Analysis of Strategy formulation and

Implementation at
Hewlett - Packward

Presented to:
Prof. Anil Singh
Presented by Group 4
FORE School of Management, New
Delhi

Challenges faced by HP
High degree of change in the competitive
environment.
Reduced capital expenditure by customer
in IT.
Slow or declining growth in key industries
such as defence or aerospace.
Advances in open system which are
lowering the entry barrier as well as
switching cost.
Growth of alternative distributing channel
which are eroding margins.

Dynamism in strategy formulation &

Implementation
Key focus area for total quality are customer
focus , employee participation and
improvement cycle and process management.
Hoshin-Kanri standardized method of
defining key issues at each level rather than
being a centralized planning tool. (Can this be
true for every industry?)
Each Unit becomes a strategy owner
Higher level focus on the development of
strategies that lead to breakthroughs (radical
innovation) while lower level concentrate towards
continuous improvements (Incremental innovation)

Process of Management at
HP

Establish a Purpose Communicating

with customer, Scanning Business
Environment, Aligning Organisational and
BU objectives.
Build a shared vision Involves
developing common value which ensures
and maintain alignment.
Develop Shared plans
Lead the action
Evaluate results and processes

Critical Business Process at

HP
Supply
Management
Process

R&D
Engineerin
g
Product
Management
Process

Manufacturi
ng

Marketing

Demand
Management
Process

Dynamics strategy formulation and

implementation tools and framework
Envisioning will explain verbally
Breakthrough Objectives will explain
verbally
Ten Step Business Planning process will
explain verbally
Business strategy review will explain
verbally
Leadership and teaming will explain
verbally
Measurement and evaluation will

Conclusion
1. Strategy formulation cannot be detached
from strategy implementation and in this
context the process of management plays
a key role
2. Strategy should be developed at the point
where the highest quality knowledge exist
3. Supportive structures are necessary, if
individuals are to act readily on such
knowledge
4. The knowledge generation process relies
on the availability of the appropriation

Some Observation by the group

Can Hoshin Kanri technique be applied to
other companies/sectors?
How customers will benefit through
strategy formulation process?

Thank You!