Hp Is A Second Big Industry Leader

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Case 4.2 1. HP is a second big industry leader in related business on 2008. The company has change the strategy on metric-driven after Mark Hurd join at HP. The market sales and expansion could present opportunities and strength in the business. But it also comes with some limited liquidity and not-innovative problems against the new plan. i. Strengths Mark Hurd performance at HP helps company achieve better operational performance. During 2008, he helps company reducing the costs in order to help company jump into second place behind IBM’s $54 billion in annual sales. This excellent performance also indirectly helps HP’s market position, which enhances HP reputation and attracts more new investors. Moreover, reduce cost strategy not only can be a strength, but also improve company presence. Their outscoring strategy moved oversea to leverage lower employee costs can help HP becomes more strong presence. Lastly, against Hurd “R&D productivity”, it also helps help company achieve higher ROE than similar industry. This makes shareholder happier and potentially benefit for company future fundraising and have more resources compare with similar industry. ii. Weaknesses Hund’s performance in short run will make company have limited liquidity. Due to he was to cut 15000 jobs (10% of the workforces) for purchasing EDS. He will make HP’s current ratio decrease and that current ratio decrease and debt ratio increase in short time could make company weaker financial position than

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