revenue disclosure of 4%, which exceeded Wall Street expectations largely by reducing expenses. The quarterly report, however, echoed 3rd qtr 1998 problems and earlier trends that have troubled analysts. HP attributes many problems to the Asia financial crisis, but the company is struggling to integrate its diverse product line. The internal review may result in HP's divestment of smaller business operations like the testing and medical-equipment subsidiaries, according to numerous analysts and HP insiders.

United States, Electronic Computer Manufacturing, Strategy & planning, Computers & Auxiliary Equip, Planning, Company business planning, Platt, Lew

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Hewlett-Packard's other board

Article Abstract:

HP uses a casual, independent approach to management where teams work independently on parts of complex projects while maintaining timely release dates via organization by 'board of directors' committees. The technique is in place at HP's Greeley, CO site, where dozens of electronics products are developed and introduced every year. The board of directors for a project may include lab engineers who design parts of the product, writers who produce user manuals, support people who answer customer questions, and administrative support people, including representatives from marketing, legal, purchasing, human factors analysis and manufacturing. The process has made employees more aware of the company's financial position, including margins for a project, the bottom line for break-even, cash-flow projections and anticipated profit. Greeley products include mass storage devices and the ScanJet Scanner.

Methods, Decentralization (Management), Management Style, Employee Relations

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Hewlett-Packard tries to revive share of market by realigning computer lines

Article Abstract:

Hewlett-Packard Co has reorganized its structure in what is seen as an attempt to revive market share. The new arrangements might also signify a succession to CEO John Young. The new structure will place microcomputer and workstation lines into separate divisions: the Computer Products Organization will manage microcomputer manufacturing and sales, and the Computer Systems Organization will deal with workstations. Analysts say that the naming of executives to head the new divisions establishes a possible mechanism for succession of senior management. John Young, who is 58, could be nearing retirement. Richard A. Hackborn and Dean O. Morton are mentioned as possible replacements for Young.

Organization Structure, Reorganization

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