HP Case Analysis 2017 - Mosad Saber

Graduate School of Business (AAGSB)
MBA Program
Strategic Management
Case Study no.7: Hewlett-Packard Company
Presented To
Dr. Adel Zaied
Dr. Hesham Abdel Hameed
Prepared By
Mosad Saber Abdel Rahman
Mohamed Yousry Allam
Mohamed Saad Fahim
Mohamed Abdulraouf Shanab
March 2010
HP Case Strategic Management Analysis
CONTENTS
1. INTRODUCTION.......................................................................................................... 3
1.1 Company History .................................................................................................. 3
1.2 Company and Competition.................................................................................... 4
1.3 Company Products and services .......................................................................... 5
2. ACQUISITIONS ......................................................................................................... 10
3. CURRENT SITUATION ............................................................................................. 16
3.1 Corporate performance Financial Analysis ......................................................... 16
3.1.1 Financial Ratios Analysis ............................................................................. 16
3.1.2 Financial Data Compared to Competitors .................................................... 18
3.2 Strategic Posture ................................................................................................ 19
3.2.1 Current Vision: ............................................................................................. 19
3.2.2 Current Mission, Values and Objectives: ..................................................... 19
3.2.3 Current Policies: .......................................................................................... 20
4. CORPORATE GOVERNANCE .................................................................................. 23
4.1 Board of Directors ............................................................................................... 23
5. EXTERNAL ENVIRONMENT ANALYSIS .................................................................. 27
5.1 Socio-Economical forces..................................................................................... 27
5.2 Political-Legal forces ........................................................................................... 27
5.3 Technology Forces ............................................................................................. 27
5.4 Legal and Environmental Forces ........................................................................ 27
5.5 Competitive Forces Analysis............................................................................... 27
6. INTERNAL ENVIRONMENT ANALYSIS ................................................................... 31
6.1 Corporate structure ............................................................................................. 31
6.2 Corporate culture ................................................................................................ 31
6.3 Corporate resources ........................................................................................... 31
6.3.1 Marketing ..................................................................................................... 31
6.3.2 Finance ........................................................................................................ 32
6.4 Internal factors Evaluation (IFE) Matrix............................................................... 32
7. COMPETENCIES ...................................................................................................... 32
7.1 Core competency................................................................................................ 32
7.2 Distinctive competency ....................................................................................... 32
8. SWOT ANALYSIS...................................................................................................... 33
8.1 External Environment analysis (Opportunities and threats) PESTEL analysis. 33
8.2 Internal Environment analysis (Strengths and weaknesses)............................... 34
1
8.3 SWOT analysis summary.................................................................................... 35

9. TOWS ANALYSIS...................................................................................................... 36
10. STRATEGIC ALTERNATIVES ............................................................................... 37
11. RECOMMENDED STRATEGIES ........................................................................... 38
12. RECOMMENDED STRUCTURE............................................................................ 39
13. IMPLEMENTATION................................................................................................ 40
13.1 Intensive Strategy through Product Development............................................... 40
13.2 Intensive Strategy through Market Development ................................................ 41
14. REFERENCES ....................................................................................................... 41
2
1. INTRODUCTION
1.1 Company History
Hewlett Packard (HP) has historically been known for introducing numerous
innovative products. HP is a global provider of computing hardware (including
personal computers, handheld information devices, workstations, servers and
storage solutions), imaging solutions (including printers), software and services.
By 90s HP was one of the few companies in the world to successfully marry
the technologies of measurement, computing and communication. The company
makes new advances in portable computing, enters the home-computing market
and continues to invent new printing and imaging solutions. For most of the decade,
HP enjoys growth rates of 20 percent.
Early in the 90s, John Young retired and is replaced by Lew Platt, under
whose leadership HP continues to grow. HP becomes recognized as company
whose policies on work-life balance, diversity and community involvement help
attract and retain top employees.
At the end of the decade, HP spins off its measurement and components
businesses to form a new company, Agilent Technologies. It also brings on board a
new CEO, Carleton Fiorina, who focuses the company on reinventing itself for
growth and leadership in the 21st century.
At the beginning of the 21st century, HP focuses on simplifying technology
experiences for all of its customers, from individual consumers to the largest
businesses. With a portfolio that spans printing, personal computing, software,
services and IT infrastructure, HP grows to become the world's largest technology
company.
On May 3, 2002, HP completes its merger transaction with Compaq
Computer Corp. The new HP is a leading global provider of products, technologies,
solutions and services to consumers and business. The company's offerings span
IT infrastructure, personal computing and access devices, global services, and
imaging and printing.
Later in the decade, a steady stream of acquisitions increases HP influence
in the software, personal computing and printing markets, and in 2007, HP achieves
$100 billion in revenue. In 2009, after the acquisition of EDS, HP moves up to No.9
on the Fortune 500 list.
The following table introduces some basic recent information and data
regarding HP Company:
3
Item Data
Revenue US$ 114.552 billion (2009)
Operating income US$ 10.136 billion (2009)
Net income US$ 9.415 billion (2009)
Total assets US$ 52.539 billion (2009)
Total equity US$ 38.942 billion (2008)
Employees 325,000 (after 3Com acquisition)(2008)
Compaq
Snapfish
HP Labs
Subsidiaries ProCurve
HP Enterprise Services
VoodooPC
List of acquisitions by HP
Website www.HP.com
Reference: http://www.hp.com/
1.2 Company and Competition

