Dynamics of Strategy: Analysis and Discussion
Added on 2022-12-20
46 Pages10880 Words1 Views
Running head: DYNAMICS OF STRATEGY
Dynamics of Strategy
Nam of the student
Name of the university
Author Note:
Dynamics of Strategy
Nam of the student
Name of the university
Author Note:
2
DYNAMICSS OF STRATEGY
Table of Contents
DYNAMICS OF STRATEGY 2019........................................................................................................5
SECTION 1 – Analysis and Discussion...................................................................................................5
Introduction..........................................................................................................................................5
Internal Analysis...................................................................................................................................5
Historical Analysis...............................................................................................................................6
Strategic Choices..................................................................................................................................6
Table No 1: Strategic Choices of HP....................................................................................................7
VMOST................................................................................................................................................7
Vision and Mission...............................................................................................................................7
Table No 2: Business Statement of HP.................................................................................................8
Strategy................................................................................................................................................8
Table No 3: Strategies of HP................................................................................................................8
Tactics..................................................................................................................................................8
Table No 4: Observed tactics of HP.....................................................................................................8
Product Portfolio..................................................................................................................................8
BCG Matrix (Cash Cow, Star, Problem Child, Dog)..............................................................................10
Figure No 1: BCG Matrix of HP.........................................................................................................10
Product Position.....................................................................................................................................11
Market Definition and Location.............................................................................................................11
Table No 5: Competitive positioning of other competitors of HP.......................................................12
Current Competitive Position.............................................................................................................12
Company's Aggressiveness Strategy...................................................................................................12
Table No 6: Behaviour, Strength and weaknesses of HP....................................................................13
Current Competitive Strategy.............................................................................................................13
VRIO Framework...................................................................................................................................14
Table No 7: VRIO Framework of HP.................................................................................................14
Ansoff Matrix for HP.............................................................................................................................14
Green Strategy....................................................................................................................................15
Summary of Historical Analysis.........................................................................................................15
FINANCIAL ANALYSIS......................................................................................................................16
Table No 8: HRM Financial Analysis of HP......................................................................................17
Table No 9: Cash Flow Statement of HP............................................................................................17
Table No 10: Profit and Loss statements of HP for one year..............................................................18
Table No 11: Consolidated Balance Sheet of HP................................................................................19
Table No 12: Price per unit Table.......................................................................................................19
Table No 13: Summary of the financial statement of HP....................................................................20
Summary of Financial Analysis..........................................................................................................20
Value Chain Analysis.............................................................................................................................21
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DYNAMICSS OF STRATEGY
Table of Contents
DYNAMICS OF STRATEGY 2019........................................................................................................5
SECTION 1 – Analysis and Discussion...................................................................................................5
Introduction..........................................................................................................................................5
Internal Analysis...................................................................................................................................5
Historical Analysis...............................................................................................................................6
Strategic Choices..................................................................................................................................6
Table No 1: Strategic Choices of HP....................................................................................................7
VMOST................................................................................................................................................7
Vision and Mission...............................................................................................................................7
Table No 2: Business Statement of HP.................................................................................................8
Strategy................................................................................................................................................8
Table No 3: Strategies of HP................................................................................................................8
Tactics..................................................................................................................................................8
Table No 4: Observed tactics of HP.....................................................................................................8
Product Portfolio..................................................................................................................................8
BCG Matrix (Cash Cow, Star, Problem Child, Dog)..............................................................................10
Figure No 1: BCG Matrix of HP.........................................................................................................10
Product Position.....................................................................................................................................11
Market Definition and Location.............................................................................................................11
Table No 5: Competitive positioning of other competitors of HP.......................................................12
Current Competitive Position.............................................................................................................12
Company's Aggressiveness Strategy...................................................................................................12
Table No 6: Behaviour, Strength and weaknesses of HP....................................................................13
Current Competitive Strategy.............................................................................................................13
VRIO Framework...................................................................................................................................14
Table No 7: VRIO Framework of HP.................................................................................................14
Ansoff Matrix for HP.............................................................................................................................14
Green Strategy....................................................................................................................................15
Summary of Historical Analysis.........................................................................................................15
FINANCIAL ANALYSIS......................................................................................................................16
Table No 8: HRM Financial Analysis of HP......................................................................................17
Table No 9: Cash Flow Statement of HP............................................................................................17
Table No 10: Profit and Loss statements of HP for one year..............................................................18
Table No 11: Consolidated Balance Sheet of HP................................................................................19
Table No 12: Price per unit Table.......................................................................................................19
