The Future of Hewlett-Packard, Case Study Example

Introduction

The article regarding the future of Hewlett-Packard is an important reminder of the ever-changing dynamics of technology and how they impact businesses and their products. The recent decision to break the company into two divisions is an important reminder of the power of large companies to make significant decisions that impact their business practices and that support their ongoing evolution and growth in different ways. There has been a change of heart regarding the split, as this was the original intent of prior CEO Leo Apotehker, who was ousted from his position and replaced by a leader with a different vision for the company and its future (The Economist). In spite of the differences within the company and its overall direction for the future, these perspectives began to change in 2014, as it was believed that a split might be a good idea after all in order to catapult the firm to the next level (The Economist).

Analysis

It is believed that the current improvements in the market economy have enabled HP to make the decision to split its divisions, based upon improved market performance versus the economic recession of prior years that led many companies to exercise extreme caution in their efforts to sustain success and to minimize their losses (The Economist). Therefore, the company must continue to explore its options with respect to developing a strategy that will be effective in accommodating change and in supporting a new direction to introduce new ideas and future opportunities to improve performance (The Economist). Perhaps most important to this decision is the continued growth and diversity of the market and the ability of organizations to focus on new areas to expand HP’s presence within the market, albeit in non-traditional ways (The Economist). The ability of technology companies to diversify their holdings and interests in 2014 has become increasingly appealing and represents an opportunity to examine the different areas where a company might be able to expand its presence and make a name for itself without relying on a potentially outdated strategy (The Economist). In this context, HP has been largely influenced by market fluctuations and the ability to shift a business model to expand into different areas in a careful manner, yet be cognizant of the changes taking place in the market that might expand its presence in the future (The Economist).

The diversification of technology-based organizations has been a continuous process throughout the years and represents a means of expanding the strategy to accommodate change and to be proactive in meeting client needs and expectations effectively (The Economist). This strategy requires an organization such as HP to be aware of its depth of knowledge and its ability to branch out into new areas where skills might be effectively utilized in an effort to produce effective outcomes for the firm over time (The Economist). As an organization, HP must continue to focus its efforts on expansion and growth into new areas through diversification in order to accomplish the desired objectives and to meet expectations within the industry that have facilitated the company’s widespread success to date (The Economist). In this context, there must be a continued focus on the organization’s ability to carefully explore its options in other areas in an effort to be proactive in meeting the needs of its customers and to attract new customers along the way (The Economist).

A carefully executed strategy executed by HP in 2014 will also enable the company’s split divisions to explore new acquisitions in their own right in an effort to remain competitive and forward-thinking within the industry (The Economist). When an organization such as HP has identified its niche and has also demonstrated its strength in one or more areas, it must serve as a key priority in supporting the growth of the firm and its divisions, both now and in the future. These efforts require an organization to be cognizant of its efforts to expand in scope and to grow from within, while also refraining from straying too far from its original business model and purpose. This process requires an organization of this size and stature to continue to evaluate its options within the market and to diversify as needed to sustain a competitive advantage and focus on its core strengths that have allowed the firm to grow to where it stands today. The market for HP to expand is ripe, given that economic conditions are relatively steady and continue to grow, yet the company must also exercise caution as it explores these options so as not to stray too far from its original purpose.

Conclusion

A decision by Hewlett-Packard to split some of its divisions and to diversify into other areas must demonstrate a high level of focus and an understanding of the different elements which have contributed to the success of the business since its inception. With the ever-changing wave of technology that continues to evolve in the marketplace, there must be a greater focus on the company’s core strengths as it moves towards a new business model, where it is believed that two or more smaller companies may be a better option than one larger company (The Economist). This is an important reminder of the strength of the industry and the need to continue to evolve and grow in response to the market and the changes that are taking place at this level in order to accomplish the intended objectives and to be successful in diversification towards greater growth.

Works Cited

“Split today, merge tomorrow.” The Economist. 14 December 2014: http://www.economist.com/node/21623287/print