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HEWLETT-PACKARD & A COMMON SUPPLIER CODE OF CONDUCT Case Solution & Answer

HEWLETT-PACKARD & A COMMON SUPPLIER CODE OF CONDUCT Case Solution

  • There is a lack of reach for the distribution network of the company to most of the viable markets of the company.
  • The operating income in the recent years has been declining and is low in the specific markets due to weak penetration of the company’s products in these markets.
  • When the company had launched the common supplier code of conduct, it also proved to be conveyed to most of its suppliers due to the complex distribution network of the company. This means that not all of the suppliers are aware of this initiative.
  • Most of the suppliers are not complying with the common supplier code of conduct for the company. This creates a gap in between the value being delivered by the company and the expectations of the customers.

Opportunities

  • The company has the opportunity to expand its enterprises and services solutions division.
  • The demand for the cloud based services has been increasing recently; therefore, the company can capitalize on this area. This market is expected to grow by 22% from 2011 to the end of the year 2020. Currently, the company is also offering many value products in the cloud based market and the company can take advantage to benefit from this growing market.
  • The company can strengthen its acquisition strategies and investments by investing more in the technology related patents. Since, the acquisition strategies of the company are weak and they are also more expensive therefore, the best alternative to this is to acquire the patents from the other companies.
  • The company should expand its business operations into the emerging countries of the world such as the China, Russia, India and Brazil. The company could set up printing and imaging businesses in these countries.
  • The company should keep on expanding in the worldwide markets and diversify its distribution channels.

Threats

  • As the profit margins are higher in the enterprise software solutions market therefore, the company might face intense competition from other incumbent firms such as IBM and Oracle.
  • The growth rate for the laptop market is becoming saturated and this is because of the intense competition from the other rival companies such as Lenovo, Samsung, Dell, Apple and Acers. The customer needs are also changing and customers are today more interested to but tablets rather than laptops.
  • The most significant threat which is faced by all the tech companies is the rapid changes which are taking place in technology.
  • All the companies are under pressure to develop and launch their products faster than the competitors. This is a severe threat for the company as it is technologically weak with regard to technological advancement and quality for some of its products as compared to competitors.
  • Since, the supply chain network of the company is complex therefore, the disruptions within the supply chains and product recalls impact upon the reputation and the quality of the company’s products.

PESTEL Analysis (External)

Political

            There are many countries around the world which still have restrictive policies for protecting the domestic suppliers and the domestic manufacturers. The growth of the electronic industry could be hampered by the legal issues and the government regulations when the international companies such as the foreign players like HP are not allowed to enter into these markets. Apart from this, the political analysis pertaining to HP emphasizes the company to focus more on its corporate social responsibility initiatives to overcome the environmental and the quality issues of the company. Today HP operates in more than 180 countries around the world; therefore, the company is exposed to significant political risk due to import duties, taxation and other tariff regulations………………..

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