HP Final Copy

Group members: 1.Nyleve Henry 2.Joe 3.Crystal 4.Jiafen Li

H-Ps Carla

culture Fiorina

Mark Dell

Hurd

Bureaucracy New CEO, first

Fiorinas successor Inexpensive

outsider Merge

H-P & Compaq Merge

computers Cut out the middle man H-Ps

Results

results

Introduction of new

Aggressive store

products and patens Falling stock prices

presence / marketing Stock price went up

How do you judge the quality of a product, whether a computer or something else? Is it mostly by price? Discuss your perception of price and quality, as well as any ramifications.

Price: Derived from the overall marketing objective 1. Pricing to achieve a target return on investment 2. Stabilization of price and margin 3. Pricing to achieve a target market share 4. Pricing to meet or prevent competition Quality: degree of excellence or superiority that an organizations product possesses

Traditions has no place in corporate thinking today. Discuss this statement

-Times have changed and corporations must react to the present market. A strong foundation and corporate culture will keep a company grounded even when approaching new situations or challenging times. H-P way teamwork and respect for coworkers 1938

HP

have no breakthrough product since the inkjet printer in 1984. The HP way had evolved into a bureaucratic culture.

Give

different segments/divisions of a company more responsibility and more decision making power

Hewlett-Packard

's Business Portfolio Will

Be Worse. Hewlett-Packard's Strategic Position Will Not Materially Improve The Integration Risk Of The Proposed Merger Is Substantial. The Financial Impact On Hewlett-Packard Stockholders Has Been And Will Be Negative.

H-P is gouging the consumer in charging such high prices for its ink refill cartridges. Sure, its a high profit item, but such profits cross the line and are obscene.

Unit Price for the ink: $88 per ounce 1 gallon= 128 ounce $11,264 per gallon HPs printing division : Super Star and accounting for a quarter of the total revenue

Does it really cost that much? HPs excuse: huge cost on R&D The reason we cannot believe their words: Its been 23 years since the desk jet printer was introduced by HP. The black ink is pretty much the same What is even worse? OEMs are trying to PROTECT their high profit too much.

Chasing

profit is the ultimate target of any business, but chasing too much without considering the consumers feeling should be condemned

Do

you think the 17,000 jobs lost in the merger was laudatory, or should it be condemned? What would swing your opinion?

HPs situation: No major breakthrough product; H-P Way evolved into a bureaucratic culture Revenue growth slow to the single digits Carly Fiorina, new CEO was seeking changes Economic situation: IT industry is going through a downturn Chief driver for the HP-Compaq merger: competitive positioning and cutting cost Result of the merger: about 17,000 employees get layoff, most of them are old employee who worked for long years for HP

To benefit the company by sacrificing employees personal life is not ethical and should be condemned. However, reality is cruel. What swings my opinion is what should the management care more, the social responsibility or the interest of the shareholders? I bet most of them would say shareholders.

Q. 7Why do you think Hurd's efforts were so successful and so quickly accomplished? Support your conclusions as persuasively as you can?

Hurd

was successful primarily because of 3 reasons: 1. Fiorina had already done the hard work of HP-Compaq merger 2. Hurd came at the right time when the economy was rebounding 3. Hurd hired the right person (Todd Bradley) who had the right strategy.

Q. 8Why do you think Dell lagged so far behind H-P in tapping into retail markets?

Dell had traditionally been a mail order company, where only 5% of its business is from the retail sector. The company's management concentrated on the mail order sector where the company strengths are.