The following companies are the main competitors to HP in the diversified
computer industry:
- Dell: The world's no.1 direct-sale computer vendor provides a broad range
of computer and entertainment products for the consumer and enterprise
markets.
- Sony: Sony has refocused its approach to selling computers: Instead of
appealing primarily to consumers, it is now targeting business customers
(mostly small and medium-sized companies).
- Apple: Once the world's top PC maker, Apple Computer has been
relegated to niche status in a market dominated by "Wintel" machines
(computers using Microsoft Windows software and Intel processors).
- Gateway: Perhaps the purest PC play among the leading computer makers,
Gateway has been hit particularly hard by slowing sales in that industry.
- The following figure illustrate the HP position against its competitor
4
4B
Dell
3B
Net Income Hewlett-Packard
2B
Apple
Gateway
1B
25 B 50 B 75 B 100 B
Market Capital
Reference: www.wsj.com
1.3 Company Products and services

HP has successful lines of printers, scanners, digital cameras, calculators,
PDAs, servers, workstation computers, and computers for home and small
business use computers; many of the computers came from the 2002 merger with
Compaq. HP today promotes itself as supplying not just hardware and software, but
also a full range of services to consumers, SMBs, and large organizations (Public
and education sectors) to design, implement, and support IT infrastructure.
The following table represents HP products and services:
Notebook PCs for Home & Home Office
HP Pavilion notebook PCs
Compaq Presario notebook PCs
Home & Home Office Options & Accessories
Notebook & Tablet PCs for business
Business notebook (laptop) and tablet PCs
Business Options & Accessories
Desktop PCs for Home & Home Office
HP Desktop PCs
Desktop PC accessories for Home & Home Office
Desktops PCs for business

Business desktop PCs
Desktop PC accessories for business
Workstations
5
Workstations
Thin clients
Thin clients
Point of Sales (POS)

Point of Sales system
Gaming Systems
Printers & All-in-ones for Home & and Home Office

Black & White HP laser printers (monochrome)
Color HP laser printers
Color inkjet printers
Photo printers (Photosmart)
Mobile printers
Wireless printers
Color Multifunction & All-In-One Printers
Black & White Multifunction & All-In-One Printers
Ink, toner, paper, and accessories
Printing and Multifunction for business

Black & White HP laser printers (monochrome)
Color HP laser printers
Color inkjet printers
Mobile inkjet printers
Specialty photo inkjet printers (Photosmart)
Large format printers/plotters (Designjet)
Color Multifunction & All-In-One Printers
Black & White Multifunction & All-In-One Printers
Network print servers (external/internal/wireless)
Digital printing presses
Ink, toner, paper, and accessories
Handheld PCs for Home & Home Office
iPAQ Pocket PCs
iPAQ Pocket PCs accessories for Home & Home Office
Handheld PCs for business

