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1. Strategic Audit
Hewlett – Packard

2. COMPANY
PROFILE

3. Overview

Hewlett-Packard Co. (HP) is a provider of information technology (IT)
products, software, solutions and services.

HP produces printers, digital cameras and servers, provides IT and
consulting services, and makes networking products and software to tie
everything together.

Its service portfolio includes enterprise IT infrastructure solutions,
technology support, maintenance services, outsourcing, integration and
consulting services.

HP’s customer portfolio ranges from individuals to small, medium, and
large enterprises.

The company also offers a set of managed services, providing a crosssection of broader infrastructure services for smaller discrete
engagements.

It conducts business operations in 170 countries across Americas,
Europe, Middle East, and Asia-Pacific regions.

HP is headquartered in Palo Alto, California, US.

4. HP India

HP came to India in 1988 & has a presence in over 350 cities

The HP - Compaq merger in 2002 created the largest PC company in
India with revenues of Rs. 35 billion and a combined 17% market
share in India

In March 2009, HP launched the ‘HP Software University’ (HPSU) in
partnership with Indian Institute of Hardware Technology (IIHT).

The Indian entities of Hewlett Packard Co are:
◦ HP India Sales Private Limited for sales and marketing operations
◦ Global e – Business Operations Private Limited for transaction processing
◦ HP India Software Operations Pvt. Ltd. for software development and sales
◦ HP Labs India - for innovation & to provide breakthrough technology for the
rapidly growing emerging markets worldwide.
◦ HP Consumer Contact Centre - Technical Support Contact Centre
◦ HP Global Soft Ltd -HP Services global delivery operations in India for
Application Services, IT Infrastructure and Technology services.

6. Vision Statement
"To view change in the market as an
opportunity to grow; to use our
profits and our ability to develop and
produce innovative products,
services and solutions that satisfy
emerging customer needs."

7. Mission Statement
"To provide products, services and
solutions of the highest quality and
deliver more value to our customers
that earns their respect and loyalty."

8. Corporate Objectives

Customer loyalty

Profit

Growth

Market leadership

Commitment to employees

Leadership capability

Global citizenship

9. Supporting Beliefs

Customer loyalty
Beliefs : Listening attentively to customers to truly understands
their needs, then delivering solutions that translate into
customer success is essential to earn customer loyalty.
Competitive total cost of ownership, quality, inventiveness,
and the way we do business drives customer loyalty.

Profit
Beliefs : Balance of long-term and short-term objectives is key to
profitability. Profit is highly correlated to generating cash,
which brings more flexibility to the business at a lower cost.
Profit enables the achievement of our corporate objectives.

Market leadership
Beliefs : There are more places we can contribute than we will
be capable of contributing: We must focus. To be average in
the marketplace is not good enough, we play to win. We must
be No. 1 or No. 2 in our chosen fields.

10. Supporting Beliefs

Growth
Beliefs: Growth comes from taking smart risks, based on the
state of the industry-that requires both a conviction in
studying the trends, but also in inducing change in our
industry. The size and diversity of businesses gives us an
ability to weather economic cycles and turn them to our
favor.

Employee commitment
Beliefs: Performance starts with motivated employees; their
loyalty is key. We trust our employees to do the right thing
and to make a difference. Everyone has something to
contribute. An exciting, stimulating work environment is
critical to invention. A diverse workforce gives us a
competitive advantage.

11. Supporting Beliefs

Leadership capability
Beliefs: Leaders inspire, foster collaboration and turn vision and
strategies into action-with focused, clear goals. Effective
leaders coach, relay good news and bad, and give feedback
that works. Leaders demonstrate self-awareness and a
willingness to accept feedback and continuously develop.
Leaders speak with one voice and act to eliminate busy work.
It is important to measure people on the results they achieve
against goals they helped to create.

Global citizenship
Beliefs: The highest standards of honesty and integrity are
critical to developing customer and stakeholder loyalty. The
betterment of our society is not a job to be left to a few; it is
the responsibility to be shared by all. This objective is
essential to delivering on the brand promise.

12. PRODUCT SEGMENTS

13. Segments
Its operations are organized into 7 segments:
◦ The Personal Systems Group (PSG),
◦ Services,
◦ The Imaging and Printing Group (IPG),
◦ Enterprise Servers, Storage and Networking (ESSN),
◦ HP Software,
◦ HP Financial Services (HPFS) and
◦ Corporate Investments.

