Assignment Manali

31
Submitted by Manali kumari ojha Roll no 52 Submitted to Prof. H P Mathur

Transcript of Assignment Manali

Page 1: Assignment Manali

Submitted by Manali kumari ojha

Roll no 52

Submitted to Prof. H P Mathur

Page 2: Assignment Manali

Strategic management is all about Formulation Implementation & evaluation of strategies So our project will revolve on these

critical parameters.

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Bill Hewlett & Dave Packard graduated in electrical engineering from STANFORD university in 1935.

The company originated in garage in nearby Palo Alto,California,USA during a fellowship in 1939 with initial capital investment of us $538

Hewlett Packard company commonly referred as ‘HP’ American multinational information technology corporation

headquartered in Palo Alto , California , USA Nearly in each country hp product lines include 01)personal computing devices 02)enterprise servers 03)related storage devices 04)diverse range of printers & imaging products Hp markets it’s products to household, small to medium size

consumers and enterprise directly as well as via online distribution

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• Vision statement “To view change in market as an opportunity

to grow, to use our profit and our ability to develop & produce innovative products ,

services and solutions that satisfy emerging customers need”

• Mission Statement

“To provide product, services and solution of highest quality and deliver

more value to our customers that earn their respect and loyalty ”

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Strengths Weaknesses

Opportunities Threats

Brand name

Low debt

Wide range of innovative products

Developing of own hardware and software

Web technology used for product awareness & sale

Lack of in-house management consulting division

Intellectual capital is underestimated

No aggressive investment in R & D

No good people retention policy

Expansion of retailed stores for customer convenience

Participation in joint venture

Make easy to use product for upcoming retirees

Computer and cell phone software & hardware

Competitor’s technology & pricing

low compatibility with non- HP product

Availability of substitute

Less global coverage than competitor

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Key Internal factorsKey Internal factorsWeightWeightRatingRatingWeighted Weighted ScoreScore

Strengths

Brand name

Low debt

Wide range of innovative products

Developing of own hardware and software

Web technology used for product awareness & sale

0.14

0.13

0.13

0.11

0.10

4

4

4

4

3

0.56

0.52

0.52

0.44

0.30

Weaknesses

Lack of in-house management consulting division

Intellectual capital is underestimated

No aggressive investment in R & D

No good people retention policy

0.10

0.08

0.11

0.10

1

2

2

2

0.10

0.16

0.22

0.20

Total1.003.02

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Key External factorsKey External factorsWeightWeightRatingRatingWeighted Weighted ScoreScore

Opportunity

Expansion of retailed stores for customer convenience

Participation in joint venture

Make easy to use product for upcoming retirees

Computer and cell phone software & hardware

0.11

0.20

0.09

0.12

3

3

2

4

0.33

0.60

0.18

0.48

Threat

Competitor’s technology & pricing

low compatibility with non- HP product

Availability of substitute

Less global coverage than competitor

0.14

0.13

0.10

0.11

4

3

4

2

0.56

0.39

0.40

0.22

Total1.003.16

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Critical success factorweight

HPDELLCANONRatingScoreRatingScoreRatingScore

Innovation0.1120.2240.4430.33Management0.0830.2440.3220.16Technology0.1240.4820.2430.36Financial Position0.1040.4030.3020.20Market share0.0930.2740.3620.18Customer loyalty0.1040.4030.3020.20Brand name0.1120.2240.4430.33Pricing0.1140.4430.3320.22Product Quality0.0940.1830.2720.18Compatibility 0.1020.2030.3040.40Promotion0.0830.2420.1640.32Total1.003.293.462.88

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TOWS

MATRIX

Strengths - S

1. Brand name

2. Low debt

3. Wide range of innovative products

4. Developing of own hardware and software

5. Web technology used for product awareness & sale

Weakness – W

1. Lack of in-house management consulting division

2. Intellectual capital is underestimated

3. No aggressive investment in R & D

4. No good people retention policy

Opportunities – O

1. Expansion of retailed stores for customer convenience

2. Participation in joint venture

3. Make easy to use product for upcoming retirees

4. Computer and cell phone software & hardware

SO - strategies (S1, S3,O1,)

(must open new retail stores throughout the world to take advantage of financial strength) (S4, O3)

(develop easy pc and cell phone for old generation)

WO – strategies (W1,W5,O2)

(develop new HR policy in order to retain human capital by taking advantage or other firm management )

Threats - T

1. Competitor’s technology & pricing

2. low compatibility with non- HP product

3. Availability of substitute

4. Less global coverage than competitor

ST – strategies(S4, T1)

