Submitted by Manali kumari ojha
Roll no 52
Submitted to Prof. H P Mathur
Strategic management is all about Formulation Implementation & evaluation of strategies So our project will revolve on these
critical parameters.
Bill Hewlett & Dave Packard graduated in electrical engineering from STANFORD university in 1935.
The company originated in garage in nearby Palo Alto,California,USA during a fellowship in 1939 with initial capital investment of us $538
Hewlett Packard company commonly referred as ‘HP’ American multinational information technology corporation
headquartered in Palo Alto , California , USA Nearly in each country hp product lines include 01)personal computing devices 02)enterprise servers 03)related storage devices 04)diverse range of printers & imaging products Hp markets it’s products to household, small to medium size
consumers and enterprise directly as well as via online distribution
• Vision statement “To view change in market as an opportunity
to grow, to use our profit and our ability to develop & produce innovative products ,
services and solutions that satisfy emerging customers need”
• Mission Statement
“To provide product, services and solution of highest quality and deliver
more value to our customers that earn their respect and loyalty ”
Strengths Weaknesses
Opportunities Threats
Brand name
Low debt
Wide range of innovative products
Developing of own hardware and software
Web technology used for product awareness & sale
Lack of in-house management consulting division
Intellectual capital is underestimated
No aggressive investment in R & D
No good people retention policy
Expansion of retailed stores for customer convenience
Participation in joint venture
Make easy to use product for upcoming retirees
Computer and cell phone software & hardware
Competitor’s technology & pricing
low compatibility with non- HP product
Availability of substitute
Less global coverage than competitor
Key Internal factorsKey Internal factorsWeightWeightRatingRatingWeighted Weighted ScoreScore
Strengths
Brand name
Low debt
Wide range of innovative products
Developing of own hardware and software
Web technology used for product awareness & sale
0.14
0.13
0.13
0.11
0.10
4
4
4
4
3
0.56
0.52
0.52
0.44
0.30
Weaknesses
Lack of in-house management consulting division
Intellectual capital is underestimated
No aggressive investment in R & D
No good people retention policy
0.10
0.08
0.11
0.10
1
2
2
2
0.10
0.16
0.22
0.20
Total1.003.02
Key External factorsKey External factorsWeightWeightRatingRatingWeighted Weighted ScoreScore
Opportunity
Expansion of retailed stores for customer convenience
Participation in joint venture
Make easy to use product for upcoming retirees
Computer and cell phone software & hardware
0.11
0.20
0.09
0.12
3
3
2
4
0.33
0.60
0.18
0.48
Threat
Competitor’s technology & pricing
low compatibility with non- HP product
Availability of substitute
Less global coverage than competitor
0.14
0.13
0.10
0.11
4
3
4
2
0.56
0.39
0.40
0.22
Total1.003.16
Critical success factorweight
HPDELLCANONRatingScoreRatingScoreRatingScore
Innovation0.1120.2240.4430.33Management0.0830.2440.3220.16Technology0.1240.4820.2430.36Financial Position0.1040.4030.3020.20Market share0.0930.2740.3620.18Customer loyalty0.1040.4030.3020.20Brand name0.1120.2240.4430.33Pricing0.1140.4430.3320.22Product Quality0.0940.1830.2720.18Compatibility 0.1020.2030.3040.40Promotion0.0830.2420.1640.32Total1.003.293.462.88
TOWS
MATRIX
Strengths - S
1. Brand name
2. Low debt
3. Wide range of innovative products
4. Developing of own hardware and software
5. Web technology used for product awareness & sale
Weakness – W
1. Lack of in-house management consulting division
2. Intellectual capital is underestimated
3. No aggressive investment in R & D
4. No good people retention policy
Opportunities – O
1. Expansion of retailed stores for customer convenience
2. Participation in joint venture
3. Make easy to use product for upcoming retirees
4. Computer and cell phone software & hardware
SO - strategies (S1, S3,O1,)
(must open new retail stores throughout the world to take advantage of financial strength) (S4, O3)
(develop easy pc and cell phone for old generation)
