Lead ershi p In High Tech Com pany

A Xerox Corporat ion Study

By Handy Fennyanto M9921801
Directed by Prof Liao Wen Chih 04-Jan-12

XEROX INTRODUCTI ON
Xerox is a global maker and marketer of document solutions such as copiers and printers. The company also provides services, software and support for its systems. Products target graphic arts, production and office markets. They include the Document Centre 490, the fastest copier in its class, and the Document Centre ColorSeries 50, the first colorenabled digital multifunction copier. Xerox today manufactures and sells a wide variety of office and production equipment including LCD monitors, photo copiers, Xerox phaser printers, multifunction printers, largevolume digital printers as well as workflow software

under the brand strategy of Freeflow. The impact of Xerox Freeflow products on the graphic arts market and the print industry in general has grown exponentially since May 2006, largely as a result of the Xerox presence at IPEX 2006. Xerox also sells and produce scanners, digital presses, fax machines, professional black and white copiers, and several other products. Xerox sells both color and black and white printers under the Xerox Phaser brand, with the color consumer model starting at US$ 299 and the most expensive color model costs US$ 6799. Through its Developing Markets Operations (DMO), Xerox conducts business in such emerging markets as Latin America,

Russia, India, the Middle East and Africa. Xerox also owns 25% of Fuji Xerox, a joint venture with Fuji Photo Film that sells products in Asia

$60 million in revenue and leaped over $500 million in just 4 years later. The company expanded substantially throughout the 1960s by developing Xerox 813 (1st desktop plain paper copier). It making millionaires of some longsuffering investors who had nursed the company through the slow research and development phase of the

XEROX CORPORATIO N HISTORY

Xerox was founded in 1906 in Rochester as the Haloid Company which originally manufactured photographic paper and equipment. The company

subsequently changed its name to Haloid Xerox in 1958 and the simply Xerox in 1961. Xerox known as the first plain paper photocopier which is Xerox 914, using the process of Electrophotograph y developed by Chester Carlson. This product was so popular that by the end of 1961, Xerox had almost

product. In 1960, the Wilson Center for Research and Technology was opened in Webster, New York, a research facility for xerography. Then in 1961, the company changed its name to Xerox Corporation. Xerox common stock (XRX) was listed on the New York Stock Exchange in 1961 and on

the Chicago Stock Exchange in 1990. Later on laser printer was invented in 1969 and this development resulted in the first commercially available laser printer, Xerox 9700, being launched in 1977. Laser printing eventually became a multi billion dollar business for Xerox. In 1970, under company president Charles Peter McColough, Xerox opened the Xerox PARC (Xerox Palo Alto Research Center) research facility. The facility developed many modern computing technologies such as the graphical user interface (GUI), Laser printing, WYSIWYG text editors and Ethernet. From these inventions, Xerox PARC created the Xerox Alto in 1973, a small minicomputer similar to a modern workstation or personal

computer. This machine can be considered the first true Personal Computer, given its versatile combination of a cathode-ray-type screen, mousetype pointing device, and a QWERTY-type alphanumeric keyboard. But the Alto was never commercially sold, as Xerox itself could not see the sales potential of it. It was, however, installed in Xerox's own offices, worldwide and those of the US Government and military, who could see the potential. Within these sites the individual workstations were connected together by Xerox's own unique LAN, The Ethernet. Data was sent around this system of heavy, yellow, low loss coaxial cable using the packet data system. In addition, PARC also developed one of the earliest internetworking protocol suites, the PARC Universal Packet.

In 1979, Xerox threw open its doors to anyone in the industry and press, who might be interested in seeing their developments. Several Apple Computer employees, including Steve Jobs, visited Xerox PARC that day. Jobs very interested in WIMP (Window, Icon, Menu, and Pointing device and think to implement it to Apple Lisa. Later on Job invites several key PARC researchers to join his company so that they could fully develop and implement their ideas. In the mid 1980, Apple considered to buy Xerox and buy the rights to the Alto GUI and adopted it into a more affordable personal computer. Apple Macintosh was released in 1984 was the first personal computer to popularize the GUI and mouse amongst the public. The company was revived in the 1980s and 1990s,

through improvement in quality design and realignment of its product line. Development of digital photocopiers in the 1990s and a revamp of the entire product rangeessentially high-end laser printers with attached scanners, known as Multi Function Machines, or just MFMs, these were able to be attached to computer networksagain gave Xerox a technical lead over its competitors. Xerox worked to turn its product into a service, providing a complete document service to companies including supply, maintenance, configuration, and user support. To reinforce this image, the company introduced a corporate signature, "The Document Company" above its main logo and introduced a red digital X. The digital X symbolized the

transition of documents between the paper and digital world.