Business iPAQ Pocket PCs
iPAQ Pocket PCs accessories for business
6
Calculators for Home & Home Office

Home & Home Office calculators
Scanners and Fax for Home & Home Office
Scanners for Home & Home Office
Fax products for Home & Home Office
Scanners and Fax for business

Business scanners
Fax products for business
Digital photography for Home & Home Office
Photo Printers for Home & Home Office
Digital photography for business

Photo printers for business
Monitors for Home & Home Office
HP Monitors
Monitors for business

Business monitors
Servers
Home Servers
HP ProLiant servers
HP Integrity servers
HP 9000 servers
HP Integrity NonStop servers
HP AlphaServer systems
Telco and carrier-grade servers
HP e3000 servers
HP Blades
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Home Storage Solutions
Networked storage
Internal server storage
PC storage products
CD/DVD products
7
Software and operating systems for tasks such as network

management, client management, storage management,
clustering technologies, and security.
Home networking
HP ProCurve networking
ProLiant networking products
Unix server connectivity
NonStop networking products
Print servers and printing & imaging software
Wireless solutions
Setting the standard for high quality, high volume digital printing,
HP Indigo digital presses enable printers to expand their client
base as well as boost their revenues.
Total Care Services

Business and IT services
Reference: http://www.hp.com/
The company does business in seven different segments, as illustrated in
the following exhibit:
HP Company
Personal Imaging and HP Financial Service Corporate

System Group Printing Group (IPG) (HPFS) Investment
(PSG)
Enterprise Storage
and services (ESS)
Technology
HP services (HPS) Solutions
Group (TSG)
Software
Reference: Strategic Management concepts and cases textbook, 12th edition, Fred David
HP Personal Systems Group (PSG) claims to be "one of the leading vendors

of personal computers ("PCs") in the world based on unit volume shipped and
annual revenue.
8
HP Enterprise Business (EB) incorporates Technical services, Enterprise

Services (formerly known as EDS), HP Software & Solutions, and Enterprise
Storage and Networking Group (ESN). The Enterprise Storage and Servers Group
(ESS) oversee "back end" products. Like storage and servers.
HP Software & Solutions is the company's enterprise software division. For
years, HP has produced and marketed its brand of enterprise management
software, HP OpenView. HP has purchased a total of 12 software companies as
part of a publicized, deliberate strategy to augment its software offerings for large
business customers
HP networking business unit ProCurve is responsible for the family of
network switches, wireless access points, and routers.] They are currently a
Business Unit of ESN.
HP Office of Strategy and Technology has four main functions: (1) steering
the company's $3.6 billion research and development investment, (2) fostering the
development of the company's global technical community, (3) leading the
company's strategy and corporate development efforts, and (4) performing
worldwide corporate marketing activities.
9
H P Business Segment Financial Overview (Reference to Given Case Data)
Net Revenue per Business Segment Earnings per Business Segment
Earning from operations per business segment Operating Profit per business segment
Reference: Strategic Management concepts and cases textbook, 12th edition, Fred David
2. ACQUISITIONS
Each acquisition was for the respective company in its entirety, unless otherwise
specified. The agreement date listed is the date of the agreement between HP and the
subject of the acquisition, while the acquisition date listed is the exact date in which the
acquisition completes. The value of each acquisition is usually the one listed at the time of
the announcement. If the value of an acquisition is not listed, then it is undisclosed.
The following table illustrates the HP acquisitions
10
Agreement date Acquisition date Company Business Country Value (US$)
F.L. Moseley
1958 Plotter United States
Company
Flight test
1959 Boonton Radio United States
instrumentation
Sanborn Medical
1961 United States
Company equipment
F&M Scientific Analytical

