Hewlett-Packard Case Study

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Hewlett-PackardCase Study
International Corporate Strategy Hanoi, December
2003
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Group 1 Members

• Nguyen Anh Tuan VACO
• Nguyen Xuan Tien Ford VN
• Tran Lan Anh UBK VN
• Nguyen Thang Quang EVN Hanoi
• Nguyen Thanh Ha Prudential VN
• Le My Hanh VID Public Bank

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Table of Contents

• Section 1. Company Profile
• Section 2. External Analysis
• Section 3. Internal Analysis
• Section 4. Past Challenges Measures
• Section 5. Future Challenges Measures
• Section 6. Strategic Idea for Thinking

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Section 1. Company Profile
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Company Profile
Found by Hewlett Packard in 1933 Headquarter
USA
AFTER MERGER WITH COMPAQ 2002
Numbers of staff 141,800 global Revenue as of 31
October 2003 73.1 billion Operation In 187
countries
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Corporate Governance Key Stakeholders
Investors
Public Firm
Board of Directors
CEO
Business Group
Business Group
Business Group
Business Group
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Vision Mission
Diversity Inclusion WorkLife Balance
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Operations
FOUR CORE BUSINESS GROUPS 1. Enterprise System
Group (ESG) 2. Imaging and Printing Group
(IPG) 3. HP Services (HPS) 4. Personal System
Group (PSG) Operation internationally under
global strategy Strategic alliance partners to
provide services Distribution through multi local
agents RD 4 billion annual investment
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Products Services
Desktops Workstations Notebook Table
PC Handheld Devices Monitors Projectors Printing
Multifunction Fax, Copiers, Scanners Digital
Photography
Storage Server Networking Software
Products Supplies Accessories Services
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Vietnam Market Share ()
Monochrom Laser Printer HP 85 Epson 15
Server Compaq 48 IBM 26 HP 15
CD-ROM writer HP 47 LG 26 Yamaha 8 Other 19
Scanner HP 48 Epson 36 Acer 9 Other 7
Color InkJet Printer Epson 60 HP 37 Canon 2 Othe
r 1
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Section 2. External Analysis
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Industry Matrix
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EFAS
External Factor Weight Rating Weighted Score Comments
Opportunities O1. High market future potentiality 0.15 4 0.60
O2. Stable politics 0.20 3 0.60
O3. Strong government commitments 0.25 4 1.00
Threats T1. Low market demand from corporate and users 0.15 3 0.45
T2. Competition with international players 0.15 4 0.60
T3. China threats 0.10 3 0.30
Total 1.00 3.55
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Section 3. Internal Analysis
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IFAS
Internal Factor Weight Rating Weighted Score Comments
Strengths S1. Product diversity 0.3 4 1.20
S2. Leading in printing technology 0.25 5 1.25
Weaknesses W1. Cost problem 0.25 1 0.25
W2. Staffing problems 0.20 2 0.40
Total 1.00 3.10
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SFAS
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Section 4. Past Challenges Measures
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Past Challenges
Operating loss 1,012 million in 2002
Strong competitors (IBM for solution Dell for
PC)
Poor infrastructure
HR issue
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Past Measures
Merge Compaq for More Competitive
Cost cut, staff reduce
Support Governments Initiatives
Staff re-organization
MERGE WITH COMPAQ (May 2002)
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Section 5. Future Challenges Measures
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Future Challenges
HR issue after merge
Two strategic management styles
Loss carried forward
One company two brands
Stronger Competition From Both International
Players and China
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Future Measures
Integration of two management styles/ One should
accept the other
Reorganization
Revenue improvement cost cutting
Clear communication to public about brands
Product quality and innovation
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Section 6. Strategic Idea for Thinking
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TOWS Matrix
IFAS EFAS Strengths (S) S1. Product diversity S2. Leading in printing technology Weaknesses (W) W1. Cost problem W2. Staffing problem
Opportunities (O) O1. High market potentiality O2. Stability O3. Strong government commitments SO Strategies Expand market (S1,2/ O1) Cooperate with Gov to improve IT infrastructure (S1, 2/ Q2,3) WO Strategies Reorganization (W1,2/ O1) Cost reduction (W1/ O1) Cooperation with local agencies to develop HR (W2/ O2,3)
Threats (T) T1. Low demand from corporate and users T2. Competition with international players T3. China threats ST Strategies More focus on corporate users (S1,2/ T1) Localization and improve onsite services (S1,2/ T2) WT Strategies Create learning innovation and culture (W2/ T2)
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Thank You For Your Attention!QA