(developed low price and innovative pc & cell phone than competitors )(S5,T2)

(developed such hardware and software for computer & cell phone which are compatible with other companies software and accessories)

WT – strategies (W1,T1)

(give attention to management consulting division to have more focus on technology improvements)

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Critical Region:“ST”

Managerial Decision:“Market development

Horizontal Integration”

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Internal Strategic PositionExternal Strategic position

Financial Strengths (FS)Environmental Stability (ES)

Return on Investment

leverage

Working Capital

Liquidity

Price earning ratio

Total

Average

+5

+3

+4

+5

+4

+21

+4.2

Technological changes

Rate of Inflation

Price range of Competing products

Competitive pressure

Barriers to entry into market

Demand variability

Total

Average

-3

-2

-3

-5

-4

-2

-19

-3.17

Competitive Advantage (CA)Industry Strength (IS)

Market Share

Product Quality

Customer Loyalty

Technological know-how

Control over suppliers and distributors

Total

Average

-2

-3

-2

-2

-4

-13

-2.6

Growth Potential

Profit Potential

Financial Stability

Labor costTechnological know-how

Total

Average

+5

+5

+4

+3

+4

+21

+4.2

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-6 -5 -4 -3 -2 -1 +1 +2 +3 +5 +6

+6

+5

+4

+3

+2

+1

-1

-2

-3

-4

-5

-6

AggressiveAggressiveConservativeConservative

CompetitiveCompetitiveDefensiveDefensive

ISISCACA

X-axis =CA + IS

= -2.6+(4.20)

= 1.60

Y-axis = FS + ES

= 4.2+(-3.17)

=1.03

FS

ES

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According to the space matrix score HP falls in the “AGGRESSIVE quadrant” . Their strategies should be one of the following:

• Vertical and horizontal integration•Market penetration•Market development•Product development•Diversification

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IDSEGMENTS

REVENUE %

PROFIT %

GROWTH RATE %

MARKET SHRE %

AESS192110.8

BHPS172080.1

CSOFTWARE

1.45140.6

DIPG29.23080.8

EPSG3242-100.7

FHPHS2.22-140.2

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STARS C

A II D

Question Mark

I B

CASH COWS

E

III

DOGS

IV FRelative market share

Indu

stry

gro

wth

rate

High Medium Low 1.0 .50 0.0

High +20

Medium 0

Low - 20

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i

HP

iiiii

ivvvi

viiviiiix

Strong 3.0 – 4.0 Average 2.0 – 2.99 Weak 1.0 – 1.992.03.04.0

IFE Total Weighted Score 3.02

1.0

2.0

3.0

Low

1.0 – 1.99

Medium

2.0 – 2.99

High

3.0 – 4.0

EFE

TOTA

L W

EIG

HTE

D S

CORE

3.1

6

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HP falls in first region of IE matrix and there main focus will be on “GROW AND BUILD” and they will mainly focus on strategies which are:

Market development Horizontal integration

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Quadrant IIQuadrant I

HP

Quadrant III

Quadrant IV

Slow market growth

Rapid market growth

Stro

ng c

ompe

titive

pos

ition

Wea

k co

mpe

titive

pos

ition

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HP has rapid market growth and strong competitive position so it falls in first quadrant and the most suitable strategies for HP are:

Market development Horizontal integration

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Key Internal FactorsHORIZONTAL INTEGRATION

MARKET DEVELOPEMNT

StrengthsWeightASTASASTAS

Brand name0.1430.4240.56

Low debt0.1330.3920.26

Wide range of innovative products0.1340.5230.39

Developing of own hardware and software0.1140.4430.33

Web technology used for product awareness and sale 0.1020.2030.30

Weaknesses

Lack of in-house management consulting division0.1020.2030.30

Intellectual capital is underestimated0.08--------

No aggressive investment in R & D0.1130.3320.22

No good people retention policy0.1030.3020.20

Total weight1.00

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Key External FactorsHORIZONTAL INTEGRATION

MARKET DEVELOMENT

OpportunitiesweightASTASASTAS

Expansion of retailed store for customer convenience0.1130.3340.44

Participation in joint venture0.2040.8020.40

Make easy to use product for upcoming retirees0.0930.2720.18

Computer and cell phone software and hardware0.1230.3620.24

Threats

Competitors technology and pricing0.1440.5630.42

Low compatibility with non-HP product0.1330.3920.26

Availability of substitutes0.1040.4030.30

Less global coverage than competitors0.1130.3320.22

Total weight1.00

Total Attractive Score6.245.02

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According to the total attractive score of QSPM HP should go for

“HORIZONTAL INTEGRATION”

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