...Concerning: critical analysis spin-out ------------------------------------------------- Date: October 20, 2014 Dear Mr Ali You have asked us, Hulsenbeek Strategic Issues Support, to prepare a memo providing a critical analysis of the current strategic and leadership challenges facing the spin-out of part of the business of Hewlett-Packard (“HP”) announced October 6th. This spin-out will result in two publicly traded companies: Hewlett-Packard Enterprise, responsible for the storage, servers, software and security divisions and HP Inc., responsible for the PCs and printers divisions. The spin-out is expected to close by October 2015. In this memo we have: 1. Reviewed HPs past performance 2. Reviewed the rationale behind the spin-out 3. Conducted a SWOT-analysis, and 4. Concluded with our future outlook. 1. Review past performance Just as many other entrepreneurs, HP started because the founders discovered something. They wanted to see a market arise from the possibility of substituting an already-existing product or service with something better, namely more stable oscillators for a better price. Providing their market with better quality products for a better price therefore became the new company's raison d'être. Over the last 80 years, the crucial key success factor that has made HP successful has been her ability to adapt to new circumstances. For example, after starting out with the production of audio oscillators, HP moved to producing...
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...Business Analysis - Hewlett-Packard Business Evaluation - Hewlett-Packard Whenever the brand name Hewlett-Packard (HP) is brought up, I think of garage innovation. It has been the entrepreneurial symbol of the firm from its birth. It is referred to as the “Birthplace of Silicon Valley” on its own website ("Rebuiding HP’s Garage," 2012). Throughout time, a corporation may go through as many as 10 stages of life (Adizes, 1996). As a Mutual Fund manager, the most sought after opportunity is to invest into a company in its infancy stage, and sell out well before its death stage to maximize the investment return. To get a better determination as to where a company like HP is in its corporate life stage, it is important to conduct a business analysis. This would include running a SWOT analysis, identify the internal and external stakeholders and to determine if expectations are currently met of those stakeholders. SWOT Analysis Regardless of the size of the corporation, it is important to analyze and address its areas of concern internally and externally to the firm. A SWOT analysis consists of strengths and weaknesses affected internally as well as opportunities and threats externally (Nickels, McHugh and McHugh, 2010). First, it is important to consider the products and services HP provides. HP provides a wide range of technology hardware products including computers (both desktop and laptop), printers, servers, cameras and monitors. It also provides software and firmware...
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...operation in 1939 to a present-day IT powerhouse, HP has experienced a remarkable journey .Nowadays, Hewlett-Packard is a global enterprise and especially after its merger with Compaq, the company became world’s biggest computer hardware and peripherals consort in the world and has ranked 20th in the Fortune 500 list in 2009. This led to general revenues of $118.4 billion, HP announced the acquisition of 3Com with the deal closing on April 12, 2010. On April 28, 2010, HP announced the buyout of Palm for $1.2 billion. On September 2, 2010 won its bidding war for 3PAR with a $33 a share offer ($2.07 billion) which Dell declined to match. At HP, it is believed that diversity is a key driver of their success. Putting all their differences to work across the world is a continuous journey fueled by personal leadership from everyone in their company. HP’s aspiration is that the behaviors and actions and actions that support diversity and inclusion will come from the conviction of every employee in the company making this diversity and inclusion a conscious part of how HP runs its business throughout the world . HP leaders have an advantage that enables them to learn and adjust as few others can. The depth, and vitality that come alive on a daily basis through the firm’s values “the HP way” are assets from which most of the silicon Valley continues to learn. Their general managers regularly discuss and assess the vitality of the HP way, a process , which inevitably results in corrective...
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...year I managed for a company with a reputation for high staff turnover and in the second half I managed for a company with similar values to Hewlett Packard. Not only were staff members more loyal in the second company but the level of self-driven motivation was second to none. I am passionate about this management style. Contemporary management Issues in relation to this article Issue: HP consistently puts principles derived from Theory Y into practice taking a completely soft model of Human Resource Management approach. However more recently HP have been experiencing problems because of a downturn in the economy and needs to reduce costs. Should HP stick with this approach through this rough patch though more costly? The Company: Hewlett Packard company or HP is a public, manufacturing and professional services sector industry founded in 1939 by William Hewlett and David Packard. It provides It provides computer hardware/software and IT services to consumers, small- and medium-sized businesse and large enterprises. Founders Bill and Dave established a philosophy of management called the ‘HP way’ which is 100% people orientated built on recognition of achievements. Key management Issues: The problem with a purely Theory Y based approach to management saves money in the long term (through employee loyalty) however short term can be quiet costly. Training and developing employees rather then hiring new ones with ready skills is a costly procedure (time and money...