Table No 13: Summary of the financial statement of HP....................................................................20
Summary of Financial Analysis..........................................................................................................20
Value Chain Analysis.............................................................................................................................21
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DYNAMICSS OF STRATEGY
Porter’s Value Chain..........................................................................................................................21
Table No 14: Support Activities of HP...............................................................................................22
Core Competencies.............................................................................................................................22
McKinsey’s 7-S Framework...............................................................................................................22
HR ANALYSIS..................................................................................................................................22
Figure No 2: McKinsey’s 7S Framework...........................................................................................23
Table No 15: External Elements of HP...............................................................................................24
Summary of Strengths and Weaknesses.............................................................................................24
External Analysis...................................................................................................................................24
Environment Basics............................................................................................................................24
Table No 16: External Analysis and elements of HP..........................................................................24
Customer Analysis and Market Segmentation....................................................................................25
Competitor Analysis...........................................................................................................................25
Cooperative Environment.......................................................................................................................26
Figure No 3: Porter’s Diamond Model...............................................................................................26
Table No 17: External Analysis and elements of HP..........................................................................27
Competitive Industry Environment.........................................................................................................28
Table No 18: Competitive Industry Environment of HP.....................................................................29
Key Factors for Success.........................................................................................................................29
Table No 19: 3C Analysis of HP........................................................................................................29
Industry Life Cycle.................................................................................................................................29
PESTEL Analysis...................................................................................................................................30
Degree of Turbulence in the Environment..............................................................................................31
Table No 20: Turbulence Analysis of HP...........................................................................................31
Summary of Opportunities and Threats..................................................................................................32
Strategic Fit Analysis.............................................................................................................................32
SWOT Analysis......................................................................................................................................32
Table No 21: SWOT Analysis of HP..................................................................................................32
EVR Congruence....................................................................................................................................33
Figure No 4: EVR Congruence Model...............................................................................................33
Table No 22: EVR Congruence Analysis of HP.................................................................................34
Balanced Scorecard................................................................................................................................35
Table No 23: Balanced Scorecard of HP............................................................................................35
Summary of Strategic Fit........................................................................................................................35
Trend and Sensitivity Analysis...............................................................................................................36
Table No 24: Trend and Sensitivity Analysis of HP...........................................................................36
Risk management...................................................................................................................................36
Table No 25: Risk management Analysis of HP.................................................................................37
Growth Strategic Options.......................................................................................................................37
Table No 26: Growth Strategic Options of HP...................................................................................37
Strategic Direction..................................................................................................................................37
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DYNAMICSS OF STRATEGY
Porter’s Value Chain..........................................................................................................................21
Table No 14: Support Activities of HP...............................................................................................22
Core Competencies.............................................................................................................................22
McKinsey’s 7-S Framework...............................................................................................................22
HR ANALYSIS..................................................................................................................................22
Figure No 2: McKinsey’s 7S Framework...........................................................................................23
Table No 15: External Elements of HP...............................................................................................24
Summary of Strengths and Weaknesses.............................................................................................24
External Analysis...................................................................................................................................24
Environment Basics............................................................................................................................24
Table No 16: External Analysis and elements of HP..........................................................................24
Customer Analysis and Market Segmentation....................................................................................25
Competitor Analysis...........................................................................................................................25
Cooperative Environment.......................................................................................................................26
Figure No 3: Porter’s Diamond Model...............................................................................................26
Table No 17: External Analysis and elements of HP..........................................................................27
Competitive Industry Environment.........................................................................................................28
Table No 18: Competitive Industry Environment of HP.....................................................................29
Key Factors for Success.........................................................................................................................29
Table No 19: 3C Analysis of HP........................................................................................................29
Industry Life Cycle.................................................................................................................................29
PESTEL Analysis...................................................................................................................................30
Degree of Turbulence in the Environment..............................................................................................31
Table No 20: Turbulence Analysis of HP...........................................................................................31
Summary of Opportunities and Threats..................................................................................................32
Strategic Fit Analysis.............................................................................................................................32
SWOT Analysis......................................................................................................................................32
Table No 21: SWOT Analysis of HP..................................................................................................32
EVR Congruence....................................................................................................................................33
Figure No 4: EVR Congruence Model...............................................................................................33
Table No 22: EVR Congruence Analysis of HP.................................................................................34
