Hewlett Packard Swot Analysis Essay

The Hewlett-Packard and Compaq amalgamation decision case acetifyplace provided roughly points essential in the under base of operationsing of why these two companies would brook a questioning work venture. Compaq was a participation that began conquestfully with record setting m nonpareiltary statements, inviolately in an attempt to expand its mart, jeopardise smart set stability. With the acquisition of Tandem computing tress and Digital Equipment Corporation, Compaq experienced decreased revenues resulting in their inability to fully rec every(prenominal)place. In a competitive cultivation engineering science securities industryplace, HP was one of the industry draws. Due to a failure to be proactive to commercialise changes, HP grew stagnant and controled to reinvent troupe strategies through innovatively appointed chair/chief operating officer Carly Fiorina.Competitive goods for both(prenominal) HP and Compaq include image and imprint particle and high performance PC engine room respectively. focal points reasons for the unification include their assumption that together, HP and Compaq would be adequate to(p) to replicate and overtake competitors. Op points to the coalition included a decrease in sh atomic number 18owner interest groups, a reduction of focus for phoner core competencies, and an unprofit adequate incoming. Several fiscal advisors and industry analysts were in agreement that the proposed unification would non be in the dress hat interests of either company. Despite the uncertainties, education self-possessed and forecasts intercommunicate were in favor of the nuclear fusion reaction, which resulted in sh arholder approval and the coalition of Hewlett-Packard and Compaq Computer. wonk abbreviationIn questioning Hewlett-Packards meet-day(prenominal) company location, a volumes, weaknesses, opportunities, and threats ( chock up) compendium was studyed. Strengths set up include HPs s elf-colored mart position internation every last(predicate)y and on the domestic end, a victoryful harvest- condemnation throughout large acquisitions, and a big brand value. HP currently has a 28.6% market share in the joined States of America while internationally they stand at 17.7%. As the current come up one loss leader in PC sales, HP has a solid market position. Although the strengths are allowing HP to maintain market position, there are withal weaknesses boon in all companies. Compared to early(a) companies in the same industry, Hewlett-Packard lacks significant software overlap and management consulting work. As a result, Hewlett-Packards weakness is its weak market subdivision desegregation. HP is able to dish consumer rent when it comes to PC engineering and imaging and feeling software, but they fall short in the software product creation and consulting work to combine with their in(predicate) departments of PC applied science and imaging and printing serve.As Hewlett-Packard continues to upgrade and square offk an augment in market position, opportunities surface. A spin-off of the PC technology business, entering the cloud computing market, and expanding imaging and printing solutions portfolio are opportunities HP has freeing forward. In placing more than emphasis on the PC technology aspect of the company, HP whitethorn find that this venture leave become as profitable as the imaging and printing department in the long-run. With the announcement of this spin-off, their share of US PC shipment change magnitude from 25.4% to 28.9%. This positive reception from consumers is an early indicator of possible success as a result of placing resources to prepare up the PC technology department. asperse computing is a fairly new concept in which resources and software are delivered through a network, mainly over the net. As this is market quickly suppuration in demand, HPs initiation of HP Cloud Assure is a great opportun ity for future prosperity. With success comes opportunities of threats, and Hewlett-Packard is no exception.With dateed decrease in information technology (IT) in the closely future, an increase in demand for non PC devices, and competitors with more diversified portfolios, HPs threats are numerous. Industry analysts have projected a decrease of IT in future quarters which will decrease HPs profitability. HP has al acquirey witnessed a decrease in consumer spending during expire quarters back-to-school spending. If analyst projections audition to be true, changes will quickly shoot 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(prenominal) as Dell and Samsung are able to easily capture the demand for these tablets.Future of the connectionThrough the case study, present-day attire analysis, and outside research condu cted on Hewlett-Packard, the conclave has concluded that the company will quell constant, but unless strategies are implemented to answer more consumer demands, they may lose market share. New CEO Meg Whitman has a technology visionary that will gaffe HPs focus to state consumer demands. Her leadership capabilities and projections for company future are a desirable mix for a company to achieve sustainable future relevance. With the implementation of HP Cloud Assure, a new venture capitalizing on the ripening 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 c ontributed to a decline in earnings from operations and net earnings. HP had a weak macroeconomic environs and competitive price machinateures that led to slumping sales. circumspection was unable to keep pace of the ever-changing market conditions which were a key contributor. HP management failed to follow Dells lead in adopting a low- cost, Internet found account sales enthral to offset its reliance on the retail channel. * Accelerating growth in quick businesses* Streamlining the existing decentralized operating model to burn growth opportunities * Implementing a total client experience approach * Taking advantage of HPs strong correspondence sheet and cash generation efficiency to fund new growth initiatives * supplement HPs market position* Creating e- services ecosystems and placing HP at the shopping center2. Is the proposed amalgamation credibly to address these challenges? Benefits from the merger included someoneal systems, alterd economics, and innovation. HP management thinkd that the have company would have a lower cost twist due to economies of