RESEARCH AND DEVELOPMENT SPENDING
Research and development can be characterised as a process of transforming R&D inputs to R&D outputs. R&D inputs are the existing stock of knowledge, the expertise and creativity of researcher, supporting labor, capital service ( from asset service like building, structure and equipment ), materials and purchased services. R&D outputs are increments to the stock of knowledge and new technologies.
In Hewlett Packard, this company use about $0.73 billion in R&D spending for the year 2007. Most cut were made for the department which it want to develop new version of existing product for this year. They think that, if they continued spend more money in R&D, it could leave HP less effective in developing new product and technologies for the future sales.
Apple has strong focus on research and development. Every year, this company increase their R&D spending from 2003 to 2007 in $0.47 billion until $0.78 billion. On average, Apple has risen 13% a year on research and development. So, thats why this company were effective in produce new product and technologies.
Compare with Dell, they are weak in research and development capabilities because they never spend much on their R&D. In 2007, Dell’s R&D expenses were $0.5 billion.
• Education – Nationwide education network
HP is supplying the Ministry of Education with hardware infrastructure and application software for schools throughout the whole country. The Bulgarian Government got four-point plan to bring information technology to all the country’s schools through a nationwide education network. HP’s is playing a major role in the project, which will benefit million children and altogether stabilize again HP’s Company as Green Company.
• Economic - Capital strategy
We align our capital strategy with our operations to maximize shareholder value. First priority is to continue to invest in our... [continues]
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