1965 United States
Corporation chemistry
Data Systems, Information

1966 United States
Inc technology
Eon Systems
January 13, 1989 Electronics United States
Inc.
Apollo Computer
April 13, 1989 May 4, 1989 United States $476 million
Computer manufacturer
Certain assets
November 1989 Disk drive United States
of Optotech Inc.
Applied
Automatic test
January 1991 Optoelectronic United States
equipment
Tech
November 1991 Avantek Transistor United States
Computer
December 1991 ABB CADE United States
software
Colorado
September 1992 Memory Magnetic tape United States
Systems
French and
Company
September 1992 German units of United States
leasing
Leasametric
Computer
systems from Computer
October 1992 United States
Texas systems
Instruments
Four Pi Systems Medical

April 1993 United States
Corp. equipment
Metrix Network Computer

June 1993 United States
Systems networking
BT&D
September 1993 Electronics United States
Technologies
September 13, October 1993 EEsof Inc. Computer United States
11
1993 software
Automatic test
October 31, 1994 1994 Versatest United States
equipment
Automatic test
June 1995 CaLan Inc. United States
equipment
September 21, Convex Computer

September 1995 United States $150 million
1995 Computer manufacturer
Computer
December 1995 ElseWare Corp. United States
programming
SecureWare
Computer
February 22, 1996 February 1996 Internet security United States
security
division
Graphics
technology from
Graphics
June 1996 Parametric United States $9.273 million
hardware
Technology
Corporation
Computer
June 1996 Division Inc. United States $6 million
programming
DP-Tek
July 1996 Imaging United States
Development
Trellis Software
August 1996 Motion control United States
& Controls
Vital Technology
March 1997 Investment United States
Pte Ltd
Electronic bill
April 23, 1997 April 1997 VeriFone United States $1.18 billion
payment
Information
June 6, 1997 PROLIN Netherlands
technology
Internet printing
technology from
September 1997 Printing United States $2.5 million
ForeFront
Group
Nuview Business
November 1997 ManageX from process United States
Nuview Inc. management
Optimazation Computer
November 1997 United States
Systems software
Business related Information

January 1998 South Africa
assets of Siltek technology
March 27, 1998 Heartstream Medical United States
12
equipment
Computing &
June 1998 Measurement Computers Israel
Systems
Scope
October 1998 Communication Cable tester United States
s Inc.
Computer
October 1998 Open Skies, Inc. United States
software
Computer
May 1999 Telegra Corp United States
software
Transoft Storage area

May 4, 1999 United States
Networks network
Dazel Computer
June 7, 1999 United States
Corporation software
Security Force Computer

August 4, 1999 United States
Software security
September 21, Information

Qosnetics United States
1999 technology
Bluestone Computer
January 18, 2001 United States $470 million
Software software
Information
July 16, 2001 August 6, 2001 Comdisco Inc. United States $610 million
technology
Computer
August 28, 2001 Trinagy Inc. United States
networking
September 24,
StorageApps Data storage United States $350 million
2001
September 6, 2001 March 22, 2002 Indigo N.V Printing service United States
Personal
September 3, 2001 May 3, 2002 Compaq United States $25 billion
computer
Procter & Information

May 6, 2003 United States $3 billion
Gamble IT technology
Information
June 4, 2003 Ericsson IT Sweden
technology
Communicatio
July 23, 2003 PipeBeach United States
n software
Extreme Logic Information

Inc. technology
September 3, 2003 Talking Blocks Web service United States
13
Select Access
September 22, assets of Computer United

2003 Baltimore security Kingdom
Technologies
November 11, Persist Computer

United States
2003 Technology software
Consera Computer
February 16, 2004 United States
Software software
Information
February 23, 2004 Triaton Gmbh Germany
technology
Computer
March 11, 2004 TruLogica United States
software
Computer
April 2, 2004 Novadigm Inc. United States
software
IT Infrastructure
Management Information
May 13, 2004 LLC technology United States
(doing business consulting
as ManageOne)
CEC Europe Information

United
May 13, 2004 Service technology
Kingdom
Management consulting
Networking
technology from Computer
Riverstone networking
Networks
Information United
October 1, 2004 Synstar
technology Kingdom
IT division of Information
January 2005 Germany
West LB AG technology
April 15, 2005 Snapfish Photo sharing United States
Information
September 7, 2005 CGNZ technology New Zealand
consulting
September 19,
AppIQ Data storage United States
2005
RLX Computer
October 3, 2005 United States
Technologies software
November 1, 2005 Scitex Vision Printing service Israel $230 million
November 30, Computer

