本文是商务Essay范例，题目是“Report On Hewlett Packard Hp Commerce Essay（惠普报告惠普商务论文）”，惠普公司(HP)是由比尔·休利特和大卫·帕卡德于1939年1月1日在美国加利福尼亚州的帕洛阿尔托创立的。公司总部设在美国加利福尼亚州。惠普(HP)是一家跨国的美国硬件和软件公司，为客户、中小企业提供软件、技术、解决方案和服务。惠普(HP)是世界领先的个人电脑制造公司，专业生产数据存储设备，计算和网络硬件，并设计软件。
Hewlett-Packard (HP) is founded by Bill Hewlett and David Packard on 1st January, 1939 in Palo Alto, California in USA. Its headquarters is in California in USA. As Hewlett-Packard (HP) is multinational American hardware and Software Company, it provides softwares, technologies, solutions and services to customer, small and medium sized business. Hewlett-Packard (HP) is world leading PC manufacturing company that is specialized in manufacturing data storage devices, computing and networking hardware’s and in designing softwares.
As HP major productlines are Personal computer (PC) devices, industry servers, diverse range of printers and other imaging products. HP markets its product to household users, SMEs through online services and through vendors.
As HP history from 1940s to 2010, HP is mergering with different organization and bought other organization and increasing their technology and workforce.
As in this report we do different analysis such as PORTERs five forces model, PEST analysis, SWOT analysis and give recommendation, suggestion, and conclusion about all organization.
CHAPTER: 1
1.1 INTRODUCTION OF HP:hp介绍:
Hewlett-Packard (HP) is founded by Bill Hewlett and David Packard on 1st January, 1939 in Palo Alto, California in USA. Its headquarters is in California in USA. As Hewlett-Packard (HP) is multinational American hardware and Software Company, it provides softwares, technologies, solutions and services to customer, small and medium sized business. Hewlett-Packard (HP) is world leading PC manufacturing company that is specialized in manufacturing data storage devices, computing and networking hardware’s and in designing softwares.
惠普公司(HP)是由比尔·休利特和大卫·帕卡德于1939年1月1日在美国加利福尼亚州的帕洛阿尔托创立的。公司总部设在美国加利福尼亚州。惠普(HP)是一家跨国的美国硬件和软件公司，为客户、中小企业提供软件、技术、解决方案和服务。惠普(HP)是世界领先的个人电脑制造公司，专业生产数据存储设备，计算和网络硬件，并设计软件。
HP major product lines are Personal computer (PC) devices, industry servers, diverse range of printers and other imaging products. HP markets its product to household users, SMEs through online services and through vendors.
1.2 HISTORY:历史:
As Hewlett-Packard (HP) was established in Packard’s garage with an initial investment of US$538 on 1ST January 1939, and HP was incorporated on 18th August, 1947 and went to public on 6th November, 1952.
1939年1月1日，惠普公司(HP)在帕卡德的车库里以538美元的初始投资成立，1947年8月18日成立公司，1952年11月6日上市。
As both electrical engineers worked on many projects but their first financially successful product was a precision audio oscillator model (PAOM) (HP200A), whose initial cost is just $54 while their competitor were selling such product at $200.
As from 1940 to 1990, company is concentrated on making electronic test equipment like signal generator, voltmeter, oscillator, thermometer, frequency modulator, time standards, wave analyzer and many more electronic types of equipment. As a distinguishing feature of HP products are that they are more accurate, sensitive and precise than other comparable equipments.
In 1960s Hewlett-Packard (HP) recognize itself as a founder of Silicon Valley as they developed semi-conductor devices primarily for internal use. Hewlett-Packard (HP) partnered with Sony and Yokogama Electric companies to produce high quality products in Japan.
As a joint venture is formed with Yokogama named as (Yokogama- Hewlett-Packard, HP) in 1963 to markets HP products in Japan. Hewlett-Packard (HP) spun off a small company called Dymec (Dynac), to specialize in digital equipments and experimented in digital equipments corporation to forms mini computers with their instruments. Hewlett-Packard (HP) entered in computer market in 1966 with HP 2100 / HP 1000 series of minicomputer. These used accumulator based designed that is similar to Intel X86 that were using today also.
