Hp Zubair Ahmad

8/8/2019 Hp Zubair Ahmad

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HP INVENT 1

HEWLETT PACKARD

PRESENTED BY

Arif Shah, Abdul Jabbar,Sajjad Ali Khan,Shoukat,M.Waseem,Ikram ,Zubair Ahmad


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HP INVENT 2

Bill Hewlett & Dave Packard graduated inelectrical engineering from STANFORDuniversity in 1935

The company originated in garage in nearbyPalo Alto,California,USA during a fellowshipin 1939 with initial capital investment of us$538

Hewlett Packard company commonlyreferred as HP

HISTORY & INTRODUCTION TOCOMPANY


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HP INVENT 4

Hp markets its products to household, smallto medium size consumers and enterprise

directly as well as via online distribution


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HP INVENT 5

VISION & MISSION STATEMENT

VISION STATEMENT

to view change in market as an opportunity togrow, to use our profit and our ability todevelop & produce innovative products ,services and solutions that satisfy emergingcustomers need


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HP INVENT 6

MISSION STATEMENT

To provide product, services and solution of

highest quality and deliver more value to ourcustomers that earn their respect and loyalty


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HP INVENT 7

MISSION STATEMENT MATRIX

components

organization markets Productservice

customers philosophy

hp yes yes yes yes


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HP INVENT 8

components

technology Concerns forsurvivalgrowth profit

Concern foremployees

Concern forpublic image

Self concept

hp yes no no no


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HP INVENT 9

Stage 1 of formulating strategiesframework This stage known as input stage

It includes following techniques to collect thedata

01) CPM

02) EFE 03) IFE


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HP INVENT 10

EXTERNAL FACTOR EVALUATIONMATRIX

KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTSCORE

OPPORTUNITIES

01)Expansion of retail stores for

customer convenience

0.05 3 0.15

02)Participate in joint venture 0.20 4 0.80

03)Make easy to use product forupcoming retirees

0.09 1 0.09

04)Computer and cell phone software 0.10 3 0.30


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HP INVENT 11

THREATS

05)Competitors technology &pricing

0.25 3 0.75

06)Low compatability with nonhp products

0.12 3 0.36

07)Less global coverage than

competitors

0.07 2 0.14

08)Availability of substitutions 0.12 2 0.24

TOTAL 01 2.83


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HP INVENT 12

COMPETITIVE PROFILE MATRIX(CPM)

Critical successfactors

weight HP APPLE DELL

rating score rating score rating score

Market share 0.12 3 0.36 3 0.36 4 0.48

compatibility 0.13 3 0.39 3 0.39 3 0.39

innovation 0.13 3 0.39 4 0.52 3 0.39

management 0.12 2 0.24 4 0.48 2 0.24


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HP INVENT 13

Pricecompetitiveness

0.09 3 0.27 2 0.18 3 0.27

Product quality 0.13 2 0.26 4 0.52 2 0.26

Consumer loyalty 0.11 3 0.33 3 0.33 3 0.33

Financial position 0.09 2 0.18 2 0.18 3 0.27

E commerce 0.08 3 0.24 2 0.16 4 0.32

TOTAL 1 2.66 3.12 2.95


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HP INVENT 14

CPM OF HP 2.66

CPM OF APPLE 3.12 ( market leader)

CPM OF DELL 2.95


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HP INVENT 15

PRODUCTS OF HP

LAPTOP

MONITOR


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HP INVENT 16

MOUSE

PRINTER


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HP INVENT 17

SCANNER

HP IPHONE


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HP INVENT 18

KEY BOARD


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HP INVENT 19

Stage 2 of formulating strategiesframework

It includes following matrices

*SWOT Matrix

*IE matrix *SPACE matrix

*BCG matrix

*GRAND matrix


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HP INVENT 20

(01)Strategic Analysis Swot MatrixStrengths Weaknesses

1) brand name2 ) growing sale of I phone & I pod.3 ) low debt.

4 )wide range of innovative product5) developing of own software & hardware.6 )web technology used for product awareness & sale

1) internal control issues .2 )lack of in-house managementconsulting division

3 )no aggressive investment in R&Dcompared to historical spending4 )intellectual capital is under estimated5) no good peoples retention policy orHR policies

Opportunities S-O Strategies W-O Strategies

1) expansion of retail stores for customersconvince2) participate in joint ventures.3) make easy to use product for upcomingretirees4) computer & cell phone software &hardware to be developed

1) must open new retail stores throughout the world totake advantage of financial strength (O1,S1,S3)2) try to have joint venture with apple or other cell

phone companies (O2,O4,S1,S2)3) develop easy pc and cell phone for x & y generation(O3 ,S4)

1) develop new HR policy in order toretain human capital by takingadvantage of other firm management(O2,W1,W5)

