hp zubair ahmad
TRANSCRIPT
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HP INVENT 1
HEWLETT PACKARD
PRESENTED BY
Arif Shah, Abdul Jabbar,Sajjad Ali Khan,Shoukat,M.Waseem,Ikram ,Zubair Ahmad
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HP INVENT 2
Bill Hewlett & Dave Packard graduated inelectrical engineering from STANFORDuniversity in 1935
The company originated in garage in nearbyPalo Alto,California,USA during a fellowshipin 1939 with initial capital investment of us$538
Hewlett Packard company commonlyreferred as HP
HISTORY & INTRODUCTION TOCOMPANY
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HP INVENT 4
Hp markets its products to household, smallto medium size consumers and enterprise
directly as well as via online distribution
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HP INVENT 5
VISION & MISSION STATEMENT
VISION STATEMENT
to view change in market as an opportunity togrow, to use our profit and our ability todevelop & produce innovative products ,services and solutions that satisfy emergingcustomers need
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HP INVENT 6
MISSION STATEMENT
To provide product, services and solution of
highest quality and deliver more value to ourcustomers that earn their respect and loyalty
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HP INVENT 7
MISSION STATEMENT MATRIX
components
organization markets Productservice
customers philosophy
hp yes yes yes yes
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HP INVENT 8
components
technology Concerns forsurvivalgrowth profit
Concern foremployees
Concern forpublic image
Self concept
hp yes no no no
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HP INVENT 9
Stage 1 of formulating strategiesframework This stage known as input stage
It includes following techniques to collect thedata
01) CPM
02) EFE 03) IFE
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HP INVENT 10
EXTERNAL FACTOR EVALUATIONMATRIX
KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTSCORE
OPPORTUNITIES
01)Expansion of retail stores for
customer convenience
0.05 3 0.15
02)Participate in joint venture 0.20 4 0.80
03)Make easy to use product forupcoming retirees
0.09 1 0.09
04)Computer and cell phone software 0.10 3 0.30
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HP INVENT 11
THREATS
05)Competitors technology &pricing
0.25 3 0.75
06)Low compatability with nonhp products
0.12 3 0.36
07)Less global coverage than
competitors
0.07 2 0.14
08)Availability of substitutions 0.12 2 0.24
TOTAL 01 2.83
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HP INVENT 12
COMPETITIVE PROFILE MATRIX(CPM)
Critical successfactors
weight HP APPLE DELL
rating score rating score rating score
Market share 0.12 3 0.36 3 0.36 4 0.48
compatibility 0.13 3 0.39 3 0.39 3 0.39
innovation 0.13 3 0.39 4 0.52 3 0.39
management 0.12 2 0.24 4 0.48 2 0.24
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HP INVENT 13
Pricecompetitiveness
0.09 3 0.27 2 0.18 3 0.27
Product quality 0.13 2 0.26 4 0.52 2 0.26
Consumer loyalty 0.11 3 0.33 3 0.33 3 0.33
Financial position 0.09 2 0.18 2 0.18 3 0.27
E commerce 0.08 3 0.24 2 0.16 4 0.32
TOTAL 1 2.66 3.12 2.95
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HP INVENT 14
CPM OF HP 2.66
CPM OF APPLE 3.12 ( market leader)
CPM OF DELL 2.95
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HP INVENT 15
PRODUCTS OF HP
LAPTOP
MONITOR
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HP INVENT 16
MOUSE
PRINTER
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HP INVENT 17
SCANNER
HP IPHONE
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HP INVENT 18
KEY BOARD
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HP INVENT 19
Stage 2 of formulating strategiesframework
It includes following matrices
*SWOT Matrix
*IE matrix *SPACE matrix
*BCG matrix
*GRAND matrix
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HP INVENT 20
(01)Strategic Analysis Swot MatrixStrengths Weaknesses
1) brand name2 ) growing sale of I phone & I pod.3 ) low debt.
