Hewlett-Packard: Aligning Global Strategy and Organization
As of early 2005, Hewlett-Packard (HP) was one of the world’s leading technology companies, offering hundreds of distinct products and services ranging from $100 digital cameras to multi-million dollar outsourcing services. For fiscal 2004, HP recorded revenue of more than $80 billion. Given the breadth of its offerings, as well as its worldwide reach, alignment between the company’s strategy and its organization, in terms of structure, processes, and culture, was a critical factor in the company’s ability to perform effectively in a complex global environment. This case describes HP’s strategy, global organizational structure, and its enabling processes. It also examines the company’s international business groups, HP’s performance, and the industry environment in which the business operates. It also raises questions about whether or not HP has achieved appropriate alignment between its strategy and organization as the company prepares for a transition in CEOs, from Carly Fiorina to Mark Hurd, in early 2005.