...MEMO To: Mohamad Ali From: Bas van Hulsenbeek Concerning: critical analysis spin-out ------------------------------------------------- Date: October 20, 2014 Dear Mr Ali You have asked us, Hulsenbeek Strategic Issues Support, to prepare a memo providing a critical analysis of the current strategic and leadership challenges facing the spin-out of part of the business of Hewlett-Packard (“HP”) announced October 6th. This spin-out will result in two publicly traded companies: Hewlett-Packard Enterprise, responsible for the storage, servers, software and security divisions and HP Inc., responsible for the PCs and printers divisions. The spin-out is expected to close by October 2015. In this memo we have: 1. Reviewed HPs past performance 2. Reviewed the rationale behind the spin-out 3. Conducted a SWOT-analysis, and 4. Concluded with our future outlook. 1. Review past performance Just as many other entrepreneurs, HP started because the founders discovered something. They wanted to see a market arise from the possibility of substituting an already-existing product or service with something better, namely more stable oscillators for a better price. Providing their market with better quality products for a better price therefore became the new company's raison d'être. Over the last 80 years, the crucial key success factor that has made HP successful has been her ability to adapt to new circumstances. For example, after starting out...
Words: 1321 - Pages: 6
...Hewlett-Packard Company Company Profile Publication Date: 16 Apr 2010 www.datamonitor.com Europe, Middle East & Africa 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7551 9090 e: euroinfo@datamonitor.com Americas 245 5th Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Asia Pacific Level 46 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8088 7405 e: apinfo@datamonitor.com Hewlett-Packard Company ABOUT DATAMONITOR Datamonitor is a leading business information company specializing in industry analysis. Through its proprietary databases and wealth of expertise, Datamonitor provides clients with unbiased expert analysis and in depth forecasts for six industry sectors: Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial Services. The company also advises clients on the impact that new technology and eCommerce will have on their businesses. Datamonitor maintains its headquarters in London, and regional offices in New York, Frankfurt, and Hong Kong. The company serves the world's largest 5000 companies. Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities...
Words: 12279 - Pages: 50
...Case Study: Hewlett-Packard’s Home Products Division In Europe (1996-2000) XY Management Strategy Z Table of Contents I. Overview………….………….………….………….………….………….…….….3 II. Mission………….………….…………….………………….………….………..3-4 III. External Environment……………………………………………………….….4-7 IV. Internal Analysis………………………………………………………………….7 Strengths……………………………………………………………………8-9 Weaknesses……………………………………..……………………………9 Opportunities………………………………….………………………………9 Threats…………………………………………………………………………9 V. Issues and Problems……………………………………………………………9-10 VI. Alternatives…………………………………………………………..…………10-11 VII. Recommendations……………………………………………………………11-12 VIII. Conclusion and Implementations………………………………………………12 I. Overview “Making money in the [home PC] business [was] like landing a man on the moon.”1 That’s exactly what Webb McKinney, the general manager of the Home Products division wrote. Indeed, making money in the PC business was hard. (Almost as hard as landing a man on the moon. Hewlett-Packard’s Home Products Division in Europe had a lot to learn about when they were doing business with Europe. Even today, there are many challenges to international brands in the European markets compared to that of the United States. The way Hewlett-Packard’s Home Products Division is organized is through functional lines (the home PC market) and geographic lines (European Division). Also, they were very centralized with...
Words: 3908 - Pages: 16
...| Hewlett-Packard. Strategic Analysis. | | Yatsenko Dmitriy, Sultanov Teymur, Iskenderov Vasif 4/30/2012 | Contents History 2 Mission Statement Analysis 2 Customer Loyalty 2 Profit 2 Market Leadership 2 Growth 2 Employee Commitment 2 Leadership Capability 2 Global Citizenship 2 Industry and Competitive Analysis 2 Dominant Economic Characteristics 2 Driving Forces 2 Key Success Factors 2 Five Forces Analysis 2 Rivalry Between Firms 2 Force of Buyers 2 Force of Suppliers 2 Force of New Entrants 2 Force of Substitutes 2 Company Situation Analysis 2 Corporate Strategy 2 Generic Strategy 2 How Well Is This Strategy Working? 2 SWOT Analysis 2 Cost Competitiveness 2 Diversification Efforts 2 Financial Analysis 2 Market Share 2 % Change in Sales 2 Operating Margin 2 Net Profit 2 Net Profit Margin 2 Working Capital % Change 2 Long Term Debt % Change 2 Shareholders Equity % Change 2 Return on Total Capital 2 Return on Shareholders’ Equity 2 Gross Profit Margin 2 Operating Profit Margin 2 Net Profit Margin 2 Return on Total Assets 2 Return on Capital Employed 2 Earnings Per Share 2 Current Ratio 2 Quick Ratio 2 Inventory to Net Working Capital 2 Debt To Asset Ratio 2 Debt To Equity Ratio 2 Long Term Debt to Equity Ratio 2 Times Interest Earned 2 Inventory Turnover 2 Fixed Asset Turnover 2 Total Asset Turnover 2 Accounts Receivable Turnover 2 Average Collection Period...