In 1970s, Hewlett-Packard (HP) introduced HP 2640 that is formed based interface and also introduced Screen labeled Function Keys that were used now-a-days in gas pumps and Banks ATMs. When HP2640 is combined with HP 210021MXT series for display graphics formed first presentation program, BRUNO, that program later draws on HP3000.
As Hewlett-Packard (HP) was identified by wired magazines as world’s first mass produced personal computers, introduces in 1968, Hewlett-Packard 9100A series computer. But they called it a desktop calculator because at that time manufacturing computers without IC(integrated circuit ) is like a nonsense concept so that’s whys they called them a desktop calculator.
As Hewlett-Packard (HP) company earned global respect for a variety of innovate products like, in 1972, they introduced a first handheld Scientific Electronic Calculator called (HP-35), in 1974, a first handheld programmer (HP-65), 1979 a first alphanumeric, programmable and expandable (HP-41C) and first symbolic and graphic calculator (HP-28C). The 98X5 series of technical desktop computers started in 1975 with a cheaper 80 series and these machines were using a basic programming language. Hewlett-Packard (HP) computers are much more similar than in capabilities with IBM, but limitation of technological advancement forces them to high prices of HP PCs.
In 1980s, Hewlett-Packard (HP) introduces for its desktop computers a Laser and Inkjet printers. With Hewlett-Packard (HP) scanners product line HP developed a multi-function products where a single unit is a complete printer/ copier / scanner/ and a fax machine. The print function of laser printer depends on Cannons components i-e a Xerox developed technology. On March 3rd , 1986, Hewlett-Packard (HP) registered HP.COM a domain name and become the ninth internet domain to be registered.
In 1990s, Hewlett-Packard (HP) expanded its product line of computers to universities, researchers, business users and household consumers. Also HP bought Apollo computer in 1989 and Convex Computers in 1995. In 1999, all of the business is spun off from the HP to form a Agilent which is the largest IPOs (Initial public offering) in Silicon Valley. This spin off created a $8 billion for the company and created 30000 jobs that were manufacturing semiconductors, optical networking devices, electronic test equipments and scientific instruments.
On September, 3rd, 2001 an announcement of Hewlett-Packard (HP) is that HP is going to merge with Compaq, and after that HP is officially merge with Compaq on May, 2002. This merges starts from Bill Hewlett son’s objection on its merger. As before this merger, Compaq already bought Tandems computer and Digital Equipment Corporation, and Only Hp is the major player in the market. So after this merger of HP a new symbolic name called HPQ (Hewlett-Packard and Compaq) is established. In 2004, HP released a DV1000 series and starts his campaign, The Computer is Personal Again” to highlight the fact that PC is a personal product. In May, 13, 2008, HP announced that they purchased Electronic Data System (EDS) and on August, 26, 2008, a public announcement that EDS is a Re-branded as EDS on HP Company and as of September, 23, 2009 EDS called as Hp enterprise services. On November, 11th, 2009, Hewlett-Packard (HP) is acquiring 3.COM for $2.7 billion in cash and on April, 12th 2010, Hewlett-Packard (HP) complete acquisition at an enterprise value of $2.7 billion.
On April,28th ,2010, Hewlett-Packard (HP) announced to acquire Palming , that is a smart phone manufacturing company for $1.2 billion and that deal was completed on July, 1st 2010, so that would phase out the Compaq brand. As Palm adds its current iPod mobile to HP product line to increase their sales when HP own sales is not good. Also Palm gives HP a well mobile operating platform called WebOS, and the WebOS build HPs own ecosystem, so that HP launched its first tablet called HP Touchpad on 1st, July, 2011, and bring WebOS to tablet devices.
2010年4月28日，惠普(Hewlett-Packard)宣布以12亿美元收购智能手机制造公司Palming，该交易于2010年7月1日完成，因此康柏品牌将逐步退出市场。当惠普自己的销量不佳时，Palm将其目前的iPod移动设备添加到惠普的产品线，以增加销量。此外，Palm还为惠普提供了一个名为WebOS的良好移动操作平台，而WebOS构建了惠普自己的生态系统，因此惠普在2011年7月1日推出了第一款名为HP Touchpad的平板电脑，并将WebOS引入平板电脑设备。
On 18th ,August ,2011, Hewlett-Packard (HP) announce that it will exit from the Smartphone and tablet computer business and focused on high-margin on manufacturing and providing solutions and software and stress on customer in firms, commercial and government market. Hewlett-Packard (HP) also focusing on making seven segments to an entire division i-e the Personal Systems Group (PSG), Services, the Imaging and Printing Group (IPG), Enterprise Servers, Storage and Networking (ESSN), HP Software, HP Financial Services (HPFS) and Corporate Investments.
