STRATEGIC MANAGEMENT AT HEWLETT PACKARD

Strategic Management at Hewlett Packard

Table of Contents

Introduction5

Task 15

SWOT Analysis5

Strengths5

HP has a strong market position6

Weaknesses6

Opportunities7

Threats7

Projected decrease in the IT market7

Hyper-competitive environment8

Climatic Changes8

Cyber Crimes8

Saturation of Market8

PEST Analysis9

Political9

Economical9

Socio-cultural10

Technological10

Porter's Five Forces11

Rivalry11

Entrants11

Buyers11

Substitutes12

The Critical Success Factors12

HP's Successful Strategic Acquisitions12

Expansion of Hp's Portfolio of Printing and Imaging Solution12

HP's Prominent Brand Name Recognition13

Summary13

Task B15

Strategic Options15

The Nature of Options15

Expansion into the Software Market15

Merger15

BCG Matrix16

Summary16

Task C18

Recommendations18

The Ratios19

Key Issues with HP before acquiring Palm20

Strategy behind Acquiring Palm20

External and Internal Stakeholder of Hewlett Packard21

Key external and internal stakeholders of HP21

Strategies of HP21

Conclusion22

References23

Appendix25

Financial Ratios of HP25

SWOT Analysis30

PEST Analysis31

BCG Matrix32

Strategic Management at Hewlett Packard

Introduction

HP is considered to be the second largest company in the computer industry in the world. It was founded by David Packard and Bill Hewlett, in the year 1939. Both of them were graduates from the University of Stanford in the year 1934. The origin of the company was with a very humble start while both of them were still studying at Stanford. Their first product was an audio oscillator precision which was used as a small night-light bulb to operate a resistor which depends on the temperature in a very critical circuit portion. This first invention was one of the outstanding that became a hallmark for the excellence of Hewlett - Packard. These kinds of products had directed the firm towards the title of being an innovative organization in the development of precision instrument. Hewlett-Packard will develop a lot more products which will prove their breakthrough performances over the 50 years. This will eventually provide an ample percentage of the innovative product measurement instrument market.

Task 1

SWOT Analysis

Strengths

One of the strengths of HP is its strong brand name. HP is a one of known companies in the industry and has been working for long in the IT industry. Its extensive distribution network worldwide, so that products are easily accessible to target customers is also one of its strengths. Products and services are of highest quality. The product range is very wide. The financial aspect of the company is really strong; it is a lucrative business if it can be increase its innovations. HP has a very well liked familiarity amidst the public. Public, glimpse HP, up to date humanity and latest tendency that make stylish telephones, which offer straightforward, but by tallying on their phones. This, of course, boosts the sales of their products and decreases new merchandise failure. HP has a very friendly business environment, with focus on recycling. This is an affirmative mind-set to the natural environment that assists the persons about them and minimizes the risk of awful press, which reflects on them. It can sway sales and attractiveness amidst the population (Arensman, 2002, 26-35). Some of the major strengths are as follows:

HP has a strong market position

Recently, HP closed its shares at $53.15 in 2010. The stock of Hewlett-Packard is up for around 62 percent during the last year which is higher than the market. This trend was continued as the company has easily passed Dell, HP's competitor and market leader ...