Environmental Scan
Quarter 2
Date:
12/22/2010
Project Group:
ESC39
i
ASIS
Hewlett-Packard
Projectgroup 39
Noortje Wilbrink
Jela Djurdjevic
Lini Zhong
Mitchel Lemmens
Dirk van Beelen
Jasper Arnou
Kasper Verboven
Paul Suntjens
Tutor:
Jonathan van Melle
ii
Executive Summary
The purpose of this report is to analyze and evaluate opportunities and threats in the North-American environment of HP. This report is written to provide Hewlett-Packard with a clear view of external factors which influence the company and how they should react on those factors.
The method that is used for gathering information is desk research; internet, books, articles and Avans databanks. A limitation that occurred
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2 3 Developments................................................................................ 5
3.1 Business cycle.................................................................... 5 3.2 Competition....................................................................... 6 3.3 Environmental awareness................................................. 8 3.4 Changes in consumer behaviour........................................ 10 3.5 Exchange rates................................................................... 11
4 Conclusion...................................................................................... 14
4.1 Opportunity....................................................................... 14
4.2 Threat................................................................................ 14
5 Bibliography................................................................................... 15
6 Appendices.................................................................................... 16
1. Introduction
This report has been requested by Avans School of International Studies.
It carries out an environmental scan linked to a company, Hewlett-Packard.
Hewlett-Packard is
4. The key methods of collecting primary data (1.1). Justify the choice and application of data collection methods and research instruments to explore an area under investigation (2.3). Evaluate their relative strengths and weaknesses (2.4)
HP did many things correctly when addressing the challenges for disruptive change. For instance, they organized a smaller team of “hungry” individuals from marketing, manufacturing, and research and development that moved the project away from the core group essentially acting as a small startup business. The smaller group was motivated to establish itself and prove their product was worthy of funding and upper management support. They also differentiated themselves by choosing team members that were uninterested in maintaining status in the company mainstream way of thinking. HP allowed a lot of leeway to the Kitty Hawk team in making decisions and providing financial backing to the project’s
Hewlett Packard is about extending beyond the limits of classical physics and provides a quantum leap in performance, reliability and security. With the ever changing world of technology and the high demand to stay ahead of the curve, HP Labs is inventing today and for the next generation a new line of HP products and solutions. HP focuses on partnering with you, the visionary customer by solving your enterprise issues. HP has the scale, ideas, expertise and unmatched portfolio of products and services to deliver end-to-end innovation and value. We believe diversity is a key driver of our success. Putting all our differences to work across the world is a continuous journey fueled by personal leadership from everyone in our company.
Our research is based on much information accessed by the Internet, news journals, books, television
Hewlett-Packard: Develops, assembles, and sells computer hardware and printers. The firm outsources many of its computer and printer components.
HP, an expert in the hi-tech industry understands the fiercely competitive environment where technological and innovative advancements could create turbulent
In general, there are several methods for data collection and the different data collection methods provided its own advantages and disadvantages (Sekaran 2003, p. 223). For carrying out the data collection, the appropriate methods should be applied. In the research, the data collection could be done through the interview, for example, face-to-face and telephone interview. To collect the data by using interview technique, the questionnaire is commonly employed as the instrument for gathering data, the questionnaire could be able to distribute by mail or electronic mail. In addition, the data collection could be conducted by observation of individuals with or without audio or video recording. Before choosing the methods for data collection the expertise of the researcher, the degree of accuracy required, time and resources must be taken into consideration. Thus,
While Hurd was considered a decent CEO, a scandal emerged consisting of missing funds and legal issues which ultimately resulted in his resignation. HP brought in Leo Apotheker to replace Hurd as CEO. Unfortunately for the company, Apotheker proved to be an incompetent leader who did not know how to succeed in the market and deal with the press. In August 2011, Apotheker decided to utilize a “surprise press release” to announce that HP was planning to spin off from its PC business. As a result of this unexpected announcement, investor confidence plummeted as did HP’s stock price. After less than a year as CEO, HP’s board of directors fired Apotheker. Meg Whitman, the next CEO who previously ran eBay, unfortunately took control of a company which dropped 50% in corporate value. ("Leo Apotheker Dumped as HP CEO.")
The company I choose to concern myself with in this text is Hewlett Packard - HP. Operating in the Diversified Computer Systems industry, the company concerns itself with the sale of computers, software, and other technologies to customers from all over the world. Some of the company's main competitors in the industry include but they are not limited to Dell and IBM.
The sources of information from which the author has obtained required data and descriptions of methods used to collect the information
By the late 1990s, HP’s business was facing major problems which are reflected in its financial results. Despite a 9.71% increase in total net revenue, HP faced declining net earnings of 6% from 1997 to 1998. The company had also experienced a slow and decreasing growth in revenue in comparison to its main competitors. From 1996 to 1998, HP’s annual revenue growth decreased from 21.89% to 9.71%, while one of its main rivals, Dell, was able to maintain an over-40% revenue growth in each year within the same period. Moreover, HP’s failure to satisfy customer needs and catch
The research has made use of a number of academic sources so as to get some historical and current information concerning the topic. The importance of using the academic sources is that they are reliable and contain information that has been gathered by many writers thus making the research very successful. The
The technological category of the general environment includes factors such as product innovations, new communications technologies, and government supported research and development expenditures. Obviously this category caries great significance for a computer based firm like Hewlett-Packard. Product innovations can represent an opportunity for strategic continuity if Hewlett-Packard can incorporate them, a threat to strategic continuity if they cannot. New communications technologies can be utilized to assist in streamlining operations, and represent an opportunity to lower long term costs.
Patricia Dunn as the board chairman, made a decision that the board had to meet several times in a year, culminate in multi-day, off-site retreat that were held in January where the board was required to have review of the coming year plans and strategies. However, recently, the board had faced various issues related to turnover and turmoil. Some of the actions undertaken by the boards were to organize and assist the new technology committee to make some of the best recommendations towards the board’s scope, direction, quality, execution of HP strategies and investment levels.
Page eight of the case begins to outline some of the challenges that the HP-Cisco alliance had already faced concerning the sale of joint products. For example, we learn that at HP, Cisco products did not count towards a sales representative’s quota and this resulted in a decline in sales of Cisco equipment by HP sales representatives. Further, if HP or Cisco sales staff had to master not only their parent company product line,