Words: 15214 - Pages: 61
...Introductory Articles (2010-11/ Semester Two) Sources: 1. “Hewlett-Packard to buy Palm for $1.2 Billion” (Bloomberg news, 29th April, 2010) 2. “Actual Analysis: HP buys Palm, and the Earth does Move” (Betanews, 28th April, 2010) 3. http://www.hp.com 4. http://www.betanews.com 5. http://www.palm.com Hewlett-Packard to Buy Palm for $1.2 Billion By Connie Guglielmo and Ari Levy /Apr 29, 2010 Hewlett-Packard Co. agreed to buy Palm Inc., the money-losing handset maker that was once a Silicon Valley icon, for $1.2 billion to challenge Apple Inc. in the smartphone market. Palm’s common shareholders will receive $5.70 a share in cash, a 23 percent premium over the closing price, Hewlett- Packard said in a statement today. Elevation Partners LP, Palm’s biggest investor, gets $485 million for its preferred shares and warrants. The Palm deal moves Hewlett-Packard back into contention with the world’s biggest smartphone makers, including Nokia Oyj, Apple and Research In Motion Ltd. Hewlett-Packard’s current iPaq device hasn’t kept up with competitors. The company also gets a team headed by ex-Apple engineers and a Palm patent lineup that spans mobile hardware, software and power-saving technologies. “This is a low-price, low-risk way for them to at least attempt to penetrate the smartphone market,” said Brian Alexander, an analyst for Raymond James & Associates Inc. He has a “strong buy” rating on Hewlett-Packard’s stock, which he doesn’t own. “We always wondered why...
Words: 2522 - Pages: 11
...Assessment 2 – Outline : ‘The Hewlett Packard Way” Case Study: I chose the ‘Hewlett Packard way’ as last year I spent the whole year as Store manager in a retail position. The first half of the year I managed for a company with a reputation for high staff turnover and in the second half I managed for a company with similar values to Hewlett Packard. Not only were staff members more loyal in the second company but the level of self-driven motivation was second to none. I am passionate about this management style. Contemporary management Issues in relation to this article Issue: HP consistently puts principles derived from Theory Y into practice taking a completely soft model of Human Resource Management approach. However more recently HP have been experiencing problems because of a downturn in the economy and needs to reduce costs. Should HP stick with this approach through this rough patch though more costly? The Company: Hewlett Packard company or HP is a public, manufacturing and professional services sector industry founded in 1939 by William Hewlett and David Packard. It provides It provides computer hardware/software and IT services to consumers, small- and medium-sized businesse and large enterprises. Founders Bill and Dave established a philosophy of management called the ‘HP way’ which is 100% people orientated built on recognition of achievements. Key management Issues: The problem with a purely Theory Y based approach to management saves money...
Words: 785 - Pages: 4
...Table of Contents At a glance 2 Company Overview 3 SWOT Analysis 4 Entry Strategies 6 Entry Restrictions8 Political and Cultural Values................................................................................15 Economical Conditions..........................................................................................16 Extrinsic and Intrinsic Motivational and Hygienic Factors..............................17 CSR Programs.......................................................................................................18 Marketing MIX......................................................................................................20 IMC Campaign......................................................................................................28 Contingency Strategies..........................................................................................29 Reference................................................................................................................30 AT A GLANCE Name: Hewlett-Packard Company Type: Public Traded as: NYSE: HPQ S&P 500 Components Industry: Computer hardware Computer software IT services IT consulting Founded: January 1, 1939 Founder(s): Bill Hewlett, Dave Packard Headquarters: Palo Alto, California, United States Area served: Worldwide Key people: Ralph Whitworth (Interim Chairman) ...
