Hewlett Packard: Strategic Audit

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Hewlett-Packard - Strategic Audit

Table of Contents

SNO Topic Page No.
1 Abstract 3
2 Proposed Vision Statement 3
3 Proposed Mission Statement 3
4 External Audit 4
4.1 Opportunities 4
4.2 Threats 4
4.3 CPM - Competitive Profile Matrix 5
4.4 External Factor Evaluation (EFE) Matrix 5-6
5 Internal Audit 7
5.1 Strengths 7
5.2 Weaknesses 7
6 Internal Factor Evaluation (IFE) Matrix 8
7 SWOT Strategies 9
8 SPACE Matrix 10
9 Grand Strategy Matrix 11

1. Abstract

Headquartered in Palo Alto, California, Hewlett-Packard's common stock is publicly-traded on the New York Stock Exchange under the ticker symbol HPQ (Hp.com, 2008).

Hewlett-Packard operates in five segments: Enterprise Storage and Servers, Services, Software, Personal Systems, Imagining and Printing, and Financial Services. The company has over 170,000 employees and is led by CEO Mark Hurd whose base pay was $14 million in 2007. The firm's major competitors include Dell, IBM, Canon, Texas Instruments, and Apple.

2. Vision Statement (proposed)

To become recognized as the number one computer company in the world.

3. Mission Statement (proposed)

Hewlett-Packard is committed to being the best technology solutions provider to consumers, businesses and institutions globally by providing superior products and services for businesses and personal consumers (1,2). Our emphasis is based on domestic and global markets (3). We provide information technology systems to serve our customers more efficiently (4). We are dedicated to quality and consistency to maintain and gain customer loyalty (6). We are dedicated to growth and profitability (5) by treating employees (9) in ways that create extraordinary products for our customers, and that create high shareholder value, while maintaining a valued name throughout the computer and technology industry (8). Hewlett-Packard is synonymous with quality products and high customer satisfaction in every product and service that we provide (7) (Hp.com, 2008).

1. Customer
2. Products or services
3. Markets
4. Technology
5. Concern for survival, profitability, growth
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees

4. External Audit (Hp.com, 2008)

4.1 Opportunities

1. The worldwide personal computer industry posted its fourth consecutive year of double digit expansion in 2006, recording 10 percent unit growth.
2. PC shipments in the Asia-Pacific region expanded by an estimated 17.6 percent in 2006 on a unit basis.
3. IDC's "rest of the world" category, which includes Eastern Europe, Latin America, and the Middle East rose 22 percent on a preliminary basis.
4. It is estimated that the PC industry will post total unit growth of approximately 11 percent for 2007.
5. Dell's units sold declined 8.4 percent, so Dell's market share fell by nearly 300 basis points on a year-over-year basis.
6. Over the past three years, Gateway's gross margins narrowed from 14.4 percent in the first quarter of 2004 to 5.2 percent in the fourth quarter of 2006
7. During the fourth quarter of 2006, server market revenue grew by 5.2 percent.
8. Dell achieved server market share of 9.4 percent on server revenue growth of 2.4 percent, down from 9.6 percent
9. Worldwide revenues for servers were up 2.0 percent to $52.3 billion.
10. In the first ...