HewlettPackard Strategy





Strategy Paper
Hewlett Packard, Inc. (NYSE: HWP)

TABLE OF CONTENTS
SECTION 1 2
BACKGROUND 2
SECTION 2 2
MISSION, GOALS, AND STRATEGIES 2
Company Mission 2
Company Goals 2
Company Strategies 2
Management By Wandering Around. 2
Management By Objective. 2
Open-Door-Policy 2
Open Communication 2
SECTION 3 2
STAKEHOLDERS 2
Stockholders: 2
Employees: 2
Competition: 2
Major suppliers: 2
SECTION 4 2
EXTERNAL ENVIRONMENT 2
Industry Environment 2
Differentiation versus Commodity 2
Capacity versus Demand 2
Entry and Exit Barriers 2
Economic Conditions and Forces 2
Importance of Product 2
Proprietary Knowledge 2
Government Forces 2
Social-Demographic Forces 2
Technology 2
SECTION 5 2
INTERNAL ENVIRONMENT 2
Competitive Analysis 2
Porter’s Five Forces Analysis: 2
SECTION 6 2
FINANCIAL CONSIDERATIONS 2
Sales/Sales Growth 2
Income/Income Growth 2
Net Profit Margin/ Debt-Equity Ratio 2
HP’s Five Year Financial Trends 2
SECTION 7 2
INTERNAL ANALYSIS 2
Strengths 2
Diversification: 2
Brand awareness: 2
R & D: 2
Alliances: 2
Agilent Technologies: 2
International Sales: 2
Weaknesses 2
Diverging from original vision? 2
Too diversified? 2
Is HP’s core competency changing? 2
Too many alliances? Will this create conflict of interest? 2
SECTION 8 2
Business Level Strategy 2
SECTION 9 2
Corporate Level Strategy 2
Printers: 2
Computer Products: 2
Personal Information Appliances 2
Notebook PCs 2
Home PCs 2
Commercial PCs 2
Technical Workstations 2
Networking Products 2
Enterprise Computing 2
Mission-critical Solutions (Systems, Services, Software) 2
Technologies available that will help HP make Enterprise Computing a continued success. 2
HP Labs 2
Information Technology Center 2
Microelectronics and Measurement Solutions Center 2
Agilent Technologies: 2
Test and Measurement 2
Chemical Analysis Group 2
Healthcare Solutions Group 2
Semiconductor Products Group (Components) 2
SECTION 10 2
SUMMARY OF ISSUES, STRATEGIC RECOMMENDATIONS AND IMPLEMENTATION 2
Summary of Issues 2
Strategic Recommendations 2
Customers needs: 2
Alliances: 2
Development of new products/services outside PC’s: 2
Major areas that HP is and should continue to focus its E-services on: 2
International Sales: 2
Strategic Implementation 2
SECTION 11 2
Conclusion 2

Section 1
Background
Hewlett Packard is second only to IBM and is one of the world’s top provider of computers, peripherals, and related services. Hewlett Packard also manufacturers testing and measurement equipment, and medical equipment in a recent creation company of Agilent Technologies to be implemented by mid-2000. Over 50% of Hewlett Packard\'s sales are outside the United States, and are made up of nearly 85% computers and related products. The vision, culture, and environment created by the co-founders are very much alive today, and continue to make Hewlett-Packard stand out from the crowd.
Section 2
Mission, Goals, and Strategies
Company Mission
Hewlett Packard\'s basic business purpose is to create information products that accelerate the advancement of knowledge and improve the effectiveness of people and organizations. These products and services are used in industry, business, engineering, science, medicine, and education in over 130 countries worldwide.

Company Goals
Hewlett Packard has well defined corporate goals that are a reflection of the overall mission. Service is most important to HP, whether the relationship is HP/consumer or HP/employee. Profit is one of the components of HP’s goals but only as a means to the greater ends. HP’s primary goal is to give its customers the products and services they desire. Followed are HP’s specific corporate goals:

· To achieve sufficient profit to finance our company growth and to provide the resources we need to achieve our other corporate objectives.

· To provide products and services of the highest quality and the greatest possible value to our customers, thereby gaining and holding their respect and loyalty.

· To participate in those fields of interest that build upon our technologies, competencies and customer interests, that offer opportunities for continuing growth, and that enable us to make a needed and profitable contribution.

· To let our growth be limited only by our profits and our ability to develop and produce innovative products that satisfy real customer needs.

· To help HP people share in the company\'s success which they make possible; to provide them employment security based on performance; to create with them an injury-free, pleasant and inclusive work environment that values their diversity and recognizes individual contributions; and to help them gain a sense of satisfaction and accomplishment from their work.

· To foster initiative and creativity by allowing the individual great freedom of action in attaining well-defined objectives.

· To honor our obligations to society by being an economic, intellectual and social asset to each nation and each community in which we operate.



Company Strategies
In order for HP to attain the goals they have set forth, several corporate strategies and practices have been implemented. These create an atmosphere in HP of informality and a sense of working together for the common good of the company. Followed are four examples of HP practices and there uses within the company.
Management By Wandering Around.
MBWA involves keeping up to date with individuals and activities through informal or structured communication. Examples of MBWA are: A manager having office hours available for employee discussions or departmental lunches and breakfast meetings

Management By Objective.
Individuals at any level contribute to HP’s goals by forming goals or strategies, which are integrated with their manager\'s and those of HP as a whole. Adaptability and innovation in recognizing alternative approaches to meeting goals provides an effective way of meeting customer needs. MBO examples are: Clearly defined written proposals, leading to and giving accountability within the