This website uses cookies to ensure you have the best experience. Learn more

Texas Instruments And Hewlett Packard Essay

578 words - 3 pages

Texas Instruments and Hawlett-Packard

Strategic planning systems
Texas Instruments is more diversified company, whereas, Hawlett – Packard single industry with related diversified firms. That is why we suggest TI to use vertical strategic planning system. Business units prepare strategic plans and submit them to senior management to review and approve. For related diversified and single industry firms, like HP, tend to use both vertical and horizontal. The horizontal dimension might be incorporated into the strategic planning process in a number of different ways.
Moreover, tend to create new markets and exited as a cost- driven competitors entered and the market matured. In consequence, for HP importance of strategic planning is very high due to uncertainty of environment in a “build” strategy. However, Texas Instruments favored early entry, followed by expansion and consolidation of its position, resulting in dominant ...view middle of the document...

However, for TI, the control limit used is relatively low.
Meeting the budget is not an issue with HP since the budget might be modified during the fiscal year. However, for TI, meeting the budget is very important as this measures the company’s efficiency.

Reporting systems
HP is concentrated more on reporting the policy issue as company is more involved in developing new products. Its reporting the operating issues is less frequent. However, TI is concentrated more on reporting the operating issue as the company’s major activities are in operations – manufacturing and assembly. Reporting policy issue is less frequent.

Performance evaluation system and incentive compensation system
Conglomerates, like TI, put more emphasis on financial criteria. Generally, they are more likely to use formulas to determine business unit managers’ bonuses. Short term parameters such as cost control, operating profit, cash flow, ROA or EVA promote efficiency and productivity in order to be consistently cost effective to complete at lower prices . Also, these formula based bonus plans are employed because senior management typically is not familiar with what goes on in a variety of disparate businesses.
However, HP put more emphasis on non-financial criteria. Senior managers of single industry and related diversified firms tend to base a larger fraction of the business unit managers’ bonus on subjective factors. In many related diversified firms, greater degree of interrelationships imply that one unit’s performance can be affected by the decisions and actions of other units. Therefore, market development, new product development and HR development are given much importance since target sales are very dynamic and are highly dependent on new innovations.
In the case of TI, the incentive bonus of the business unit managers tends to be determined primarily by the profitability of that unit, rather than the profitability of the firm. Its purpose is to motivate managers to act as though the business unit were their own company. In contrast, HP tends to base the incentive bonus of a business unit manager on both the performance of that unit and the performance of organizational business unit.

Other Papers Like Texas Instruments And Hewlett Packard

Exploring the Web Essay

1607 words - 7 pages | 0 | 0 | 0 | | | Hewlett-Packard Business Summary | | Hewlett-Packard Company and its subsidiaries provide products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Its Personal Systems Group segment offers commercial personal computers (PCs), consumer PCs, workstations, calculators and other

Mgmt 600 Phase 3 Essay

596 words - 3 pages hypothesis is an opinion about the value of something for a population. This data is gathered from a typical sample from that population to make a decision on whether it’s true (Colorado Technical University, 2014). Using the military for an example, the purchase of computers from vendors like Dell and Hewlett Packard is prevalent. Do the computers from Dell really run faster than the computers from Hewlett Packard? Expressing a statement that

People & Organizations

1613 words - 7 pages MBA Cohort 7 People & Organizations Prof. Homework Session 1 Essay – Analysis of Hewlett-Packard Sven Fritzsche January 20, 2013 Content: 1) Hewlett Packard before/ until 1999 – status 2) Hewlett Packard between 1999 – 2011 3) Changes and issues 4) Recommendation to Mrs. Whitman 1) Hewlett Packard before/ until 1999 The Company was founded by Bill Hewlett and Dave Packard in 1939 and started in Packard's

Hewlett-Packard Analysis

1700 words - 7 pages Company Information The Hewlett-Packard Company, commonly known as HP, is a very large global company headquartered in Palo Alto, California, United States. Its products are concentrated in the fields of computing, printing, and digital imaging. It also sells software and services. Histroy and facts HP was founded in 1939 by Bill Hewlett and Dave Packard, who had both graduated from Stanford University in 1934, as a manufacturer of

