Hp Case Study

Topics: Hewlett-Packard, Financial ratios, David Packard Pages: 21 (3298 words) Published: November 27, 2012

Hewlett-Packard: The Company4
The HP Way4
2. Current Situation4
Current Performance4
Strategic Posture4
Mission Statement of Hewlett Packard4
Vision statement of Hewlett Packard5
Improved Mission statement5
Improved Vision statement5
Comparison of Mission statement to a leading competitor statement5 Objectives:5
The Current Strategy6
Focus on Your Customer6
Create Measurable Goals6
Create Major Initiatives6
3. Strategic Managers7
Board of Directors7
Top Management7
4. External Environment(EFAS Table)7
MEGA Scanning(PEST analysis)7
Task Environment (Porter Five forces Model)7
5. Internal Environment (IFAS Table)8
Corporate Structure8
Corporate culture8
Corporate resources8
Human Resources9
Information System9
Market Position9
6. Strategic Myopia (Filtration)10
7. Analysis of Strategic Factors10
Situational analysis (SWOT)10
TOWS Matrix13
SPACE Matrix15
Interpreting the SPACE Analysis Matrix Diagram17
ixixGrand Starategy matr18
8. Strategic Alternatives and Recommended Strategy20
Recommended Strategy20
9. Implementation20
Expanding Geographically21
Reaching into new market segments21
10. Evaluation and control22
Appendix A23
Gross profit margin ratio23
Operating profit margin23
Net profit margin23
Current ratio23
Quick ratio23
Inventory turnover ratio23
Sales to receivables ratio24
Return on assets24
Debt to worth ratio24


Hewlett-Packard: The Company

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. The company, which originally produced audio oscillators, introduced its first computer in 1966. In 1972, the company pioneered the era of personal computing by introducing the first scientific, hand-held calculator. Hewlett-Packard introduced its first personal computer in 1980. Five years later, HP introduced the LaserJet printer, which would become the company’s most successful product ever.

The HP Way

In 1956, Bill Hewlett, Dave Packard, and a handful of other HP executives gathered at the Mission Inn in Sonoma, California, to create a set of values and principles to guide their company. The six objectives that this small group subsequently created not only helped shape “a new kind of company, but ultimately became the foundation for what came to be known as “the HP way.”

2. Current Situation

Current Performance

See Appendix 1

Strategic Posture

Mission Statement of Hewlett Packard

“We are committed to developing a wide range of innovative products and multimedia services that challenge the way consumer’s access and enjoy digital entertainment. By ensuring synergy between businesses within the organization, we are also constantly striving to create exciting new worlds of entertainment that can be experienced on a variety of different products.”

Vision statement of Hewlett Packard

“We recognize and seize opportunities for growth that builds upon our strengths and competencies.”

Improved Mission statement

To provide product, services and solution of highest quality and deliver more value to our customers that earn their respect and loyalty....
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