Hewlett-PackardCase Study

International Corporate Strategy Hanoi, December 2003

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Group #1 Members

2

Nguyen Anh Tuan VACO

Nguyen Xuan Tien Ford VN

Tran Lan Anh UBK VN

Nguyen Thang Quang EVN Hanoi

Nguyen Thanh Ha Prudential VN

Le My Hanh VID Public Bank

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Table of Contents

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Section 1. Company Profile

Section 2. External Analysis

Section 3. Internal Analysis

Section 4. Past Challenges & Measures

Section 5. Future Challenges & Measures

Section 6. Strategic Idea for Thinking

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Section 1. Company Profile

4

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Company Profile

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Numbers of staff: 141,800 global

Revenue as of 31 October 2003: $73.1 billion

Operation: In 187 countries

AFTER MERGER WITH COMPAQ 2002:

Found by Hewlett & Packard in 1933

Headquarter: USA

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Corporate Governance & Key Stakeholders

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Investors

Board of Directors

CEO

Business Group

Business Group

Business Group

Business Group

Public

Firm

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Vision & Mission

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“DiversityInclusion

Work&Life Balance”

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Operations

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FOUR CORE BUSINESS GROUPS:

1. Enterprise System Group (ESG)

2. Imaging and Printing Group (IPG)

3. HP Services (HPS)

4. Personal System Group (PSG)

Operation internationally under global strategy

Strategic alliance partners to provide services

Distribution through multi local agents

R&D $4 billion annual investment

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Products & Services

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Desktops & Workstations

Notebook & Table PC

Handheld Devices

Monitors & Projectors

Printing & Multifunction

Fax, Copiers, Scanners

Digital Photography

Storage

Server

Networking

Software Products

Supplies & Accessories

Services

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Vietnam Market Share (%)

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Server

Compaq 48

IBM26

HP15

Monochrom Laser Printer

HP 85

Epson 15

Color InkJet Printer

Epson 60

HP 37

Canon 2

Other 1

Scanner

HP 48

Epson 36

Acer 9

Other 7

CD-ROM writer

HP 47

LG 26

Yamaha 8

Other 19

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Section 2. External Analysis

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Industry Matrix

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Rating Score Rating Score Rating Score

Price 0.15 3 0.45 3 0.45 3 0.45

Product Quality 0.2 4 0.8 4 0.8 5 1

Customer Relation 0.1 4 0.4 3 0.3 3 0.3

Distribution 0.1 4 0.4 3 0.3 3 0.3

R&D capability 0.15 3 0.45 5 0.75 5 0.75

Integrated Solution 0.1 3 0.3 5 0.5 3 0.3

Marketing/ Advertising 0.1 3 0.3 3 0.3 3 0.3

People Development 0.1 4 0.4 3 0.3 3 0.3Total 1 3.5 3.7 3.7

HP IBM DellCritical Success Factor Weight

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EFAS

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External Factor Weight Rating Weighted Score

Comments

Opportunities:

O1. High market future potentiality

0.15 4 0.60

O2. Stable politics 0.20 3 0.60

O3. Strong government commitments

0.25 4 1.00

Threats:

T1. Low market demand from corporate and users

0.15 3 0.45

T2. Competition with international players

0.15 4 0.60

T3. China threats 0.10 3 0.30

Total 1.00 3.55

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Section 3. Internal Analysis

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IFAS

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Internal Factor Weight Rating Weighted Score

Comments

Strengths:

S1. Product diversity 0.3 4 1.20

S2. Leading in printing technology

0.25 5 1.25

Weaknesses:

W1. Cost problem 0.25 1 0.25

W2. Staffing problems 0.20 2 0.40

Total 1.00 3.10

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SFAS

16Sh

ort

Inte

rmid

iate

Lon

g

O1. High market future potentiality 0.1 4 0.4 X

O2. Stable politics 0.05 3 0.15 X X X

O3. Strong government commmittment 0.1 3 0.3 X X X

T1. Low market demand from corporate and users 0.1 3 0.3 X X

T2. Competition from international players 0.15 4 0.6 X X X

T3. China threats 0.05 4 0.2 X X

S1. Product diversity X X X

S2. Leading in imaging and printing technology 0.15 5 X X X

W1. Cost problem 0.15 3 X X X

W3. Staffing problems 0.15 3 0.45 X X X

Total 1 2.4

Comment

Duration

Key Strategic Factor Weight RatingWeighted

Score

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Section 4. Past Challenges & Measures

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Past Challenges

HR issue

Poor infrastructure

Operating loss 1,012 million

in 2002

Strong competitors (IBM for

solution; Dell for PC)

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Past Measures

MERGE WITH COMPAQ (May 2002)

Cost cut, staff reduce

Support Government’s Initiatives

Staff re-organization

Merge Compaq for More Competitive

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Section 5. Future Challenges & Measures

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Future Challenges

One company two brands

HR issue after merge

Loss carried forward

Two strategic management styles

Stronger Competition From Both International Players and China

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Future Measures

Clear communication to public about brands

Reorganization

Revenue improvement & cost cutting

Integration of two management styles/ One should accept the other

Product quality and innovation

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Section 6. Strategic Idea for Thinking

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TOWS Matrix

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IFAS

EFAS

Strengths (S):

S1. Product diversity

S2. Leading in printing technology

Weaknesses (W):

W1. Cost problem

W2. Staffing problem

Opportunities (O):

O1. High market potentiality

O2. Stability

O3. Strong government commitments

SO Strategies:

Expand market (S1,2/ O1)

Cooperate with Gov to improve IT infrastructure (S1, 2/ Q2,3)

WO Strategies:

Reorganization (W1,2/ O1)

Cost reduction (W1/ O1)

Cooperation with local agencies to develop HR (W2/ O2,3)

Threats (T):

T1. Low demand from corporate and users

T2. Competition with international players

T3. China threats

ST Strategies:

More focus on corporate & users (S1,2/ T1)

Localization and improve onsite services (S1,2/ T2)

WT Strategies:

Create learning & innovation and culture (W2/ T2)

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Thank You For Your Attention!

Q&A