Case | HBS Case Collection | December 1999 (Revised September 2004)

Hermes Systems

by Michael L. Tushman and Daniel Radov

Abstract

Covers the history of Hermes, a large telecommunications and network equipment company, as it grows from a single business firm to a diversified firm from 1980-95. Examines the use of entrepreneurial subsidiaries for product development and fast growth. Other issues include the challenges of managing ambidextrous organizations and the problems a CEO faces in keeping control of fast growing divisions. A rewritten version of an earlier case.

Keywords: History; Leadership; Business Subsidiaries; Diversification; Growth Management; Business Growth and Maturation; Business Divisions; Problems and Challenges; Product Development; Technology Industry;

Citation:

Tushman, Michael L., and Daniel Radov. "Hermes Systems." Harvard Business School Case 400-056, December 1999. (Revised September 2004.)