Organizational Transformation at Hughes Electronics Corporation


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : BSTR087 For delivery in electronic format: Rs. 500;
For delivery through courier (within India): Rs. 500 + Rs. 25 for Shipping & Handling Charges

Themes

Business Environment
Case Length : 17 Pages
Period : 1994 - 2003
Organization : Hughes Electronic Corporation
Pub Date : 2004
Teaching Note : Not Available
Countries : USA
Industry : Electronics & Communication

Abstract:

The case discusses the transformation of Hughes Electronics Corporation (HEC) from a defense communication systems, weapons and aircraft manufacturer into a leading digital media and communications service provider. After taking a look at the company's history, the reasons underlying its decision to shift its focus to the media and communications business (under GM's ownership) are explained. Thereafter, the case describes how HEC structured itself into four divisions and the various strategic alliances it entered into, to grow and expand. It also discusses the products and services launched by the four HEC companies to strengthen themselves in their respective industries.

The restructuring efforts undertaken in 2000 to increase the focus on digital media and communications services are described. The case ends with a discussion on the future of HEC in light of its strategic alliance with the media giant News Corp in late 2003.

Issues:

Understand the strategies adopted by a multinational corporation to shift to a new business domain

Understand the strategies adopted by a multinational corporation to increase its share in the US media and communication services industry

Contents:

  Page No.
Introduction 1
Background Note 1
Beginning of the Transformation 4
The Transformation Nears Completion 8
Coping With Difficult Times 9
Where is Hughes Heading? 11
Exhibits 13

Keywords:

Hughes Electronics Corporation, HEC, defense communication systems, weapons, aircraft, manufacturer, leading digital media, communications, service provider, history, media, communications business, four divisions, various, strategic alliances, grow, expand, products, services, 2000, digital media, News Corp

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