WO – strategies (W1,W5,O2)
(develop new HR policy in order to retain human capital by taking advantage or other firm management )
Threats - T
1. Competitor’s technology & pricing
2. low compatibility with non- HP product
3. Availability of substitute
4. Less global coverage than competitor
ST – strategies(S4, T1)
(developed low price and innovative pc & cell phone than competitors )(S5,T2)
(developed such hardware and software for computer & cell phone which are compatible with other companies software and accessories)
WT – strategies (W1,T1)
(give attention to management consulting division to have more focus on technology improvements)
Critical Region:“ST”
Managerial Decision:“Market development
Horizontal Integration”
Internal Strategic PositionExternal Strategic position
Financial Strengths (FS)Environmental Stability (ES)
Return on Investment
leverage
Working Capital
Liquidity
Price earning ratio
Total
Average
+5
+3
+4
+5
+4
+21
+4.2
Technological changes
Rate of Inflation
Price range of Competing products
Competitive pressure
Barriers to entry into market
Demand variability
Total
Average
-3
-2
-3
-5
-4
-2
-19
-3.17
Competitive Advantage (CA)Industry Strength (IS)
Market Share
Product Quality
Customer Loyalty
Technological know-how
Control over suppliers and distributors
Total
Average
-2
-3
-2
-2
-4
-13
-2.6
Growth Potential
Profit Potential
Financial Stability
Labor costTechnological know-how
Total
Average
+5
+5
+4
+3
+4
+21
+4.2
-6 -5 -4 -3 -2 -1 +1 +2 +3 +5 +6
+6
+5
+4
+3
+2
+1
-1
-2
-3
-4
-5
-6
AggressiveAggressiveConservativeConservative
CompetitiveCompetitiveDefensiveDefensive
ISISCACA
X-axis =CA + IS
= -2.6+(4.20)
= 1.60
Y-axis = FS + ES
= 4.2+(-3.17)
=1.03
FS
ES
According to the space matrix score HP falls in the “AGGRESSIVE quadrant” . Their strategies should be one of the following:
• Vertical and horizontal integration•Market penetration•Market development•Product development•Diversification
IDSEGMENTS
REVENUE %
PROFIT %
GROWTH RATE %
MARKET SHRE %
AESS192110.8
BHPS172080.1
CSOFTWARE
1.45140.6
DIPG29.23080.8
EPSG3242-100.7
FHPHS2.22-140.2
STARS C
A II D
Question Mark
I B
CASH COWS
E
III
DOGS
IV FRelative market share
Indu
stry
gro
wth
rate
High Medium Low 1.0 .50 0.0
High +20
Medium 0
Low - 20
i
HP
iiiii
ivvvi
viiviiiix
Strong 3.0 – 4.0 Average 2.0 – 2.99 Weak 1.0 – 1.992.03.04.0
IFE Total Weighted Score 3.02
1.0
2.0
3.0
Low
1.0 – 1.99
Medium
2.0 – 2.99
High
3.0 – 4.0
EFE
TOTA
L W
EIG
HTE
D S
CORE
3.1
6
HP falls in first region of IE matrix and there main focus will be on “GROW AND BUILD” and they will mainly focus on strategies which are:
Market development Horizontal integration
Quadrant IIQuadrant I
HP
Quadrant III
Quadrant IV
Slow market growth
Rapid market growth
Stro
ng c
ompe
titive
pos
ition
Wea
k co
mpe
titive
pos
ition
HP has rapid market growth and strong competitive position so it falls in first quadrant and the most suitable strategies for HP are:
Market development Horizontal integration
Key Internal FactorsHORIZONTAL INTEGRATION
MARKET DEVELOPEMNT
StrengthsWeightASTASASTAS
Brand name0.1430.4240.56
Low debt0.1330.3920.26
Wide range of innovative products0.1340.5230.39
Developing of own hardware and software0.1140.4430.33
Web technology used for product awareness and sale 0.1020.2030.30
Weaknesses
Lack of in-house management consulting division0.1020.2030.30
Intellectual capital is underestimated0.08--------
No aggressive investment in R & D0.1130.3320.22
No good people retention policy0.1030.3020.20
Total weight1.00
Key External FactorsHORIZONTAL INTEGRATION
MARKET DEVELOMENT
OpportunitiesweightASTASASTAS
Expansion of retailed store for customer convenience0.1130.3340.44
Participation in joint venture0.2040.8020.40
Make easy to use product for upcoming retirees0.0930.2720.18
Computer and cell phone software and hardware0.1230.3620.24
Threats
Competitors technology and pricing0.1440.5630.42
Low compatibility with non-HP product0.1330.3920.26
Availability of substitutes0.1040.4030.30
Less global coverage than competitors0.1130.3320.22
Total weight1.00
Total Attractive Score6.245.02
According to the total attractive score of QSPM HP should go for
“HORIZONTAL INTEGRATION”