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    Preform a Strategic Audit of Hewlett-Packard (HP)

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    We are going to perform a strategic audit of a well-known public company, Hewlett-Packard, Inc. (HP). There is a lot of information about HP, Inc. The company has experienced both success and hard times, including recent CEO changes.

    PART 1
    ? Organizational mission and vision
    ? Products and brands
    ? Organizational stakeholders
    ? CEO and executive team
    ? Geographic markets
    ? Financials: Revenues/Profits/Return on Equity, etc.

    PART 2
    ? Perform an Industry Analysis using Porter's Five Forces Model.
    ? Analyze key factors of the macroenvironment.
    ? Identify environmental threats and opportunities.

    PART 3
    Perform a current SWOT analysis of Hewlett-Packard, Inc. report:
    ? Identify and analyze internal strengths and weaknesses.
    ? Identify and analyze external threats and opportunities.
    ? Complete the SWOT Analysis.

    PART 4
    HP relative to Carly Fiorina's tenure as CEO with the company:
    ? Identify and analyze strategic choices HP, Inc. made during ex-CEO Carly Fiorina's tenure.
    ? What key strategic choices did Ms. Fiorina make as CEO?
    ? Do you rate her strategic choices as effective?
    ? Were her cost-cutting strategies effective?
    ? What are some of her major accomplishments and failures while CEO of HP, Inc.?

    PART 5
    ? Summarize why HP, Inc. lost revenue and market share during ex-CEO Carly Fiorina's tenure, and critically compare the Compaq merger/acquisition with the acquisition of EDS under CEO Hurd.
    ? Critically assess the strategic choices made by ex-CEO Carly Fiorina, comparing them with those made by current CEO Mark Hurd.

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    Solution Preview

    Strategic Analysis: Hewlett-Packard

    This report is based on the strategic audit of Hewlett-Packard. First part of this report will provide an understanding to the readers regarding basic information of the company such as mission and vision of the company, wide range of products and services, stakeholders and executive team of HP, its financial performance and the worldwide presence in various geographical areas.

    Part 2 of this strategic report will help the reader to take a review of the industry environment in which HP is operating. This industry analysis will cover external and macro environmental factors. With the help of PEST analysis and evaluation of environmental threats and opportunities, we can assess the future assumption for company's performance.

    Third part of the report will conduct a SWOT analysis of the company which comprises internal and external analysis the organization.

    The fourth part of the report describes the tenure and leadership process of HP's ex-CEO Carly Fiorina. This part will give a deep knowledge about the key strategic choices of Carly and effectiveness of her tenure.

    Last part of the paper will increase the reader's knowledge and comparing the merger and acquisition of strategy of HP under the leadership of ex-CEO Carly and current CEO Mark Hurd. This part will also compare the strategic choice of Carly and Mark.

    By means of the following paper, I am going to analyze the various parameters that are associated with the Hewlett-Packard.

    Part 1
    About Hewlett-Packard
    Hewlett-Packard was founded by Bill Hewlett and Dave Packard on January 1, 1939. Presently, it is well known as HP in all over the world and has become leading company in the IT industry (Hewlett-Packard: About us, 2009). The corporate headquarter of the company is situated in Palo Alto. According to the annual report 2008 of the company, there are approximately 321,000 are working in the organization (Hewlett-Packard: HP fast facts, 2009).

    The mission state of the company is not limited with the organization's benefits but also align the consumer's profit. The mission of the company is to earn customer loyalty so that the management can retain them for a long time in this competitive environment (Hewlett-Packard: HP corporate objectives and shared values, 2009).

    The main objective of the company is to ear profit and increase the market share, so that it can become a market leader and maintain its growth for the future (Hewlett-Packard: HP corporate objectives and shared values, 2009). The mission and vision of the company also include the commitment towards employee for their personal growth and success (Hewlett-Packard: HP corporate objectives and shared values, 2009).