15. HP Labs


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Re-Inventing the Economics of IT - Provide technology with
research in dynamic provisioning, automatic control, utility and
global-scale computing, Grid, Linux and business process
management to create an adaptive enterprise.
Printing and Imaging Growth – Deliver improvements and
cost reduction in digital press hardware, solutions architecture to
generate customized documents, software components
automating custom content creation, technology to simplify and
improve video/image capture, storage and management based
on open, cross-industry standards.
Industry Solutions - Develop industry-specific solutions
Technologies for Service Delivery - Provide technology that
will increase the value and cost-effectiveness of HP's service
delivery.
Disruptive and Emerging Technologies - Pursue technologies
in areas of interest to HP, where breakthroughs push the
boundaries of science.

16. Strategic Planning and Management

17. SPaM - Objectives
Helping to drive the adoption of postponement in high-tech
products, as a gain in efficiency in building responsive
supply chains that support a high variety of product
versions (SKUs or stock keeping units) and configurations
 Developing and popularizing the concept of using a single
metric to measure the full end-to-end costs associated with
carrying inventory, to support better supply chain decisions.
 The use of simple, practical spreadsheet tools to deploy the
power of advanced statistical inventory target setting to a
broad range of businesses.
 Popularizing the concept of product design for supply
chain; leading product development teams to minimize
end-to- end costs for design, production, distribution, and
support instead of focusing solely on minimizing material
costs and development schedules.


19. Strategy Implementation

Shared Values
◦
◦
◦
◦
◦
◦
◦

Passion for customers
Trust and respect for individuals
Achievement and contribution
Results through teamwork
Speed and agility
Meaningful innovation
Uncompromising integrity
Structure
◦ On the basis of area of activity: EMEA
◦ On the basis of product:







The Personal Systems Group (PSG),
Services,
The Imaging and Printing Group (IPG),
Enterprise Servers, Storage and Networking (ESSN),
HP Software,
HP Financial Services (HPFS) and
Corporate Investments.

20. Strategy Implementation

Strategy
◦ Consumer Focus
◦ Market Focus
◦ Segment Focus
◦ Dual-Brand Marketing Strategy
◦ Significant investment in R&D
◦ Globalization


System: EMEA Business Management System.
Style: ‘THE HP WAY’ which according to David Packard means
‘managing by walking around.’

21. Marketing Strategy

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86 marketing departments.
Multiple platforms, legacy systems and a lack of continuity
among its marketing departments.
Separate budgets and resources.
Aim: Give the new company a single language that
enabled parts of the marketing campaign to be integrated.
Use of Seibel CRM and Marketing Resource Management
tools.
The company could focus on speaking to the customer.
The Current Strategy
◦ Focus on Your Customer
◦ Create Measurable Goals
◦ Create Major Initiatives :
 Achieve More with Less
 Operation One Voice

22. Competitor Analysis

23. Policies

24. Policies
 HP's
Global Non-Discrimination Policy
 Commitment to diversity, inclusion and
nondiscrimination
 HP's Diversity and inclusion philosophy
 Compliance, equal opportunity and
affirmative action
 Best Work Environment Policy
 Grievance Policy
 Harassment-free work environment policy
 Commitment to open communication - Open
Door Policy

25. Strengths, Weaknesses, Opportunities and Threats
SWOT ANALYSIS

26. Strengths
Strong Market Position
 Prominent Brand Name Recognition
 Successful Strategic Acquisitions
 Expertise

Weaknesses
• Weak Market Segment Integration
• Inventory risk

27. Opportunities




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Expanding presence in cloud computing market
Expanding portfolio of imaging and printing
solutions
HP has launched several retail photo printing
solutions and services
Miniaturization market
Component Production
Threats
• Projected decreases in the IT markets
• Hyper-competitive environment

28. Findings

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The key focus of HP is customer satisfaction.
Innovation is an element of HP’s culture.
HP has expertise in the Imaging and Printing segment
and has made continuous efforts to keep up with
changing technologies.
The management at HP follows an open culture and
hence the practice of calling each other by their first
names.
The merger with Compaq failed due to challenges for
product line integration and reorganization.

29. Strategy Alternatives


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Focus towards the development of industry specific
solutions that will strengthen HP’s ability to offer greater
value and satisfaction.
Pursue technologies to develop molecular scale
technologies and better display solutions.
There is a huge market for cloud computing solutions. HP
can tap this market by developing efficient protocols.
HP should continue development of webOS. The software
platform has the ability to improve applications and web
services for the next generation devices.
Develop agile technologies to be able to meet changing
market demands and work environment.

30. Thank You