HP's strategic choices Essay Example | Topics and Well Written Essays - 500 words

HP's strategic choices - Essay Example In the process of discussing the major accomplishments and failures made by Florina, the student will evaluate her decision-makings and the effectiveness of her strategic choices in terms of being able to cut down the operational costs of HP. One of the business strategies that Florina implemented together with the company’s business executives is not to reward employees their annual bonuses in case they fail to meet their profit target each year. (Information Gatekeepers, 2002) Even though holding on employees’ bonuses could save the company a large sum of money at the end of the year, this strategy could de-motivate some of deserving employees within the business organization. Given the fact that some of HP employees were disappointed with the top management’s decision not to release their annual bonuses, the work performance of HP employees may suffer. Back in 2002, Florina was behind the actual merger that has occurred between HP and Compaq Computer. Aside from the fact that merger between the two companies could result to cutting down its operational costs through economies of scale as it increases the market opportunity on the part of HP, some analysts have argued that it was a mistake to pursue the merger between the two companies since this strategy made HP lost some portion of its market shares in some areas. (LaMonica, 2005) Upon analyzing the situation, it is possible for HP to lose some of its market share in certain areas when the top management fails to develop a single organizational goal and business objectives which could align the employees coming from the two separate companies. When there is a miscommunication or internal conflict arising between the two groups of employees, there is a higher possibility for the quality of HP products to decrease due to miscommunication and other technical errors. One of the best ways of maintaining the competitiveness of HP in the global