Hewlett-Packard has a long and challengeable history of computer network business development. However, its strategic path did not contribute greatly to fast growth due to the radical changes made to structure and organization of the company. In particular, quick transition from Information Network Division to development of IBM-based systems, as well as aspiration to work out a proprietary system, has prevented the HP managers from avoiding strategic and structural dilemmas in the course of company’s reorganization.
From a strategic point of view, the HP managers will fail to proceed with organizational activities successfully due to a narrow-focused orientation on advancing network technology by means of IND. Major forces have been directed at Research and Development department that planned to create software and networking systems that could minimize costs and expand the influence of virtual environment. However, excessive attention to one business sphere will not provide sufficient resources for re-organizing the subsidiaries and controlling the entire process. Further, the emergence of new product called LaserJet led to rapid growth of the market demand. As a result, the product can become the most profitable business, promoting the development of new network capabilities and connecting printers to the computer system.
New solutions have been developed to accept change and create new services. Diversification in the production can cause significant discrepancies among the managers of the leading HP networks. At this point, the company has to introduce distribution of responsibilities and division of labor among their subordinates to increase resistance to the changes and challenges. Developing the new microprocessor architectures is also a difficult issue for the company because the company is not ready to the transition process. Hence, in order to avoid this problem, HR supervisors should develop training programs for their employees prior to actual transition process. Finally, the company should also work out a multi-strategic approach to organizing its production process to face competition in future.
From a structural point of view, HR will be less efficient in terms of their plan to reorganize the production process and develop multiple networks across the nations. In fact, horizontal management will cause greater decentralization, which does not imply observance the initial objectives and mission of the organization. The idea to consolidate all networking systems to become more independent from outside computer providers is not a solution for a company because the business environment must imply cooperation. Company’s focus on internal processes prevents it from predicting the challenges of the external environment.
At a glance, accepting support from the TSG could promote HR networking strategic development and reduce the pricing on products. On the one hand, the HP’s decision to restructure its networking system through convergence and simplification increases the company’s competitive advantage. On the other hand, the lack of centralized management, as well as long-term objectives, constitutes the main objective for HR managers in terms of change management. As a result, working horizontally and dealing with various processes through those networks becomes extremely problematic. Consequently, it is unlikely for HP to thrive under the authorities of TSG because it could not enhance its centralization and management. The course taken on quick and total transformation is not consistent with the company’s possibilities to accept changes. Thus, the rapid growth and unpredicted changes will not contribute to efficient teamwork and collaborative activities within an organization, which is the primary goal of networking.
The above-presented strategic and structural changes are not consistent with the company’s readiness to accept the transition process. Inappropriate distribution of roles, responsibilities, and duties, as well as lack of coordination among the department, has become the leading cause of transition difficulties. At this point, the main solution to the problem should involve developing a unified strategic plan for all the network points and allocating managers at each of the subsidiaries. Second, isolated business activities aimed at independence and autonomy will not allow HP managers to sustain a competitive advantage. In particular, the resources should also be directed at enhancing the market research, not considering developing an extensive product line.
In order to fill in the gaps in strategic managers, managers should adopt the following strategies. To begin with, in order to solve the problem of product expansion, managers should develop a more consistent framework for adopting changes. In particular, there should be specific training programs for the employees who were engaged in the service providing. Second, the HR managers should pay closer attention to the target buyers before introducing a new business networking system. The emphasis should be placed on developing new markets rather than on reorganizing and reuniting the specialists from the research and development sphere. Third, the company should present a transparent reporting system for all the departments of the network to monitor changes, as well as detecting any mistakes. Such an initiative is important for effectively coordinating all the departments of the company situating in different locations. Defining customer base for developing new product lines is another initiative that should be integrated. Finally, the company must work out coordinated work among the departments to reunite the forces through the networking services.