Trustgenix Inc. United States
2005 software
14
December 13, Online photo

PIXACO Germany
2005 services
December 19, Peregrine Computer

United States $425 million
2005 Systems software
Computer
February 7, 2006 OuterBay United States
software
June 6, 2006 Silverwire Imaging Switzerland
Information
The Technology
June 27, 2006 technology Italy
Partners
consulting
September 28, Computer

October 31, 2006 Voodoo PC Canada
2006 manufacturer
Mercury Computer
July 26, 2006 November 7, 2006 United States $4.5 billion
Interactive software
December 12, Knightsbridge Information

United States
2006 Solutions management
December 20, Computer

Bitfone Corp. United States
2006 software
Bristol Computer
February 5, 2007 United States
Technology software
Computer
February 27, 2007 Polyserve United States
software
Computer
March 22, 2007 Tabblo Inc. United States
software
Computer
April 24, 2007 Arteis United States
software
SPI Dynamic Computer

Inc. software
Computer
July 23, 2007 Opsware United States $1.6 billion
software
July 23, 2007 Neoware Thin client United States $214 million
September 13, MacDermid Printer

United States
2007 ColorSpan Inc. manufacturer
Atos Origin Information

October 22, 2007 Middle East technology Bahrain
Group consulting
EYP Mission Information

November 12,
February 2008 Critical Facilities technology United States
2007
Inc. consulting
15
NUR
$457.076
March 2008 Macroprinters Printer United States
million
Ltd
Exstream Computer
January 22, 2008 March 26, 2008 United States $371 million
Software software
TOWER Computer $101.529

March 31, 2008 Australia
Software software million
Colubris Wireless
Networks networking
Information
Electronic Data
August 26, 2008 technology United States $13.9 billion
Systems
consulting
LeftHand
October 1, 2008 Data storage United States $360 million
Networks Inc.
Computer
July 17, 2009 August 4, 2009 IBRIX, Inc. United States
software
November 11, Computer

3Com United States $2.7 billion
2009 networking
References:http://www.answers.com/topic/list-of-acquisitions-by-hewlett-packard
Notes
This figure by The ALACRA Store includes acquisitions by companies that are
eventually acquired by HP. The actual number of acquisitions included in this list is
96.
The acquisitions are ordered by acquisition dates. If the acquisition date is not
available, then the acquisition is ordered by agreement dates.
3. CURRENT SITUATION
3.1 Corporate performance Financial Analysis

3.1.1 Financial Ratios Analysis
The following financial ration analysis for HP Company based on the given data of
required case which concerning with year 2005 and 2006.
The detailed analysis data, income statement and balance sheet are attached to
the end of this report.
16
1.40 54.00
53.00
1.35 52.00
1.30 51.00
Year2005 Year2006 Year2005 Year2006
Debt Ratio
Current Ratio
1.20 2.20
1.10 2.10
1.00 2.00
Financial Leverage
Debt/Equity Ratio
2.00 10.00
1.00 5.00
0.00 0.00
Return on Assets
Total Asset Turnover
10.00 10.00
5.00 5.00
0.00 0.00
Year2005 Year2006
Year2005 Year2006
Return on Sales
Operating Income Margin
17
2.80 20.00
2.60 10.00
2.40 0.00
Return on Total Equity

Sales to Fixed Assets
25.00 3.00
24.00 2.50
23.00
22.00 2.00
Fixed Asset Turnover

Gross Profit Margin
Reference: Based on Strategic Management concepts and cases textbook, 12th edition, Fred David
3.1.2 Financial Data Compared to Competitors
July 2007 results HP CANON DELL IBM Industry

