NEWCASTLE BUSINESS SCHOOL
Strategic Management and Leadership
Name: Thanh Long DO Student ID: 08025668
Word count Task A: 3089 Task B: 481
Table of Contents
TASK A Question1: 1.1 External environment of HP PESTEL analysis Porter‟s Five forces 1.2 Opotunities and threat Question 2: 2.1Internal analysis of HP 2.2 Strength and Weakness Question 3: Question 4: 4. Development strategies (Ansoff) Question 5: 5. Key internal and external stakeholders 14 3 3 3 6 8 9 9 9 10 11
TASK B 1. My leadership development 2. A difference leadership style 3. Comparison and evaluation Reference Appendice Appendix A Dell financial data Appendix B HP financial data 20 21 16 16 17 18
Hewlett-Packard is currently a successful company operating within the computer and printer industry. In addition to its huge market coverage, HP has also been earning billions of dollars through quality products and ingenious development of new technologies.
Question 1: Using appropriate analytical tools (such as PESTEL and five forces), analyse the external business environment in relation to the analysed cases.
1.1. External environment of HP The PESTEL analysis is a strategic framework used to assess market growth and potential, the business position and direction for a strategy (Kotler, 1998). Besides, Porter (2004a) supported that this analytical tools also help to analyze the five forces that are the state of competition within the industry of computing manufacturers. Political and legal This includes the government‟s set of laws and lawful issues shaping the conditions under which companies have to operate. The computer HP has to face certain restraints and problems that can arise in countries where political stability is not guaranteed, no matter whether where the warehouses operate production facilities or if HP does business with a particular country through exports. In other countries that HP does business with; still have respective, restrictive and qualified policies which are maintained to protect domestic manufacturers and production. Some rules often hold back and delay foreign companies such as HP from entering into these markets.
Economical The UK retail sector contributes approximately 19.3% to the GDP and plays and important role in shaping the economy. With total sales of US$ 515.7b in 2008, retail sector is the largest private sector employer in the UK, and generates employment for approximately 3 mil people. The UK electrical and electronics retail industry grew at a CAGR of 1.44% for the period 2004-2008. The electrical & electronics sector accounted 26.7% of total retail sales and was the seventh largest retail channel market. Computer hardware retailing category with 22.7% share was the second largest retail category sold through electrical & electronics specialist retail channel. The global computer hardware market reached US$411 billion in 2008, recording a growth of 7.6% over last year. The European computer hardware market accounts for 39.2% of the global market value. In the year 2008, the computer hardware retailing market in UK was US$11.0 billion and has been growing at a CAGR of 3.16% for the period 2004-2008. In the past five years, the usage of PC at home has increased dramatically. However the UK PC markets us beginning to feel the stress of the economic downturn and the sector is moving towards saturation. The focus for the industry has shifted from capturing „new to market‟ prospects to driving the demand for replacement and secondary devices.( Reportlinker,2009) Socio-cultural Hewlett Packard using its unique direct business model to make technology more affordable and accessible to people and institutions around the world so that they can take advantage of the tremendous economic and social benefits of more pervasive technology. To do this, HP is: Reaching out to customers around the world, using its customer direct model to bring affordable technology...
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