Hewlett-Packard Case Study International Corporate Strategy Hanoi, December 2003.
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Transcript of Hewlett-Packard Case Study International Corporate Strategy Hanoi, December 2003.
G L O B A L V I S I O N
Group #1 Members
2
Nguyen Anh Tuan VACO
Nguyen Xuan Tien Ford VN
Tran Lan Anh UBK VN
Nguyen Thang Quang EVN Hanoi
Nguyen Thanh Ha Prudential VN
Le My Hanh VID Public Bank
G L O B A L V I S I O N
Table of Contents
3
Section 1. Company Profile
Section 2. External Analysis
Section 3. Internal Analysis
Section 4. Past Challenges & Measures
Section 5. Future Challenges & Measures
Section 6. Strategic Idea for Thinking
G L O B A L V I S I O N
Company Profile
5
Numbers of staff: 141,800 global
Revenue as of 31 October 2003: $73.1 billion
Operation: In 187 countries
AFTER MERGER WITH COMPAQ 2002:
Found by Hewlett & Packard in 1933
Headquarter: USA
G L O B A L V I S I O N
Corporate Governance & Key Stakeholders
6
Investors
Board of Directors
CEO
Business Group
Business Group
Business Group
Business Group
Public
Firm
G L O B A L V I S I O N
Operations
8
FOUR CORE BUSINESS GROUPS:
1. Enterprise System Group (ESG)
2. Imaging and Printing Group (IPG)
3. HP Services (HPS)
4. Personal System Group (PSG)
Operation internationally under global strategy
Strategic alliance partners to provide services
Distribution through multi local agents
R&D $4 billion annual investment
G L O B A L V I S I O N
Products & Services
9
Desktops & Workstations
Notebook & Table PC
Handheld Devices
Monitors & Projectors
Printing & Multifunction
Fax, Copiers, Scanners
Digital Photography
Storage
Server
Networking
Software Products
Supplies & Accessories
Services
G L O B A L V I S I O N
Vietnam Market Share (%)
10
Server
Compaq 48
IBM26
HP15
Monochrom Laser Printer
HP 85
Epson 15
Color InkJet Printer
Epson 60
HP 37
Canon 2
Other 1
Scanner
HP 48
Epson 36
Acer 9
Other 7
CD-ROM writer
HP 47
LG 26
Yamaha 8
Other 19
G L O B A L V I S I O N
Industry Matrix
12
Rating Score Rating Score Rating Score
Price 0.15 3 0.45 3 0.45 3 0.45
Product Quality 0.2 4 0.8 4 0.8 5 1
Customer Relation 0.1 4 0.4 3 0.3 3 0.3
Distribution 0.1 4 0.4 3 0.3 3 0.3
R&D capability 0.15 3 0.45 5 0.75 5 0.75
Integrated Solution 0.1 3 0.3 5 0.5 3 0.3
Marketing/ Advertising 0.1 3 0.3 3 0.3 3 0.3
People Development 0.1 4 0.4 3 0.3 3 0.3Total 1 3.5 3.7 3.7
HP IBM DellCritical Success Factor Weight
G L O B A L V I S I O N
EFAS
13
External Factor Weight Rating Weighted Score
Comments
Opportunities:
O1. High market future potentiality
0.15 4 0.60
O2. Stable politics 0.20 3 0.60
O3. Strong government commitments
0.25 4 1.00
Threats:
T1. Low market demand from corporate and users
0.15 3 0.45
T2. Competition with international players
0.15 4 0.60
T3. China threats 0.10 3 0.30
Total 1.00 3.55
G L O B A L V I S I O N
IFAS
15
Internal Factor Weight Rating Weighted Score
Comments
Strengths:
S1. Product diversity 0.3 4 1.20
S2. Leading in printing technology
0.25 5 1.25
Weaknesses:
W1. Cost problem 0.25 1 0.25
W2. Staffing problems 0.20 2 0.40
Total 1.00 3.10
G L O B A L V I S I O N
SFAS
16Sh
ort
Inte
rmid
iate
Lon
g
O1. High market future potentiality 0.1 4 0.4 X
O2. Stable politics 0.05 3 0.15 X X X
O3. Strong government commmittment 0.1 3 0.3 X X X
T1. Low market demand from corporate and users 0.1 3 0.3 X X
T2. Competition from international players 0.15 4 0.6 X X X
T3. China threats 0.05 4 0.2 X X
S1. Product diversity X X X
S2. Leading in imaging and printing technology 0.15 5 X X X
W1. Cost problem 0.15 3 X X X
W3. Staffing problems 0.15 3 0.45 X X X
Total 1 2.4
Comment
Duration
Key Strategic Factor Weight RatingWeighted
Score
G L O B A L V I S I O N
Past Challenges
HR issue
Poor infrastructure
Operating loss 1,012 million
in 2002
Strong competitors (IBM for
solution; Dell for PC)
G L O B A L V I S I O N
Past Measures
MERGE WITH COMPAQ (May 2002)
Cost cut, staff reduce
Support Government’s Initiatives
Staff re-organization
Merge Compaq for More Competitive
G L O B A L V I S I O N
Future Challenges
One company two brands
HR issue after merge
Loss carried forward
Two strategic management styles
Stronger Competition From Both International Players and China
G L O B A L V I S I O N
Future Measures
Clear communication to public about brands
Reorganization
Revenue improvement & cost cutting
Integration of two management styles/ One should accept the other
Product quality and innovation
G L O B A L V I S I O N
TOWS Matrix
24
IFAS
EFAS
Strengths (S):
S1. Product diversity
S2. Leading in printing technology
Weaknesses (W):
W1. Cost problem
W2. Staffing problem
Opportunities (O):
O1. High market potentiality
O2. Stability
O3. Strong government commitments
SO Strategies:
Expand market (S1,2/ O1)
Cooperate with Gov to improve IT infrastructure (S1, 2/ Q2,3)
WO Strategies:
Reorganization (W1,2/ O1)
Cost reduction (W1/ O1)
Cooperation with local agencies to develop HR (W2/ O2,3)
Threats (T):
T1. Low demand from corporate and users
T2. Competition with international players
T3. China threats
ST Strategies:
More focus on corporate & users (S1,2/ T1)
Localization and improve onsite services (S1,2/ T2)
WT Strategies:
Create learning & innovation and culture (W2/ T2)