Tuesday, April 16, 2019
Hewlett Packard Swot Analysis Essay Example for Free
Hewlett Packard Swot epitome EssayThe Hewlett-Packard and Compaq coalition decision case muse provided many points necessary in the understanding of why these 2 companies would undergo a risky headache venture. Compaq was a company that began victoryfully with record setting pecuniary statements, tho in an attempt to go its market, threatened company st index. With the acquisition of Tandem Computer and Digital Equipment Corporation, Compaq experienced decreased revenues resulting in their unfitness to fully recover. In a competitive education technology market, HP was star of the manufacture die harders. repayable to a failure to be proactive to market changes, HP grew stagnant and looked to reinvent company strategies with spick-and-spanly appointed President/CEO Carly Fiorina.Competitive advantages for both HP and Compaq included imaging and make segment and risque performance PC technology respectively. Managements reasons for the merger included their co njecture that to set abouther, HP and Compaq would be able to replicate and overtake competitors. Oppositions to the merger included a decrease in shareowner pleases, a reduction of focus for company core competencies, and an unprofitable early. Several financial advisors and intentness analysts were in agreement that the proposed merger would non be in the best interests of either company. Despite the uncertainties, swearation gathered and forecasts projected were in favor of the merger, which resulted in shareholder approval and the merger of Hewlett-Packard and Compaq Computer. arise AnalysisIn researching Hewlett-Packards present-day company position, a strengths, promiscuousnesses, opportunities, and threats (SWOT) analysis was conducted. Strengths found include HPs bullnecked market position internationally and on the domestic end, a successful harvest-festival end-to-end large acquisitions, and a considerable brand value. HP currently has a 28.6% market share in the United States of America art object internationally they stand at 17.7%. As the current number champion leader in PC sales, HP has a solid market position. Although the strengths are allowing HP to avow market position, there are also weaknesses present in all companies. Compared to other companies in the equivalent industry, Hewlett-Packard lacks significant software product and management consulting services. As a result, Hewlett-Packards weakness is its weak market segment integration. HP is able to answer consumer essential when it comes to PC technology and imaging and printing software, but they fall short in the software product creation and consulting services to combine with their successful surgical incisions of PC technology and imaging and printing services.As Hewlett-Packard continues to grow and seek an increase in market position, opportunities surface. A spin-off of the PC technology business, entering the cloud computing market, and expanding imaging and print ing solutions portfolio are opportunities HP has going forward. In placing more emphasis on the PC technology aspect of the company, HP whitethorn find that this venture will befit as profitable as the imaging and printing de constituentment in the ample-run. With the announcement of this spin-off, their share of US PC shipment increased from 25.4% to 28.9%. This positive reply from consumers is an primordial indicator of possible success as a result of placing resources to build up the PC technology department. Cloud computing is a fairly new concept in which resources and software are delivered by means of a network, mainly over the Internet. As this is market quickly growing in demand, HPs introduction of HP Cloud Assure is a great opportunity for future prosperity. With success comes opportunities of threats, and Hewlett-Packard is no exception.With projected decrease in information technology (IT) in the near future, an increase in demand for non PC devices, and competit ors with more diversified portfolios, HPs threats are numerous. Industry analysts eat up projected a decrease of IT in upcoming quarters which will decrease HPs profitability. HP has already witnessed a decrease in consumer spending during last quarters back-to-school spending. If analyst projections prove to be true, changes will quickly need to be made. As more and more consumers are entering the non PC device era, HP is losing a segment of the market with their inability to provide products for this demand. HPs more diversified competitors such as Dell and Samsung are able to easily capture the demand for these tablets.time to come of the CompanyThrough the case show, present-day SWOT analysis, and outside research conducted on Hewlett-Packard, the sort out has reason out that the company will remain constant, but unless strategies are implemented to answer more consumer demands, they may leave out market share. New CEO Meg Whitman has a technology visionary that will shift HPs focus to answering consumer demands. Her leadership capabilities and projections for company future are a desirable pleat for a company to achieve sustainable future relevance. With the implementation of HP Cloud Assure, a new venture capitalizing on the growing consumer interest of cloud computing, HP is already adapting to answering the demands of consumers. As long as the company continues to anticipate and provide the products and services desired, sustainability will be maintained.Questions1. What are the strategic challenges that HP is facing?Strategic challenges Cost- reduction initiatives that included difficult but necessary voluntary- severance programs and manufacturing consolidations. Unacceptably high expense growth contributed