Hp External Analysis Essay Example for Free

Hp international Analysis EssayHewlett Packard External Environment Analysis Hewlett Packard External Environment Analysis In todays constantly evolving line of credit world, it is essential for organizations to fully master and incorpo swan strategic man come a enormousment theory into decision making processes. As the worlds largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services, and IT infrastructure to solve node problems (Hewlett Packard, 2010). HP is well positioned to tabuperform the grocery store. The strength of HPs portfolio is leaner cost structure and accelerating market momentum that gives the confidence to raise the full year outlook (Hurd, 2010). One of the most important aspects of Hewlett Packards dodging building is an analysis of the immaterial business milieu that they operate in.As pointed out in the text Strategic Management. Concepts and Cases Competitiveness and Globalization, The fir ms understanding of the external environment is matched with knowledge about(predicate) its internal environment to form its vision, to develop its mission, and to identify and implement actions that result in strategic combat and above-average returns. (Hitt, Ireland, and Hoskisson, 2009) In this paper, there will be an analysis of Hewlett Packards external business environment and its conflict on the firms strategic business pertinacity plan, including examination of the three components of the external environment, the normal environment, the industry environment, and the competitor environment. External Environmental Analysis Before analyzing Hewlett Packards external influences, it is important to foreground the specific processes in an external environmental analysis.This analysis is performed so that firms dejection preparely identify say-so opportunities and threats in their external environment, and involves continually scanning, monitoring, forecasting, and assess ing segments of the customary environment. Scanning is the process of studying each segment of the general environment to identify upcoming or ongoing changes that can impact the firm. Monitoring refers to observing the changes project in the scanning process to determine if a particular trim down can be singled out which would have significant consequences for the firm.Trend identification is an important aspect of monitoring, as well as recognizing the trends effect on the firms stakeholders. Forecasting takes the changes and trends that scanning and monitoring produced, and attempts to formulate utilitarian predictions based on those changes and trends. One important factor in forecasting is identifying the time frame and rate of change for trends, so that the firm does not miss an opportunity or get caught off keep back by a threat. The final step in external environmental analysis is assessing. The objective of assessing is to determine the timing and significance of the e ffects of environmental changes and trends on the strategic management of the firm. (Hitt, Ireland, and Hoskisson, 2009) The prime focus of assessing is determine the impact of forecasted trends on strategic direction of the firm. Assessing decides if an opportunity or threat requires a change in plans, or the firm to take a new direction. General Environment The first component of the external environment is the general environment. The general environment is composed of dimensions in the broader society that influence an industry and the firms at bottom it. (Hitt, Ireland, and Hoskisson, 2009) These dimensions of broader society are further classified into six categories. The six categories of the general environment are demographic, economic, policy-making and legal, socio-cultural, technological, and globular. A large, global firm like Hewlett-Packard will find opportunities and threats in each aspect of the general environment. The demographic category of the general enviro nment includes factors such as population size, age structure, ethnic mix, income distribution, and geographic distribution.Hewlett-Packards market position as the worlds largest technology company requires careful retainer of demographic factors. Hewlett-Packards strategic continuity is impacted by this factor because it must identify markets with the correct demographic to provide an opportunity to sell its computer products. Markets with an unfavorable income distribution or an older age structure may need to be avoided until more favorable conditions arise. The economic category of the general environment includes factors such as interest rates, gross domestic product, and business savings rates.Hewlett-Packards continuity strategy is impacted by economic factors in a similar fashion as it is impacted by demographics. Markets located in a strong economy portray opportunities for the firm. Additionally, developing economies may provide turn away interest rates, or favorable bus iness savings rates. Economies in decline can represent a threat to Hewlett-Packard, as expensive computer purchases may not be a consumers focus. The political and legal category of the general environment includes factors such as antitrust laws, taxation laws, and labor laws.Hewlett-Packard can brass huge opportunities and threats with changes and trends in legislation. Hewlett-Packard produces a wide range of computer products, and if it is challenged by an antitrust law, it could face a very large threat. However, favorable changes in tax law can represent bonnie as large an opportunity for the firm to save money. The socio-cultural category of the general environment includes factors such as workforce diversity, shifts in work and career preferences, and shifts in product and service preferences.Hewlett-Packards business continuity is very concerned with monitoring and planning for preference trends in the computer technology industry. Proper sagaciousness and integration of a new product preference can represent an important opportunity, while lose this preference could end up a threat. The technological category of the general environment includes factors such as product innovations, new communications technologies, and government supported research and development expenditures. Obviously this category cavity great significance for a computer based firm like Hewlett-Packard.Product innovations can represent an opportunity for strategic continuity if Hewlett-Packard can incorporate them, a threat to strategic continuity if they cannot. novel communications technologies can be utilized to assist in streamlining operations, and represent an opportunity to lower long term costs. The final category of the general environment is global. The global category includes factors such as comminuted global markets, new industrialized countries, and cultural and institutional attributes. Hewlett-Packard is a global firm, and changes or trends in the global mark ets must be planned for to ensure strategic continuity.