Analysis of Strategy formulation and Implementation at Hewlett - Packward

Presented by Group 4FORE School of Management, New Delhi

Presented to:Prof. Anil Singh

Challenges faced by HP• High degree of change in the competitive

environment.• Reduced capital expenditure by customer in IT.• Slow or declining growth in key industries such as

defence or aerospace.• Advances in open system which are lowering the

entry barrier as well as switching cost.• Growth of alternative distributing channel which

are eroding margins.

Dynamism in strategy formulation & Implementation

• Key focus area for total quality are customer focus , employee participation and improvement cycle and process management.

• Hoshin-Kanri – standardized method of defining key issues at each level rather than being a centralized planning tool. (Can this be true for every industry?)– Each Unit becomes a strategy owner– Higher level focus on the development of strategies that

lead to breakthroughs (radical innovation) while lower level concentrate towards continuous improvements (Incremental innovation)

Process of Management at HP• Establish a Purpose – Communicating with

customer, Scanning Business Environment, Aligning Organisational and BU objectives.

• Build a shared vision – Involves developing common value which ensures and maintain alignment.

• Develop Shared plans• Lead the action • Evaluate results and processes

Critical Business Process at HP

Manufacturing

Marketing

R&D Engineering

Product Management Process Demand

Management Process

Supply Management Process

Dynamics strategy formulation and implementation tools and framework

• Envisioning – will explain verbally• Breakthrough Objectives – will explain verbally• Ten Step Business Planning process – will explain

verbally• Business strategy review – will explain verbally• Leadership and teaming – will explain verbally• Measurement and evaluation – will explain verbally

Conclusion

1. Strategy formulation cannot be detached from strategy implementation and in this context the process of management plays a key role

2. Strategy should be developed at the point where the highest quality knowledge exist

3. Supportive structures are necessary, if individuals are to act readily on such knowledge

4. The knowledge generation process relies on the availability of the appropriation tools and framework.

Some Observation by the group

• Can Hoshin Kanri technique be applied to other companies/sectors?

• How customers will benefit through strategy formulation process?

Thank You!