Strategic Analysis of Hp

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Strategic Analysis of Hp

By | Jan. 2013
Page 1 of 15
Hewlett Packard (HP)
Strategic Analysis

Student Name
Strategic Mangement
11/10/2012

Contents
EXECUTIVE SUMMARY3
Hewlett Packard (HP) Background:4
Company Objective:4
Mission statement:5
Vision statement:5
Strategies:5
Corporate Level Strategy:5
Business Level Strategy:6
Review of PC division of HP:7
Strategic Analysis:8
External Analysis:8
1.FIVE FORCES MODEL ANALYSIS8
2.STRATEGIC GROUP ANALYSIS:12
3.INDUSTRY LIFE CYCLE ANALYSIS13
Internal Analysis:14
CORE COMPETENCY ANALYSIS14
SWOT Analysis:17
Alternatives & Recommendations17
ALTERNATIVES AND ANALYSIS:17
RECOMMENDATIONS and WHY:18
Implementation of Balanced scorecard Approach:20
BSG’S Balanced Business Scorecard20
Bibliography22
APPENDICES24
EXECUTIVE SUMMARY

Hewlett Packard is the World’s largest PC Maker that is serving in more than 107 countries. HP has six divisions, amongst which the Personal Systems Group (PSG) is the largest that has generated almost $43 billion in the last year. The stake of HP’s Personal Computer market is in danger due to declining sales and miniscule margins. The reason for this is the shift in consumer trends from the desktop and laptop computers towards the tablets and Smartphone. In order to cope with the changing trends, HP also introduced HP Slate Tablet and WebOS Smartphone but these products failed to capture the attention of the consumers. In that case, when the company was facing loses, its CEO announced to spin off its PC division as well as killing of WebOS and Slate Tablet and this announcement raised a storm of confusion in the investors. So, the overall strategic analysis is being done to determine whether the company should keep or sell off its PC division. It is analyzed that the company should keep its Personal Computing Division because it is the largest division of HP and also HP has an advantage of being the leader in PC industry where the consumers have...