Om Sri Sai Ram

An offering at His Lotus Feet

11/29/2010

Hewlett Packard and Texas Instruments Harish

2

Hewlett Packard and Texas Instruments Harish Ramachandran 09507 .

Company Background 11/29/2010 Hewlett Packard and Texas Instruments Harish 4 .

Allocating resources to these businesses Business level strategy Clarifying the boundaries of the business to be served Selecting the competitive advantage to be pursued Unit level strategy Determining the basis on which the functions will serve the business unit objectives Integrating and coordinating these functions 11/29/2010 Hewlett Packard and Texas Instruments Harish 5 .Levels of strategy Corporate level strategy In which businesses one wants to be.

Business Lines Components Semi conductor integrated circuits Semiconductor subassemblies Electronic control devices Digital Products Minicomputers Personal computers Scientific Instruments Calculators Government Electronics Radar systems Missile guidance and control systems Infrared surveillance systems 11/29/2010 Hewlett Packard and Texas Instruments Harish 6 .Texas Instruments.

Business Lines Computer Products Factory automation Engineering workstations Data terminals Personal computers calculators 11/29/2010 Electronic test and measurement systems Minicomputers Personal computers Scientific Instruments Calculators Softwares. Systems and Peripherals PDAs Servers Networking services Enterprise softwares Hewlett Packard and Texas Instruments Harish 7 .Hewlett Packard.

Business level strategy Cost Leadership Differentiation 11/29/2010 Hewlett Packard and Texas Instruments Harish 8 .

Functional Strategies: Texas Instruments marketing Manufacturing R&D Financial Human Resources 11/29/2010 High volume -low price Rapid growth Standard products Economies of scale Vertical integration Learning curve Process and product Cost driven Design to cost Aggressive Full utilization of debt No slack Competitive personnel Individual incentives layoffs Hewlett Packard and Texas Instruments Harish 9 .

Functional Strategies: Hewlett-Packard Marketing Manufacturing R&D Financial Human Resources 11/29/2010 High value-high price Controlled growth Custom features Limited vertical integration Small attractive locations Product only Quality driven Design to performance Conservative No or low debt Margin of safety Cooperative Company wide group incentives No layoffs Hewlett Packard and Texas Instruments Harish 10 .

Why this difference?? 11/29/2010 Hewlett Packard and Texas Instruments Harish 11 .

Approaches to Strategic Planning 11/29/2010 Hewlett Packard and Texas Instruments Harish 12 .

Hewlett-Packard Hewlett Packard and Texas Instruments Harish 13 . Texas Instruments 11/29/2010 Eg.2 Main Approaches Eg.

Product life cycle Early entry and market leader Create new markets and harvest 11/29/2010 Hewlett Packard and Texas Instruments Harish 14 .

Costs and prices Continuous cost reduction and price penetration Price skimming 11/29/2010 Hewlett Packard and Texas Instruments Harish 15 .

Product/Process Matrix Capital intensive and cost effective production Lean production and customization 11/29/2010 Hewlett Packard and Texas Instruments Harish 16 .

Positioning and Resource movement Invest in question marks build in stars and harvest in cash cows Identify and create stars 11/29/2010 Hewlett Packard and Texas Instruments Harish 17 .

Performance evaluation systems Budgeting systems Incentive compensation systems Management control systems Reporting systems Strategic planning systems 11/29/2010 Hewlett Packard and Texas Instruments Harish 18 .

11/29/2010 Hewlett -Packard Bottom up approach External: Technical superiority Internal: Organizational Health People Involvement Hewlett Packard and Texas Instruments Harish 19 .Strategic planning systems Texas Instruments Top down approach External:Competitive status Internal: Organizational innovativeness Top management as strategists.

Strategic planning systems Texas Instruments Pricing strategy: Market-Penetration Resource Allocation: towards manufacturing Hewlett -Packard Pricing strategy: Market.Skimming Resource Allocation: towards marketing and R&D 11/29/2010 Hewlett Packard and Texas Instruments Harish 20 .

Budgeting systems Texas Instruments Manufacturing Engineering in products and processes Cost reduction management Cost savings Hewlett Packard 11/29/2010 New product development Marketing Research and Development Hewlett Packard and Texas Instruments Harish 21 .

r.t resource usage Division level staff Texas Instruments 11/29/2010 Hewlett Packard Hewlett Packard and Texas Instruments Harish 22 .Reporting Systems Integrated divisions Control and coordination among divisions Corporate level staff Autonomous divisions Authority to the divisions w.

Performance Measurement and incentive compensation Systems Texas Instruments Based on cost reduction achievement Marketing: Based on amount of sales and profit He lett -Packard Based on the inventiveness of every component Marketing: based on amount of sales and profit 11/29/2010 He lett Packard and Texas Instruments Harish   23 .

Performance Measurement and incentive compensation Systems Texas Instruments Individual evaluation Internally competitive Incentives : Bonuses on achieving a certain of sales target or cost reduction target Hewlett -Packard Team evaluation Internally cooperative Incentives: A portion of the resultant sales from the ideas generated and implemented 11/29/2010 Hewlett Packard and Texas Instruments Harish 24 .

Thank you 11/29/2010 Hewlett Packard and Texas Instruments Harish 25 .

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