The Hewlett-Packard Company CASE 2 Hitachi Corporation of Japan Introduction Cooperation and Autonomy within the Organization Distinctive Competence Organizational Structure Off-Line Coordinators Staffing Reward and Performance Measurement Systems Shared Values and Corporate Culture Achieving Strategic Alignment The Nature of Interrelationships Varying Emphasis on Cooperation Shifting the Balance between Cooperation and Autonomy Factors Promoting Closer Cooperation Change in Product Usage Technological Convergence The Rise of Multipoint Competition Reduced Emphasis on Acquisitions Increased Global Expansion Activity Factors Promoting Greater Autonomy Increased Acquisition Activity Need to Avert Creeping Bureaucratization Environmental Turbulence Technology Fusion The Problem of Internal Resistance Resistance to Greater Cooperation Resistance. | Strategie management Cooperation and Autonomy Managing Interrelationships CHAPTER OUTLINE CASE 1 The Hewlett-Packard Company CASE 2 Hitachi Corporation of Japan Introduction Cooperation and Autonomy within the Organization Distinctive Competence Organizational Structure Off-Line Coordinators Staffing Reward and Performance Measurement Systems Shared Values and Corporate Culture Achieving Strategic Alignment The Nature of Interrelationships Varying Emphasis on Cooperation Shifting the Balance between Cooperation and Autonomy Factors Promoting Closer Cooperation Change in Product Usage Technological Convergence The Rise of Multipoint Competition Reduced Emphasis on Acquisitions Increased Global Expansion Activity Factors Promoting Greater Autonomy Increased Acquisition Activity Need to Avert Creeping Bureaucratization Environmental Turbulence Technology Fusion The Problem of Internal Resistance Resistance to Greater Cooperation Resistance to Greater Autonomy Dealing with Resistance to Change Ethical Dimension Fine-Tuning a Delicate Balance Summary Discussion and Exercise Questions WHAT YOU WILL LEARN The importance of interrelationships in sustaining competitive advantage The need to balance cooperation and autonomy in supporting interrelationships Factors that promote the need for greater cooperation Factors that promote the need for greater autonomy The concept of technology fusion Sources of internal resistance to organizational change 373 374 PART 4 Sustaining and Renewing Advantage Case 1 The Hewlett-Packard Company1 The Hewlett-Packard Company was founded in the 1930s to manufacture sophisticated electronic test and measurement instruments such as oscilloscopes used to visually display electronic wave lengths electronic counters used to measure the frequencies of emissions broadcast by radio stations and audio-oscillators used to control the sound tracking in motion pictures . Engineers and scientists in the radio television and defense industries use these .