This is a comprehensive business policy and strategic management case study that includes the company, Hewlett-Packard's (www.hp.com), fiscal year-end (October 2007) financial statements, competitor information and more. The case time setting is the year 2008. Recommend a three-year strategic plan for the company. Headquartered in Palo Alto, California, Hewlett-Packard's common stock is publicly-traded on the New York Stock Exchange under the ticker symbol HPQ.
Hewlett-Packard operates in five segments: Enterprise Storage and Servers, Services, Software, Personal Systems, Imagining and Printing, and Financial Services. The company has over 170,000 employees and is led by CEO Mark Hurd whose base pay was $14 million in 2007. The firm's major competitors include Dell, IBM, Canon, Texas Instruments, and Apple.
[...] SPACE Matrix x-axis: - 2.2 + 5.6 = 3.4 y-axis: 5.6 + - 3.8 = 1.8 Coordinate: ( ) Grand Strategy Matrix QSPM Strategic Alternatives Key Internal Factors advertising stores in US Weight budget worldwide Strengths AS TAS AS TAS HP's unit growth was an impressive the second and third-place vendors Corp., a provider of software and HP's worldwide PC shipments market in worldwide volume server market share. points of market share on a year-over-year basis, ending the Weaknesses regulations of the industry leader in return on workforce the industry leader [...]
[...] HP remained in the number 1 spot in the fourth quarter of 2006, according to IDC, and gained more than 200 basis points of market share on a year- over-year basis, ending the period at 18.1 percent. In the U.S., HP's market share rose to 24.0 percent from 20.6 percent. HP's server revenue growth was 5.1 percent in the fourth quarter of 2006. HP's non-U.S. net revenue rose from $ 56.1 billion in 2005 to 59.4 billion in 2006. Weaknesses HP's worldwide midrange server market share decreased 21.3 percent in 2006. [...]
[...] Products or services Markets Technology Concern for survival, profitability, growth Philosophy Self-concept Concern for public image Concern for employees External Audit Opportunities The worldwide personal computer industry posted its fourth consecutive year of double digit expansion in 2006, recording 10 percent unit growth. PC shipments in the Asia-Pacific region expanded by an estimated 17.6 percent in 2006 on a unit basis. IDC's “rest of the world” category, which includes Eastern Europe, Latin America, and the Middle East rose 22 percent on a preliminary basis. [...]
[...] market. Sun's server market share was 9.7 percent in the fourth quarter of 2006, up from 8.2 percent a year earlier. Apple's switch in 2006 to Intel-based chips increased the processing power of Macs. IBM's server factory revenues increased 0.8 percent. Sun Microsystems's server factory revenues increased 11.2 percent. Apple's improvement in the U.S. market share from 3.3 percent in 2004 to 4.0 percent in 2005, and then to 4.2 percent in 2006. IBM's high-end sever market share rose to 57.2 percent from 53.6 percent as revenues improved by 6.6 percent. [...]
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