hp strategies

7/30/2019 HP Strategies

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Hewlett-Packard

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Dilip Mathew (010)

Avinash Chalumuru(057)

Dheeraj Kommuru (022)

Anand Bhate (005)

Rabisankar Mahali (038)

GROUP NO 4



INTRODUCTION

Hewlett-Packard Company or HP is an American multinational information technology corporation

headquartered in Palo Alto, California, United States.

It provides products, technologies, software, solutions and services to consumers, small- and medium-sizedbusinesses (SMBs) and large enterprises, including customers in the government, health and education sectors.

The company was founded in a one-car garage in Palo Alto by William (Bill) Redington Hewlett and Dave Packard.

HP's revenue for the four fiscal quarters ended Oct. 31, 2012: $120.4 billion.

HP's 2012 Fortune 500 ranking: No. 10

HP has approximately 331,800 employees worldwide.

HP serves more than 1 billion customers in more than 170 countries on six continents.

President and CEO: Meg Whitman



Positioning

• The company is trying to position itself to extend its leadership into the major trends driving IT investment—

cloud computing, information optimization and data security.

R&D

•Despite the challenging environment, the company has maintained research and development (R&D) spending, alongwith a steady focus on preserving the long-term health of the business.

•Meg Whitman, president and CEO at HP, is committing the company to three years of research and development to re-establish HP as a technology-focused hardware company.

SoftwareStrategy

•Software is the second area of the business. HP's £7bn acquisition of Autonomy is a clear sign of its intentions to keepup to pace to competition in the software field.

Multi-country

expansion

Strategy

•This also widely followed in HP . In 2011 HP announced openings in Angola, Botswana, Congo, Ghana, Senegal, Tanzaniaand Uganda. The company expects to announce the opening of offices in Ethiopia, Mauritius and Mozambique by the

end of the year.•HP also appointed a new country manager in each country. HP also made acquisitions in countries like Australia andGermany all as part of its Global Expansion Strategy.

Joint

VentureStrategy

•Joint Ventures with the likes of Cisco (Data Centre Expansion) , Foxconn (IT Venture in Russia), Microsoft (CloudComputing) have been a major growth strategy for HP.

HP GLOBAL STRATEGY



Strategy Contd.HP Organizational Realignment

HP on March 21, 2012 announced an organizational realignment to improveperformance and drive profitable growth across the entire HP portfolio.

As part of this realignment, HP’s Imaging and Printing Group (IPG) and itsPersonal Systems Group (PSG) are joining forces to create the Printing andPersonal Systems Group.

The Global Accounts Sales organization will join the newly named HPEnterprise Group which includes Enterprise Servers, Storage, Networking andTechnology Services.

HP also announced that it will unify its Marketing functions across businessunits to allow for even more effective brand-building and marketing activities,

and will create efficiencies across the business units.

The new structure is expected to speed decision making, increase productivityand improve efficiency, while providing a simplified customer experience.



Acquiring Resources (To reduce Manufacturing Cost) Off shoring

Low Wages in Host Country

Skilled Labor in Host Country

Diffusion of Technology

Expanding Sales

Huge Market in Developing Countries

Scale of Economies

Minimizing Risk

To leverage IPLC (International Product Life Cycle)

Risk from Business Cycles

What drives HP in International Business?



Do people like to work in HP? why or why not?

The corporate culture at HP is known as “the HP way.”

The company offered its employees "almost perfect job security“ which is they

rather cut their work days than fire employees in times of crisis which they did in1974 US crisis which was a unique measure.

The two founders trusted in the "individual's own motivation to work" and treated

their employees as family members.

The HP workers are participated in the company with stock options and are even

paid additional premiums when HP is successful - known as profit sharing. Thesemeasures served to identify the employees with their work and to encourage them.

Moreover, the HP way included extensive employment benefits such as

scholarships for the employee's children.

But in recent years the culture has been modified mainly by ex-CEO Carly Florina in

view of the losses incurred due to market fallouts.

There were some major changes like changing to Star approach i.e., performance

first and everything else later, hire and fire policy, etc which lowered the morale of

employees and job security. These measures were viewed as aggressive.

hp strategies

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