Case study for Carly Fiorina the
ex-CEO of Hewlett Packard
林尹星教授,傅筱君
(Southern Taiwan university technology department of
applied English, Taiwan)
Abstract
Carly Fiorina comes for a middle class family. Form a receptionist in real
estate brokerage company to "the most influential women in the world" Called
by the U.S. ‘Fortune’ magazine. Today, she is most successful businesswoman.
Carly called herself as a ‘Change Warrior’. She believes change is a hard thing,
especially for the reformer. However through change could gain more. She had
been stayed in AT&T for almost twenty years. Her strong fighting spirit led her
to conquer difficulties and the way of prosper step by step. The most familiar
thing she did was the merge of Hewlett Packard (HP) and Compaq. As a
professional manager to became the biggest technology industry CEO. She
won this battle, but also led to conge later. People analyzed whether she was
success or not in HP. some people thought she fail, because she dismissed by
the broad. However, HP’s revenue turns loss into gain since she leave.
1. Introduction
Hewlett Packard (HP) Company is the most popular printer and
computer producer in worldwide. Although it was very famous, its growth and
innovation was standstill. How to make the business prosperity as before would
be a significance issue. In the hierarchic company, Carly Fiorina’s unique
feminine identity subverts the stereotype that only man could be executives.
More over she became a first female CEO in HP. It caused a lot of dispute,
because she did not have relative computer background. The broad of HP
believed that they needed a outsider to rectify. Therefore, she used her
experience in AT&T to save their revere and reformatted business department.
This case study will focus on HP Company’s background, Carly Fiorina’s
personal background, Carly Fiorina’s undergo, and SWOT analysis of HP.
.
1. 1 Hewlett Packard (HP) company’s background
Hewlett Packard (HP) was established by two Stanford University
classmates Bill Hewlett and Dave Packard in 1939.at the beginning, the
company were founded at a garage in Silicon Valley. The company's first
product, was an audio oscillator—an electronic test instrument used by sound
engineers. The first customer of HP's was Walt Disney Studios, which
purchased eight oscillators to develop and test an innovative sound system for
the movie Fantasia. Through the time, Hewlett Packard Company made a lot
of profits and has become a famous printer and computer producer around the
world. However, with a lot of consumers, serve experiences, and Global market
share, HP still has to face crisis for their revenue. Hp’s revenue is far behide
competitors’ during 1997and1998. In 1999 Carly Fiorina just took over and
how to solve this problem was difficult task to her.
1. 2 about Carly Fiorina
Carly Fiorina was born in 1953 in Austin, Texas, at middle-class family,
her father was a university professor, and mother was a housewife .Owing to
Carly’s father had to teach at different places, her family had to move
frequently. Therefore, she learned a lot of different cultures and had well
adaptability for new environments.she believe that change is difficult, but
adventure will learn more .She studied at Stanford University and major in
philosophy and history. Without family financial support, she had to do a par
time job to pay her tuition. Thanks to the insistence of her mother, Carly
learned type, when she was junior high school. During semester break, she had
do full time job and detached to a lot of companies as a temporary secretary
including HP.
Carly was an incredible woman, from a receptionist in real estate
brokerage company to "the most influential women in the world" Called by the
U.S. ‘Fortune’ magazine. After got the university of Maryland MBA degree,
she decided to work. in1980,when she chose to join Ma Bell (predecessor for
AT&T)，there are a lot of professors tried to dissuade her from enter Ma bell.
Those professors thought the organization of Ma Bell was too bureaucratic and
their pace was too slow .However, she had diverse viewpoint. In her opinion,
the communications industry had good prospects. Furthermore, the Bell system
had the ‘management development program’ to make those young managers
shift in every department. She though this job was so challenged. When she
join the staff training, at first her performance was not good enough. Through
the training course she became more confidence.
1. 3 Changes in AT&T
There are several phases changed her not only her position but her
performance, during two decades in AT&T.
1. Her professional attitude--- She worked at ‘government communications
unit’ for a year, a difficult situation happened. Two head of bureau of Indian
affairs visited, but they had met at a strip club. However, she still audacious
and professional did a great job as a receptionist. After that, the balance of
power changed. She got respected.
2. Her leadership style---In 1982, it was her first time to be a superintendent.
In order to change the sexual discrimination from her boss, she decided to
let her team perform well more than expected. She set a higher target and
must be reaching. But she had no idea how to do. She asked her
subordinates’ brain storming together, and adopted their suggestion. More
over, she inspired the team morale and got attention. Every three months,
Carly made all employees to fill a simple questionnaire. Therefore, their
voice could be heard.
3. Her circumspection and inspiration---When she transferred to the
engineering department, she learned about schematic circuit. She found a
big mistake that their switch fee was overcharge. Finally she got promoted
as a regional manager, and the chance to pursue further education. She
learned new synergy technique, appreciated, and got the Massachusetts
institute of technology Sloan School of Management of business master of
commerce.
4. Her social skills---on the head of International Strategy and Business
Development, she had to deal with other companies around the world.
Although, there were some sexual discrimination. She still used her subtle
observation to overcome different culture custom problems. For example,
the Italian like to held dinner party at private place before started business;
the Koreans like to toast to show respect.
