Environmental analaysis of HP

Introduction of company

One of leading name in technology product is a US centered company with a name Hewlett Packard, the business offers in technology, software services and offer services ranging from individual to large and small enterprise from various business areas including education sector as well.

Hewlett-Packard commonly known as HP can be an American multinational information technology corporation operating throughout the world serving several billion customers in six continents and approximately applied 304, 000 workers worldwide.

HP's revenue for the four fiscal quarters concluded Oct. 31, 2009: $114. 6 billion.

having its headquartered in Palo Alto, California, USA. Horsepower focuses on R&D related to developing, software, hardware networking data storage area. Main product lines include personal computing devices ranging from individual, home and small businesses, large company servers, as well as an array of printers and other imaging products.

HP merged with Compaq in 2002 which results in successful type of personal and business computer systems. HP also offers a good product line of products which range from printers, digital camera models, calculators, scanners, PDAs, workstation computers, servers and personal computers for home and small company. HP also provide full selection of IT services from design, execution and support of computer infrastructure.

International Business Environmental Research:

Macro and Micro Examination;

In studying environment it is important to recognize the factors that might in turn have an effect on the amounts of vital parameters that are likely to influence the business supply and demand levels and it cost(Johnson and Scholes, 1993).

Macro environment is accessed through PESTEL frame work which helps us to identify how present and future movements in political, economical, social, technical, environmental and legal environment might HP.


HP runs in more than 170 countries around the world. We are going to identify how technology helps people and companies to address their problems and issues by recognizing their possibilities, aspirations and dreams. By utilizing new ways and ideas which results in creating, good and worthy activities with technology.

The have an impact on of +essential variables that will probably influence the organization's source and demand levels and its costs can be analyzed by the research of macro environment. (Kotter and Schlesinger, 1991; Johnson and Scholes, 1993). The "radical and ongoing changes happening in population create an uncertain environment and have an impact on the function of the whole group" (Tsiakkiros, 2002).

The vast number of possible conditions that might affect a business is analyzed by PEST analysis that categorizes environmental influences as political, financial, social and scientific forces. The evaluation examines the impact of every of these factors (and their interplay with each other) on the business enterprise.

Kotler (1999) claims that PEST evaluation is a good strategic tool for understanding market development or drop, business position, potential and path for operations.

The purpose of PEST analysis is the fact that it aims to raise the strategic understanding of

The appeal and evolution of the industry

The needs of recognized customer groups

The capacities of other business concentrating on the same customers

To identify the main element success factor (KSFs) to contend within an industry

The PESTEL analysis examines the impact of every of these factors (and their interplay with one another) on the business. The result then may be used to take good thing about opportunities and to make contingency plans for threats while preparing business and proper strategies (Byars, 1991).

Main Aspects of PEST Analysis

Economic conditions influence how easy or how difficult it is usually to be successful and profitable anytime because they affect both capital availability and cost, and demand (Thompson, 2002).

Firms want to invest and expand with expectations to be profitable when the cost of capital is low and there is a demand in buyout. In complete opposite circumstances firms might find that success throughout the industry is low. Economic conditions influences the success and timing of this strategies. The chance to exploit a particular strategy efficiently may rely upon demand which is accessible in expansion conditions and does not in downturn.

Although a stressed out current economic climate will generally be considered a treat which results in a number of organizations going out of business, it provides opportunities for some (Robinson and et al. , 1978; Thompson, 2002).

The politics and government insurance policy are the main factors that inspired the monetary conditions e. g Problem of whether Europe join, or stay outside, the one European money is a case in point. At any one time either exported or imported goods can appear expensive or inexpensive, based mostly upon forex rates. There are many other ways, however, in which federal decisions will have an effect on organizations both directly and indirectly, as they provide both opportunities and threats.

While economical conditions and federal policy are tightly related, they both influence a number of other environmental pushes that make a difference organizations. Capital markets determine the conditions for choice types of funding for organizations. They tend to be a subject to government controls, and they will be guided by the prevailing economical conditions. The rate of interest charged for lending options will be influenced by inflation and by international economics and, even though determining rate may be set by way of a central loan company, as it is the case with the lender of England, that will also be influenced by stated government priorities. Corresponding to Thompson (2002), federal government spending can improve the money resource and make capital market segments more buoyant. The prospects of shareholders with regard to company performance, their determination to provide more equity financing or their willingness to sell their shares will also be affected.

In order to understand the presence of a number of required skills at both nationwide and also at provincial or regional level, the knowledge of labour market is vital and these skills are obtained through provision of training provided by either government or any other organizations.

The Labour costs increase or reduction in accordance with the inflation level in the united states or and region or by other occasions occurring on the market all together is and typically the labour cost is affected by the activities of trade or labour unions.

The interpersonal and ethnical environment of any country or a location where organization is situated include in is personal and impacts the demand for a particular product and style of the individual or consumers and these factors be based upon and directly damaged by the changes in fashion disposable income of people living in that area as well as general changes taking place for the reason that particular environment (Thompson, 2002; Pearce and Robinson, 2005)

The life pattern of a product changes with enough time. A product life cycle focus on a novelty when a product recently launched or a technology newly created and with the passage of time the product come to to its final stage of its life routine on saturation with these changes a business is required to therefore make changes in charges strategy and also strategy to promote the particular product to be able to match the changing circumstances.

