hp report

Essay by nikkitaahUniversity, Bachelor'sA, May 2012

download word file, 16 pages 0.0

Hewlett Packard


Executive summary

Hewlett-Packard operates in the information technology industry offering diverse products, ranging from small personal electronic devices for individual consumers, to small and medium business technologies, all the way up to supercomputer installations (HP, 2011b). HP is well placed within the industry itself, with revenue totalling $126 billion during the year ending Oct 31 2010 (Datamonitor, 2011 p4); it is also a market leader in PC shipments and the global printers market.

HP has been facing changing economic conditions due to the nature of the global economy and has had changing revenues due to events such as the GFC. HP is also dealing with changing technologies such as the emergence of the tablet pc market which HP has been struggling to respond to and the emerging cloud computer market.

HP is also dealing with a change in CEO from Leo Apotheker to Meg Whitman which meant a change to Apotheker's strategy of leaving the PC business that HP is market leader of to focus on emerging cloud computing and the B2B market.

This announcement has damaged the brand and share price, Whitman is due to deal with reversing this strategy and position HP for the future.

PESTEL Analysis

Political trends

Many countries have different taxes that effect businesses like HP, such as the GST in Australia or the VAT tax in EU nations, this effects the prices of HP products charged to customers. Secondly politicians sometimes change business tax rates which affect the profits of HP at the end of the year.

Economic trends

HP is not immune from the effects of the global economy, when the economy slows so does consumer spending meaning that as HP provides consumer products demand will be less as a result.

Hp's PC sales are shown below from 2005 to...