Home Depot and Hewlett Packard Essay

Project 3 Home Depot and Hewlett Packard:
Diagnosing Change using the Star Four Frame Model
By Amanda
HRM587 Professor Anderson

I Diagnostic model
The diagnostic model that I believe that the Hewlett Packard and Home Depot would fit the best is the Four Frame Model. The Four Frame Model consists of: Structural, Human Resources, Political, and Symbolic. The Structural frame is based on the rules, goals, policies of the organization, technology and the environment. The Human Resources frame involves the needs, skills and the relationships between the people and the organization. The Political frame involves power, conflict and competition of the policies of the organization. Lastly the Symbolic frame involves the culture, rituals, heroes, meaning of the organization. II Analysis of Diagnostic Model

A. HP
When Meg Whitman became CEO of Hewlett-Packard she wanted to keep the same plan as her predecessor Leo Apotheker was doing. However in March of 2012 Hewlett Packard announced that it decided that it will realign the company by joining the Imaging and Printing Group with Personal Systems Group to make the Printing and Personal Systems Group as well as unifying Global Accounts Sales will be known as HP Enterprise group and include Enterprise Servers, Storage, Network, and Technology Services. By joining theses departments it was thought to help speed up decision-making, improve efficiency, and increase production. HP also announced that it would consolidate the marketing department to make run efficiently and simplify the buying experience for the consumer. Hewlett Packard hoping that if unifying these departments they can come up new ideas while cutting costs. Hewlett Packard has been going through a very rough t0ime sales dipping. These changes also included moving Todd Bradley the executive vice president Printing and Personal Systems and put him as vice president of strategic growth initiatives to help with the growth of Hewlett “Packard in different
countries around the world. Whitman decided that Bradley who has numerous contacts across the world and that his talent would be suited for growth globally. B. Home Depot

Home Depot had the reputation of excellent customer service; however when Nardelli was in charge the reputation of customer service was a bad joke that came with frustrated customers and bad experiences. However when Frank Blake took over he did a 180 degree change of his predecessor. Blake decided to get rid of the wholesale housing supply business acknowledging the backfire of getting into that niche when Do-It-Yourself People was their target. He decided to focus on quality and not quantity going back to the mission statement and the goals of the founders of Home Depot. He brought back the “pro” back at Home Depot by training the employees to help with assisting the customers. He changed Nardelli’s focus of aggressive approach by bringing founders Blank and Marcus and getting their advice which was to visit the stores and see what they want and need. When Nardelli was in charge all the store carried the same merchandise and same amount of inventory no matter if a store sold a lot of that particular product or not. When Blake became CEO he decided to give power of the store back to the store managers. Instead of having endless emails and weekly reports, he replaced it with a “one page scorecard each week” and ten page playbook for the week so that the managers can be free to take care of store and the customers. Blake wants to eliminate coupons and rebates so that the price the customer sees is the price without having to “work” for the savings like filling out rebate forms.

Blake looked at Home Depot and decided that to go forward he had to bring back the culture that Home Depot was known for. He put power back in the stores managers and training the employees so that they can assist the customers to the best of their ability. He focused on quality rather than quantity which brought in more customers. By changing the structure, the human resources, the political and symbolic frame he brought back the goals of customer service, becoming the experts of home improvement and bringing unity between the organization and the employees. III S.W.O.T of Companies

A. HP
Strengths
Global reputation for printers and PC
Leader in printers for homes
Have bargaining power in producing printers and other products Weaknesses
Missed the opportunity move to mobile devices such as cell phones and tablets Losing business with business printers
Changes CEO every few years that makes stockholders and consumers nervous Slow hardware
Seem to invest in different areas without clear focus
Opportunities
Can offer products at reasonable prices
Simplify the buying process for the consumer
Expanding printing and imaging products