On 31st, October, 2011, Hewlett-Packard (HP) owned an 99% equity interest in Autonomy Corporation plc. And in December 2011, the Company acquired Hefley Software GmbH
On 23rd, May, 2012, Hewlett-Packard (HP) announced plans to lay off 30,000 employees, after a decline of 31% profit in the second quarter of 2012 that is because of growing popularity of smart phones, tablets, and other mobile devices, that slowed the sale of PC.
The seven segments are describing the HP divisions:
1.3 SEGMENTS:
1.3.1 Personal Systems Group个人系统组
PSG provides commercial personal computers (PCs), consumer PCs, workstations, calculators and other related accessories, software and services for the commercial and consumer markets. The Company groups commercial notebooks, commercial desktops and workstations into commercial clients and consumer notebooks and consumer desktops into consumer clients. Commercial PCs include the HP Pro-Book and the HP Elite Book lines of notebooks and the Compaq Pro, Compaq Elite, HP Pro and HP Elite lines of business desktops, as well as the Touch Smart and Omni PCs, HP Mini-Note PCs, retail POS systems, HP Thin Clients and HP Slate Tablet PCs. Consumer PCs include the HP and Compaq series of multi-media consumer notebooks, desktops and mini notebooks, including the Touch Smart line of touch-enabled all-in-one notebooks and desktops. PSG provides workstations that run on both Windows and Linux-based operating systems.
PSG为商业和消费市场提供商用个人电脑(pc)、消费电脑、工作站、计算器和其他相关配件、软件和服务。公司将商用笔记本电脑、商用台式电脑和工作站分为商用客户端和消费者笔记本电脑、消费者台式电脑和消费者客户端。商业个人电脑包括惠普Pro-Book和惠普精英书行笔记本和康柏Pro,康柏精英,惠普Pro和惠普精英业务线的桌面,以及触摸智能和Omni电脑,惠普迷你笔记本电脑零售POS系统,惠普瘦客户机和HP Slate平板电脑。消费类个人电脑包括惠普和康柏系列多媒体消费类笔记本电脑、台式机和迷你笔记本电脑，包括Touch Smart系列的触摸式一体机和台式机。PSG提供运行在Windows和基于linux的操作系统上的工作站。
1.3.2 Services
HP provides consulting, outsourcing and technology services across infrastructure, applications and business process domains. Services delivers to its clients by leveraging investments in consulting and support professionals, infrastructure technology, applications, standardized methodologies, and global supply and delivery. Services are divided into four main business units: infrastructure technology outsourcing, technology services, applications services and business process outsourcing. Infrastructure Technology Outsourcing services encompass the data center and the workplace (desktop); network and communications; and security, compliance and business continuity. It also offers a set of managed services. Technology Services provides support and consulting services, as well as warranty support across HP’s product lines. HP’s technology services offerings are available in the form of service contracts, pre-packaged offerings (HP Care Pack services) or on an individual basis. The Company’s Applications Services encompass application development, testing, modernization, system integration, maintenance and management. Applications Services also provides technology consulting and systems integration solutions and services that use cloud computing, hybrid delivery, enterprise mobility, information management and real-time analytics. Business Process Outsourcing services includes both industry-specific and cross-industry solutions. Its cross-industry solutions include a range of enterprise-shared services, customer relationship management services, financial process management services and administrative services.
1.3.3 Imaging and Printing Group
IPG provides consumer and commercial printer hardware, supplies, media and scanning devices. IPG is also focused on imaging solutions in the commercial markets. These solutions range from managed print services to capturing high-value pages in areas, such as industrial applications, outdoor signage, and the graphic arts business. Inkjet and Web Solutions delivers HP’s consumer and SMB inkjet solutions (hardware, supplies, media, web-connected hardware and services) and develops HP’s retail publishing and Web businesses. It includes single function and all-in-one inkjet printers targeted toward consumers and SMBs, as well as retail publishing solutions, Snappish and ePrint Center. LaserJet and Enterprise Solutions delivers products, services and solutions to the medium-sized business and enterprise segments, including LaserJet printers and supplies, multi-function devices, scanners, Web-connected hardware and services and enterprise software solutions, such as Extreme Software and Web Jetadmin. Managed Enterprise Solutions provides managed print services products and solutions delivered to enterprise customers partnering with third-party software providers to offer workflow solutions in the enterprise environment. Graphics Solutions provides large format printing (Design jet and Scitex), large format supplies, Web Press supplies, Indigo printing, specialty printing systems and inkjet high-speed production solutions. Graphic Solutions targets print service providers, architects, engineers, designers and industrial solution providers. Its printer supplies offerings include LaserJet toner and inkjet printer cartridge , graphic solutions ink products and other printing-related media.
