Hewlett-Packard
Case Study
International Corporate Strategy
Hanoi, December 2003
Group #1 Members
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
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Table of Contents
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
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Section 1. Company Profile
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Company Profile
Found by Hewlett & Packard in 1933
Headquarter: USA
AFTER MERGER WITH COMPAQ 2002:
Numbers of staff: 141,800 global
Revenue as of 31 October 2003: $73.1 billion
Operation: In 187 countries
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Corporate Governance &
Key Stakeholders
Investors
Public
Firm
Board of Directors
CEO
Business
Group
Business
Group
Business
Group
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Business
Group
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Vision & Mission
“Diversity
Inclusion
Work&Life Balance”
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Operations
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
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Products & Services
Desktops & Workstations
Storage
Notebook & Table PC
Server
Handheld Devices
Networking
Monitors & Projectors
Software Products
Printing & Multifunction
Supplies & Accessories
Fax, Copiers, Scanners
Services
Digital Photography
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Vietnam Market Share (%)
Monochrom
Laser Printer
Server
Compaq 48
IBM
26
HP
15
CD-ROM
writer
Color InkJet
Printer
Epson
60
HP
37
Canon
2
Other
1
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HP
47
LG
26
HP
85
Epson
15
Scanner
HP
48
Yamaha 8
Epson
36
Other
Acer
9
Other
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A
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Section 2. External Analysis
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Industry Matrix
HP
Critical Success Factor
Price
Product Quality
Customer Relation
Distribution
R&D capability
Integrated Solution
Marketing/ Advertising
People Development
Total
IBM
Dell
Weight
Rating
Score
Rating
Score
Rating
Score
0.15
3
0.45
3
0.45
3
0.45
0.2
4
0.8
4
0.8
5
1
0.1
4
0.4
3
0.3
3
0.3
0.1
4
0.4
3
0.3
3
0.3
0.15
3
0.45
5
0.75
5
0.75
0.1
3
0.3
5
0.5
3
0.3
0.1
3
0.3
3
0.3
3
0.3
0.1
1
4
0.4
3.5
3
0.3
3.7
3
0.3
3.7
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EFAS
External Factor
Weight
Rating
Weighted
Score
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
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
Comments
Opportunities:
Threats:
Total
1.00
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L
3.55
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Section 3. Internal Analysis
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IFAS
Internal Factor
Weight
Rating
Weighted
Score
S1. Product diversity
0.3
4
1.20
S2. Leading in printing
technology
0.25
5
1.25
W1. Cost problem
0.25
1
0.25
W2. Staffing problems
0.20
2
0.40
Comments
Strengths:
Weaknesses:
Total
1.00
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3.10
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SFAS
Weight
Rating
Long
0.1
0.05
4
3
0.4
0.15
X
X
X
X
0.1
3
0.3
X
X
X
0.1
3
0.3
X
X
0.15
0.05
4
4
0.6
0.2
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
O1. High market future
potentiality
O2. Stable politics
O3. Strong government
commmittment
T1. Low market demand from
corporate and users
T2. Competition from
international players
T3. China threats
S1. Product diversity
S2. Leading in imaging and
printing technology
W1. Cost problem
W3. Staffing problems
Total
0.15
0.15
0.15
1
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3
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0.45
2.4
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Short
Key Strategic Factor
Weighted
Score
Intermidiate
Duration
Comment
X
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Section 4. Past Challenges &
Measures
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Past Challenges
Operating loss
1,012 million
in 2002
Strong competitors
(IBM for
solution; Dell
for PC)
Poor
infrastructure
HR issue
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Past Measures
Merge Compaq for More
Competitive
Cost cut, staff reduce
Support Government’s Initiatives
Staff re-organization
MERGE WITH COMPAQ (May 2002)
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Section 5. Future Challenges &
Measures
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Future Challenges
Two strategic management
styles
HR issue after merge
One company two brands
Loss carried forward
Stronger Competition From
Both International
Players and China
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Future Measures
Integration of two
management styles/ One
should accept the other
Reorganization
Clear communication to
public about brands
Revenue improvement
& cost cutting
Product quality and
innovation
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Section 6. Strategic Idea for
Thinking
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TOWS Matrix
IFAS
EFAS
Strengths (S):
Weaknesses (W):
S1. Product diversity
W1. Cost problem
S2. Leading in printing technology
W2. Staffing problem
Opportunities (O):
SO Strategies:
WO Strategies:
O1. High market potentiality Expand market (S1,2/ O1)
Reorganization (W1,2/ O1)
O2. Stability
Cost reduction (W1/ O1)
O3. Strong government
commitments
Cooperate with Gov to improve IT
infrastructure (S1, 2/ Q2,3)
Threats (T):
ST Strategies:
Cooperation with local
agencies to develop HR
(W2/ O2,3)
WT Strategies:
T1. Low demand from
corporate and users
More focus on corporate & users
(S1,2/ T1)
T2. Competition with
international players
Localization and improve onsite
services (S1,2/ T2)
Create learning &
innovation and culture
(W2/ T2)
T3. China threats
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Thank You For Your Attention!
Q&A
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