Global Communication - Problem Solution

Running head: SYNOPSIS - HEWLETT PACKARD

Synopsis - Hewlett Packard

Evelyn Baker

University of Phoenix

The technology industry is having its increased shares of woes as companies struggle to keep up with competition and rising costs, and this is no exception for even the leaders in the industry. Oftentimes, issues arise from economical external pressures. While Hewlett Packard (HP), one of the world's largest imaging and printing systems manufacturer, is feeling the sting too, most of its problems are internal. Its foremost task is cutting costs. HP's psychological status arose out of its $21 billion merger with Compaq in 2002, with HP predicting $2.5 billion in savings. "However, due to increasing competition from rivals like Dell and IBM, HP fought to realize profits in the personal computer and server markets, along with increased pressure from Lexmark, Canon and Dell on its cash cow business, printing and imaging resulting in profit margin erosions," (La Monica, 2005). "Cost cutting measures included the elimination of overlapping products and reorganization that would mean layoffs of 15,000 jobs," (Hewlett-Packard Co., 2005). HP would need to "improve operating efficiency and execution as well as its financial performance and customer focus," (HP Invent, 2007).

To meet the challenge for change and to keep HP on its goal to become the world's leading information technology company, Chairman and CEO Carly Fiorina stepped down in February 2005, with Mark Hurd named as CEO and president in March. His psychological strategy and organizational commitment was "not to deal with the past, but to look to the future, based on metrics and performance - creating a performance oriented culture to pursue common goals shared throughout the organization," (SharedXpertise forums, 2005). HP's stands on its mission "to invent technologies and services that drive business value, create social benefit and improve the lives of customers," as everything they do has to be in the best interest of the customer, "with a focus on affecting the greatest number of people possible," (HP Invent, 2007).

As a result of HP's reorganization, HP has realized an increased customer loyalty. It has forged innovative partnerships as well as implemented user testing and benchmarking for solving technological issues with