Samsung Vision And Mission

611 words - 3 pages Instruments Inc., Lenovo Group Limited, Hewlett-Packard Company, Sanyo Electric Co., Ltd., Toshiba Corporation, SK Hynix Inc., Western Digital Corporation and other | Vision of Samsung Electronics: When I search Samsung Electronics` vision, I found this "To inspire the world, to create the future" in their official website. This motto is the Vision 2020. This makes my mind up to tell more about its vision. First, they are very efficient and precise

Hp and Tyson Foods

943 words - 4 pages Hewlett-Packard With a passion on technological inventions, Bill Hewlett and Dave Packard together created a company that changed the face of technology. Founded in 1939, Hewlett Packard (HP) introduces various inventions that captured consumers and major corporation interests. With operations worldwide, Hewlett Packard became successful generating more than $115 million in profits in 2008 alone (HP Corporate Information, 2010). Despite the

Apple Computer Incorporated

2391 words - 10 pages 2011. A company’s net income is an important measure of how profitable the company is over a period, their bottom line. Apple reported record-breaking net income of $7.3 billion an increase of $1.3 billion over first and second quarter net income, which were similar. Apple strongest competitor Hewlett-Packard rates number 11 in the top Fortune 500 companies this year, an increase of one slot from last year. Hewlett-Packard ranks number one

Case Study

1106 words - 5 pages the mid to late 2000s, Dell’s position in the global PC market began to change. In 2005 it lost its market-share lead to one of its main rivals, Hewlett-Packard. By 2008–9, Dell’s second-place PC ranking came under threat from the Taiwanese computer maker Acer. In 2003, Acer had ranked seventh in PC sales around the world, but by 2008–9 Acer’s share of the global market had risen to 11.8 per cent, just behind Dell with 13.7 per cent and HP still

Culture Changes

575 words - 3 pages HRM 87 Companies must evolve throughout the years to stay in business. They must keep up with technology demands, changes in the economy, as well as cultural changes when there is change in leadership. This paper is going to discuss. The changes that Home Depot and Hewlett Packard has gone through when they change the Chief Executive Officers and how it impacted the companies positively and negatively. Hewlett Packard announced in

Turnaround at the Preston Plant

933 words - 4 pages Intro • Seemed to not inspect quality that well • Preston plant was located Preston, Vancouver • The headquarters was in Massachusetts • The company coated papers for ink jet printers, majority of output • After coating the conversion department cut the coated rolls to the final size and packed the sheets in small cartons The curl problem • Hewlett – Packard, main customer, had problems with paper curling under low humidity o Reasonable

Hewlett Packard- Business Analysis Part 2

1894 words - 8 pages Hewlett Packard- Business Analysis Part 2 Dalia Alawami MGT/521 July 09, 2012 Ms. Sandra Griffin Hewlett Packard- Business Analysis Part 2 Introduction In order to take a decision of investing at any company it is important to determine the financial health of that company. Thence, it is mandatory to review some financial documents such income statement, balance sheet and cash flow statement, which help to get full image about the

Related Essays

Texas Instruments And Hewlett Packard Case Solution

3825 words - 16 pages Case Study 13-3: Texas Instruments and Hewlett-Packard Case Context: Texas Instrument (TI) and Hewlett Packard (HP) are two companies famous for introducing Electric and electronic products. Although competing in similar industries, their strategies are very much different. Problem Definition: Given the differences in strategy between two firms, what would you expect would be the differences between TI & HP in their

Hewlett Packard And Time Warner Merge Comparison

1037 words - 5 pages Hewlett-Packard HP underwent a major change in that it underwent a merger with Compaq Computer in 2002. The merger was met with so much resistance upon its announcement that observers were unsure if the deal would even go through. Championing the merger was the CEO of HP at the time, Carly Fiorina, and the opposition was led by none other than the son of HP co-founder, Bill Hewlett. The general consensus now is that Fiorina lacked the skills to

Hewlett And Packard: Peter Drucker’s Requirements

673 words - 3 pages outlined by Peter Drucker are perceptible in Hewlett and Packard’s creation. Packard’s previous experience at General Electric allowed him to learn through observation that it is important to develop trust within the factory -trust which was inexistent at GE-. It helps people develop themselves and improve their work. He and Hewlett wanted to develop such a new way of managing, which could only be achieved by building a top manager team at the early

Internal Risk Management Essay

1129 words - 5 pages 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