1.3.4 Enterprise Servers, Storage and Networking企业服务器、存储和网络
ESSN provides server, storage and networking products in a number of categories. The Company’s Converged Infrastructure portfolio of servers, storage and networking combined with HP Software’s Cloud Service Automation software suite creates HP’s Cloud System. This integrated solution enables enterprise and service provider clients to deliver infrastructure, platform and software as a service in a private, public or hybrid cloud environment. Industry Standard Servers offers primarily entry-level and mid-range ProLiant servers, which run primarily Windows, Linux and Novell operating systems and Intel Corporation (Intel) and Advanced Micro Devices (AMD) processors. The business spans a range of product lines that include pedestal-tower servers, density-optimized rack servers and HP’s Blade System family of server blades.
ESSN提供多个类别的服务器、存储和网络产品。该公司的服务器、存储和网络融合基础设施组合与惠普软件的云服务自动化软件包相结合，创建了惠普的云系统。这个集成的解决方案使企业和服务提供商客户能够在私有、公共或混合的云环境中将基础设施、平台和软件作为服务交付。行业标准服务器主要提供入门级和中档ProLiant服务器，主要运行Windows、Linux和Novell操作系统，以及英特尔公司(Intel)和高级微设备(AMD)处理器。该业务涵盖一系列产品线，包括基座-塔式服务器、密度优化机架服务器和惠普刀片系统系列服务器刀片。
The Company’s Business Critical Systems delivers Converged Infrastructure with a portfolio of HP Integrity servers based on the Intel Itanium processor that run the HP-UX and OpenVMS operating systems, as well as HP Integrity Nonstop solutions. Business Critical Systems also offers HP’s scale-up x86 ProLiant servers for scalability of systems. In addition, HP continues to support the HP9000 servers and HP Alpha Servers by offering customers. The Company’s storage offerings include storage platforms for high-end, mid-range and small business environments. Its flagship product is the HP 3PAR Utility Storage Platform, which is designed for virtualization, cloud and IT-as-a-service. The Storage business has a range of products, including storage area networks, network attached storage, storage management software and virtualization technologies, Store Once data reduplication solutions, tape drives and tape libraries. Its switch, router, wireless local area network (LAN) and Tipping Point network security products deliver solutions for the data center, campus and branch networks. Its networking solutions are based on HP’s Flex Network architecture.
HP Software
HP Software provides enterprise IT management software, information management solutions and security intelligence/risk management solutions. Solutions are delivered in the form of software licenses or as software-as-a-service. HP Software solutions enables IT organizations to manage infrastructure, operations, application life cycles, application quality and security, IT services, business processes, and structured and unstructured data.
HP Financial Services惠普金融服务
HPFS supports HP’s global product and service solutions, providing a range of financial life cycle management services. HPFS enables its worldwide customers to acquire IT solutions, including hardware, software and service.The Company offers leasing, financing, utility programs and asset recovery services, as well as financial asset management services for global and enterprise customers. HPFS also provides an array of specialized financial services to SMBs and educational and Governmental entities.
HPFS支持惠普的全球产品和服务解决方案，提供一系列的财务生命周期管理服务。HPFS为全球客户提供IT解决方案，包括硬件、软件和服务。公司为全球和企业客户提供租赁、融资、公用事业项目和资产回收服务，以及金融资产管理服务。HPFS还为中小企业、教育和政府实体提供一系列专门的金融服务。
Corporate Investments
Corporate Investments includes business intelligence solutions, HP Labs, WebOS software and certain business incubation projects. Business intelligence solutions enable businesses connect and share data across the enterprise and apply analytics. This segment also derives revenue from licensing specific HP technology to third parties.