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...TIM 685 STRATEGIC PLANNING COMPANY AUDIT HEWLETT PACKARD Contents Abstract 3 HP Background 3 Company Mission 4 HP’s Corporate Objectives 5 Mission and governance Analysis 5 Recommendations 6 HR Report on HP 7 Recommendation 8 Internal Analysis 8 Recommendation 8 Mergers Acquisitions and Spin-offs 9 Recommendation 9 External and Global Environment 9 External Analysis 10 Recommendation 11 Porter five forces Analysis of HP 12 Recommendation 14 SWOT Analysis 14 Conclusion / Recommendation 15 Reference: 16 Abstract This Company audit was conduct using publicly available information about Hewlett-Packard. The Audit includes mission statement, company philosophy, PEST SWOT, Financial Analysis, market position analysis, corporate governance analysis. The analysis uses industry standards for company audits such as, Porter, SWOT, and PEST as a guideline for the areas to be assessed. HP Background Hewlett Packard is a publicly traded company on the New York Stock Exchange. The firm was started by Bill Hewlett and David Packard. The merger with Compaq was one of HP’s major strategic moves recently. Even in naming the new company the two founders flipped a coin in the famous garage, Dave Packard won the coin toss but conceded to pit Hewlett name at the front. "It is...
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...Management Principles - Case Analysis No. 2 Worth 5% and due in Week 11 (March 26th) Individual assignment to be done as homework To be done in Word with a cover page Read the following Case in the News Fully answer the 3 questions below Information Technology: Stopping the Sprawl at HP When Randy Mott joined Wal-Mart fresh out of college in 1978, its in-house tech staff had only 30 members and company founder Sam Walton had not yet become a believer in the power of computing to revolutionize retailing. But Mott and his cohorts developed a network of computerized distribution centers that made it simple to open and run new stores with cookie-cutter efficiency. Then in the early 1990s, Mott, by this time chief information officer, persuaded higherups to invest in a so-called data warehouse. That let the company collect and sift customer data to analyze buying trends as no company ever had -- right down to which flavor of Pop-Tarts sells best at a given store. "Information technology wasn't Mr. Sam's favorite topic. He viewed it as a necessary evil," recalls fellow Wal-Mart Stores Inc. alumnus Charlie McMurtry, who has worked with Mott for years. "But later, Randy got [Walton's] ultimate compliment. He said, 'Man, you'd make a great store manager."' By the time Mott took his latest job last summer, as CIO of Hewlett-Packard Co. (HPQ) he had become a rock star of sorts among the corporate techie set -- an executive who not only understood technology and how it could...
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...SM0374 – The Introductory Articles (2010-11/ Semester Two) Sources: 1. “Hewlett-Packard to buy Palm for $1.2 Billion” (Bloomberg news, 29th April, 2010) 2. “Actual Analysis: HP buys Palm, and the Earth does Move” (Betanews, 28th April, 2010) 3. http://www.hp.com 4. http://www.betanews.com 5. http://www.palm.com Hewlett-Packard to Buy Palm for $1.2 Billion By Connie Guglielmo and Ari Levy /Apr 29, 2010 Hewlett-Packard Co. agreed to buy Palm Inc., the money-losing handset maker that was once a Silicon Valley icon, for $1.2 billion to challenge Apple Inc. in the smartphone market. Palm’s common shareholders will receive $5.70 a share in cash, a 23 percent premium over the closing price, Hewlett- Packard said in a statement today. Elevation Partners LP, Palm’s biggest investor, gets $485 million for its preferred shares and warrants. The Palm deal moves Hewlett-Packard back into contention with the world’s biggest smartphone makers, including Nokia Oyj, Apple and Research In Motion Ltd. Hewlett-Packard’s current iPaq device hasn’t kept up with competitors. The company also gets a team headed by ex-Apple engineers and a Palm patent lineup that spans mobile hardware, software and power-saving technologies. “This is a low-price, low-risk way for them to at least attempt to penetrate the smartphone market,” said Brian Alexander, an analyst for Raymond James & Associates Inc. He has a “strong buy” rating on Hewlett-Packard’s stock, which he doesn’t own. “We always...