Market Cap $119.45B 77.16B 64.96B 161.06B 359.21M
Employees 156,000 118,499 65,200 366,486 1.74K
Qtrly Rev Growth 13.20% 12.60% 2.90% 6.60% 5.70%
Revenue 97.06B 34.63B NA 92.79B 456.28M
Gross Margin 24.46% 49.74% NA 42.33% 36.03%
EBITDA 10.72B 8.29B NA 19.20B 17.29M
Oper. Margins 7.85% 17.42% NA 14.40% -0.31%
Net Income 6.39B 3.88B NA 9.55B -218.03K
EPS 2.295 2.92 NA 6.262 NA
P/E 19.87 19.99 NA 17.32 20.04
PEG (5 Yr Expected) 1.18 2.27 1.87 1.48 1.48
P/S 1.24 2.23 NA 1.47 1.24
th
Reference: Strategic Management concepts and cases textbook, 12 edition, Fred David
18
3.2 Strategic Posture

HP corporate strategic posture is not clearly stated but it is merely implied from
performance.
3.2.1 Current Vision:

"At HP, we believe diversity is a key driver of our success. Putting all our
differences to work across the world is a continuous journey fueled by personal leadership
from everyone in our company. Our aspiration is that the behaviors and actions that
support diversity and inclusion will come from the conviction of every HP employee -
making diversity and inclusion a conscious part of how we run our business throughout the
world. Diversity and inclusion are woven into the fabric of our company."
3.2.2 Current Mission, Values and Objectives:

HP creates a great harmony between the mission, shred values and objectives to
achieve the company goals; the following is the mission statement:
To invent technologies and services that drive business value, create social benefit and
improve the lives of customerswith a focus on affecting the greatest number of people
possible.
The following is the company shared values and objectives
Shared Values Objectives
Passion for customers Customer loyalty
We put our customers first in everything we do. We earn customer respect and loyalty by
consistently providing the highest quality and
value.
Trust and respect for individuals Profit
We work together to create a culture of inclusion built We achieve sufficient profit to finance growth,
on trust, respect and dignity for all. create value for our shareholders and achieve our
corporate objectives.
Achievement and contribution Growth
We strive for excellence in all we do; each person's We recognize and seize opportunities for growth
contribution is critical to our success. that builds upon our strengths and competencies.
Results through teamwork Market leadership
We effectively collaborate, always looking for more We lead in the marketplace by developing and
efficient ways to serve our customers. delivering useful and innovative products, services
and solutions.
Speed and agility Commitment to employees
We are resourceful and adaptable, and we achieve We demonstrate our commitment to employees by
results faster than our competitors. promoting and rewarding based on performance
and by creating a work environment that reflects
our values.
Meaningful innovation Leadership capability
We are the technology company that invents the We develop leaders at all levels who achieve
useful and the significant. business results, exemplify our values and lead us
to grow and win.
Uncompromising integrity Global citizenship
We are open, honest and direct in our dealings We fulfill our responsibility to society by being an
economic, intellectual and social asset to each
19
country and community where we do business.

Reference: www.HP.com
3.2.2.1 HP Mission analysis

Based on the Mission Statement Evaluation Matrix (MSEM), HP mission can be
analyzed as follows:
Fulfillment Indicator in Mission
SN Mission Element
(Yes/No) Statement
1 Customers Yes Improve the lives of customers
2 Products /Services Yes Services
3 Markets No NA
Concern for Survival, Growth, Drive business value
4 Yes
Profitability
5 Technology Yes Technologies
6 Philosophy No NA
7 Self-Concept Yes To invent
8 Concern for Public Image Yes Create social benefit
9 Concern for Employees No NA
3.2.3 Current Policies:
- One of the most important policies of HP is the HP Global Master Privacy Policy,
which applies to the collection, storage, processing, transfer, and use of personal
information concerning covered individuals except where the contract with a
covered individual defines different requirements. Personal information includes any
data by which a person can be identified or located, as well as any data to which
HP has access in customer systems.
- Personal information may be collected from covered individuals through a