Words: 6218 - Pages: 25
... Texas Instruments and Hewlett-Packard Texas Instruments (TI) and Hewlett-Packard (HP) developed, manufactured, and sold high-technology electric and electronic products. Texas Instruments had three main lines of business in 1984: components, which includ ed semi conductor integrated circuits, semiconductor subassemblies, and electronic control devices; digital products, which included minicomputers, personal com puters, scientific instruments, and calculators; and government electronics, which included radar systems, missile guidance and control system s, and in frared surveillance systems. The three businesses generated 46 percent, 19 percent, and 24 percent, respectively, of TI’s sales in 1984. Hewle tt-Packard operated in two main lines of business: computer products, which included factory automation computers, engineering workstations, data termin als, per sonal computers, and calculators; and electronic test and measu rement sys tems, which included instruments that were used to evaluate the operation of electrical equipment against standards, instruments that would measu re and display electronic signals, voltmeters, and oscilloscopes. These busine sses gen erated 53 percent and 37 percent, respectively, of HP’s 1984 sales. Summary financial information for each company is presented in Exhibit 1. Although Texas Instruments and Hewlett-Packard competed in similar industries, the strategies chosen by these two firms were very different. Exhibit 2 summarizes five major concepts...
Words: 1213 - Pages: 5
...vision and business concept—that personal computers could be built to order and sold directly to customers. Michael Dell believed his approach to the PC business had two advantages: (1) bypassing distributors and retail dealers eliminated the markups of resellers and (2) building to order greatly reduced the costs and risks associated with carrying large stocks of parts, components, and finished goods. While the company sometimes struggled during the 1986-1993 period trying to refine its strategy, build an adequate infrastructure, and establish market credibility against better-known rivals, Dell’s strategy started to click into full gear in the late 1990s. Going into 2003, Dell’s sell-direct and build-to-order business model and strategy had provided the company with the most efficient procurement, manufacturing, and distribution capabilities in the global PC industry and given Dell a substantial cost and profit margin advantage over rival PC vendors. Dell’s operating costs ran about 10 percent of revenues in 2002, compared to 21 percent of revenues at Hewlett Packard, 25 percent at Gateway, and 46 percent at Cisco Systems (considered the world’s most efficient producer of networking equipment). Dell’s low-cost provider status was powering its drive for market leadership in a growing number of product categories. Dell Computer was solidly entrenched as the market leader in PC sales in the U.S., with nearly a 28 percent market share in 2002, comfortably ahead of Hewlett Packard...
Words: 1435 - Pages: 6
...Business Analysis of Apple Inc. Victoria Randle MGT 521 May 11, 2011 JAMES BURRESCIA Business Analysis of Apple Inc. Apple was created in 1977 in California. They design, manufacture, and market personal computers, mobile communication and media devices, and portable digital music players, and sell a range of related software, services, peripherals, networking applications, and third-party digital content and applications. Beginning with apple computers it was predominantly a manufacturer of personal computers, including the Apple II, Macintosh and Power Mac lines. The amount of technology that this company has produced over the years allows them to maintain an up to date status. (Apollolibrary.com) Apple In addition sells a range of third-party Macintosh, iPhone, iPad and iPod compatible products including application software, printers, storage devices, speakers, headphones, and other accessories and supplies through its online and retail stores. Today, Apple is the largest technology firm in the world, with annual revenues of more than $60 billion. SWOT When deciding whether or not to invest into mutual funds of Apple Inc. You have to figure out the strengths, weaknesses, opportunities this company has to offer and the threats you could face if you decide to invest. Strengths This company has been extremely successful over the years. Shortening the name of the Macintosh computers to Mac’s and the IPod music player has increased its quarter profits; this Business...
Words: 5731 - Pages: 23
...Trigger. Reducing resisting forces. Results • Change process-dynamics of the forces that promote change and the inertial forces • Analysis of the result. Residual stress • Conclusions HP In 1938, two Stanford graduates in electrical engineering, William Hewlett and David Packard, started their own business in a garage behind Packard’s Palo Alto home. One year later, Hewlett and Packard formalized their business into a partnership called Hewlett-Packard. HP was incorporated in 1947 and began offering stock for public trading 10 years later. Annual net revenue for the company grew from $5.5 million in 1951 to $3 billion in 1980. By 1997, annual net revenue exceeded $42 billion and HP had become the world’s second largest computer supplier. HP posted net revenue in 2009 was $115 billion, with approximately $40 billion coming from services. In 2006, the intense competition between HP and IBM tipped in HP's favor, with HP posting revenue of US$91.7 billion, compared to US$91.4 billion for IBM; the gap between the companies widened to $21 billion in 2009. In 2007, HP's revenue was $104 billion,] making HP the first IT company in history to report revenues exceeding $100 billion In 2008 HP retained its global leadership position in inkjet, laser, large format and multi-function printers market. Also HP became #2 globally in IT services as reported by IDC & Gartner. The company, which originally produced audio oscillators, introduced its first computer...