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...Yanez University of the Incarnate Word Table of Contents I. Introduction II. Dell’s Strategy a. Vision Statement b. Mission Statement c. Strategies and Objectives III. Recommended Vision and Mission Statements IV. External Assessment a. Porter’s Five Forces Model b. External Factor Evaluation c. Competitive Profile Matrix V. Internal Assessment a. Value Chain b. Internal Factor Evaluation VI. Porter’s Five Generic Strategy VII. SWOT Analysis a. SPACE Matrix b. Boston Consulting Group Matrix c. Internal-External Matrix VIII. Strategy and Objective Recommendations IX. Recommended Implementation Plan X. Strategy Review and Evaluation References Appendixes I. Introduction Dell was founded in 1985 under the name, PCs Limited by Michael Dell who at the time was a college student of the University of Texas. In 1988 the company’s name was changed to Dell Computer Corporation. The company is headquartered in Round Rock, Texas and is the world's #3 supplier of Personal Computers (PC) behind HP who ranks as #2 and Lenovo who ranks as #1 (According to IDC worldwide quarterly PC tracker). Dell provides a broad range of technology products for the consumer, education, enterprise, and government sectors. In addition to its line of desktop and notebook PCs, Dell offers network servers, data storage systems, printers, ethernet switches, and peripherals, such as displays and projectors. It also markets third-party software and hardware. The company's services...
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...11/26/12 The Surprising Winner in the HP-Oracle Slugfest (HPQ, IBM, INTC, MSFT, ORCL) The Surprising Winner in the HP-Oracle Slugfest By Cindy Johnson | M ore Articles June 27, 2011 | Comments (1) Don't let it get aw ay! Keep track of the stocks that matter to you. Help yourself with the Fool's FREE and easy new watchlist service today. Sometimes the best way to win a fight is to work the sidelines. That doesn't seem to be lost on IBM (NYSE: IBM ) as Hewlett-Packard (NYSE: HPQ ) and Oracle (Nasdaq: ORCL ) go through the computer industry's version of a nasty breakup. As the Silicon Valley turns It started when Oracle tied the knot with Sun Microsystems in a January 2010 acquisition. Then HP sent former CEO Mark Hurd packing last August after -- long story short -- a Click Here Now contractor accused him of sexual harassment. Oracle's Larry Ellison rushed to publicly defend Hurd's honor and shortly thereafter offered Hurd a new home as co-president of the software giant. Now HP has sued Oracle, claiming its March 2011 decision to quit supporting Intel's (Nasdaq: INTC ) high-end Itanium processors is a breach of contract with HP. To be sure, Oracle wasn't the first software maker to stoke concerns about the future of Itanium -- and thus about HP's high-end systems. Microsoft (Nasdaq: MSFT ) and Red Hat (Nasdaq: RHT ) previously pulled support. Used to play well with others HP uses Itanium in mission-critical computers that compete with Sun's SPARC-based and IBM's...
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..................................................................................... 5 Bill Hewlett and Dave Packard .............................................................................................. 5 Expansion .................................................................................................................................. 6 The Age of Computers ............................................................................................................ 7 Acquisitions, Innovation, and New Markets ....................................................................... 7 Struggles in Recent Years ........................................................................................................ 8 Financial Analysis ........................................................................................................................ 9 Overview ................................................................................................................................... 9 Chart 1: Stock Performance Over 5 Years............................................................................. 9 Chart 2: Basic Financial Information ................................................................................... 10 Revenue, Income, and Cash Flow ....................................................................................... 10 Chart 3: Revenue vs. Net Income .....................................................................................
