The Hewlett Packard Economic Analysis Business Essay

The Hewlett Packard Economic Analysis Business Essay Hewlett-Packard is the worlds largest technology company. Based in Palo Alto, California, HP maintains segments that cross sectors such computing hardware (printers, personal computers, servers, and storage), software, cloud computing services, IT infrastructure, and connectivity products. HP offers its products to over 1 billion customers in over 170 countries. HP has roughly 332,000 employees worldwide. The company ranked No. 10 in the Fortune 500 rankings, and its revenue for 2012 was approximately $120.4 billion (Hewlett-Packard Development Company, L.P., 2011).   Hewlett-Packard was one of the first technology based businesses in Silicon Valley. HP was founded by Stanford graduates David Packard and William Hewlett. They began the company, in 1939, in a garage next to Packards home in Palo Alto, Calif. As the company grew, the founders based the organizational structure on an informal, non-hierarchical culture (Hewlett-Packard Development Company, L.P., 2011). In order to foster and environment of innovation, they allowed engineers to access tools and parts after hours. Hewlett-Packard Company (HP) is a provides numerous products, technologies, software, solutions and services to private consumers, businesses of all sizes, including the Government, health and education sectors. Its operations are organized into seven divisions including the Personal Systems Group, Services, the Imaging and Printing Group, Enterprise Servers, Storage and Networking, HP Software, HP Financial Services and Corporate Investments. HPs offers products for personal computing, customer services, infrastructure technology, business process outsourcing, application development and support services, and imaging and printing products. Since HP extends across numerous IT markets, it has numerous competitors in each Market. For instance, in the personal computing market Apple and IBM offer very similar products and would be considered direct challengers. In the printing sector, direct competitors are Epson, Cannon, and Lexmark. In the server sector, again IBM is direct competition along with Dell. Overall, HP had a 3.3% market share in the IT market. That number is based on industry wide revenue figures for 2012. HPs 2012 revenue was $123 billion out of roughly $3.79 trillion spent within the industry worldwide (Hewlett-Packard Development Company, L.P., 2011). In comparison, the No.1 vendor was Apple Inc. with revenues of $149 billion and a 3.9% market share. (Hewlett-Packard Development Company, L.P., 2011) (Hernandez, 2012) (Hingley, 2012) According to the course text, the concept of  elasticity involves the percentage change in one variable associated with a given percentage change in another variable (Hirschey, 2009, p. 170). Elasticity relates to the principles of supply and demand. When something changes in a market, elasticity conveys how much other elements will change. For instance, price elasticity conveys the amount of impact a change in price will have on consumer willingness to buy that item. If prices rise, the law of demand dictates that the quantity demanded will decrease. Price elasticity of demand points out how much the quantity demanded decreases. Elastic demand means that the consumers of that good or service are highly sensitive to changes in price (Tuck, 2013). Typically, a good or service which is not a necessity or has multiple substitutes has elastic demand. Inelastic demand has the converse meaning and indicates that consumers are not highly sensitive to price changes. Price elasticity of a product is calculated as the percent change in the quantity demanded of a good divided by the percent change in the price for that good (Tuck, 2013). A result greater than one means that the product is elastic and that demand is highly sensitive to changes in price. Elasticity less than one means that a product is inelastic and price change will have a minimal impact on the quantity demanded. HP is a technology and hardware company. Any consumer that has been to an electronics store knows that there are a tremendous amount of hardware and software options available. There are numerous competitors that offer similar printers, computers, servers, and software packages. In addition, the technology market is rapidly evolving and new products are being consistently released onto the market. This drives short life cycles for products and rapid obsolescence. Though, technologies have become a necessity worldwide, consumers are extremely price sensitive due to the high number of alternative products available. These factors drive a high level of elasticity in the technology sector, which impacts many of HPs products. Regression analysis is statistical technique that describes the way in which variables are related to one another (Hirschey, 2009, p. 85). This type of analysis is commonly used to identify demand, cost, and profit relations. For the purposes of this assignment, the regression analysis can be used to demonstrate the relationship between total sales, employment rates, and personal income levels. Sales Levels (Revenues Fiscal Year 2012) Unemployment Rate Personal Income (Monthly) Oct-11 $32,122,000.00 8.5 $3,044.00 Jul-12 $29,669,000.00 8.2 $3,088.00 Oct-12 $29,959,000.00 7.9 $3,088.00 (Bureau of Labor and Statistics, U.S. Department Of Labor, 2010) In order to accomplish this, the equation: Sales Levels (Y) = a + b1*Personal Income + b2*Unemployment Rate + e y = 230100 + -966.671 + -62.3412 Based on the analysis that has been done to this point, it appears as though software revenue grew 14% year over year with a 27.2% operating margin. Software revenue was driven by 9% license growth, 9% support