Case: Relationship between employee satisfaction, customer satisfaction, and market share- The case on Hewlett Packard Submitted

to: Ms. Anurupa B Singh Professor Marketing and Sales

Submitted By: Akshay Karawal MBA- M&S, Sec-D Roll No-54

Case Summary

HP's Desire to Focus on Employees and Customers The case shows how the company is focusing on the employees satisfaction which inturn leads to customer satisfaction and high market share. It tries to be more employee focused. What does it mean to be customer focused in the PC business? HP has focused on many critical things in its PC business to become more customer focused. Have they achieved this objective? Justify your response. To be customer focused is to "know the facts" about the client. By doing so, you not only see the client's needs and business objectives from their point of view, but you also try to concentrate to learn about their unexpressed and/or future needs. Hence forth, in the PC business the firm tries to know what features are more important for their customers like: price, brand, speed, mobility, reliability, and so on; and then make your product fit those characteristics.

1) According to the case, some steps that HP has done to become more customer focused and employee focused are: Focussing on its Employee Satisfaction.A high satisfaction level leads to an enhanced market share,which further reinforces employee satisfaction which inturn leads to high customer base. Create the Customer Solutions Group, a sales force empowered to sell the entire portfolio of HP products and services. Creating a HP invent Global campaign called The rules of the garage which was circulated to every employee so that there was a constant drive towards achievement . The vision of the HR department is to achieve a higher level of employee satisfaction,higher level of satisfaction with the HR department,and a decline in the attrition rate of the organization. Hoshin Plans were made so that the performance improves considerably of the employees. Training needs are continuously assessed for every employee. Assessment was made on for the best fit job according to unique strengths of the employee. Emphasis is laid down by the company in order to maintain a balance between Work and Private Life.This has been compared to a three legged stool. Trying to make the working place a fun place. Creating Positive Surprises for the Customers. Focus on satisfaction levels, given customers desire about price and branding.

We believe that the actions taken by HP helped them to become a more customer focused company than they were before. They managed to relate to their customers in different ways depending on the business sector they are located. Bottom line, these actions gave them in 2004 a number one ranking in customer satisfaction index for Intel servers and IT services.

2) Ms. Carly Fiorina wanted HP to be a unique combination of high tech, low price, and superior customer experience. High Tech It is a commodity; there is no big differentiation between the two brands. Low Price Dell is 16% cheaper than HP in the desktop configuration shown below. Customer Experience The buying experience in Dells website is better than HPs one since it is much easier, clear and in less clicks. Also provides the customer more information about warranties, product specifications and add-ons.