Words: 4405 - Pages: 18
...MBA Cohort 7 People & Organizations Prof. Homework Session 1 Essay – Analysis of Hewlett-Packard Sven Fritzsche January 20, 2013 Content: 1) Hewlett Packard before/ until 1999 – status 2) Hewlett Packard between 1999 – 2011 3) Changes and issues 4) Recommendation to Mrs. Whitman 1) Hewlett Packard before/ until 1999 The Company was founded by Bill Hewlett and Dave Packard in 1939 and started in Packard's garage with an initial capital investment of US$ 538. It has since then grown into one of the largest IT companies in the world. HP incorporated on August 18, 1947, and went public on November 6, 1957. The company originally worked on a wide range of electronic products for industry and even agriculture. From the 1940s until well into the 1990s the company concentrated on making electronic test equipment, wave analyzers, and many other instruments. A distinguishing feature was pushing the limits of measurement range and accuracy; many HP instruments were more sensitive, accurate, and precise than other comparable equipment. HP is recognized as the symbolic founder of the Silicon Valley. HP entered the computer market in 1966 with the HP 2100/ HP 1000 series of minicomputers and is basically the first company to mass produce a personal computer. In the early 1980’ies HP enters into the printer/ scanner production which since then has remained being one of the most important businesses for HP. In the 1990s, HP expanded their computer...
Words: 1580 - Pages: 7
...Business Analysis of Apple Inc. Kellye Wright MGMT 521 August 8, 2011 Robert Price Apple was created in 1977 in California. They design, manufacture, and market personal computers, mobile communication and media devices, and portable digital music players, and sell a range of related software, services, peripherals, networking applications, and third-party digital content and applications. Beginning with apple computers it was predominantly a manufacturer of personal computers, including the Apple II, Macintosh and Power Mac lines. The amount of technology that this company has produced over the years allows them to maintain an up to date status. (Apollolibrary.com) Apple In addition sells a range of third-party Macintosh, iPhone, iPad and iPod compatible products including application software, printers, storage devices, speakers, headphones, and other accessories and supplies through its online and retail stores. Today, Apple is the largest technology firm in the world, with annual revenues of more than $60 billion. SWOT When deciding whether or not to invest into mutual funds of Apple Inc. You have to figure out the strengths, weaknesses, opportunities this company has to offer and the threats you could face if you decide to invest. Strengths This company has been extremely successful over the years. Shortening the name of the Macintosh computers to Mac’s and the IPod music player has increased its quarter profits; this Business...
Words: 5628 - Pages: 23
...Introduction to talent management (IT) Introduction to the 2 companies being considered Findings on company 1 Findings on company 2 Comparative study Critical analysis INTRODUCTION Talent management is a name for a human resources program that applies to more than just computing hours and taking care of legal aspects of employment. Rather, talent management applies to the strategy of recruitment and retention, compensation, assessment and review. In some cases, talent management is a process handled over multiple departments. In other cases, it may be solely handled by human resources. Talent management's first responsibility is to attract and retain qualified employees. Without this primary function, no company can achieve its full potential. Recruiting workers can be a difficult task, especially in times of low unemployment. The further up the ladder the position is, the harder the position will be to fill. Recruitment and retention may depend on adequate or competitive compensation packages. These packages must be carefully scrutinized based on industry standards. Although pay may be the most important of the compensation package, it is not the only part. Traditional benefits such as health insurance and vacation also play a role. However, newer benefits, such as flexible packages and telecommute options can also be very attractive for some positions. Talent management's job is to find out what compensation packages are needed and then see if those, or something...
Words: 2823 - Pages: 12
...an effort to diversify the company’s product base and to use its competitive capabilities in PC and servers to pursue revenue growth opportunities. The expansion into different products and services complemented sales of PCs and Servers. In 1995 Dell had a 2% market share in the server market, increasing to 30% in 2008. Dells idea to sell Data Routing switches proved to be a clever strategic move as they were able to price products 2 and a half times less than the market leader at the time Cisco. This resulted in Dell shipping 1.8 million switch ports in the period of a year. Senior Dell executives saw external storage devices as a growth opportunity because the company’s corporate and institutional customers were making increasing use of high speed data storage and retrieval devices. Competition in the IT industry can be a challenge. So for any company to survive within that industry, it has to have the ability to harness the basics of its core competencies to the very maximum. This is an inventive design that Dell learnt from the onset and is now positioned to reap the dividends. Computers and computing are the main focus of the IT industry in its entirety. And because Dell has taken dominance of the greater part of the market share, most of the competition are, or have relapsed into the production of mainframe servers or the production of ancillary products and services to shore up their...
Words: 3661 - Pages: 15