to a decline in earnings from operations and net earnings. HP had a weak macroeconomic environment and competitive price pressures that led to slumping sales. Management was unable to keep unhurt step of the changing market conditions whic h were a key contributor. HP management failed to follow Dells lead in adopting a low- cost, Internet based direct sales channel to offset its reliance on the retail channel. * Accelerating growth in existing businesses* Streamlining the existing decentralized operating model to fuel growth opportunities * Implementing a total customer experience cost * Taking advantage of HPs strong equilibrium sheet and cash generation capability to fund new growth initiatives * Leveraging HPs market position* Creating e- services ecosystems and placing HP at the center2. Is the proposed merger likely to delivery these challenges? Benefits from the merger included personal systems, improved economics, and innovation. HP management believed that the have company would have a lower cost structure due to economies of scale. HP would also be able to leverage Compaqs progress in developing a direct sales channel, yielding a more tractile distribution model. Complementary leadership in key markets Compaqs strength in industry bar hosts, coupled with HPs Linus and UNIX offerings, would result in an industry- leading product line spanning the entire server category. By adding HPs strength in high- end storage, the combined company would be the industry leader in both the initiative storage segment and the fastest growing sub-segment storage cranial orbit networks.Doubling HPs sales force, the merger would allow HP to increase account coverage and breach compete for important customer engagements around the world. IT Services Strengthened Business Provides Critical bus in Key Growth Market- Management believed the merger would significantly strengthen HP and Compaqs combined services business for several reasons. Financial Benefits- As predicted the merger would yield $2.5 billion in annual cost saving by mid-2004. Yes, we do believe the proposed merger is likely to address the challenges HP faces.3. How do you interpret the markets reaction to the proposal deal? We inte rpret the markets reaction to the proposed deal to be negative. Just two months of the Merger announcement, HPs share price trailed the preannouncement train by 27%, representing a loss of $12.3 billion of market share value at the equal time comparable companies increased 9.9%. 4. If you were a shareholder of HP, how would you vote on the deal? If we were shareholders of HP, we would vote against the deal. It is taken for granted(predicate) the company is losing a great deal of money at the same time other companies in the same industry are making money. The merger is not looking out for the best interest of the shareholders so we would not vote for the merger.SourcesBloomberg Businessweekhttp//www.businessweek.com/news/2011-10-12/hewlett-packard-gains-pc-market-share-after-mulling-spinoff.html CNN Moneyhttp//money.cnn.com/magazines/fortune/fortune_archive/2005/02/07/8250437/index.htm http//money.cnn.com/2011/09/22/technology/hp_ceo_fired/index.htm Hewlett-Packard Websitehttp//w ww.hp.com/hpinfo/newsroom/press/2009/090331xa.htmlHewlett-Packard depicted object StudyHewlett-Packard Compaq The Merger DecisionMarketing Researchhttp//www.marketingresearch.com/marketing/swot-analysis-hewlett-packardJennifer Brown compendThe process of end this assignment has helped me discover how to view business decisions in a more analytical way. When approaching this one it depended overwhelming at depression. I began pulling outside sources and background information that helped me gain a better understanding of the project at hand. That extra research was very useful in explaining what the companies were going through and giving diverse perspectives as to why. I was able to apply what I have learned in my accounting classes when the case study and articles referred to financial ratios and provided financial radicals. That was helpful when trying to answer the questions assigned. Working with a congregation was also beneficial because there were several times my gr ouping members made great points that I may have missed working alone.Our group has met several times since the project has been assigned. I have been present at each shock. Before we met the first time we decided we would read the case study in full to have an understanding of what we would need to do. Our first meeting we discussed the case study and our billet on what HP should do. We also discussed the questions within the case study and started our outline for our power point. Outside of the meeting I researched articles to gain background information. Our group had several more meetings at which we outlined our scheme report and assigned each person a portion of the report. When we were finished with our portion we would submit it to the rest of the group for proofreading. Everybody correct their task as set and we came together as a group and finalized the report. I, as intimately as the other members of the group, contributed to the makeup and layout of both the strateg y report and the power point.Charnele Hodge SynopsisBeing that this has been my first time in a group doing a strategy report on a company, I took away a few key elements. I have learned, understood, and properly used the purpose of a SWOT Analysis. I know this form of analysis will be used in my future endeavors, so I know it will be very beneficial to me. Also, I learned while in a group setting how to effectively achieve a SWOT Analysis to inform and persuade others to understand and see our point-of-view on our particular position. As a Business Management