In 2010, Hewlett-Packards CEO boasted that it was the largest IT company in the world and still haven’t even hit their full potential. Since then H-P has gone through two different CEO’s and the company’s market capitalization has fallen significantly. But what caused such a drastic fall off?
With all the leadership change at H-P, it has caused a lot of money loss because they cannot decided who should run the company, who’s plan to follow. There have been 4 different CEO’s since 2005 and that causes a lot of confusion within the work place because each CEO brings in a whole new feel. Also, each CEO has made cuts and lay offs, almost 75,000 workers since 2005. This has developed a lot employee moral around the company. Its hard to take pride and honor in your company when you are at the constant threat of being fired.
H-P also has a major debt to pay off. The company has spend more that 67 billion in acquisitions since 2001. H-P is over 5 billion in debt so they have had to make a lot of cut backs, like the employee firings, but also in different areas budgets. For example, Research and Development lost a good deal of funding. This was a poor business decision by H-P because they are a technology firm and with technology everyone wants the newest, most updated model and thats comes by research and development.
With these major blunders, what does H-P need to do to stay alive and turn the company around. What will new CEO, Ms. Whitman need to do as leader to turn the company around?