scale. HP would as well as be able to leverage Compaqs gain in developing a direct sales channel, yielding a more flexible distribution model. Complementary leadership in key markets Compaqs strength in industry standard servers, 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 retention, the feature company would be the industry leader in both the enterprise shop segment and the fastest growing sub-segment terminus area networks.Doubling HPs sales force, the merger would allow HP to increase account coverage and get out compete for important customer engagements just about the world. IT Services Strengthened Business Provides scathing Mass in Key yield Market- caution believed the merger would significantly beef up HP and Compaqs combined services business for several(prenominal) reasons. Financial Benefits- As predicted the merger would yield $2.5 one thousand thousand in annual cost saving by mid-2004. Yes, we do believe the proposed merger is comparablely to address the challenges HP faces.3. How do you interpret the markets reaction to the proposal of marriage deal? We interpret the markets reaction to the proposed deal to be negative. clean two months of the Merger announcement, HPs share price trailed the preannouncement level by 27%, representing a loss of $12.3 billion of market share value at the same 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 obvious the company is losing a great deal of currency at the same time separate companies in the same industry are making money. The merger is not flavour out for the best interest of the shareholders so we would not vote for the merger.SourcesBloo mberg Businessweekhttp//www.businessweek.com/news/2011-10-12/hewlett-packard-gains-pc-market-share-after-mulling-spinoff.html CNN goldhttp//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//www.hp.com/hpinfo/newsroom/press/2009/090331xa.htmlHewlett-Packard Case StudyHewlett-Packard Compaq The Merger decisionMarketing Researchhttp//www.marketingresearch.com/marketing/swot-analysis-hewlett-packardJennifer embrown SynopsisThe process of completing this duty assignment has helped me discover how to view business decisions in a more analytical way. When access this one it seemed overwhelming at first. I began pulling outside sources and background information that helped me gain a conk out accord of the project at hand. That extra research was very useful in explaining what the companies were spill through and giving different perspectives as to why. I was abl e to apply what I have learned in my chronicle classes when the case study and articles referred to pecuniary ratios and provided financial typographys. That was helpful when trying to answer the questions assigned. workings with a classify was in any case proficient because there were several times my pigeonholing shares 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 all(prenominal) meeting. Before we met the first time we distinct we would read the case study in full to have an experienceing of what we would study to do. Our first meeting we discussed the case study and our stance on what HP should do. We also discussed the questions within the case study and started our limn for our ply point. Outside of the meeting I researched articles to gain background information. Our group had several more meetings at which we outlined our outline report and assigned apiece person a distribute of the report. When we were finished with our portion we would submit it to the rest of the group for proof interpret. Everybody faultless their task as set and we came together as a group and finalized the report. I, as well as the opposite sections of the group, contributed to the musical composition and layout of both the dodging 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 overlyk away a a couple of(prenominal) key elements. I have learned, understood, and powerful utilize the purpose of a SWOT Analysis. I fuck this form of analysis will be used in my future endeavors, so I know it will be very well(p) to me. Also, I learned while in a group setting how to in effect 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 real ize that in not every group setting, that there needs to be a set leader. In my group, I felt that everyone meshed well with separately 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 item-by-item office to the group was making sure that I gave my 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 completing 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, shrewd approach to the group, in who would be better fit for particular objectives.Sakina Middleton SynopsisConducting a strategy report required explo itation 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 allowed for an misgiving 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 primordial takeaway was my ability to read, comprehend, and analyze a case study regarding two coming together 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 t o problem solve in a group of my colleagues. No one group is perfect, but the communication skills I have acquired allowed me to handle all situations suitably 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 for 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 rival company, Compaq Computer. The merging of the two companies was knowing to put Hewlett- Packard/Compaq in a position to challenge one of its top leaders in the industry, IBM. The merger was also knowing to create a global technology powerhouse that would provide consumers with products and services demanded by profitable enterprise customers.After reading over the case, I started to feel like the merger was not termination 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 junto 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 fewer 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 exclusive right 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 sum of money of value on their shares. Stockholders would get a very small amount of the combined companys contribution to earnings. The merger would drown 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 focussed on something that proved already 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 think merger. The documents further explained forward- looking statements, assumptions, uncertainties, and risk of the plan merger between the two companies.