5. Her integrative competence---in 1995, she participated in AT & T spin-off,
established Lucent Technologies. She faced a lot of difficulty such as each
departments fight for their benefits, how to convince investors, and
promoted their belief. However, she found the heart of matters, and
successfully promoted the Lucent.1998, she was promoted to Global
Service Provider Business Unit Managing Director, and managed a sector
which revenue amount to 60 percent of total company.
She believes that all victories come from the same elements, appropriate
support, appropriate team, and successful determination.
2. 0 SWOT analysis of HP
The SWOT is the most universal way to help company make decision.
Through this analysis way, they can make s good business strategies. Carly
Fiorina was not a specialist of management; however, she used the experience
of AT&T to help HP to face problems. Strengths and weaknesses are internal
aspects in the company. That means they are most powerful elements to
performance of company. The strengths may refer to the business culture, and
abundant resources. The weakness may refer to marketing, leadship, strategies
and organization. Opportunities and treats are external factors for the
environment. That means they can not control in changed environment. The
opportunities refer to recruiters a new leader, and reorganized. The threats may
refer to competitors, market, and price of products.
Strengths
HP has profound business culture and resources. It was build up by its
founder. Used those preservation and combine reinvention would make it
invincible.
Weaknesses
Although, it got a lot of resources, those still could not help HP to lay
status. It lacked of lead, strategies, and the bureaucratic organization. The
former two main factors caused staffs in HP passive in marketing and offer
service. The later bureaucratic organization caused the staff only forces on their
own business.
Opportunities
The broad of HP wanted to recruiters a new leader, and reorganized.
Therefore, a brand new energy and speed could make HP different then before.
Threats
The whole market change all the time, not to mention the competitors.
The HP invested new products, however, they still far behind their competitors.
The prices of HP’s products were too expensive. Over all, the main reason was
its passive attitude.
3.0 take over and innovation
Carly Fiorina was took over the HP company as CEO in 1999. She used
‘thousand tribes’ to describe mess internal of HP. For the organization, she
would like to preserve the way of HP and follow the business culture, such as
respect and trust of the people, pursuit excellence achievements and
contributions, teamwork and encourage innovation. Reform the method of
execution of industry characteristics. It needed to enhance synergy and
establish basic discipline. Therefore, she made eighty production departments
integrated into ten business departments, to gather up resources. She also
changed its strategy into customer driven service and offer systematic solutions
for consumer. The staffs in HP only focus on their own business of department.
Carly believed that to learn how to horizontal cooperation with other
departments was essential. She used the rewards and appraisal (Expectancy
theory) and management by objectives (MBO) ways to make the staff
understand the goal that a head of other industries and anticipate for bonus. In
addition, she also changed the training system, in order to develop managers as
leaders.
4.0 The Compaq Merger
From 2000 to 2001, the global economic was recession and industry
structure changed. One of ex-board of HP suggested Carly to merger the
Compaq. During that time, she thought that they should not take initiative. In
fact, she had been observed Compaq for year. She believed that Compaq could
not handle pressure and soon they would need HP more then HP needed them.
After merged Compaq announced, both of their share prices were decline.
However, she met a group of business representatives, and they said that they
were excited and supported about this merger, because there would be more
new product portfolios they could sell. Although, the staffs of two companies
had faith, there was still some opposition. The main against force came from
the HP board. They oppose to merge Compaq, in other word, it was a fight
leaded by two family factions to oppose Carly Fiorina publicly. The board of
HP originated proxy battle and tried to spread some false rumors to make the
crowd query. They claimed that in the employee opinion survey, a lot of staffs
oppose to merge. As matter of face, according to Carly‘s employee opinion
survey shown the majority staff supported the merger. In the end, she won the
proxy battle. Nevertheless, after the proxy battle, Carly wanted to compromise.
She modified her leadership style and gave the board some alternatives even
abandon Compaq merger. However, She still got dismissed and without
respectful formal handover ceremony.
5.0 Conclude
Accordance with the Compaq merger, a lot of people disputed about
whether Carly Fiorina successes or not. For the reform of HP, many people and
the staff who against her believed that she would break ‘the way of HP’.
actually, she still preserved the spirit and added something new. She was really
hard working to understand the whole organization and business. Therefore,
she used her former experience in AT&T and got the heart of HP’s problems.
On the other hand, the Compaq merger, people believed that Carly did not help
HP’s performance and its share price. In fact, the revenue climbed steadily
under her leadership and after merged Compaq, HP became the second-largest
computer company in the world. When the board announced that they
dismissed Carly, there were thousands of comfort emails form HP staffs and
official around the world. If a person really made a huge mistake, how come
she still got so many supports? People should not only one-sided rhetoric.
Carly Fiorina choose not to talk about what her felt for fired to media, but
through her autobiography could make people more understood her and the
whole truth. To sum up, over all what she did was basic on her business
experiences and deliberated what would be the best decision for the whole
picture. If there should find the fault with her, in my opinion, I believed that
would be her pace of reform was too rush. Therefore she offended executives
within the company.