XEROX BANKRUPTC Y
In 1999 Xerox was the largest photocopier maker in the world. However in 2000 Xerox found itself on the verge of bankruptcy and was facing a host of problems. Sales were eroding due to electronic media such as email, and increased competition from smaller rivals with cheaper products. The company was also carrying a huge debt load, and its accounting practices became the subject of a Securities and Exchange Commission investigation

dropped fell from $64 to $4.43 and the company underwent a significant restructuring by selling non-core assets. In December 2000, Xerox announced that it had exhausted a $7 billion line of credit, but that $1.4 billion in cash remained. Xerox also lost US$ 20 billion in stock market from April 1999 until May 2000. While in hand only have $154 million in cash. In January 2001, the New York Post ran a report that the company had hired the head of the Blackstone Group as a bankruptcy advisor. Xerox officials denied the rumor, stating that although they had received the services of

(SEC). Soon after, Xerox stock prices

Blackstone, it was as a financial advisor and nothing more.

The financial struggles continued until Xerox Corporation did what no one expected it to do; the company survived a brush with bankruptcy under the direction of a CEO who had no prior experience heading a company. Anne Mulcahy had served in multiple areas of the companys business before becoming CEO. She told CNN that although it wasnt necessarily done with the intent of running the business, I found out that it was a pretty good set of skills and Anne M. capabilities to Mulcahy born have coming into October 21, 1952 the job. in Rockville Centre, New York. ANNE In 1974, she MULCAHYBA in received her English and Journalism from Marymount College. 2 years later after her graduation, she join Xerox company. Mulcahy joined Xerox as a field sales representative in 1976 and rose

through the ranks. From 1992 1995, Mulcahy was vice president for human resources, responsible for compensation, benefits, human resource strategy, labor relations, management development and employee training. She become chief staff officer for Customer in 1997 and corporate senior vice president in 1998. Prior to that, she served as vice president and staff officer for Customer operations, Europe, Asia, Africa and China. Though never intent on running Xerox, she was elected by the board of directors in 2001 to become CEO on August 1,2001. And later on become chairwoman on January 1, 2002. Mulcahy currently serves on four other Boards of Directors beside Xerox. She also serves on Catalyst, Citigroup, Fuji Xerox and Target Corp.

MULCAHY STRATEGY
The key person behind Xerox turnaround is Mulcahy decision as a CEO. In order to avoid Xerox from bankruptcy, she take a lot of extreme way which people classified it as a nonsense action. To avoid the bankcruptcy, Mulcahy come out with three strategy which is raise cash, reduce expenses and improve efficiency. 1. Turn down Shareholder petitions to shut down R & D cost. At that time Xerox spent $1 billion developing a commercial digital color printer, called the iGen3 for items usch as personalized catalogs, newsletters and brochures. 2. She cut more than 28,000 employees, or nearly 30% of its workforce, bolstered cash to $2.2 billion as of its most

recent quarter, and raised about $2.5 billion (out of a goal of $4 billion) from asset sale 3. Sold half of its office-copier manufacturing operations to Flextronics for $220 million, and in early September it sold most of its financing business to GE Capital and receive $2.7 billion 4. Sold half of its share on Fuji Xerox to Fuji Photo Film. 5. Paid US$ 10 million to settle the SECs two year investigation. It later restated all of its part financial resulst as required under the agreement. Because of this the company successful in working with creditors in renegotiating its debt obligations to more manageable

terms. Perhaps most important, the company's products are now more competitive in terms of price and quality 6. Sold off Xerox Chinese and Hongkong operations. 7. Lobby 58 banks to get to renew company credits After all the action has being taken. A year later in 2002, Xerox returned to profitability. Revenue for the second quarter fell 8% year-to-year but increased 2.4% sequentially to $3.95 billion. Gross profit increased by 3.4% points to 42.5%. The company enchanced its liquidity position by generating $541 million in operating cash flow and repaying $2.8 billion of bank debt. In the end Xerox still has $1.9 billion in cash. Following the next year in 2003. Xerox reported net income significant rise from $91

million to million. Rise EPS and declining $14.2 to billion.