Threats
Hyper Competitors especially those that more diverse in technology. Very competitive and people want the best and newest technology Global recession
Competitors that can sell refill ink cheaper price
B. Home Depot
Strength
1. Brand Recognition that most if not all people know who they are. 2. Good customer service has been number one priority
3. Corporate Office allows the store managers to manage the stores by ordering the inventory that they need rather than corporate tell them what they need. 4. Training the associates so that they are “pros” bringing pride in the employees and what they bring to the company. 5. Low cost products, They have opportunity to bargain from wholesalers for products Weakness

1. Largely based in United States so economy in the US sales also go down. 2. Rising costs of wage earners
Opportunities
1. New customers
2. Have more internet sales
3. Becoming more popular with the Do-It- Yourselfers

Threat
Competition from Menard’s and Lowe’s
lack of product differentiation
The United States having economic slowdown can affect sales
IV. Effectiveness of the Analysis
It takes time for a company to make changes and with Hewlett Packard Whitman has been CEO for less than two years and because Hewlett Packard has been struggling long before she became CEO so she is playing catch up as fast as she can. She came in the position to keep what Apotherker was doing but soon became obvious that she needed to change things more by reorganizing the goals and combining departments to use the best talents. Whitman made the four frame model by using the Structural Political, and Symbolic frames make the playing field seem more fair for everyone parks same parking lot, there are no executive offices rather than basic cubicles and regular offices at the corporate office. Human Resources she changes the departments so that more unified like the Printing and Personal Systems Group , and marketing group so that saves money by cutting expenses and allows the departments more creativity to find solutions or get new ideas. Whitman sees employees’ talents such as Todd Bradley instead of keeping him in the Printing and Personal Systems she moved him to strategic initiatives where he can use his talents gain contacts around the world. I think she is a little slow in implementing the changes especially Hewlett Packard being so behind the times. Hewlett Packard is going have a real rough time getting to where they were before the downhill of the company. They have to win back customers and gain new customers in the process. It is doubtful that they will be a true leader anytime soon just because having so many CEOs in short period of time and missing new technology like tablets. Home Depot‘s CEO Frank Blake had six years to turn the company around and was a success. His predecessor ran the company like He ran his previous Company Genera Electric not realizing that the culture type of business was very different. When Blake came in he basically undid everything Nardelli did and almost immediately changes where noticeable. He brought back the goal of quality over quantity. He trained employees to become professionals
and able to help consumers in what they need. He allowed the store managers who are there day after day to manage the stores bet way they saw fit, instead of bombarding the store managers with micromanaging emails and documents. He brought back the culture that the employees, consumers and the founders embraced when Home Depot first started. Even though Home Depot has stopped the expansion of stores overseas sales at stores in the U.S. have grown and Blake realized that along with investing brick and mortar stores they needed to invest in internet sales. Blake didn’t hesitate to ask for help when he needed by contacting the founders and asked for advice and went to the stores first hand see how it was running and what need to be fixed. Unlike Hewlett Packard Home Depot knew what changes needed to be done and did not hesitate to make the necessary changes. Home Depot’s competition will always be their competition but as long as Home Depot doesn’t lose focus on goals, their mission and values they will stay in the competition. V. Resistance

Hewlett Packard
Hewlett Packard has hard time selling refill ink because so many companies sell the refill by self kits cheaper or can refill cheaper if Hewlett Packard have a reward Club like for every 10 refill cartridges get one free or get a discount if a person orders so many. People hate spending money on ink so by giving free ink or discount on ink it will entice the consumers to buy their printers and cartridges.

Home Depot
Home Depot has a lack of product differential from their competitors, so Home Depot has to work harder to make themselves stand out from Lowe’s and Ace Hardware. Home Depot needs to make sure that employees are experts in their department. They can offset can introduce other tools and home improvement that cannot be found at other stores. They can offer cheaper prices than the competitors

Bibliography
Angers, G. (2013, May 22). http://www.forbes.com/sites/georgeanders/2013/05/22/meg-whitman-jolts-hp-as-i