Abstracts » Business, general

A 1990 reorganization at Hewlett-Packard already is paying off; HP cuts bureaucracy, costs, undoing past blunders

Article Abstract:

Hewlett-Packard Co (HP) is turned around and doing well. Only a year ago, the company was in trouble, losing market share. Orders were down in established markets, and the work force was too large, so that profit margins were narrowed. Earnings fell, the company's stock price was down, and morale was poor. After various changes and a major reorganization in Oct 1991, HP CEO John Young has revitalized his company. Excessive layers of management are eliminated and the company is taking a harder line on employee costs. Product development is reorganized under strong management, and computer-product groups are rearranged. According to Young, HP does not want to be caught 'in the big-company mentality,' apparently a reference to IBM and its difficulties. HP's revival comes at a crucial time: a battle is taking shape among manufacturers of microcomputers and workstations.

Management, History, Hewlett-Packard Co., HWP, Bureaucracy, Management Style, Company Profile, Organization Structure, Reorganization, Young, John

---

Secret unit of Zeos sells cut-rate PCs

Article Abstract:

Zeos International Ltd establishes a secret unit to sell microcomputers below the cost of its own products. Occidental Corp is a wholly owned subsidiary of Zeos that has advertised low-priced microcomputers in national magazines. One system is based on an 80486 microprocessor and lists for 27 percent less than a similar microcomputer from Zeos. Occidental employees deny any connection between their company and Zeos. While it is a common practice for computer companies to set up lower priced lines of microcomputers, it is unusual for a firm to go to great lengths to set up subsidiaries and bury any connection between the new company and its parent. Zeos has suffered financially from price wars and lost $11 million during its fiscal 2nd qtr, and it hopes to the Occidental sales will improve its condition.

Price, Mail Order, Subsidiary Company, ZEOS International Ltd., Occidental Corp.

---

Some parts © 2012 Advameg, Inc.