$360 up in debt from $11.2

All this extreme action make the Xerox itself finally avoid the bankcrupty in year 200. Later on during mulcahy years as CEO, she made a lot of such as : 1. Brought 40 new products to market products that set new industry standards for the creation of customer value and which garnered some 230 industry awards. 2. We were granted 525 utility patents in the United States alone a sign that our best days are ahead of us. 3. Decreasing debt and increasing income, EPS year by year. 4. Purchase two well performing company XMPie and Amici

MULCAHY LEADERSHIP
Mulcahy leadership during the 2001 2009 indeed is a great one. From the beginning public very pessimistic that Xerox can avoid the bankruptcy so fast. But Mulcahy herself prove her great leadership and work, turn the company making profit only in one year. She listed several basic leadership guidelines: A good leader will recognize what she does not know and be willing to learn all the time. A leader must believe in the values and principles she espouses and must "walk the talk" with total consistency. A leader must have a clear vision of where she wants the company to go. Xerox, she said, had long had a good vision but had not acted forcefully to implement it. A leader must give others

power to make decisions. Mulcahy said that effective communication was perhaps the single most important component of the company's successful turnaround strategy. When she become spent the first 90 days on planes traveling to various offices and listening to anyone who had a perspective on what was wrong with the company. Good managers, she said, recognize their own shortcomings and find others who are strong in those areas. To spur this process, Xerox encourages managers to constantly assess their own performance and to receive feedback from associates, both above them and below. Today, Xerox managers are involved in sweeping "360 degree" assessments from subordinates and superiors four times a year.

Twice a year, Mulcahy conducts four day chairmans forums with promising people with whom she otherwise would have little contact. In addition to business discussions, the forums include events such as Outward Bound type experiences, designed to build personal relationships. Mulcahy said that there comes a point at which ones strengths and weaknesses are realtively fixed. Her own strength is in operations, she said, and she finds others to shore up her weaknesses in strategic thinking. Under Mulcahy leading vision, Xerox is a document management company. It focuses on technologies like scanning, imaging and content management and search. It has long been known as an innovator, and it remains committed to research and

development. Even during the worst of the financial difficulties, Mulcahy spared her researchers from cuts. Still, she expected them to work smarter. She charged her research centers -Xerox has four in North America and Europe, with devising ways to generate higher returns on their work. Protecting research and development allowed Xerox to roll out a wealth of new offerings as its financial health improved. In 2004 about threequarters of the company's revenue comes from products and services introduced in the last two years. In term of democracy at work, Mulcahy thinks that Executives must create a workplace where workers feel secure in giving honest, constructive feedback. They have to know that they won't be penalized for

speaking up and that their bosses take their suggestions seriously. During her leadership, there are lots of appreciation achieved by Mulcahy because of her leadership such as : CEO of the Year 2008 by Chief Excecutive Magazine One of the 50 women to watch in 2005 by Wallstreet Journal The 6th position for the Most powerful woman in America in 2005 by Forbes Magazine America Best Leaders in 2008 by US. News and Report

history. His leadership style known as follow : 1. Persistence is the key Steve Jobs was a very persistent person and it was most exempilifed through his exit from Apple. He would not give up, but went on to start NeXT computers which would eventually be acquired by Apple Computers Inc. If Jobs was like most people, he would have given up and spent the rest of his life being bitter about his loss. As a leader, you have to be ready to face setbacks. Setbacks are a part of life and whether you become successful or not often depend on your ability not to give up. It is all the more important to display this