There are products that are sold throughout the globe as they are since ages without any changes in either their make, condition, prices etc however the quantity of these products is very unusual and unusual. To be able to sustain itself in a volatile business environment a business must be aware of its demographical structure or targeted market sections such as maturing populace working patters religious belongings ethnic history etc as these factors have very important and significant influence on demand of the product firm provide. With these demographic changes come change in demand for particular product and services which may pose threat but also present an opportunity for the organization to introduce services or services or even to amend and identify the existing product.

Technology is broadly recognized by various books on strategic management (Capron and Glazer, 1987; Johnson and Scholes, 1993; Jan, 2002), Technology performs a essential role in creating a competitive advantage of any industry in a company sector. In some conditions the government supervise some organizations to get competitive border over other credited to national interest. Progression in technology is a is a biggest threat to those market sectors who are not getting technological border in their business and products which is ultimately going to a damage in market talk about.

Vice versa an industry which keeps its

Equally, new technology could provide a useful suggestions, in both production and service sectors, but in change its purchase will require funding and possibly worker training before it can be used.

Palm, Inc. and Hewlett-Packard declared that HP would be acquiring Palm for 1. 2 billion in cash and arrears, [27]the deal officially shut down on July 1, 2010. [28] Inside the months before the buyout it was rumored that Hand would be purchased by either HTC, Dell, RIM or Horsepower. The addition of Hand handsets to the HP product line provides some overlap with the current iPAQ mobile products but will significantly increase their mobile occurrence as those devices havent been advertising well. The addition of Palm brings HP a catalogue of valuable patents as well the mobile operating system known as webOS.

Briefly discuss the industry of sector:

HP has successful lines of printers, scanners, digital camera models, calculators, PDAs, servers, workstation computers, and computer systems for home and small company use computers; lots of the computers came from the 2002 merger with Compaq. HP today helps bring about itself as providing not simply hardware and software, but also a complete range of services to create, apply, and support IT infrastructure.

HP's Imaging and Printing Group (IPG) is "the best imaging and printing systems professional on the planet for printing device hardware, printing products and scanning devices, providing solutions across customer segments from individual consumers to small and medium businesses to large companies. "[33] Products and technology associated with IPG include Inkjet and LaserJet printers, consumables and related products, Officejet all-in-one multifunction printing device/scanner/faxes, Large Format Printers, Indigo Digital Press, Horsepower Web Jetadmin printer management software, HP Output Management suite of software, LightScribe optical recording technology, Horsepower Photosmart digital camera models and image printers, HP SPaM, and Snapfish by HP, a photo showing and photography products service. On December 23, 2008, HP released iPrint Image for iPhone a free downloadable software application that allows the printing of 4" x 6" photos

Key success factors

International strategies (Competitive evaluation)



Strong brand equity

Diversified product collection (offerings spans personal processing and other access devices; imaging and printing-related products and services; organization information technology infrastructure, multi-vendor customer services, talking to and integration and outsourcing services)

Solid market position in key segments

Strong financial condition


Emerging markets, specifically BRIC countries

e-Commerce expansion

Restructuring of internal IT structure

Imaging and printing businesses


Internal control issues

Lack of in-house management consulting division

No aggressive ventures in R&D in comparison to historical spending

Unrest among inside employees anticipated to pay reductions and insufficient "people attention"

Intellectual Capital is under estimated

No Good People retention coverage or HR practices to ensure IC is protected


Intense competition from other PC manufacturers

Increasing competition on imaging and printing

Slowdown in economical conditions in US, Europe

Product recalls and supply chain disruptions

Transfer to new markets

Evaluate your organization strategies with other different companies

Organisation strategy

HP's Office of Strategy and Technology[37] has four main functions: (1) steering the business's $3. 6 billion research and development investment, (2) fostering the introduction of the company's global specialized community, (3) leading the business's strategy and commercial development attempts, [38] and (4) carrying out worldwide commercial marketing activities. Under this office is Horsepower Labs, the research arm of HP. Founded in 1966, HP Labs's function is to provide new technologies and create work at home opportunities that go beyond HP's current strategies. A good example of recent HP Laboratory technology includes the Storage spot chip. HP IdeaLab further offers a web forum on early-state innovations to encourage wide open reviews from consumers and the development community. [39]

Bench marking

Porter's demand

perform the Industry Analysis it is best to check out Michael Porter's five forces model. This analysis framework was made so that it helps managers in their activity to analyze competitive pushes to the business. (Hill & Jones 80) This model is only one of the models that can be used for this process but it is one of the most popular models. The five makes that we will have to look at because of this model are (1) the risk of new and potential opponents; (2) the bargaining vitality of suppliers; (3) the threat of alternative products; (4) the bargaining power of customers; and (5) the degree of rivalry among founded companies in a industry. (Hill & Jones 80) The first pressure in Porter's Five Forces Model is Access Barriers. These factors are the ones that make it harder or easier for another company to enter the industry. High barriers to entry could keep potential competitors out of the industry and low barriers to entry gives an opening for competition to enter the industry if the industry results are high enough. (Hill & Jones 82) The fewer opponents within an industry the more the prevailing companies can take advantage of higher prices and better dividends.

Analysis marking

GE marking and shell marking

Effectiveness of international strategy

Firm market accessibility strategy

Growth strategies

Potential development over 10 to 20 years

Appropriate justified suggestion for improvement, development and international

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