Hp Procurve

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HP ProCurve Case Discussion

1. Evolution of NB (networking business)

Period | Industry Trends & Competition | NB’s Focus & Strategy | Attention from HP Top Management | Internal Relationships | External Relationships | Resource Allocation | NB Performance | 1. Emergence1970s | Fermentation, very few companies (3com) | Interconnect with disparate computers, emulating IBM systems and networking HP computers among themselves. | Very little | Management didn’t give it much attention | None | Very little money | | 2. IND & ING1982-88 | Fermentation, Cisco and 3com | ING had to create networking protocols to communicate with a variety of systems, including IBM mainframes and DEC mini computers and HP’s own three
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Will ProCurve be able to thrive under the umbrella of TSG? Or should it stand on its own within HP? Present the pros and cons of each option and then make a decision.

I believe that putting it with TSG is the best that they have done for it, but they should put it on its own. If you look at Cisco and 3com, they show you how much potential the market has and how much ProCurve has of that market. ProCurve should stand on its own to be able to better monitor and to give the person responsible for it his full focus. The pros of being a stand-alone are: full focus from the management on ProCurve products, separate sales team, marketing team, R&D, etc., more entrepreneurial sprit. The Cons are that HP would compare it to all the other larger departments and if it didn’t perform as high as they did, they might sell it like they previously were planning to do. The pros of being under TSG is that ProCurve will not be compared to other departments, but rather the whole TSG will be, this will show more revenue from that department and if ProCurve didn’t perform as well, it can be covered by other revenues. TSG can allocate more things to ProCurve faster and decisions can be done faster and on a smaller scale. The cons of being under TSG are that TSG can allocate things different and not really give ProCurve the attention it needs to grow to its potential, Sales and marketing

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