ANOTHER LEADERSHIP STORY

STEVE JOBS APPLE INC. Almost no one reject that Steve Jobs, Founder of Apple Inc is one of the famous leader in mankind

attribute, especially if you want to build a neversay-die team. 2. Innovation brings leadership Jobs saw the power of innovation in building his company. Till today, we can see the innovating power of Apple Computers Inc as it continues to take market leadership in the industry. If you want to maintain your leadership, you have to be the one whos constantly up with new ideas, new initiatives, all in the spirit of moving your organizational mission forward. In whatever industry youre in, your constant innovation in alignment with your mission will keep you ahead of the pack. One of his best quotes is "Innovation comes from people

meeting up in the hallways or calling each other at 10:30 at night with a new idea, or because they realized something that shoots holes in how we've been thinking about a problem. It's ad hoc meetings of six people called by someone who thinks he has figured out the coolest new thing ever and who wants to know what other people think of his idea." ANDY GROVE INTEL CORP Is Andy Groove, the third CEO of Intel Corp who bring the company turn out to a billion dollar company today. There are a lot of decisions during his leadership, but the most important one is the transformation of Intel Corp from semiconductor company to microprocessor company. That one of the reason Intel can be

success as the microprocessor company with the biggest market share as today. Soon after he become CEO, he become more involved in strategic decision making, including establishing markets for new products, coordinating manufacturing processes, and developing new partnership with smaller company. He helped create the Intel Architecture Laboratory (IAL) in Oregon to ensure that software was developed in time to take advantage of their new microprocessors. Grove created a culture within Intel that allowed innovation to flourish. As CEO, he wanted his managers to always encourage experimentation and prepare for changes, making a case for the value of paranoia in business. He said that a corporation is a living organism; it has to continue to shed its skin.

Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation. Describe by one of his partner, Grove encouraged employees to speak their minds and debate with him. Everything that he do, he will make sure every important details things. He was very disciplined, precise and detail oriented, but at the same time he has an element of intuition and creativity that is fundamental to Intel innovation.

Leader leadership play an important role in hightech firm. Their vision about the company determined where the company should go. Their attitude influence workers to work and their surrounding. Their decision will have a great impact, not only for inside company, also outside company. From turnaround of Xerox Corp, Apple Inc and Intel Corp, as leader I learn that 1. We need to move as fast as we can in crisis situation. When we have window, identify the failure quickly and get out from it. 2. Adaptability and flexibility are important. Known strength and weakness also important. Go with your strength as well as fix your weakness. 3. Communicatio n between excecutive, employee and

LESSON FOR LEARN

High tech Firm/company have similarity which is they are very focused in Innovation. Research and Development is a core department in order to produce innovation and because of that, its so important to keep this certain percentage in RnD to keep innovation going forward.

clients are essential. Gather opinion employee and clients also give employee opportunity to be creative will generate a great outcome. 4. Focus and persistence on the vision that have being created. As leader need to focus and keep the plan excecuted and creating followership. As follower, its important to follow leaders vision. 5. Dont get into comfort and structure zone. Change or transformation needed if its necessary even that its not easy to change. 6. Keep the democracy. Need to appreciate every thinking of people, not only the top management, but also the employee. Make sure everyone idea being deliver

well to be hear by leader. 7. Maintain the lead by keep the idea up. To become the leading company in the field, its necessary to always bring up the new technology. As well as Xerox and Canon, Apple and Samsung, Intel and AMD. Xerox, Apple and Intel are the leader in their fields. To keep this company keep lead their field, its necessary to keep bring innovation up. 8. Make decisions and known the responsibility wheather its have both side good and bad, just like Mulcahy, cut 28.000 jobs is bad for employee, but its no other way in order to save company.

any exact style to describe leader in high tech firm. In one side they need to run the company based on their vision, but in other side they need to keep democracy to keep the creativity that bring innovations. Some people may say that Steve Jobs most likely autocratic leader, because he run the company very tight based on his vision, but at some side he was also democratic. As well as Anne Mulcahy, in some way she need to be autocratic, also be democratic. So in the end they need to be flexible. Leader should have good personal characteristic. They need to keep passion, intelligence, optimism, charismatic, high socialibility and responsible in pursuit their goals. In high tech company, in order to change, leader will lead it while keeping the most essential things

and culture which is innovation and communication to bring the

company to better future.

CONCLUSION
In relation with Leadership style. Its didnt have