major, this group project has helped me realize that in not every group setting, that there needs to be a set leader. In my group, I felt that everyone meshed well with each other and there was not a constant need for someone to be in charge. Every group member knew what was at stake and that being at meetings and pulling her part in the group was essential.My individual contribution to the group was making sure that I gave m y opinion on the different positions that we would be taking on the SWOT Analysis. I made it my individual objective to make sure that I pulled my part in terminate each and every task that I volunteered to work on, that it was done properly, as well as completed on time. Being a Business Management major, I believe I helped bring balance among my other peers that are majoring in different genres in the college of business. I took a more realistic, rational approach to the group, in who would be better fit for particular objectives.Sakina Middleton SynopsisConducting a strategy report ask using resources from all aspects of my undergraduate studies. I was able to read the Hewlett-Packard and Compaq merger decision and understand the different aspects used to compile the information. In utilizing marketing concepts, I was able to conduct a strengths, weaknesses, opportunities, and threats (SWOT) analysis of Hewlett-Packards present company structure. My management background allowe d for an understanding of company decisions made, such as whether to undergo a merger. Finally, the accounting knowledge I have acquired thus far has enabled me to read and comprehend the many financial statements used to decide which options should be made based on the factual numbers provided. Overall, my primary takeaway was my ability to read, comprehend, and analyze a case study regarding two merging companies with the knowledge and education provided by Savannah State Universitys College of Business Administration.Throughout this project I was able to increase my ability to problem solve in a group of my colleagues. No one group is perfect, but the intercourse skills I have acquired allowed me to handle all situations appropriately and in a timely fashion. For this strategy report, I was responsible for arranging all group meetings regarding the collection and accumulation of information for the paper. I was the initiator of correspondence and also the channel of delivery fo r every members designated portion of the paper. My personal contribution includes the compilation on the strengths, weaknesses, opportunities, and threats of the present-day company Hewlett-Packard. I was also responsible for the editing of the final paper.Summer Wilcox SynopsisIn March 2002, Hewlett- Packards current CEO and president, Carleton Firiona announced the acquiring of HPs check company, Compaq Computer. The merging of the two companies was designed to put Hewlett- Packard/Compaq in a position to challenge one of its snuff it leaders in the industry, IBM. The merger was also designed to create a global technology whizz-kid that would provide consumers with products and services demanded by profitable enterprise customers.After reading over the case, I started to smelling like the merger was not going to be a success. The merger presented itself to be too risky. Although Hewlett Packard was aiming to become the industrys leader by expanding into new markets, the idea of the merger just didnt seem to look out for the best interest of the company. Management felt that HP and Compaq needed to improve their whole business structure to effectively compete with Dell which was the industrys leader. They also felt that HP and Compaqs leadership would complement each other in key markets such as the enterprise storage segment and storage area networks, and by having a broader portfolio of products and services. Management believed that HP and Compaq had a weak combination of products and services, and merging would strengthen that area.While some thought that the merger would be a success to Hewlett- Packard, there were some who were against it. Among those few were the director and son of HP cofounder William Hewlett, Walter Hewlett. Walter Hewlett was HPs second largest shareholder and had a very powerful, important voting privilege of HP. Walter was against the merger for 4 main reasons. He felt the proposed merger would be worse, the integration risk of the proposed merger would be substantial, the financial impact on HPs stockholders would remain negative, and the position of the company would not improve.I agree with opposing the merger of HP and Compaq. They knew from the beginning stages that the merger was going to be risky. Shareholders would lose and ample amount of value on their shares. Stockholders would get a very small amount of the combined companys contribution to earnings. The merger would cover the stockholders interest in the imaging and printing business which is the most profitable of HP already. The merger would not improve the position of the company. Furthermore, HP had no experience with handling a merger of that size. All HP had to do was invest and focus more on the printing and imaging part of the company. The printing and imaging varied in low-end printers and supplies to commercial printing solutions. Instead of taking such a risky acquisition, they could have focused on something that proved alread y successful for the business.My contribution to the overall strategy report was to research where HP stands now. I also found official documents filed by both HP and Compaq to the SEC about the planned merger. The documents further explained forward- looking statements, assumptions, uncertainties, and risk of the planned merger between the two companies.