growth, and 48% growth in services. HP Financial Services revenue grew 1% year over the year. However, there was a decline in other aspects of the business as the personal systems, printing, and enterprise server and storage, as revenues declined in each of these areas. The technology market and these statistics indicate that HP should continue to develop its software and financial services divisions. These aspects of the HP organization have demonstrated growth and the company should continue to move toward expanding in these sectors. Despite declining revenues, HP is still a leader in the hardware market as well. The company may want to leverage the software division and work toward integrating more of the licensed software into the hardware products. For example, the HP server and storage division could incorporate HP software bundles, used to drive the technology, at a reduced price. This would make the hardware more lucrative to enterprises and personal consumers. Instead of purchasing software and services from a competitor, a more cost effective, all-in-one solution could be bundled by HP. Apple Inc. has become a dominant competitor in the technology market. They have accomplished this with an emphasis on design, not hardware. HP should also make an effort to replicate the Apple model to a certain extent. They need to place resources into the design and innovation of new products. The technology market demonstrates a high level of price elasticity. So, HP needs to push towards well designed products that provide unique and cutting edge tools for users. Any edge that the company can gain without increasing prices will ultimately improve their bottom line.

Organizing, Researching, and Illustrating your Material Essay

Step 1: Methods Observations: I would observe the individuals in different departments in their own work enviroments to see how they interact with each other and their clients on a day to day basis. I would do this in hopes to see where any and all issues or breakdowns in communication and work procedure and protocols are happening. I hope to have a better understanding of how each department works together after these observations and interviews. Interviews: I will would interview each employee personally, or in groups by department. Whichever I felt would get a better response from the employees. I would plan to explain to them the problems that have been brought to my attention and ask for their input into what they feel the biggest problems are and how they would solve them. Surveys: I would then have them fill out surveys followed by a question and answer session to try to get a personal feel to what is going on. Part 2A: Surveys Employees: Why do you feel some employees have resigned their positions here at Phoenix Advertising in recent months? I hope to find out what employee grievances are and how we as a company can create a better working environment for them. Are we satisfying our clients and what can be done to ensure satisfaction and return business of our clients? I hope to find out if the employees feel they are doing their best for our clients, working to their full ability, what is lacking, and what can be improved. Tell me about yourself and your position here at Phoenix Advertising. Who is the person that you report to when on an assignment? I want to learn what each person  believes their responsibilities are within the company and to whom they report. I also may find some other areas of concerns that have not yet been reported, such as a broken chain of command. 2. Clients: a. What services did you hire Phoenix advertising to do for you? Is there a service you wish we provided or would like to see in the future? Was the price what you expected for the outcome? i. I want to find out exactly what services we are providing most, and what is being offered most. And how our services compare to the prices our clients are paying for them. b. Are you satisfied with the Roanoke Branch staff and the services that have been provided to you on a scale from 0 to 10 (10 being the highest)? i. I want to find out if they are being treated the way they expect to from someone they are essentially paying to work for them. And if they feel like they are they receiving what was promised in their contracts with the company. c. What can we as a company, do better? Would you recommend our services to others? Why or why not? i. I want to know what is most important to our clients and where we need to improve. I also want to find out if our clients would tell others about us, because word of mouth is a great way to gain business, and if it is not I want to know what we can do to change it. Step 2 B: Letter to CEO of Roanoke Branch Phoenix Advertising ATTN: Roanoke Branch 2244 W. 177th Ave Suite 44C Roanoke VA 28135 Phone: (757) 455-2244 Dear Mr. Jonathan Willis: I am writing this letter to inform you that the company president of Phoenix Advertising, Mr. Gregory Forest is sending me to your branch to conduct an investigation into some recent customer complaints we have received. Mr. Forest was concerned after learning that several of our clients from your branch, have complained about the quality, or lack there of, of the work being produced by your advertising department. He is also particularly worried with the news that two of your top, long term, management employees have left the company within the last few months, along with receiving news of several other management and employee issues arising within you branch. For my visit, I am expecting that you to prepare various company documents, such as the company policy manuals you provide for your employees, any production manuals you may have, a list of your hiring and recruitment processes and management approaches, and all other