Strategic Analysis of Hp
Hewlett Packard (HP)
Strategic Analysis
Student Name
Strategic Mangement
11/10/2012
Contents EXECUTIVE SUMMARY 3 Hewlett Packard (HP) Background: 4 Company Objective: 4 Mission statement: 5 Vision statement: 5 Strategies: 5 Corporate Level Strategy: 5 Business Level Strategy: 6 Review of PC division of HP: 7 Strategic Analysis: 8 External Analysis: 8 1. FIVE FORCES MODEL ANALYSIS 8 2. STRATEGIC GROUP ANALYSIS: 12 3. INDUSTRY LIFE CYCLE ANALYSIS 13 Internal Analysis: 14 CORE COMPETENCY ANALYSIS 14 SWOT Analysis: 17 Alternatives & Recommendations 17 ALTERNATIVES AND ANALYSIS: 17 RECOMMENDATIONS and WHY: 18 Implementation of Balanced scorecard Approach: 20 BSG’S Balanced Business Scorecard 20 Bibliography 22 APPENDICES 24
EXECUTIVE SUMMARY
Hewlett Packard is the World’s largest PC Maker that is serving in more than 107 countries. HP has six divisions, amongst which the Personal Systems Group (PSG) is the largest that has generated almost $43 billion in the last year. The stake of HP’s Personal Computer market is in danger due to declining sales and miniscule margins. The reason for this is the shift in consumer trends from the desktop and laptop computers towards the tablets and Smartphone. In order to cope with the changing trends, HP also introduced HP Slate Tablet and WebOS Smartphone but these products failed to capture the attention of the consumers. In that case, when the company was facing loses, its CEO announced to spin off its PC division as well as killing of WebOS and Slate Tablet and this announcement raised a storm of confusion in the investors. So, the overall strategic analysis is being done to determine whether the company should keep or sell off its PC division.
It is analyzed that the company should keep its Personal Computing Division because it is the largest division of HP and also HP has an advantage of being the leader in PC industry where the consumers have a
Strategic Analysis
Student Name
Strategic Mangement
11/10/2012
Contents EXECUTIVE SUMMARY 3 Hewlett Packard (HP) Background: 4 Company Objective: 4 Mission statement: 5 Vision statement: 5 Strategies: 5 Corporate Level Strategy: 5 Business Level Strategy: 6 Review of PC division of HP: 7 Strategic Analysis: 8 External Analysis: 8 1. FIVE FORCES MODEL ANALYSIS 8 2. STRATEGIC GROUP ANALYSIS: 12 3. INDUSTRY LIFE CYCLE ANALYSIS 13 Internal Analysis: 14 CORE COMPETENCY ANALYSIS 14 SWOT Analysis: 17 Alternatives & Recommendations 17 ALTERNATIVES AND ANALYSIS: 17 RECOMMENDATIONS and WHY: 18 Implementation of Balanced scorecard Approach: 20 BSG’S Balanced Business Scorecard 20 Bibliography 22 APPENDICES 24
EXECUTIVE SUMMARY
Hewlett Packard is the World’s largest PC Maker that is serving in more than 107 countries. HP has six divisions, amongst which the Personal Systems Group (PSG) is the largest that has generated almost $43 billion in the last year. The stake of HP’s Personal Computer market is in danger due to declining sales and miniscule margins. The reason for this is the shift in consumer trends from the desktop and laptop computers towards the tablets and Smartphone. In order to cope with the changing trends, HP also introduced HP Slate Tablet and WebOS Smartphone but these products failed to capture the attention of the consumers. In that case, when the company was facing loses, its CEO announced to spin off its PC division as well as killing of WebOS and Slate Tablet and this announcement raised a storm of confusion in the investors. So, the overall strategic analysis is being done to determine whether the company should keep or sell off its PC division.
It is analyzed that the company should keep its Personal Computing Division because it is the largest division of HP and also HP has an advantage of being the leader in PC industry where the consumers have a
Bibliography: Apple Incorporated. (2011). Retrieved November 9, 2012, from http://www.apple.com/sitemap/ Barney, J Barney, J. B. (1997). Gaining and sustaining competitive advantage. Reading: Addison-Wesley. Blauvelt, J., Ciasullo, P., & Hawkins, O. (2012). Hewlett-Packard. Brand Loyalty by mobile PC brand Editor, B. (2011, October 27). Hewlett- Packard to keep its PC business. Retrieved November 8, 2012, from The New York Times: http://bits.blogs.nytimes.com/2011/10/27/hewlett-packard-to-keep-its-pc-business/ Grant, R Hewlett Packard Company. (2010). international Directory of Company Histories, 111. Retrieved from http://galenet.galegroup.com/servlet/BCRC IBISWorld IBISWorld. (2010c). Industry Report 33411. Computer & Peripheral Manufacturing in the US. Retrieved November 7, 2012, from http://0-www.ibisworld.com.helin.uri.edu/industryus/ default.aspx?indid=739 PC sales decrease a tablets rise in popularity Report, H. P. (2010). Annual Report Pursuant To Section 13 OR 15(d) Of The Securities Exchange Act of 1934. Retrieved November 9, 2012, from http//www.hoovers.api.edgar-online.com/EFX_dll/EdgarPro.dll?FetchFilingHTML1?SessionID Shah, A., & Gross, G Sony. (2011). Sony Corporation of America. Retrieved November 9, 2012, from http://www.sony.com/siteindex.shtml What are the mission and vision statements of HP? (2011)