1.

Using the inter-organizational framework, where would you place the HP-Cisco
relations as depicted in the case? Explain with evidence from the case
Ans. The relationship of HP-Cisco is placed under collaborative Network, using the inter-
organizational framework as depicted in the case. The domain of both the companies are
different and complementary which can enhance the cooperative mechanism. The
structure followed at Cisco is strategic which enhanced horizontal business model. Cisco
manufactured and sold networking and communication products software. On other hand
HP provides technology support to IT infrastructure, sold PC and printers hardware. The
structure followed at tactical and evaluation was deduced on basis of sales figures and
short-term goals. Hence both the organisation is dissimilar in nature and relationship is
cooperative due to non-convergence of market domain. The appointment of alliance
manager to evaluate the ways in which companies can complement each other shows the
cooperative relationship.
2. How have these relationships affected the structure and processes of both the
organization? Describe.
Ans. HP and Cisco both have different structure. HP was founded in 1939, focus was
mainly on gaining competitive advantage in initial days and hence followed tactical
approach of evaluation on basis of sales and short-term gaols. Cisco was new to market
founded in 1984, focused on alliance with industry leaders in all part of value chain by
utilising the company’s strategic horizontal model. The compensation metrics of sales
person was different in both the organisation was different hence cause problem while
evaluation. There is also the conflict of opinion when cisco team sells services to the
companies that are the competitors of HP and vice versa. The HP-Cisco alliance faced the
problem of conflicting ideas. Both sides came up with revenue goal and market share
metrics of evaluation such that measurement was done on Cisco’s goal as well as own
goals and vice-versa. The most relevant issue is how HP consulting services organisation
gets measured, because a lot of the Cisco business is leveraged by what HP consulting
people does.