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...The Rise and Fall of Carly Fiorina Introduction Johnson’s article demonstrates why Carly Fiorina failed as an Ethical Leader of the HewlettPackard Company for five years up to 2005. Johnson’s argument concentrates on Fiorina’s role as a moral person rather than as a moral manager and provides considerable behavioural trait failures by Fiorina, supported by plenty of anecdotal evidence to support his claim. Johnson identifies Fiorina’s leadership direction was set by the Board of HP, found that the Board itself had been unethical, and the Board did little to influence or change this direction until the penultimate days of Fiorina’s tenure. The article fails to recognise that Fiorina’s “fall” was ultimately caused by her failure to improve the bottom line. But recognises that her poor performance as an ethical Leader had left her without sufficient support to allow her to complete her radical changes. The ethical Leader construct used here, could be considered to be inadequate to comprehensively assess Fiorina’s leadership, and highlights a need for a more integrated construct/s covering commonly shared behaviours. This essay discusses the addition of change-oriented leadership behaviour to task-oriented and relationship –oriented leadership constructs to overcome this limitation. Elements of leadership Johnson (p. 188) focusses on Fiorina’s ethical leadership behaviours (Brown , et al., 2005) to justify his judgement that Fiorina was a bad leader of Hewlett-Packard...
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...Share Repurchase: Is it good or bad? Financial Strategy (BMBA715.2) Date: 27th March 2013 Tutor: Mark Pilkington Author: Nandkumar Mahajan (136866461) Word Count: 3069 Table of Contents Executive Summary ............................................................................................................................. 3 Company capital structure & Shareholder value ...................................................................... 4 Why companies really repurchase shares? ................................................................................ 6 Is there any real value in share repurchase? ............................................................................. 7 Hewlett-‐Packard (HPQ) ................................................................................................................................ 7 Next Plc. (NXT) ........................................................................................................................................... 10 Conclusion ..................................................................................................................
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...In order to investigate the thesis of this article empirically, I analyzed six premier APA journals: Developmental Psy- chology (DP), Journal of Personality and Social Psychol- ogy (JPSP), Journal of Abnormal Psychology (JAP), Jour- nal of Family Psychology (JFP), Health Psychology (HP), and Journal of Educational Psychology (JEP). These jour- nals were chosen to represent diverse areas of psychology. Each journal is considered to be the flagship APA journal in its area. In taking this approach of using premier APA journals to represent various areas of psychology, I fol- lowed the approach established in several previous journal analyses on other topics, including African American rep- resentation (Graham, 1992), gender bias (Gannon et al.,...
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...HEWLETT-PACKARD CASE ANALYSIS Pooya Mehmandoost University of Houston-Victoria April30, 2014 Management and organizational behavior Executive summary The world’s leading PC and printer manufacturer, Hewlett-Packard, was facing multiple problems during the first decade of the 21st century. It provides hardware, software, and services to consumers, small and mid-sized business. Companies such as Hewlett-Packard are supposed to be a stable, rock-solid institution, where a change in CEO rarely happens. But it doesn't always happen that way. In the past six years, HP changed CEO four times. This case study aims to elaborate the reasons of major problems and issues that HP has recently faced in different levels of its management and focuses on corporate behavior of the Hewlett Packard Board of directors and its effect on corporate culture and structure within the organization according to the concepts of the management and organizational behavior (MOB) theories. This study is based on real facts that occurred with the Board of Directors of the Hewlett Packard organization. Business magazine, academic articles, and online submissions, as well as books about the HP way of business were diagnosed for their structure, content, and accuracy of the topic. The research draws attention to the fact that the combined companies experienced many problems-financial, cultural, and structural-resulting in poor performance of Carly Fiorina, who was named CEO of HP in 1999 and fired in 2005...
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...over 170 countries. IBM employees have earned Five Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. IBM competitors IBM's main competitors are Hewlett-Packard Company (HPQ) and Dell (DELL) but each of these companies has a different focus area. Dell makes most of its money on PC and server hardware, while Hewlett-Packard is more diversified as the leader in PCs and Imaging & Printing as well as offering IT services. Since IBM relies heavily on its Software and Services segment, it mainly competes with Hewlett-Packard in the servers and IT services markets and with Dell in the servers and software markets. Although falling behind HP in terms of revenue in 2009, IBM is the leader in servers, IT services, and software. IBM leads HP and Dell in all measures of profitability largely because IBM is focused on high-margin sectors such as...
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