Balanced Scorecard................................................................................................................................35
Table No 23: Balanced Scorecard of HP............................................................................................35
Summary of Strategic Fit........................................................................................................................35
Trend and Sensitivity Analysis...............................................................................................................36
Table No 24: Trend and Sensitivity Analysis of HP...........................................................................36
Risk management...................................................................................................................................36
Table No 25: Risk management Analysis of HP.................................................................................37
Growth Strategic Options.......................................................................................................................37
Table No 26: Growth Strategic Options of HP...................................................................................37
Strategic Direction..................................................................................................................................37
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DYNAMICSS OF STRATEGY
Suitability – Suitable to whom and what................................................................................................38
Table No 27: Suitability Elements of HP............................................................................................38
Suitability to Resource Base...................................................................................................................38
Table No 28: Suitability to Resource Base of HP...............................................................................38
Suitability to Culture..............................................................................................................................38
Figure No 5: Cultural Web.................................................................................................................38
Table No 29: Elements of suitability of HP........................................................................................39
Suitability to Purpose of the Company...................................................................................................39
Use Lynch (2015, p195-220)..............................................................................................................39
Table No 30: Suitability to the purpose of HP....................................................................................40
Suitability to Stakeholders......................................................................................................................40
Table No 31: Suitability to Stakeholders of HP..................................................................................40
Summary of Suitability...........................................................................................................................40
Acceptability..........................................................................................................................................40
Acceptability of Business Model............................................................................................................40
Acceptability to Ethics and Social Responsibility..................................................................................40
Acceptability to Knowledge Management..............................................................................................41
Acceptability to Technology...................................................................................................................41
Acceptability using Blue Ocean Strategy...............................................................................................41
Summary of Acceptability Analysis.......................................................................................................41
Conclusion..............................................................................................................................................42
References..............................................................................................................................................43
Bibliography...........................................................................................................................................45
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DYNAMICSS OF STRATEGY
Suitability – Suitable to whom and what................................................................................................38
Table No 27: Suitability Elements of HP............................................................................................38
Suitability to Resource Base...................................................................................................................38
Table No 28: Suitability to Resource Base of HP...............................................................................38
Suitability to Culture..............................................................................................................................38
Figure No 5: Cultural Web.................................................................................................................38
Table No 29: Elements of suitability of HP........................................................................................39
Suitability to Purpose of the Company...................................................................................................39
Use Lynch (2015, p195-220)..............................................................................................................39
Table No 30: Suitability to the purpose of HP....................................................................................40
Suitability to Stakeholders......................................................................................................................40
Table No 31: Suitability to Stakeholders of HP..................................................................................40
Summary of Suitability...........................................................................................................................40
Acceptability..........................................................................................................................................40
Acceptability of Business Model............................................................................................................40
Acceptability to Ethics and Social Responsibility..................................................................................40
Acceptability to Knowledge Management..............................................................................................41
Acceptability to Technology...................................................................................................................41
Acceptability using Blue Ocean Strategy...............................................................................................41
Summary of Acceptability Analysis.......................................................................................................41
Conclusion..............................................................................................................................................42
References..............................................................................................................................................43
Bibliography...........................................................................................................................................45
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DYNAMICSS OF STRATEGY
DYNAMICS OF STRATEGY 2019
SECTION 1 – Analysis and Discussion
Introduction
The HP Company is also referred to as the Hewlett Packard Company and is a
multinational information technology based in California, USA. The company manufactures
different types of hardware components as well as software components for both personal and
professional uses. The company provides services to a large number of different people as well
as different kinds of large as well as medium and small scale companies. The company has
been a revolution in the development and the change of the computer technology. The merger
of the company with Compaq and the acquisition of EDS has been two of the best and
calculated decisions by the management of the company as it has helped the organization to
scale new heights in the highly competitive market. The company was divided into two parts in
the year 2015 as HP spurned off the business of the enterprise products and services in
November 2015 whereas the PC and printer business was kept with a new subsidiary of the
parent company named HP Inc.
The report has detailed out the different kinds of the strategies of HP and has provided a
strategy based marketing report for the company. The report has started with the internal and
the external analysis of the company and has gradually proceeded with the discussion of the
Mckinsey’s 7s Analysis, SWWOT analysis, PESTEL Analysis as well as the analysis of the
BCG matrix and many more as such. The providence of such kind of different matrices and
theories has helped in the analysis of the strategy in the most appropriate manner. Strategy is
such an element in the business that separates the different business organizations and provides
the business the necessary competitive advantage required for the success of the business
organization in the market. Data Analytics, software development, network and the IT related
infrastructure developed by the business enterprises has been helping the company to generate
the revenue offered by the large list of the products and services under one roof.
Internal Analysis
The internal analysis of the company is one of the most important methods to identify
the internal strengths, weakness and the future opportunities and threats to be faced by the
business enterprise. The intern analysis off the company is thus one of the most important
perspectives in the analysis of the business strategies of Hewlett Packard Company.