Threats S-T Strategies W-T Strategies

1) competitors technology & pricing2 ) low compatibility with non.hp product3) less global coverage than competitor4 )availability of substitute

1) developed low price & innovative pc& cell phone than competitors(T1,S4)2) developed such hardware & softwarefor computer & cell phone which arecompatible with other companiessoftware & accessories ( T2,S5)

1) enhanced the internal communicationwithin the various departments to havemore focus on technology improvement& to control over the internal issues(W1,T1)

The hp must adopt S-T Strategies


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HP INVENT 21

(02)Strategic AnalysisSpace Matrix

Financial Strength rating is 1 (worst) to 6 (best) Ratings

1 3.0

2 3.0

3 4.0

4 5.0

5 5.0

Industry Strength rating is 1 (worst) to 6 (best) FS Total 20.0

1 4.02 4.0

3 5.0

4 2.0

5 3.0

Environmental Stability rating is -1 (best) to -6 (worst) IS Total 18.0

1 -2.0

2 -5.0

3 -2.0

4 -6.0

5 -2.0

Competitive advantage rating is -1 (best) to -6 (worst) ES Total -17.0

1 -5.0

2 -1.0

3 -1.0

4 -1.0

5 -2.0

CS total -10.0

Leverage

Working Capital

Liquidity

Return on Investment

3 Year NEW income

Growth PotentialProfit Potential

Financial Stability

Ease of Entry into Market

Labor Cost

Rate of Inflation

Technological Changes

Price elasticity of Demand

Competitive Pressure

Barriers to Entry into Market

Market Share

Product Quality

Customer Laylaity

Technological Know-How

Control over Suppliers and Ditribuors

-1

-06


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HP INVENT 22

Calculation for SPACE matrix

01) FS=20 ---- 20/5 =4 (total / nos of factors) IS =18 ------18/5 =3.6

ES =-17----(-17)/5 = -3.4

CA = -6/5 --------- = -1.20 02) IS + CA =3.6+(- 1.20) =2.40 (X axis)

FS + ES = 4+(-3.4)=0.6(Y axis)


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HP INVENT 23

Strategic AnalysisSpace Matrix for HP

Backward ,forward,horizontal

integration

Mkt penet,mkt devp,product devp

Diversification( related/unrelated)

6

5

4

3

2

1

-6 -5 -4 -3 -2 -1 1 2 3 4 5 6

-1

-2

-3

-4

-5

-6

IS

ES

CA

FS

Conservative Aggressive

defensive Competitive

Vertical & horizontal integration

Mkt pent,mkt devp,product devp

Diversification (related/unrelated)


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HP INVENT 24

03)IE matrix strategicimplementation Both BCG & IE (INTERNAL EXTERNAL matrix)

