What H-P should do now to get back on track

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Author: Melanie Hollands

A key issue for Hewlett-Packard Co. since the mid-1990s has been lack of strategic focus. Chairman Patricia Dunn, in describing the recent leadership change, stated

Melanie Hollands

the need for better “hands-on” management and also implied the problem at HP was one of execution rather than strategy. But I disagree.

Hewlett-Packard needs to do a lot, both strategically and tactically, to move from being a mediocre company to an industry leader. The company is spread too thin — trying to be all things to all people — and competing in too many diverse segments without effectively leveraging potential synergies. A more cohesive, selectively focused strategy could better leverage HP’s resources and deliver more robust results.