4 )wide range of innovative product5) developing of own software & hardware.6 )web technology used for product awareness & sale
1) internal control issues .2 )lack of in-house managementconsulting division
3 )no aggressive investment in R&Dcompared to historical spending4 )intellectual capital is under estimated5) no good peoples retention policy orHR policies
Opportunities S-O Strategies W-O Strategies
1) expansion of retail stores for customersconvince2) participate in joint ventures.3) make easy to use product for upcomingretirees4) computer & cell phone software &hardware to be developed
1) must open new retail stores throughout the world totake advantage of financial strength (O1,S1,S3)2) try to have joint venture with apple or other cell
phone companies (O2,O4,S1,S2)3) develop easy pc and cell phone for x & y generation(O3 ,S4)
1) develop new HR policy in order toretain human capital by takingadvantage of other firm management(O2,W1,W5)
Threats S-T Strategies W-T Strategies
1) competitors technology & pricing2 ) low compatibility with non.hp product3) less global coverage than competitor4 )availability of substitute
1) developed low price & innovative pc& cell phone than competitors(T1,S4)2) developed such hardware & softwarefor computer & cell phone which arecompatible with other companiessoftware & accessories ( T2,S5)
1) enhanced the internal communicationwithin the various departments to havemore focus on technology improvement& to control over the internal issues(W1,T1)
The hp must adopt S-T Strategies
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HP INVENT 21
(02)Strategic AnalysisSpace Matrix
Financial Strength rating is 1 (worst) to 6 (best) Ratings
1 3.0
2 3.0
3 4.0
4 5.0
5 5.0
Industry Strength rating is 1 (worst) to 6 (best) FS Total 20.0
1 4.02 4.0
3 5.0
4 2.0
5 3.0
Environmental Stability rating is -1 (best) to -6 (worst) IS Total 18.0
1 -2.0
2 -5.0
3 -2.0
4 -6.0
5 -2.0
Competitive advantage rating is -1 (best) to -6 (worst) ES Total -17.0
1 -5.0
2 -1.0
3 -1.0
4 -1.0
5 -2.0
CS total -10.0
Leverage
Working Capital
Liquidity
Return on Investment
3 Year NEW income
Growth PotentialProfit Potential
Financial Stability
Ease of Entry into Market
Labor Cost
Rate of Inflation
Technological Changes
Price elasticity of Demand
Competitive Pressure
Barriers to Entry into Market
Market Share
Product Quality
Customer Laylaity
Technological Know-How
Control over Suppliers and Ditribuors
-1
-06
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HP INVENT 22
Calculation for SPACE matrix
01) FS=20 ---- 20/5 =4 (total / nos of factors) IS =18 ------18/5 =3.6
ES =-17----(-17)/5 = -3.4
CA = -6/5 --------- = -1.20 02) IS + CA =3.6+(- 1.20) =2.40 (X axis)
FS + ES = 4+(-3.4)=0.6(Y axis)
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HP INVENT 23
Strategic AnalysisSpace Matrix for HP
Backward ,forward,horizontal
integration
Mkt penet,mkt devp,product devp
Diversification( related/unrelated)
6
5
4
3
2
1
-6 -5 -4 -3 -2 -1 1 2 3 4 5 6
-1
-2
-3
-4
-5
-6
IS
ES
CA
FS
Conservative Aggressive
defensive Competitive
Vertical & horizontal integration
Mkt pent,mkt devp,product devp
Diversification (related/unrelated)
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HP INVENT 24
03)IE matrix strategicimplementation Both BCG & IE (INTERNAL EXTERNAL matrix)
called portfolio matrix
Grow and Build I,II, OR IV
CELLS
INTENSIVE & INTEGRATIVE
Hold and
Maintain
III,V,OR VII
CELLS
MARKET PENETRATION
AND PRODUCTDEVELOPMENT
Harvest orDivest
VI,VIII OR IX RETRENCHMENT
DIVESTITURE
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HP INVENT 25
(03)IE Matrix for HP
I II III
IV V VI
VII VIII IX
IFE ScoresStrong Average Weak
3-4 2-2.99 1-1.99
High3-4
Medium2-2.99
Low
1-1.99
EFE
Sco
res
Grow and Build
Hold and Maintain
Harvest or Divest
EFE 2.78IFE 3.10
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HP INVENT 26
Dogs
IV
Cash Cows
III
Question Marks
I
Stars
II
High
1.0
Medium
.50
Low
0.0
High+20
Low
-20
Medium
0
(04)Layout for possible strategiesfor BCG matrix
Growth rate
Relative market share
Vertical or horizontal integration
Mkt penetration
Mkt development
Product development
Mkt penetration
Mkt development
Product development
divestiture
Product development
Diversification
Retrenchment
divestiture
Retrenchment
Divestiture
liquidation
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HP INVENT 27
Table for BCG matrix hpdivisions
ID Segments Revenue % % profit Growthrate
relativemarketshare
A Ess 19 2 11 .8
B Hps 17 20 8 .1
C Software 1.4 5 14 .6
D Ipg 29.2 30 8 .8
E Psg 32 42 -10 .7
F hpfs 2.2 2 -14 .2
ESS Enterprisestorage &server
HPS Hp services
IPG Imaging &printing
PSG Personalsystem group
HPFS Hp financialservices
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HP INVENT 28
Dogs
IV
Cash Cows
III
Question Marks
I
Stars
II
High
1.0
Medium
.50
Low
0.0
High+20
Low
-20
Medium
0
Hp BCG Matrix
Growth rate
Relative market share
AB
C
D
E
F
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HP INVENT 29
Strategic AnalysisGrand Strategy Matrix
Rapid Market Growth
Quadrant II Quadrant I
StrongCompetitive
Position
