Hp Case Analysis

3213 Words Feb 9th, 2011 13 Pages
What was Fiorina’s leadership style? Was she the right choice for HP?

No matter which leadership theory it is to apply, Fiorina’s leadership style in HP was relatively clear-cut: a task-oriented, autocratic, transactional leadership style, whichever way it is named. This leadership style can be reflected from her first moves after joining HP. Firstly, she required the marketing department to launch a re-branding advertising campaign in 6 weeks, which, considered the size and the circumstances, was quite a high requirement. Secondly, she set a growth target of 20% to be met in 2002 and started to initiate rapid organizational changes. The changes included consolidating power, as well as attempting to clearly define the roles
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This resulted in low morale and the loss of many experienced, high-ranking executives to HP’s rivals. However, though Fiorina’s tenure was not a perfect one, board members of HP insisted Fiorina was correct in her vision and strategic plan for HP. Reviewing the company figures, although Fiorina did not meet her own financial target, and the market share of the most lucrative printer business has decreased, HP has obtained larger market share of personal computers (from 7.7% to 15%) and servers ( from 14% to 31.7%) from 1999 to 2004. Therefore, it may be concluded that although Fiorina is not as perfect for HP as she was expected to be, she did not make it worse off. It only depend on how the standard of the ‘right choice’ is set.

3. What were the major problems/ issues facing HP’s business at that time?

By the late 1990s, HP’s business was facing major problems which are reflected in its financial results. Despite a 9.71% increase in total net revenue, HP faced declining net earnings of 6% from 1997 to 1998. The company had also experienced a slow and decreasing growth in revenue in comparison to its main competitors. From 1996 to 1998, HP’s annual revenue growth decreased from 21.89% to 9.71%, while one of its main rivals, Dell, was able to maintain an over-40% revenue growth in each year within the same period. Moreover, HP’s failure to satisfy customer needs and catch

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