Xerox Corporation (A)
I. Case Context
Xerox Company is a multinational corporation engaged in the business of global document-processing and financial services markets. The document processing product line included the manufacture, development, and marketing of copiers and duplicators, facsimile products, scanners, and other related equipment in over 130 countries. Meanwhile, its financial services operations included insurance, equipment financing, investments, and investment banking.
Since it was founded in 1906, the company has a number of success stories to show off particularly during the years 1946-1973, when annual sales growth exceeded 25% and annual earnings growth posted at 35%. However, all good stories come with a setback and this happened to Xerox when their original patent for the plain paper copier expired in 1970, paving the way for competitors (IBM, Kodak, Canon, and Minolta) to come into the picture. Xerox operating managers began to feel the pressure because market share in the 1970s fell from 96% to 45%. The competition is exacerbated by the fact that their Japanese competitors sell their products at Xerox’s manufacturing costs.
Due to these arising concerns, Xerox, through Chairman Kearns, worked out a corporate revitalization plan called “Leadership through Quality” which aimed to change its corporate culture and work on competitive benchmarking. Additionally, senior managers worked to improve their Management Information Systems and standardized reporting formats. The overall objective of this LTQ plan was to fully integrate business process with the help of employees focusing on products as well as processes.
II. Problem Definition and Point of View
The primary focus for the management of Xerox was the business management level which, as the case mentioned, promoted more effective linkages between markets and technologies. As such, the Group decided to take the point of view of the Top Management in the analysis of the issues in the case, particularly due
Xerox Company is a multinational corporation engaged in the business of global document-processing and financial services markets. The document processing product line included the manufacture, development, and marketing of copiers and duplicators, facsimile products, scanners, and other related equipment in over 130 countries. Meanwhile, its financial services operations included insurance, equipment financing, investments, and investment banking.
Since it was founded in 1906, the company has a number of success stories to show off particularly during the years 1946-1973, when annual sales growth exceeded 25% and annual earnings growth posted at 35%. However, all good stories come with a setback and this happened to Xerox when their original patent for the plain paper copier expired in 1970, paving the way for competitors (IBM, Kodak, Canon, and Minolta) to come into the picture. Xerox operating managers began to feel the pressure because market share in the 1970s fell from 96% to 45%. The competition is exacerbated by the fact that their Japanese competitors sell their products at Xerox’s manufacturing costs.
Due to these arising concerns, Xerox, through Chairman Kearns, worked out a corporate revitalization plan called “Leadership through Quality” which aimed to change its corporate culture and work on competitive benchmarking. Additionally, senior managers worked to improve their Management Information Systems and standardized reporting formats. The overall objective of this LTQ plan was to fully integrate business process with the help of employees focusing on products as well as processes.
II. Problem Definition and Point of View
The primary focus for the management of Xerox was the business management level which, as the case mentioned, promoted more effective linkages between markets and technologies. As such, the Group decided to take the point of view of the Top Management in the analysis of the issues in the case, particularly due