Hewlett-Packard Company Internal Risk Assessment
Founded on January 1, 1939, the Hewlett-Packard Company was created by Bill Hewlett and Dave Packard. The management technique used was personal involvement by management, walking around, having good listening skills, and realizing that everyone in the company wants to do a good job was the key. Both managers ran the company with a principle called management by objective, which is clearly communicating the general objectives and giving employees ample room to work the goals of the company to the individual’s best ability. The employee’s personal expertise would make the employees responsible enough to achieve the company’s goals.
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Hewlett’s side” the management strategy has brought the company very far from the humble beginning. The credibility of the company was in question yet the acquisition of smaller companies and the merger with Compaq Computer Corporation in 2002 that year was still a success.
Hewlett-Packard is a pioneering company for research and development from its early beginning. The company began with two employees and revenue of $5369 and over the years with the management style of Bill Hewlett and Dave Packard has placed the company in the 21st century as becoming the world’s largest technology company (Hewlett-Packard, 2011). The research that the company does on what the customer wants helps the company venture in portable computing, enters the market of owning a home computer, and keeps on inventing new printing and imaging solutions. The company ventures in globalization by the end of the 1970s’ but fully establishes the China Hewlett-Packard in 1985. The finances for the company by that time were incredible, revenue amounts were $6.5 billion with 84,000 employees (Hewlett-Packard, 2011).
The financial status of Hewlett-Packard illustrates that research and development is a key factor in the company’s success. In the 2010 Quarterly Results, the financial overview demonstrates that by October 31, 2010 the company had expensed $25,024 million in research and development (Hewlett-Packard, 2011). Key message shared in the report was that for the year 2010 the company forecasted formidable revenue growth of 10%. For the Annual Report of 2009, it states that the company will enter converged infrastructure solutions, which means the extension of the life of a data center to handle any workload, at any-time, anywhere in the world.
Analyzing the internal organization of Hewlett-Packard Company, management should use a global set of mind to start. In a global economy different traditional factors take place, for example, labor costs. The company that has global mind-set employees realizes that it must possess resources and capabilities that will let understanding of and suitable reactions to competitive positions. Hewlett-Packard has created value for the company by creating a product that the public can trust on performance and quality. Innovation in products and researching globally to acquire new ideas, new resources, and new capabilities, which in turn can turn to core competencies give the company the edge to compete with similar companies.
Internal analyzing of the company examines the non-tangible resources, which...