The Company competes with Dell, Inc., Acer Inc., ASUSTeK Computer Inc., Apple Inc., Lenovo Group Limited, Toshiba Corporation, IBM Global Services, Computer Sciences Corporation, Accenture Ltd., Fujitsu Limited, Wipro Limited, Infosys Technologies Limited, Tata Consultancy Services Ltd, SAP, AG, Oracle Corporation, Microsoft Corporation, Canon U.S.A., Inc., Lexmark International, Inc., Xerox Corporation, Seiko Epson Corporation, Samsung Electronics Co., Ltd., Brother Industries, Ltd., International Business Machines Corporation, EMC Corporation, Net App, Inc., CA, Inc., BMC Software, Inc., Cisco, McAfee and IBM Global Financing.
1.4 HP’s Vision statement:惠普愿景声明:
“At HP, we believe diversity is a key driver of our success. Putting all our differences to work across the world is a continuous journey fuelled by personal leadership from everyone in our company. Our aspiration is that the behaviors and actions that support diversity and inclusion will come from the conviction of every HP employee – making diversity and inclusion a conscious part of how we run our business throughout the world. Diversity and inclusion are woven into the fabric of our company”
“在惠普，我们相信多元化是我们成功的关键驱动力。在我们公司每个人的个人领导力的推动下，我们将在世界各地发挥我们所有的差异。我们的愿望是，支持多元化和包容的行为和行动将来自每一位惠普员工的信念——使多元化和包容成为我们在全球运营业务的有意识组成部分。多样性和包容性融入了我们的公司。”
1.5 HP Mission:
Customer loyalty: Earn respect and loyalty by providing highest quality and value
Profit: Attain sufficient profit for finance growth, value for shareholders’ investment and corporate objectives.
Growth: To seize opportunities to growth and achieve, build on strengths and competencies.
Market leadership: To lead in the marketplace by developing and delivering useful and innovative products, services and solutions
Commitment to employees: To demonstrate our commitment to employees by promoting and rewarding based on performance and by creating a work environment that reflects our values.
Leadership capability: To develop leaders at all levels who achieve business results, exemplify our values and lead us to grow and win.
Global citizenship: To fulfill our responsibility to society by being an economic, intellectual and social asset to each country and community where we do business.
HP’s mission statement recognizes that its needs to earn the respect and loyalty of its customers; to be a market leader; to commit itself to the welfare of its employees and engage in corporate social responsibility
1.6 Objective Evaluation:
HP’s objectives are geared towards achieving its mission. This it does by providing its customers with high value and quality products; developing and delivering useful and innovative products, services and solutions; promoting and rewarding employees based on their performance and by creating a work environment that reflects its values and by being an economic, intellectual and social asset to each country and community where it does business.
1.7 Company Culture:
HP is moving fast that’s why we have to move even faster. We’re driving the world’s IT revolution armed with passion, curiosity and a global team of visionaries who never stops at impossible.
Our team is made up of optimists who know technology can empower the world. We’re filled with talented achievers who understand what our customers need even before they do. We attract the type of person who believes “no” is a challenge-not an answer.
It isn’t a coincidence that HP is a magnet for this kind of ingenuity. Our people are drawn from all over the world by our infinite opportunities and career development. The best minds in the business convene here, energized by global collaboration and the chance to propel their career past ordinary to extraordinary.
CHAPTER: 2 MICHAEL PORTER ANALYSES迈克尔·波特分析
Michael porters a Ph.D scholar in business economics from Harwad Business School, designed Five forces model in 1979, for industry analysis and business development strategy and analyze five forces such as; threat of substitute products, the threat of established rivals, and the threat of new entrants, the bargaining power of suppliers and the bargaining power of customers .Porter five forces analysis determines the company competitiveness and overall profitability of the industry. Porter five forces model was described for Hewlett-Packard (HP)
哈佛商学院(harvard business School)商业经济学博士迈克尔·波特(Michael porter)于1979年设计了五种力量模型，用于行业分析和企业发展战略，分析了五种力量，如;替代产品的威胁、现有竞争对手的威胁、新进入者的威胁、供应商的议价能力和客户的议价能力。波特五力分析决定了公司的竞争力和行业的整体盈利能力。波特五力模型是为惠普公司(HP)设计的
2.1 Threat of entry of new competitors:
The profitable markets will attract new firms because of high return, and will decrease profitibilty for whole industry. The attractive thing for the entry barriers is that entry barriers are high and exit are low so few firms can enter while maximium can leave it.
