Hewlett-Packard Case Study International Corporate Strategy Hanoi, December 2003

G L O B A L V I S I O N Group #1 Members 2 Nguyen Anh Tuan VACO Nguyen Xuan Tien Ford VN Tran Lan Anh UBK VN Nguyen Thang Quang EVN Hanoi Nguyen Thanh Ha Prudential VN Le My Hanh VID Public Bank

G L O B A L V I S I O N Table of Contents 3 Section 1.Company Profile Section 2.External Analysis Section 3.Internal Analysis Section 4.Past Challenges & Measures Section 5.Future Challenges & Measures Section 6.Strategic Idea for Thinking

G L O B A L V I S I O N Section 1. Company Profile 4

G L O B A L V I S I O N Company Profile 5 Numbers of staff: 141,800 global Revenue as of 31 October 2003: $73.1 billion Operation: In 187 countries AFTER MERGER WITH COMPAQ 2002: Found by Hewlett & Packard in 1933 Headquarter: USA

G L O B A L V I S I O N Corporate Governance & Key Stakeholders 6 Investors Board of Directors CEO Business Group Public Firm

G L O B A L V I S I O N Vision & Mission 7 “Diversity Inclusion Work&Life Balance”

G L O B A L V I S I O N Operations 8 FOUR CORE BUSINESS GROUPS: 1. Enterprise System Group (ESG) 2. Imaging and Printing Group (IPG) 3. HP Services (HPS) 4. Personal System Group (PSG) Operation internationally under global strategy Strategic alliance partners to provide services Distribution through multi local agents R&D $4 billion annual investment

G L O B A L V I S I O N Products & Services 9 Desktops & Workstations Notebook & Table PC Handheld Devices Monitors & Projectors Printing & Multifunction Fax, Copiers, Scanners Digital Photography Storage Server Networking Software Products Supplies & Accessories Services

G L O B A L V I S I O N Vietnam Market Share (%) 10 Server Compaq48 IBM26 HP15 Monochrom Laser Printer HP85 Epson15 Color InkJet Printer Epson60 HP37 Canon2 Other1 Scanner HP48 Epson36 Acer9 Other7 CD-ROM writer HP47 LG26 Yamaha8 Other19

G L O B A L V I S I O N Section 2. External Analysis 11

G L O B A L V I S I O N Industry Matrix 12

G L O B A L V I S I O N EFAS 13 External FactorWeightRatingWeighted Score Comments Opportunities: O1. High market future potentiality O2. Stable politics O3. Strong government commitments Threats: T1. Low market demand from corporate and users T2. Competition with international players T3. China threats Total

G L O B A L V I S I O N Section 3. Internal Analysis 14

G L O B A L V I S I O N IFAS 15 Internal FactorWeightRatingWeighted Score Comments Strengths: S1. Product diversity S2. Leading in printing technology Weaknesses: W1. Cost problem0.251 W2. Staffing problems Total

G L O B A L V I S I O N SFAS 16

G L O B A L V I S I O N Section 4. Past Challenges & Measures 17

G L O B A L V I S I O N Past Challenges HR issue Poor infrastructure Operating loss 1,012 million in 2002 Strong competitors (IBM for solution; Dell for PC)

G L O B A L V I S I O N Past Measures MERGE WITH COMPAQ (May 2002) Cost cut, staff reduce Support Government’s Initiatives Staff re-organization Merge Compaq for More Competitive

G L O B A L V I S I O N Section 5. Future Challenges & Measures 20

G L O B A L V I S I O N Future Challenges One company two brands HR issue after merge Loss carried forward Two strategic management styles Stronger Competition From Both International Players and China

G L O B A L V I S I O N Future Measures Clear communication to public about brands Reorganization Revenue improvement & cost cutting Integration of two management styles/ One should accept the other Product quality and innovation

G L O B A L V I S I O N Section 6. Strategic Idea for Thinking 23

G L O B A L V I S I O N TOWS Matrix 24 IFAS EFAS Strengths (S): S1. Product diversity S2. Leading in printing technology Weaknesses (W): W1. Cost problem W2. Staffing problem Opportunities (O): O1. High market potentiality O2. Stability O3. Strong government commitments SO Strategies: Expand market (S1,2/ O1) Cooperate with Gov to improve IT infrastructure (S1, 2/ Q2,3) WO Strategies: Reorganization (W1,2/ O1) Cost reduction (W1/ O1) Cooperation with local agencies to develop HR (W2/ O2,3) Threats (T): T1. Low demand from corporate and users T2. Competition with international players T3. China threats ST Strategies: More focus on corporate & users (S1,2/ T1) Localization and improve onsite services (S1,2/ T2) WT Strategies: Create learning & innovation and culture (W2/ T2)

G L O B A L V I S I O N Thank You For Your Attention! Q&A