Hewlett Packard Computer Systems Organization

1. Why are Houston Fearless 76, Inc. (HF76) managers unhappy with the company’s existing sales incentive plan? Are weaknesses in this plan a major cause of the company’s performance problems?

The motivation of the sales force is so low that they think that the district managers are no more that the baby sitters. No right schedule is being released by the management, there is no sales management planning in the organization. The leadership runs from the top. The employees just want to make sales without having concern about the company in that they work. Moreover, the uncertain night calls and long distance travels for the reps and frequent changes in the sales organizational structure has made problem even worse.

Changing Market Conditions In the early 1990's, while technological innovation continued to drive the company's success, many business units were being forced to compete on other dimensions. In consumer product lines, low prices, broad availability and ease of use had become competitive requirements. Lew Platt, HP's current President and Chief Executive Officer, once acknowledged the importance of improving customer service and responsiveness, We're not doing as good a job in order fulfillment as we need to. In fact, it's where we get our lowest marks from customers. We have to be a lot easier to do business with. Improvement in order fulfillment will strengthen HP's competitiveness, increase customer satisfaction and reduce expenses, so this is an

Although these problems seem expansive and varied in nature a few changes to the corporate culture will likely remedy all of these complications. On the sales side job enrichment is of key importance, a necessary step towards this is having the sales force divided into two market segments, beer and juice. With each employee controlling a small set of clients who they will get to build a relationship with, a relationship which is based

Hewlett Packard (HP) decided to produce 1.3-inch disk drives to become the market leader in a new market and increase HP’s revenue. Although the market for 1.3-inch disk drives was still unclear and still developing, HP decided to organize a special team to develop this new product. This group was multi-talented, with the best engineers from every department in the company. The group also had many priorities for the company. However, things didn’t develop as the Kittyhawk team expected. They failed to sell the new product to the customer they planned. Even though some new customers were interested in this

As mentioned a few months ago HP is splitting into two distinct companies, one side is the PC and Printers (HP, Inc.) and the other side is the Servers and storage (HP Enterprise). This message is focused on the HP Inc., or PC division).

Hewlett-Packard: Develops, assembles, and sells computer hardware and printers. The firm outsources many of its computer and printer components.

Hewlett-Packard Enterprise will concentrate on selling hardware like servers to businesses wanting to build up their data centers while HP Inc. will sell printers and personal computers (Vanian, 2015). This strategy effectively modernizes the scale and scope of the services and systems HP currently offers to its enterprise customers.

Labor-intensive purchasing process is an expensive and low value-added work. Currently, the company has no centralized management to perform strategic purchasing. It was a concern that whether employees would come up with speed to the dramatic changes coming from re-engineering. Some of multiple hand-offs between department look complicated and redundant. An example of solution would simplify the process from demand planning to raw material planning to be implemented by less employees within a close group. In addition, the organization should be re-designed to a more “customer oriented” to align with the turnkey

TABLE OF CONTENTSQuestion 1a ……………………………………………………………………………………………………………………….3b ……………………………………………………………………………………………………………………….3c ……………………………………………………………………………………………………………………....4Question 2 …………………………………………………………………………………………………………………………………5Question 3 …………………………………………………………………………………………………………………………………6Question 4 …………………………………………………………………………………………………………………………………6References …………………………………………………………………………………………………………………………………7QUESTION 1a.Calculate the cost of the activities for France.

Similarly – the customer satisfaction report of B & C were continuously suggesting more product improvement and sales consultation requirement. I tried to increase the sales force time allocation to them.

This paper will discuss the history and background of Arck Systems and its merger with Lux Software. I will then examine, discuss, and analyze the nuances of the merger and the resulting issues that arose with different compensation packages for each company’s sales team. In my analysis, I will address the intended and unintended consequences of incentive compensation plans. Finally, I will offer my recommendations to Arck Systems.

One major problem was the resignation of one of the company’s top salesmen who had the most difficult territory (9963), effective at the end of the year. If he shifts one of the more experiences salesmen into that area, it would disrupt service in an additional territory, which was undesirable because it took several months for a salesman to build up a good rapport with customers. This decision would affect the

HP is one of the few companies in the world to successfully marry the technologies of measurement, computing and communication. The company makes new advances in portable computing, enters the home-computing market and continues to invent new printing and imaging solutions. For most of the decade, HP enjoys growth rates of 20 percent.

A third challenge facing Mr. Heal and Mr. Thomas is the issue of a sales force that is properly setup to accommodate the strategic alliance. On page six of the case, we learn that the HP-Microsoft and IBM-Cisco alliances both utilized dedicated sales staff. We also learn that in Europe, “HP used a specialized, dedicated sales force for selling HP services bundled with Cisco products.” (Page 6) In fact, Elias Stephan, who was then HP services group’s global alliance director, noted that “In Europe, the relationship with the field is much better.” (Page 6) If both HP and Cisco were used to utilizing dedicated sales staff with strategic alliances, what incentive was there for both firms to break the trend when dealing with an HP-Cisco alliance?