5 of 22
DYNAMICSS OF STRATEGY
DYNAMICS OF STRATEGY 2019
SECTION 1 – Analysis and Discussion
Introduction
The HP Company is also referred to as the Hewlett Packard Company and is a
multinational information technology based in California, USA. The company manufactures
different types of hardware components as well as software components for both personal and
professional uses. The company provides services to a large number of different people as well
as different kinds of large as well as medium and small scale companies. The company has
been a revolution in the development and the change of the computer technology. The merger
of the company with Compaq and the acquisition of EDS has been two of the best and
calculated decisions by the management of the company as it has helped the organization to
scale new heights in the highly competitive market. The company was divided into two parts in
the year 2015 as HP spurned off the business of the enterprise products and services in
November 2015 whereas the PC and printer business was kept with a new subsidiary of the
parent company named HP Inc.
The report has detailed out the different kinds of the strategies of HP and has provided a
strategy based marketing report for the company. The report has started with the internal and
the external analysis of the company and has gradually proceeded with the discussion of the
Mckinsey’s 7s Analysis, SWWOT analysis, PESTEL Analysis as well as the analysis of the
BCG matrix and many more as such. The providence of such kind of different matrices and
theories has helped in the analysis of the strategy in the most appropriate manner. Strategy is
such an element in the business that separates the different business organizations and provides
the business the necessary competitive advantage required for the success of the business
organization in the market. Data Analytics, software development, network and the IT related
infrastructure developed by the business enterprises has been helping the company to generate
the revenue offered by the large list of the products and services under one roof.
Internal Analysis
The internal analysis of the company is one of the most important methods to identify
the internal strengths, weakness and the future opportunities and threats to be faced by the
business enterprise. The intern analysis off the company is thus one of the most important
perspectives in the analysis of the business strategies of Hewlett Packard Company.
5 of 22
6
DYNAMICSS OF STRATEGY
Historical Analysis
Strategic Choices
The management of HP has been gradually developing from a leading manufacturer of
PC to an innovator of new models and technologies. The largest task of the company has been
to align the strategy of the enterprise with it innovations to ensure the creation of different
kinds of sustainable products. The presence of the sustainable products has been helpful to
ensure the success of the company in a proper and efficient manner. The management has also
ensured that the strategies are originally implemented in the workplace to ensure that they
remain at the top in the highly competitive modern market. Some of the steps that has been
taken by the management of HP in order to ensure a proper and feasible strategic choices are as
follows;
a. Rebooting the Review Cycle
b. Preparation of the strategic communication
c. Establishment of Hyper Transparency
d. Maintaining a team of marketing experts who are able to determine and implement the
best possible strategies in the market
The major business strategies of the organization are divided into three main areas. This
includes the likes of Core, Growth and future. Each of these strategic choices have been
defined and accordingly divided into two different sub-categories which are then further
categorized under two different types. A table has been provided that helps to define the
following strategic choices.
Core Growth Future
$385 billion $150 billion $10 Billion-$30
Billion
Printer Category
Revitalize the
consumers
Drive the
commercial
Growth
Disruption of
the
commercial
market
Accelerated
Graphics
Leading the
3D Printing
Personal Systems
Category
Leading the
Commercial
Growth
Expansion of
the
commercial
Creation of
new
immersive
6 of 22
DYNAMICSS OF STRATEGY
Historical Analysis
Strategic Choices
The management of HP has been gradually developing from a leading manufacturer of
PC to an innovator of new models and technologies. The largest task of the company has been
to align the strategy of the enterprise with it innovations to ensure the creation of different
kinds of sustainable products. The presence of the sustainable products has been helpful to
ensure the success of the company in a proper and efficient manner. The management has also
ensured that the strategies are originally implemented in the workplace to ensure that they
remain at the top in the highly competitive modern market. Some of the steps that has been
taken by the management of HP in order to ensure a proper and feasible strategic choices are as
follows;
a. Rebooting the Review Cycle
b. Preparation of the strategic communication
c. Establishment of Hyper Transparency
d. Maintaining a team of marketing experts who are able to determine and implement the
best possible strategies in the market
The major business strategies of the organization are divided into three main areas. This
includes the likes of Core, Growth and future. Each of these strategic choices have been
defined and accordingly divided into two different sub-categories which are then further
categorized under two different types. A table has been provided that helps to define the
following strategic choices.