2.1.1 Barriers to Entry: (moderate)
There is moderate level for threat of new entrants in HP industry because of economies of scale achieved byexisting players which becomes their competitive advantage. The second barrier to enter in this industry is that new player need more capital to enter in this market. The third barrier for new entrant is that in such industry their is constant need for advancement of technology is required to grab the market. The forth barrier for new companies is that as standardization of computer components, their is a moderate switching cost to customer as they easily change their PCs.
2.2. The intensity of competitive rivalry:
In old economic model concept,a competetion can made a firms profit to zero, but the competition id not as perfect and firms are not unsophisticated passive price takers. So firms try for competitive advantage over its competitor and focus on competition intensity.
2.2.1 Barriers to Entry: (high)
In setup of new manufacuring units can increased fixed cost which makes difficulty for existing player to exit from the industry
Loe switching cost can increase the rivalry because when customer can easily switch from one product to other their is more difficulty for customer to retain the customer.
A high level of rivalry among firms should be associated with low level of product differentiation such that brand idenification, same level of product satisfication that create low market position of the firms.
A high exit barriers can assure that a firm will remain in the industry even a firm is not earning any profit.
Their is constant changes in product and prices that makes a strong competition between same category product such as the two cmpanies hold top market share in computers hardware industry.
IBM
Strong R&D and marketing
Gave rise to PC industry with Microsoft Windows OS
IBM Global Services – strong customer assistance
DELL
Direct business model
Low inventory costs, introduce new technology quick
Close customer relationships built loyalty
Ranked 1 in global PC market share in 2001.
2.3 The threat of substitute products/ services:
As the threat of subsititute in HP Company is moderate because switching cost for consumer is very high and frequent innovation and continuos advanmcement in technology also cause a threat for the company.
Relative price performance of substitute creates a threat for HP.
Buyer switching costs is high because low prices of HP laptops indicate that its target to middle class and upper middle class people as it is difficult for them to move from one product to other.
As number of substitute products available in the market creates a moderate threat between HP and other hardware industry.
As Quality depreciation, HP product gain more market share than any other computer hardware industry.
As new technology and advancement shakes industry and is a threat for them.
2.4 The bargaining power of customers (buyers):
The bargaining power of buyer is also important factor as a buyer is sensitive to prices and product design, so it easily makes a firm under pressure and completes his demand.
Buyer switching costs is relative to firm switching costs as the standardization of computer components it become easy for buyer to change their laptops.
As there is less number of supplier which are providing HP products to customer, so the bargaining power of buyer is moderate. So that HP customer depend upon existing channels of distribution
The reason behind few suppliers of HP products is that they are supplying products for high cost.
As HP a regularly advertized report on quarterly basis to give complete information to its buyer and dealers.
Buyers are more prices sensitive, so that HP are providing product with customer affordability.
As HP provides its customer a differential advantage (uniqueness) of the products.
2.5 The bargaining power of suppliers: (High)供应商议价能力:(高)
The bargaining power of supplier is important input factor in every industry such as providing raw material, labor, and expertise services. As supplier refuses to work with them and charges more on providing unique services. As we know that supplier are charging more on providing services because there are very few supplier on which firm trust on them and provide a good quality raw material.
供应商的议价能力是每一个行业的重要投入因素，如提供原材料、劳动力和专业技术服务。因为供应商拒绝与他们合作，并在提供独特服务时收取更多费用。正如我们所知，供应商在提供服务时收取更多的费用，因为很少有供应商能让公司信任他们并提供高质量的原材料。
As supplier are bargaining more from the firms because customers are highly fragmented throughout the world
As there are very few large supplier which are trustable, recognizable, and provide a good quality raw material such as Foxconn, Intel, and Hitachi. Degree of differentiation of inputs
Firms bargain with those entire supplier who has a strong distribution channel.
Supplier concentration to firm concentration ratio
Supplier competition – ability to forward vertically integrate and cut out the buyer
As also there is difficulty for the supplier to reproduce a specialized technology which becomes their competitive advantage.
