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Carleton S. Fiorina Carly the Thesis

Pages:4 (1311 words)

Sources:3

Subject:Business

Topic:Macro Environment

Document Type:Thesis

Document:#40030070




Relative to the organization as a structure, Fiorina decided to offer increased power to four managers in an attempt to unify the corporate departments. This did not retrieve the desired results as an integration within an overall Net strategy had been delayed.

Carleton Fiorina has had an impact upon Hewlett-Packard's marketing operations. Prior to her arrival, the printer organization had used traditional marketing techniques, which presented one product or service at a time. Fiorina however revealed that in the age of the internet, the corporation had to market various products and services and present how they relate to each other to form a unified whole. In this desire, she implemented integrated and interactive marketing techniques and managed to attract larger numbers of customers.

In terms of human resource, HP prided on one of the lowest employee turnover rates. Insiders however commented that the company was retaining the wrong people. To attract the best skilled ones, Fiorina set the goal of modernizing the compensation plans and also adding the possibility for employees to purchase stock options (Business Week, 1999). This would ensure that the individual goals of the employees became united with the overall goals of the organization. Otherwise put, by allowing staff members to participate to profit sharing, the management would also stimulate them to increase their performances and sustain the company in achieving sustainable growth and development.

However the strategies implemented by Fiorina retrieved desired results in the beginnings, they soon backfired and in 2005, the Board at Hewlett-Packard fired her. "The move came after she was unable to build Hewlett into a reliable profit machine with the broad heft to challenge I.B.M. At the top of the industry. Hewlett's board forced Ms. Fiorina to resign after she and the directors disagreed on how to carry out corporate strategy as the contentious $19 billion purchase of Compaq Computer in 2002 has failed to deliver the results she had promised" (Rivlin, 2005). The most relevant accusations that had been brought to her revolved around Fiorina's aggressive approach and the negligence she had revealed in implementing the hands-on management required to achieve her stated vision. Foremost, throughout her leadership, Hewlett-Packard had registered a 50% decrease in their stock price. The fall was explained by slow industry performances, but the argument had not been a strong one even more so when the decreases in the competitors' stock prices were less dramatic.

Another accusation referred to the massive downsizes. These were most often explained through a need to reduce operational costs, but were generally frowned upon by the board. In 2001 for instance, Fiorina fired 7,000 HP employees. The following year, she insisted on a dubious merger with Compaq, but this also failed to retrieve the expected results as the organization continued to lose market share to IBM.

When finding out the decision of the board, Carleton stated that she did not approve of it, but would subject to it. She walked away with a severance package of $21.4 million, in addition to her pension plan, stock options and HP stock holdings (Darlin, 2006). Fiorina argued that the decision of the board had been an uninformed one and proof of her argument stand the 16% increase in corporate profits registered in 2005, which had only been possible due to her previous efforts. Others stated however that the positive results had been due to the transformations implemented by her follower Mark Hurd (Darlin, 2006).

A decision on hiring Carleton Fiorina is quite a difficult one, but I for one would vote in favour if it. She is a strong woman who proved her worth and commitment.

References

Darlin, D., October 6, 2006, Fiorina Says Her Groundwork Helped Turn Around Hewlett-Packard, the New York Times

Sellers, P., October 12, 1998, the 50 Most Powerful Women in American Business, Fortune Magazine

Rivlin, G., February 10, 2005, Hewlett's Board Forces Chief…


Sample Source(s) Used

References

Darlin, D., October 6, 2006, Fiorina Says Her Groundwork Helped Turn Around Hewlett-Packard, the New York Times

Sellers, P., October 12, 1998, the 50 Most Powerful Women in American Business, Fortune Magazine

Rivlin, G., February 10, 2005, Hewlett's Board Forces Chief Out After Rocky Start, the New York Times

August 2, 1999, Cara Carleton S. Fiorina, Business Week, http://www.businessweek.com/1999/99_31/b3640003.html. Ast accessed on October 17, 2008

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