called portfolio matrix

Grow and Build I,II, OR IV

CELLS

INTENSIVE & INTEGRATIVE

Hold and

Maintain

III,V,OR VII

CELLS

MARKET PENETRATION

AND PRODUCTDEVELOPMENT

Harvest orDivest

VI,VIII OR IX RETRENCHMENT

DIVESTITURE


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HP INVENT 25

(03)IE Matrix for HP

I II III

IV V VI

VII VIII IX

IFE ScoresStrong Average Weak

3-4 2-2.99 1-1.99

High3-4

Medium2-2.99

Low

1-1.99

EFE

Sco

res

Grow and Build

Hold and Maintain

Harvest or Divest

EFE 2.78IFE 3.10


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HP INVENT 26

Dogs

IV

Cash Cows

III

Question Marks

I

Stars

II

High

1.0

Medium

.50

Low

0.0

High+20

Low

-20

Medium

0

(04)Layout for possible strategiesfor BCG matrix

Growth rate

Relative market share

Vertical or horizontal integration

Mkt penetration

Mkt development

Product development

Mkt penetration

Mkt development

Product development

divestiture

Product development

Diversification

Retrenchment

divestiture

Retrenchment

Divestiture

liquidation


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HP INVENT 27

Table for BCG matrix hpdivisions

ID Segments Revenue % % profit Growthrate

relativemarketshare

A Ess 19 2 11 .8

B Hps 17 20 8 .1

C Software 1.4 5 14 .6

D Ipg 29.2 30 8 .8

E Psg 32 42 -10 .7

F hpfs 2.2 2 -14 .2

ESS Enterprisestorage &server

HPS Hp services

IPG Imaging &printing

PSG Personalsystem group

HPFS Hp financialservices


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HP INVENT 28

Dogs

IV

Cash Cows

III

Question Marks

I

Stars

II

High

1.0

Medium

.50

Low

0.0

High+20

Low

-20

Medium

0

Hp BCG Matrix

Growth rate

Relative market share

AB

C

D

E

F


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HP INVENT 29

Strategic AnalysisGrand Strategy Matrix

Rapid Market Growth

Quadrant II Quadrant I

StrongCompetitive

Position

Slow Market Growth

WeakCompetitive

Position

Quadrant III Quadrant IV

Mkt devp,mkt penetration,

Vertical &horizontal integration

Related diversification

Mkt develop,mkt penetration

Product development

Divestiture

liquidation

Retrenchment,

Related& unrelated diversification

Divestiture

liquidation

Related & unrelated diversificationJoint venture


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HP INVENT 30

Strategic Analysis(05) Grand Strategy Matrix

Rapid Market Growth

Quadrant II Quadrant I

StrongCompetitive

Position

Slow Market Growth

WeakCompetitive

Position

Quadrant III Quadrant IV

After analyzing the

Above four matrix

We conclude this


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HP INVENT 31

Analysis of all Matrix

Alternative Strategies BCG IE SPACE GRAND COUNT

Forward IntegrationX X X X 4

Backward IntegrationX X X X 4

Horizontal IntegrationX X X X 4

Market PenetrationX X X X 4

Market DevelopmentX X X X 4

Product DevelopmentX X X X 4

related Diversification X X 2

unrelated Diversification X 1

Retrenchment

Divestiture

Liquidation


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HP INVENT 32

Stage 3 of formulating strategiesframework This stage is called as DECISION STAGE This stage has only one technique called as

QSPM (QUANTITATIVE STRATEGIC

PLANNING MATRIX) For QSPM we have selected two alternative

strategies after evaluating the stage 2 i.ematching stage .the two strategies are

A) forward integration B) horizontal integration


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HP INVENT 33

By forward integration one has the meaningto have a control over distribution & overretailing

By horizontal integration one has the

meaning to have a control over competitorsthrough acquisition or joint venture etc


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HP INVENT 34

QSPM for HP

Strategic alternative

Key internal factors weight Strategy 1 forwardintegration

Strategy 2 horizontalintegration

strength AS TAS AS TAS

01) Brand name .12 2 .24 4 0.48

02) Growing sale of iphone ,ipod

.12 1 .12 3 .36

03) Low debt .13 3 .39 3 .39

04) Wide range ofinnovation product

.11 3 .33 2 .22

05) Developing ownsoftware & hardware

.09 4 .36 3 .27

06) Web technology usedfor product awareness&sale

.09 4 .36 2 .18


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HP INVENT 35

WEAKNESSES

01) Internal control issues .05 3 .15 3 .15

02) Lack of in housemanagement consultingdivision

.08 3 .24 3 .24

03) No aggressiveinvestment in R &Dcompared to historical

spending

.05 1 .05 1 .05

04) Intellectual capital isunderestimated

09 3 .27 2 .18

05) No good people retentionpolicy or hr practices toensure ic is protected

07 2 .14 4 .28


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HP INVENT 36

OPPORTUNITIES ( KEY EXTERNAL FACTORS)

01) Expansion of retail stores forcustomer convince

.05 4 .2 2 .1

02) Participate in joint ventures .20 2 .4 4 .8

03) Make easy to use product forupcoming retirees

.09. 3 .27 2 .18

04) Cell phone software .10 1 .10 3 .3


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HP INVENT 37

THREATS

01) Competitors technology &pricing

.25 3 .75 4 .21

02) Low compatibility with nonhp product

,12 1 .12 3 .36

03) Less global coverage thancompetitor

.97 4 .28 3 .21

04) Availability pf substitute .12 -----

Total attractive strategy for 1st is 4.77

Total attractive strategy for 2nd is 4.85SO STRATEGY 2nd IS TO BE

SELECTED FOR HP


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HP INVENT 38

Goal and long objectives

To increase market share up to 45% in next 3to 4 years (up to 2006 its 36%)

To increase compatibility of firm products and

services with other firm hardware andsoftware

To improve technology development in cell

phone software and hardware especially in Iphone


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HP INVENT 39

Possible alternative strategies &possible policies for their

implication (01) Strategy forward integrationIt can be done by

I) Developing own retail and distribution

channelII) Company has to develop their own website

where the company will offer online sellingof product & services .the features ,designand price of product must be there in website. firm also has to offer facility ofcustomisation


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HP INVENT 40

iii) another way is to establish up to 200 retailshops in Asia in order to get maximum

market share as financial position In order to enhance & make retailing more

effectively firm must negotiate with majorretailers like Wal mart & sear to give

prominent place for hp product display andservices


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(02) strategy horizontal integration

This can be done by merger or through acquisition

HP has strong financial position must have to adoptthe policy of acquisition/merger especially with cellphone companies like nokia , Samsung in order toimprove the technology for cell phone hardware and

software This integration provide facility to improve the

compatibility of firm product & services with otherfirm product by taking advantage of other firm

experiences and technology

Hp Zubair Ahmad

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