Slow Market Growth
WeakCompetitive
Position
Quadrant III Quadrant IV
Mkt devp,mkt penetration,
Vertical &horizontal integration
Related diversification
Mkt develop,mkt penetration
Product development
Divestiture
liquidation
Retrenchment,
Related& unrelated diversification
Divestiture
liquidation
Related & unrelated diversificationJoint venture
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HP INVENT 30
Strategic Analysis(05) Grand Strategy Matrix
Rapid Market Growth
Quadrant II Quadrant I
StrongCompetitive
Position
Slow Market Growth
WeakCompetitive
Position
Quadrant III Quadrant IV
After analyzing the
Above four matrix
We conclude this
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HP INVENT 31
Analysis of all Matrix
Alternative Strategies BCG IE SPACE GRAND COUNT
Forward IntegrationX X X X 4
Backward IntegrationX X X X 4
Horizontal IntegrationX X X X 4
Market PenetrationX X X X 4
Market DevelopmentX X X X 4
Product DevelopmentX X X X 4
related Diversification X X 2
unrelated Diversification X 1
Retrenchment
Divestiture
Liquidation
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HP INVENT 32
Stage 3 of formulating strategiesframework This stage is called as DECISION STAGE This stage has only one technique called as
QSPM (QUANTITATIVE STRATEGIC
PLANNING MATRIX) For QSPM we have selected two alternative
strategies after evaluating the stage 2 i.ematching stage .the two strategies are
A) forward integration B) horizontal integration
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HP INVENT 33
By forward integration one has the meaningto have a control over distribution & overretailing
By horizontal integration one has the
meaning to have a control over competitorsthrough acquisition or joint venture etc
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HP INVENT 34
QSPM for HP
Strategic alternative
Key internal factors weight Strategy 1 forwardintegration
Strategy 2 horizontalintegration
strength AS TAS AS TAS
01) Brand name .12 2 .24 4 0.48
02) Growing sale of iphone ,ipod
.12 1 .12 3 .36
03) Low debt .13 3 .39 3 .39
04) Wide range ofinnovation product
.11 3 .33 2 .22
05) Developing ownsoftware & hardware
.09 4 .36 3 .27
06) Web technology usedfor product awareness&sale
.09 4 .36 2 .18
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HP INVENT 35
WEAKNESSES
01) Internal control issues .05 3 .15 3 .15
02) Lack of in housemanagement consultingdivision
.08 3 .24 3 .24
03) No aggressiveinvestment in R &Dcompared to historical
spending
.05 1 .05 1 .05
04) Intellectual capital isunderestimated
09 3 .27 2 .18
05) No good people retentionpolicy or hr practices toensure ic is protected
07 2 .14 4 .28
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HP INVENT 36
OPPORTUNITIES ( KEY EXTERNAL FACTORS)
01) Expansion of retail stores forcustomer convince
.05 4 .2 2 .1
02) Participate in joint ventures .20 2 .4 4 .8
03) Make easy to use product forupcoming retirees
.09. 3 .27 2 .18
04) Cell phone software .10 1 .10 3 .3
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HP INVENT 37
THREATS
01) Competitors technology &pricing
.25 3 .75 4 .21
02) Low compatibility with nonhp product
,12 1 .12 3 .36
03) Less global coverage thancompetitor
.97 4 .28 3 .21
04) Availability pf substitute .12 -----
Total attractive strategy for 1st is 4.77
Total attractive strategy for 2nd is 4.85SO STRATEGY 2nd IS TO BE
SELECTED FOR HP
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HP INVENT 38
Goal and long objectives
To increase market share up to 45% in next 3to 4 years (up to 2006 its 36%)
To increase compatibility of firm products and
services with other firm hardware andsoftware
To improve technology development in cell
phone software and hardware especially in Iphone
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HP INVENT 39
Possible alternative strategies &possible policies for their
implication (01) Strategy forward integrationIt can be done by
I) Developing own retail and distribution
channelII) Company has to develop their own website
where the company will offer online sellingof product & services .the features ,designand price of product must be there in website. firm also has to offer facility ofcustomisation
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HP INVENT 40
iii) another way is to establish up to 200 retailshops in Asia in order to get maximum
market share as financial position In order to enhance & make retailing more
effectively firm must negotiate with majorretailers like Wal mart & sear to give
prominent place for hp product display andservices
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(02) strategy horizontal integration
This can be done by merger or through acquisition
HP has strong financial position must have to adoptthe policy of acquisition/merger especially with cellphone companies like nokia , Samsung in order toimprove the technology for cell phone hardware and
software This integration provide facility to improve the
compatibility of firm product & services with otherfirm product by taking advantage of other firm
experiences and technology