Core Growth Future
$385 billion $150 billion $10 Billion-$30
Billion
Printer Category
Revitalize the
consumers
Drive the
commercial
Growth
Disruption of
the
commercial
market
Accelerated
Graphics
Leading the
3D Printing
Personal Systems
Category
Leading the
Commercial
Growth
Expansion of
the
commercial
Creation of
new
immersive
6 of 22
7
DYNAMICSS OF STRATEGY
Grow
Premium
brands
mobility categories
Table No 1: Strategic Choices of HP
Source: (As created by the Author)
VMOST
Vision and Mission
The selection of the vision and the mission for the business organization is one of the
major determinants for the strategic success of the business organization. HP provides
technological products, software and services to the individual customers, small and big
enterprises a well as the government. The management of the company has the belief that two
of the separate units of the company is able to bring more efficiency and different profits to the
brand. The company thus takes special care of their brand image and thus invests heavily on a
sustainable and environmentally suitable form of leadership. The company was able to change
its course accordingly as because of the different kinds of the technological and innovative
changes to bring products that suits the needs of the customers. HP unlike the other companies
and business organizations classifies its vision and mission statement to be the same.
The vision of the company is to create the necessary technology that makes life better
for each and every one. This helps to motivate the employees of the organization and also
invent as well as reinvent the different kinds of the organizational products and the services.
The management of the business organization has been able to push its employees to a
common motivation that defines the organization as to be dedicated towards innovation and
discovery. It is the task of the business organization to never stop reinventing and continuing
their task of pushing ahead beyond limits to serve the customers in a better manner.
Statement What Company is
doing?
Achieved/ Not Achieved
To Make What we
Make
The company has been
going on inventing and
Achieved
7 of 22
DYNAMICSS OF STRATEGY
Grow
Premium
brands
mobility categories
Table No 1: Strategic Choices of HP
Source: (As created by the Author)
VMOST
Vision and Mission
The selection of the vision and the mission for the business organization is one of the
major determinants for the strategic success of the business organization. HP provides
technological products, software and services to the individual customers, small and big
enterprises a well as the government. The management of the company has the belief that two
of the separate units of the company is able to bring more efficiency and different profits to the
brand. The company thus takes special care of their brand image and thus invests heavily on a
sustainable and environmentally suitable form of leadership. The company was able to change
its course accordingly as because of the different kinds of the technological and innovative
changes to bring products that suits the needs of the customers. HP unlike the other companies
and business organizations classifies its vision and mission statement to be the same.
The vision of the company is to create the necessary technology that makes life better
for each and every one. This helps to motivate the employees of the organization and also
invent as well as reinvent the different kinds of the organizational products and the services.
The management of the business organization has been able to push its employees to a
common motivation that defines the organization as to be dedicated towards innovation and
discovery. It is the task of the business organization to never stop reinventing and continuing
their task of pushing ahead beyond limits to serve the customers in a better manner.
Statement What Company is
doing?
Achieved/ Not Achieved
To Make What we
Make
The company has been
going on inventing and
Achieved
7 of 22
8
DYNAMICSS OF STRATEGY
reinventing
To Engineer
Experiences than
amaze
Engineering experiences
of both the employees and
the customers
Achieved
Table No 2: Business Statement of HP
Source: (As created by the Author)
Strategy
Observed Strategies Alignment to Vision and
Mission Reinvent
Alignment is achieved Innovation
Experts of the company
helps to achieve the said
vision and mission
Table No 3: Strategies of HP
Source: (As created by the Author)
Tactics
Observed Tactics Alignment to Vision and
Mission Rebooting the Review Cycle Alignment Done Maintaining a team of marketing experts Alignment Done
Table No 4: Observed tactics of HP
Source: (As created by the Author)
Product Portfolio
A product Portfolio can be cited as the collection of all the different products and
services offered by the business organization. Product Portfolio Analysis can help to provide
critical views on the type of the stocks, growth of the company, drivers of the profit margin,
8 of 22
DYNAMICSS OF STRATEGY
reinventing
To Engineer
Experiences than
amaze
Engineering experiences
of both the employees and
the customers
Achieved
Table No 2: Business Statement of HP
Source: (As created by the Author)
Strategy
Observed Strategies Alignment to Vision and
Mission Reinvent
Alignment is achieved Innovation
Experts of the company
helps to achieve the said
vision and mission
Table No 3: Strategies of HP
Source: (As created by the Author)
Tactics
Observed Tactics Alignment to Vision and
Mission Rebooting the Review Cycle Alignment Done Maintaining a team of marketing experts Alignment Done
Table No 4: Observed tactics of HP
Source: (As created by the Author)
Product Portfolio
A product Portfolio can be cited as the collection of all the different products and
services offered by the business organization. Product Portfolio Analysis can help to provide
critical views on the type of the stocks, growth of the company, drivers of the profit margin,
8 of 22
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