A Look Inside of

Xerox Corporation

By Li-Yueh Lee

March 9, 2009

Xerox Corporation

Xerox was once an icon of innovation and corporate successin the business of copying and digital imaging.

In 2000, the company seemed on top of the world with fast-rising earnings a soaring stock price.

With high innovation superior products, Xerox is well known worldwide incomputerized copier printers that were technologically superior to rival products.

Facing Crisis on Xerox Corporation

But starting from 2001, Xerox has been through a number of crisis,especially facing the following events.

1. Sales and earnings dropped because competitors come in with low price.

2. In 2001, Xerox loses $384 million, with a total debt of $17 billion.

3. Stock price dropped from $64 to $4.

4. 22000 Xerox workers lost jobs, and their moral and loyalty are low.

What Happen on Xerox

1. Halord has been the longtime Chairman and President. He emphasizes that “We seek people who are willing to accept risk, willing to try new

ideas and have ideas of their own; who are not afraid to change what they are doing from one day to the next; who welcome new people and new positions.”

2. Xerox fails because of its success.

3. When a firm is successful for a long time, they may not be aware of the challenges from the competitors.

Why Success Results in Fail

1. Xerox’s Palo Alto Research Center (PARC), established in 1970, became known around the world for innovation-many of the most revolutionary technologies in the computer industry, including the personal computer, graphical user interface, Ethernet, and laser printer, were invented at PARC.

2. Because of the success, Xerox never try hard to commercialize these newly invented products.

3. When the patents began expiring, Japanese rivals such as Canon and Ricoh were selling copiers with very low price.

4. Market share declined from 95 percent to 13 percent by 1982.

Why Thoman Fail

1. Due to Xerox’s dysfunctional culture, the culture was already slow to adapt.

2. Thoman was brought in to shake things up, but when he tried, the old guard rebelled.

3. Thoman, with his professional experience from IBM, knows how to change the company, but do not know how to get support from key managers and employees, and especially from the supports from board members.

Thoman Can not Turn Around Xerox

1. By the time Thoman arrived, Xerox had been going through various rounds of restructuring, cost-cutting, rejuvenating, and reinventing for nearly two decades, but little had really changed.

2. Many believe Thoman tried to do too much too soon.

3. Thoman saw the urgency for change but was unable to convey that urgency to others.

How Anne Mulcahy Turn Around Xerox

1. Mulcahy is a strong decision maker. She launched a multi-billion dollar turnaround plan that included massive cost-cutting and closing of several money-losing operations.

2. She has introduced numerous new products and services in hiigh-growth areas such as digital technology, document services, color products, and consulting.

3. Although the stock price is nowhere near the highs of the late 1990s, it is on a strong upturn.

Why Anne Success

1. Mulcahy has gained respect and admiration from employees, labor leaders, customers, creditors, and the press.

2. She was recognized by Business Week magazine as one of the best managers of the year in 2004.

3. She needs to focus on growth while also maintaining the cost controls that stabilized the company.

4.however, in the rapidly changing world of organizations, nothing is ever certain.

THANK YOU

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