    The mission and vision of the company is to identify various technologies and services for the customers. By this way the company can increase their market share and serve the society with effective technology services (Hewlett-Packard: HP corporate objectives and shared values, 2009). The mission and vision statement of the company drives the values of the business in favors of organization as well as customers. By this way the company can concentrate on the challenges of the external and internal environment and develop strategies to face them with maximum possibilities.

    Hewlett-Packard deal with the products and services related to information technology. It has a wide range of product with the Brand name of HP. It provides all kinds of household and business products related to IT through direct and online marketing (Hewlett-Packard: About us, 2009). The product and services category of the company includes various kinds of Laptops, computer monitors, handhelds & calculators, scanner & faxes, printers, Software, ink-tonner & paper, server & storage, IT services, networking, etc. (Hewlett-Packard: Products & Services, 2009).

    By evaluating its wide ranges of products and services, it can be said that the company serve its customers with all kinds of products related to communication technology, networking and computers.

    The stakeholders of the company include the customers, the employees, shareholders, suppliers, vendors, creditors and the government (Phillips, 2003). The goals of the stakeholders are the major part of the organization goal. The one of the major goals of the company is to earn maximum profit and serving highly innovative services and products. The stakeholders of the company also wants to take maximum benefits and in terms of services as well as money (Stakeholders, 2009). Along with this, the goal of the company is to build advantage for their stakeholders, which includes their employees and their communities in an ethical and legal manner (Phillips, 2003).

    Their efforts, together with financial order, have delivered to the shareholders some of the strongest results of history. Plan to Win represents a full dedication to customers. This plan focuses on continuously increasing relevance to everyday life of the customers through many ideas of great information technologies (Stakeholders, 2009).

    The Team of company's board of directors and executives is very big and includes the name of professionals in the IT industry. Presently the CEO of the company is Mr. Mark V. Hurd. The names of board of directors of the company are Marc L. Andreessen, Lawrence T. Babbio, Sari M. Baldauf, Rajiv L. Gupta, John H. Hammergren, Mark V. Hurd, and G. Kennedy Thompson (Hewlett-Packard: Board of directors, 2009).

    The executive team of the company comprises the name of Pete Bocian, executive vice president and Chief Administrative Officer, Todd Bradley, executive vice president of personal systems group, Michael J. Holston, executive vice president and general counsel of the company, Ann M. Livermore, executive vice president of HP enterprise business, Randy Mott, Executive vice president and chief information officer, Shane Robison, executive vice president and chief strategy and technology officer and Cathie Lesjak, executive vice president and chief financial officer (Hewlett-Packard: Executive team, 2009).

    HP operates in all over the world and the company is situated in many geographical areas. The company operates in more than 120 countries in all over the world. Offices of the company are situation in the following geographical areas includes many company such as United States of America in Florida, Harris County, Texas, Europe in Geneva, Latin America in Miami-Dade County, Florida, Asia Pacific in Singapore. The company has outlets almost in all the country and it serve the consumers at global level.

    Financial position of the company is very strong. It is operating very well and earning good revenues year by year. At the end of fiscal year 2008, total revenue of the company is estimated US $ 118.364 billion. Due to the increase in the sale net profit of the company in 2008 is very high. Net income of the company is US$ 8.329 billion and total equity of the company in 2008 is US$ 38.942 billion (Yahoo Finance: Hewlett-Packard, 2009).

    Part 2
    Porter's Five Forces Analysis for HP
    Porter's five forces analysis is very helpful to evaluate the industry in which Hewlett-Packard operates. Porter's five forces contribute and shape the competition in the IT industry to which Hewlett-Packard belongs, in the following manner:
    Threat of New Entrants: HP is very well established company. New entrants decrease profitability. The profit rate of the company will continuously fall unless the entry of new firms is blocked by the management of the company (Wheelen & Hunger, 2007). The management of HP should focus on the brand, patents, ...

    Solution Summary

    A strategic audit for Hewlett-Packard is performed. An industry analysis using Porter's five forces model is given.