CHAPTER: 3
PESTEL ANALYSISPESTEL分析
PEST or PESTEL analysis that stands for Political, Economic, Social, Technological, Ethic and legal analysis which shows the external environment that describes the macro-environmental factor used in environmental scanning component of strategic management. When we are doing market research, PESTEL analysis gives us an overview of all macro-environmental factors that gives an understanding of market growth or decline, business position, and potential for business.
PEST或PESTEL分析，代表政治、经济、社会、技术、伦理和法律分析，显示外部环境，描述在战略管理的环境扫描组件中使用的宏观环境因素。当我们进行市场研究时，PESTEL分析为我们提供了所有宏观环境因素的概览，从而了解市场的增长或下降、业务地位和业务潜力。
3.1 Political:
Political factors are that at what degree government makes intervention in an economy such as labor laws, environmental laws, polical stability, tax policy, trade tariffs, and trade restriction. The international IT and electronics industries have been characterized with intensive competition. Electronics and IT companies are constantly reviewing their achievements as well as the competitors’ in order to come up with better business strategies in an effort to best all other existing industry rivals. With the merger and acquisition strategy between HP and Compaq, members of the IT and electronics industry all over the world were threatened with the intensified effort that could result from the integration. Others were surprised because mergers and acquisition strategies may also result to negative implications on the part of the merging companies particularly when differences in the context of strategies, culture and goals fail to be fully integrated.
3.2 Economic:
As the economic factor include economic growth, inflation rates, interest rates, and exchange rates. As these factors effects business such as interest rates that affects cost of capital of the firm and that how firms expands or grows , exchange rates affect the costs of exporting goods and prices of imported goods in economy. For HP and Compaq merger, such merger will increase the competitiveness of these independent companies to compete with highly aggressive competitors. As both HP and Compaq merger means to add value to their existing products and services to increase the level of satisfaction among their clients and customers. When satisfaction levels were met among clients and customers, HP and Compaq expect better economic competitiveness within the international IT and electronics industry. After this when HP acquire Palm.inc shows a revolution in Smartphone manufacturing industry and gives economic development in the country.
3.3 Social:
The Social factor has emphasis on health, cultural aspect, growth rate, age distribution, career attitude and focus on safety. The change in social trends can have a direct impact on the demand for a firm’s products and the availability and willingness of individuals to work, such as in Uk for old age employees, firms gives more pensions and medical allowances, so that it cost more to firms.
As a merger between HP and Compaq will result more likely to better social activities as sponsor by both companies. As previously social and civic activities are independently supported by HP and Compaq now will be carried out in new perspective and will be beneficial for future.
3.4 Technological:
Technological factors include technological aspects such as Research and Development activity, Automation, technology incentives and the rate of technological changes. Technological factor can minimize entry barriers, reduce minimum efficient production levels and influence outsourcing decisions. And furthermore, it can affect costs, quality, and lead to new creation. As new technologies innovate new products and processes such as MP3 players, new computer games, high definition TVs are all created new markets. As technological advancement can improve business such as online shopping, also reduce costs, and improve quality. So that these advancements benefits both consumer and organizations. As HP from its starts, try to improve its technologies that are why they are merging with different companies to get benefits from technology such as a merger with Compaq, buying Palm.inc, Electronic Data System (EDS), and Apollo Company. Also HP is going towards high R & D and at present the electronics products of HP is going towards revolution with support of Compaq.
Political factors
Government Stability
Taxation, employment and safety law
Social welfare policies
Foreign trade regulations
‘Green’ issues that affect the environment
Economic factors
Total GDP and GDP per head growth rates (trends)
Inflation
Consumer expenditure and disposable income
Interest rates
Currency fluctuations and exchange rates
Investment, by the state, private enterprise and foreign companies
Business cycles
Unemployment
Socio-cultural factors
Shifts in values and culture
Change in lifestyle
Consumerism
Attitudes to work and leisure
‘Green’ environmental issues
Education and health
Social mobility
Technological factors
Government investment policy on research
CHAPTER: 4
SWOT ANALYSISSWOT分析
SWOT Analysis is a useful tool by providing a framework for analysis of an HP company. As SWOT or TOWS stands for strength, weakness, opportunities, and threats and is a common tool for assessment in term of internal and external environment of an organization.
SWOT分析是一个有用的工具，它提供了一个分析惠普公司的框架。因为SWOT或tow代表了优势、劣势、机会和威胁，是一个组织内部和外部环境评估的常用工具。
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