company policies that you may have in place or that you pro vide to your employees. My hopes are that we can sit down together and go over them and try to find a solution to the problems at hand. Please make a copy of all of these available for when I arrive. I would also like to set a time to conduct an interview with some of your newer employees to see how they are being trained and some of your older employees in order to gather their views and opinions of these issues and any concerns they may have, so that we can form a solution to these problems and make your team stronger than ever. Your full support is crucial in resolving these possible problems that are happening in your branch, and more importantly, in coming up with the best solutions to ensure a better future at both your branch and within our company as a whole. I am looking forward to seeing you and your team soon. Thank you for your time and cooperation. Sincerely, Kirstin Krueger VP of Human Resource Management Step 2B – Problems and Illustration Problems: The Phoenix Advertising group is having problems with its employees both in terms of employee work ethic, and in employee morale and motivation. Because of this, a report is needed to find out the economic issues and any managerial issues there may be. Also to look at the relationship of these employees and their management. This report is intended to help the company understand the issues at the Roanoke branch and to find any solutions there may be in order to fix these issues for good. Facts and Causes: Background data: The company that is experiencing the problem is the Roanoke branch of the Phoenix Advertising company, located in Roanoke, Virginia. Phoenix, Advertising is headquartered in Charlotte, North Carolina and has clients that include but are not limited to: banks, insurance companies and retail chains. My job as the Vice President for Human Resources Management at Phoenix Advertising, is to report to the company President. The visit to the Roanoke Branch is to learn the facts and causes of the issues and complaints that have been brought to our attention, and to find the right solutions to the problems and complaints so that these issues do not continue to arise in the future. Relative Information: The problem started when the company President learned that several of our clients have complained of the work performed in the Roanoke, Virginia branch. Every client is very important to the company’s overall success,, as clients are what drive our business. We also learned that two, long term employees and top management people have left the agency in the last few months. There are also other key people in the agency are threatening to leave due to other issues. The company president requires me, to conduct a personal inquiry of the situation. I need to determine and analyze the work condition of the branch. I will interview several, various employees, both new and old to determine the views and opinions of the employees of their  work environment. I will also look at various company documents, manuals, and all employee management training. Impact and Effect: The investigation into the Roanoke Branch of the Phoenix Advertising company showed that they are currently facing problems with both management and employee relations. The Roanoke management problems are significantly affecting their employee performance and work ethic. The overall quality and productivity of the branch is suffering. One of their main problems is the decreasing employee morale and motivation. This was easily observed and shown through the answers I received while conducting my interviews. The employees, both new and old showed a huge decrease in their dedication for their work, which resulted in the decline of the quality of their performance at work and the work they produced. The employees also associated this decline to the fact that they felt dissatisfaction with the services and the performances of their managers and the work environment that they were having to work in. The employees feel stress in their work environment which resulted in an increased rate of the use of sick days and was the main cause of the high employee turnover rate. A lack of or poor communication between the employees and the managers is also another problem raised during the my interviews. Solutions The problems discovered during my investigation have to be resolved, and soon, as this may negatively affect not only the Roanoke branch but Phoenix Advertising as a whole. We need to start by revising the hiring and recruitment process in the branch. Particularly on information relative to work assignments, chain of command, and the rights and privileges of the employees. This solution proposal will hopefully create a clear understanding of the purpose of having an employee, and allowing the superiors to use them accordingly based on their skills set, and responsibilities. As the investigator, I recommend the following solutions: Reducing the overall workload of our full-time employees and adding more  part-time employees to help them out, especially during peak seasons to lower employee tension and to even out the amount of work each individual has to do alone. Establishing a clear communication line between managers and employees. This will allow for a more productive workplace, better collaboration between the clients, artists, helpers and anyone else who is involved in the project. Creating a clearer procedural structure and requirements in future approvals of new clients and contracts, to be able to assure the capabilities of the overall company. By being able to provide a better quality product not just pumping out a higher quantity of products for the Roanoke branch and for the Phoenix Advertising company as a whole.

