Xerox Corp.: Company Information Essay

The situation of constant competition between major companies in various spheres of action is a vexed reality of being involved into business affairs. Xerox Corp. was one of the leading companies in late 90s with high levels of revenues, when shareholders could be proud of the level of $64 a share in May 1999. This data quickly decreased in the year 2000 with $7 per share. Moreover, “Xerox posted a loss of $198 million over the last three months of 2000, the largest quarterly loss in a decade.” (Business week)

It happened after the resignation of Rick Thoman and Allaire’a replacement as CEO. The thing is that the establisher of the company according to “Time” predicted the great future fir his Corporation. “The late Joseph C. Wilson, builder of Xerox Corp., was fond of observing that if his company continued to grow at the meteoric rates of the 1960s, its sales would soon exceed the U.S. gross national product.” (Time)

Besides internal contradictions and staff turnover there was another reasons for company’s delay touching upon global economic changes in the world at that time. As it is known, the effects of the global crisis in the year 1998 were felt for about three years. This fact could not but have reflected on the currency conditions and its volumes due to emissions of Central Banks. Xerox Corp. did not avoid such voids. “In 1999, the company lost 13%, or $1 billion, of its net worth because of foreign-currency losses, mostly in Brazil.

Analysts were stunned that Xerox would have left such a big chunk of its equity exposed to the vagaries of the notoriously volatile Brazilian economy.” (Business Week) One more thing is that the patents of the company during 80s and 90s years of twentieth century began elapsing. That caused the losses of Company’s share on market as well as the leading position on it.

CEO Thoman’s best sides were implemented in his great concern when discussing burning problems with partners and senior managers. His disadvantage touched on his policy of total change of previous senior managers and heads with one being sympathetic and in long-standing relationships which caused internal struggle on the highest stages of the company. As one of his allies once told: ‘The challenge of changing Xerox was so profound that Rick needed eight or nine senior people pushing hard along with him as a group day after day.’ (Business Week) A constantly growing dissatisfaction of Thoman’s strategy became a disputable issue. “…digital markets wait for no old-line company. It is likely that the pace of change that Thoman tried to dictate was in fact the pace Xerox needed to play in the Digital Age.” (Business Week)

Time had passed and the Board of Corporation changed few CEO. Today the Company announced the fact that “Xerox decreased its total debt by US$485m (A$688m) in the first quarter of 2009 and plans to cut the total by more than US$1bn (A$1.42bn) across the year as a whole.” (Business) With the woes caused by another global crisis Company reduced its staff in headquarters and in its subsidiaries. Furthermore, “the company said it would deliver US$250m (A$354m) in savings this year thanks to previous restructuring initiatives, which included 3,000 job cuts announced in the latter part of 2008.” (Business).

Works cited

Anthony Bianco & Pamela L. Moore “Xerox: The Downfall The Inside Story of the Management Fiasco at Xerox”; Business Week, 2001. Web.

“A Lull at Xerox”; Time, 1976. Web.

Tim Sheahan. “Xerox blames decline in kit sales for 18% revenue drop”;Business, 2009. Web.