Hewlett Packard Hewlett Packard started in 1939 in a garage by two people, Bill Hewlett and David Packard with just $538 of working capital. After a string of failures, their companys first successful product, an audio oscillator better than anything on the market, earned a U.S. patent and an order from Disney Studios for eight units to help produce the animated film Fantasia. From 1940 to 1950 they moved from their garage to a rented building on Page Mill Road in Palo Alto and then constructed their first HP-owned building that was 10,000 square foot. In 1957, HP had their first public stock offering November 6, 1957 and net revenues were $30 million with 1,778 employees and 373 products.
In the 1960s, HP was listed on the New York and Pacific exchanges as HWP and had its first listing on Fortune magazine as of one of the 500 U.S. companies. HP in 1967 started operations in Boeblingen, Germany introducing a non-invasive fetal heart monitor that helps babies by detecting fetal distress during labor. In the 1970s revenues increased to $365 million with over 16,000 employees. ( HP.com ) In the 1980s revenues again increased to $6.5 billion with over 85,000 employees.
They introduced their first personal computer, the HP-85 and introduced HP LaserJet printers, the companys most successful single product ever considered a standard for laser printing today. HP moves to the top 50 on Fortune 500 listing – 1 – at No. 49. Finally in the 1990s, HP opens research facilities in Tokyo, Japan with net revenues of $13.2 billion and over 91,000 employees. ( HP.com ) HP also introduced portable computers that lasted on batteries that would last a flight across the U.S.
All these products moved HP to the No. 2 position in the U.S. market. Today HP has ballooned into a multinational company with 104 divisions, 123,000 employees worldwide, 19,000 products and sales over $47 billion. ( HP.com ) Great products ultimately come from the minds of motivated and capable employees, the second key to HPs success.
After the Second World War, the company began to hire talented engineer and scientist that were no longer working in the war that were from other technology companies and government funded labs. These were high priced experienced workers that helped HPs development of different successful products. ( personal Journal ) The company structure looks like a pyramid. At the top are the board of directors followed by President and Vice President. There are Presidents and Vice Presidents in different divisions of the company.
Finally, there are general managers, middle managers, lower managers and employees. Hewlett Packards Mission statement is to improve the ways individuals and organizations around the world create, access, use and communicate information on the road or from the desktop, in the office and in the home. HP is a worldwide leader in personal computing; setting new standards in such areas – 2- as Mobil computing network management, 3-D graphics and information storage. Computer products include eight manufacturing divisions in North America, Europe and Asia, with sales and support in more than 110 countries. These divisions are separated in Mobile Computer Division, Business Desktop Division, Home Products Division, Asia Pacific PC Division, Workstation Systems Division and information storage group. ( Information Week ) As explained above HP global market place allows the company to expand in different countries and people in two ways.
First HP.com allows virtually anyone with Internet access to log on under the URL and actually order online. One problem that some companies are having is that 65% of the Internet cites are only in English. ( www.firstsearch.com ) On Hewlett Packards website you only need to choose the country that you live in and the pages will translate the text into that language. There is product information about you future or present purchases, software updates of the product, and also technical support through email. Finally HP has 24 hours a day 7 days a week of customer support throughout the countries that have operators to assist you on the product.
People are more willing to buy products and services from a manufacture that can provide both the support and the opportunity to buy easily from Hewlett Packard, and HP provides this! One example is that Dell a online company that build computer as they are order from the customers and the business offer one of the best support and – 3 – warranties in the computer industry. HP is following their online strategy closely to Dells way of operating the sales and customers. As this company expands in growth it leaves other smaller companies behind that cant compete with this computer giant. These smaller companies have trouble to match HPs prices and customer support. One example of this is a local owned family shops in a country that are not able to compete with they type of products and services offered by HP and these companies either have to stop selling or move away from the competition.
With communication and technology growth, it will be easier to climb the cultural boundaries that other companies had trouble overcoming in the past. This would be in having other countries buying an American made product. The Internet is helping in crossing those boundaries by offering global support and products. With the support and products offered by HP, other companies may have troubles trying to match or outperform. This leads to closing down of shops and other smaller retailer that can affect jobs in that country. People of other diversities may have problem accepting these changes and may not want to make the change.
The older generation that is not ready or unable to use computers may have troubles adapting to buying over the Internet. Another problem is not all people from other countries are financially able to pay for a computer like people in the U.S. This could be another problem that HP is not yet ready to overcome. Eventually as time goes on technology will be – 4 – available to all and these problems might be solved but new problems will replace the old and there will be other obstacles to avoid. Hewlett Packards Response to a Globalizing Economy HP now has a strong commitment to women’s advancement. One prime example of this would be its biannual Technical and Women’s Conference, which last year brought together 2,000 female HP scientists, engineers, professionals and managers from 26 states and 12 countries, in order to discuss business issues, especially as they relate to gender.
HP picked up the tab for employee travel expenses, too. Work and family issues remain on the front burner as well. Last year the company was listed as an ABC Champion, leading to the funding of 25 child and elder care projects in HP communities. The other news here is the ongoing redesign of work schedules to provide more flexibility. Managers have been trained to be receptive to these needs while employees have been encouraged to try new options.
As a result, HP has some big numbers to show for its efforts. Nearly 3,000 people work at a “virtual office”; 500 share jobs and 1,450 employees are on compressed workweeks. HP announced on February 28, 2000 that it would be supplying computers for its “Wired Workforce” program in which computers are made av …