Health Inequalities in Scotland/Uk Essay

The causes for health inequalities are very complex and seemingly conflicting. Recent studies show that death rates in Glasgow, Manchester and Liverpool in 2003 and 2007 were much higher than anywhere else in the UK. This is because these cities all have the same crucial issue – poverty and it is estimated that 25% of their populations are classed as ‘deprived’. There are many crucial factors to health inequalities, including poverty in which the CASSI report linked together. Perhaps one of the main issues is lifestyle choices. The North-South divide clearly shows that Scotland has major health issues. The investigation of the 3 cities (Glasgow, Manchester and Liverpool) shows that lifestyle is an important issue. It shows that Scottish people are more likely to die at a younger age, have strokes and get heart disease if they live in deprived areas, compared to their English equivalents – which still have bad health. The report illustrates that the death rate is 15% higher in Glasgow than in the other two cities, hence the phrase â€Å"The Glasgow Effect†. Six out of seven of the worst areas in Scotland are in Glasgow, where those in Edinburgh are expected to live on average four years longer. The average life expectancy for a man in Scotland is 75.3 and 79.9 for a female, yet in England it is 78 for a male and 82.1 for a female – showing that the North South Divide is important when looking at health inequalities. Smoking and obesity are both issues linked with social class and poverty. In Social Class 1, 13% of women are obese, but it is Social Class 2 where it increases to 25%. There are many illnesses related to obesity including heart disease. 66% of people in Scotland are classed as overweight, and 4 people die every week due to obesity. The struggling NHS forks out  £125 million pounds per year to treat obese people. Messages from the government have helped to reduce smoking by 75% in Social Class 1 but Social Class 2 only by 35%. 15% of people in Clarkston (Glasgow) smoke, whereas in the poorer area of Nitshill 44% of people smoke. Smoking can lead to cancer, heart disease and death. Alcohol misuse also separates social classes. 1 in 4 men in Glasgow admit to having a drinking problem with 200,000 dependant on alcohol, and 40% of women – therefore it is no surprise that it’s a major cause of premature death in Scotland. Glasgow has the highest alcohol related deaths in the UK where two thirds are from the most deprived areas. Someone born in Caltson has a life expectancy of just 54 years, but someone in Lenzie, just a matter of miles away, can expect to live to 82 years old. The life expectancy in India is 62, 8 years more than in Calton despite the fact that 80% of the population in India live in poverty, highlighting the lifestyle choices of people can impact on health. The most recent Government report states that â€Å"There is a clear relationship between income equality†. It tells us that more than two thirds of the total alcohol related deaths were in the most deprived areas and that those living in these areas of Scotland have a greater suicide risk – more than â€Å"double that of the Scottish average†. Clearly, those with money can afford to buy a gym membership, private healthcare and other things which improve their quality of life and therefore they have a better lifestyle than poorer people – thus showing a link between poverty and health, as those in rich areas can expect to live 30 years more than those in poor areas. Finally, ethnic origin is a factor which can influence health inequalities. An example of this is those originally from Pakistan and Bangladesh are five times more likely to suffer from diabetes than the white population. Indians are three times more likely at risk than whites. Pakistani and Bangladeshis men and women face a higher risk of heart disease than average, whilst Chinese face a lower than average risk. This highlights the thought that your ethnic origin can affect your health. To conclude, I believe that both poverty and lifestyle contribute to poor health, although I believe that poverty is more of an issue than any other factor.

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