Hewlett-Packard Company Case Study Essay
1037 WordsJun 23rd, 20125 Pages
CASE: Hewlett-Packard Company: Network Printer Design for Universality (p. 358-363)
It allows HP to postpone (product standardization, postponement) the allocation of laser printers (or specification of printer engine) to specific regions by about two months. Thus, in these two months the decisions can be made based on the aggregate demand forecast (US & Europe) in all regions. Production team believes universal power supply can enable HP to better respond to regional demand (US & Europe) and reduce its inventory costs.
1. Disadvantages / costs of the universal power supply include:
i. Increase material cost (USD 30/unit) ii. Possible power play among warehouses / Distribution centers (DCs) when…show more content…
ix. Elimination of costs associated with unused power supply modules (i.e. discarded from transshipped printers, needing re-configuration at the end of PLC)
1) When the product is first introduced into the market, demand is highly volatile and unpredictable (high forecast errors) as demand is not known with certainty.
2) The cost of stock-outs is higher during the ramp-up (i.e. introduction) stage of the product life cycle because HP is able to charge a premium due to lack of competition initially, and the adverse publicity of stock-outs at the beginning can impact the ultimate success of the product.
3) Therefore, the benefits of risk pooling through the use of the universal power supply are greater at the start of the life cycle when more safety stock needs to be held (to avoid stockouts and corresponding costs), and inventory holding costs are high (due to greater safety stocks).
4) At end-of-life stage, there is less fear of adverse effect on future sales and therefore cost of stockouts considerably lower (also resellers might steer custs. to wait for the new incoming replacement product)
5) Toward the end of the life cycle, inventories are reduced, and transshipment becomes an option to alleviate demand imbalances between different regions. Therefore, the benefits from a
Management And Leadership The Hp Way
Management and Leadership the HP WayUnder conditions of uncertainty or unusual challenge and difficulty, people look for help in understanding questions about what matters, what to do, what direction to take, and what they should not do. Providing people with the answers that help them with these difficult questions is the fundamental nature of leadership. The leadership style of Bill Hewlett and Bill Packard would provide the structure for the development of the "HP Way" as a unique organizational culture. Although this concept has similarities with the Japanese organizational culture, the "HP Way" stands alone as a model for organizations around the world.
In this study of the "HP Way" the roles and responsibilities of leaders will be examined in creating and maintaining a healthy organizational culture. This study will include a discussion of the difference between management and leadership; and the role organizational managers and leaders play in creating and maintaining a healthy organizational culture. Finally, two strategies will be recommended that organizational managers and leaders may implement to create and maintain a healthy organizational culture.
HP Begins in a GarageBill Hewlett and Dave Packard were class mates at Stanford University when HP was created. The first product introduced by the new company "was an audio oscillator-an electronic test instrument used by sound engineers." (HP, 2009). One of the first HP customers who purchased eight oscillators was Walt Disney Studios. The devices were used to develop sound systems for a new movie Fantasia. Bill and Dave's partnership became official on January 1, 1939 in a garage in Polo Alto, California. With the toss of a coin the company name was decided. In 1940 HP moved from their garage workshop to their first leased building. In 1958 Dave Packard writes 11 simple rules which express his philosophy for work and life. The rules would become the precursor for the HP Way. (HP, 2009).
Developing a Healthy Culture Through Leadership1957 was the year Hewlett Packard went public; the same year the HP Way became official. Bill and David, as they would have everyone refer to them, were the role models for leadership which developed an organizational culture that would span six decades. The HP Way was the leadership style Bill and David etched in the hearts and minds of leadership as well as employees, which would become a way of life for literally thousands of employees. The centerpiece...
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