variety of means, including, as examples, websites, other ordering channels,
and service or employment processes. HP may also obtain personal
information about covered individuals from other publicly or commercially
available sources we deem credible.
20
- This global master policy governs customer and employee data protection
policies; implementation standards; rulebooks; business processes;
applications; web, product, and service developments; and technology
roadmaps.
- All HP employees, board members, and contracted parties working on behalf

of HP must comply with these policies, even if local law is less restrictive.
Specific practices are tailored to meet the legal, regulatory, and cultural
requirements of the countries and regions where HP operates.
- HP recognizes that the personal information it receives is held in a position

of trust. We seek to fulfill that trust by adhering to the following general
principles regarding personal data.
- Notice and choice of data use
- HP does not sell, rent or lease personal information of covered individuals
- HP provides notice and choice to individuals regarding the type of personal

information collected and its intended uses
- HP reviews the purposes for which data is to be collected from covered

individuals to ensure that our data collection supports reasonable business
requirements.
- HP does not use personal information obtained from covered individuals for
purposes that are incompatible with the purposes stated in our notices.
- Data access
- HP provides individuals with reasonable access to the personal information

they provided to HP and the ability to review and correct it, as applicable.
- Data integrity
- HP takes reasonable steps to ensure that all applicable personal information

is accurate, complete and current.
21
- Data security
- HP is committed to protecting personal information against unauthorized use

or disclosure.
- Onward transfer
- HP does not transfer personal information provided by covered individuals to

third parties unless those third parties promise to give the data the
equivalent level of protection that HP provides.
- Enforcement/Oversight
- HP uses best commercial practices to obtain personal information by lawful

and fair means.
- HP complies with relevant privacy and data protection laws in the locations in
which HP operates.
- HP addresses complaints or disputes regarding personal information

promptly and courteously.
22
4. CORPORATE GOVERNANCE
4.1 Board of Directors

Marc L. Andreessen
Director since 2009
Mr. Andreessen is co-founder and a general partner of Andreessen Horowitz, a venture capital firm founded
in July 2009, and co-founder and Chairman of Ning, Inc., an online platform founded in late 2004 for people
to create their own social networks. From September 1999 to July 2007, Mr. Andreessen served as
Chairman of Opsware, Inc., a software company that he co-founded. Mr. Andreessen also is a director of
eBay Inc.
Lawrence T. Babbio, Jr.

Director since 2002
Mr. Babbio has served as a Senior Advisor to Warburg Pincus, a private equity firm, since June 2007.
Previously, Mr. Babbio served as Vice Chairman and President of Verizon Communications, Inc., a
telecommunications company, from 2000 until his retirement in April 2007.
Sari M. Baldauf
Director since 2006
Ms. Baldauf served as Executive Vice President and General Manager of the Networks business group of
Nokia Corporation, a communications company, from July 1998 until February 2005. She previously held
various positions at Nokia since 1983. Ms. Baldauf also serves as a director at Fortum Oyj, Daimler AG, F-
Secure Corporation and CapMan Plc.
23
Rajiv L. Gupta
Director beginning January 2009
Mr. Gupta has served as a Senior Advisor to New Mountain Capital, LLC, a private equity firm, since July
2009. Previously, Mr. Gupta served as Chairman and Chief Executive Officer of Rohm and Haas Company,
a worldwide producer of specialty materials, from October 1999 to April 2009. Mr. Gupta occupied various
other positions at Rohm and Haas since joining the company in 1971, including Vice-Chairman from 1998 to
1999; Director of the Electronic Materials business from 1996 to 1999; and Vice-President and Regional
Director of the Asia-Pacific Region from 1993 to 1998. Mr. Gupta also is a director of The Vanguard Group
and Tyco International Ltd.
John H. Hammergren
Director since 2005
Mr. Hammergren has served as Chairman of McKesson Corporation, a healthcare services and information
technology company, since July 2002 and as President and Chief Executive Officer of McKesson since April
2001. Mr. Hammergren also is a director of Nadro, S.A. de C.V. (Mexico).
Mark V. Hurd
Director since 2005
Mr. Hurd has served as HP Chairman since September 2006 and as Chief Executive Officer, President and
a member of the board since April 2005. Prior to that, he served as Chief Executive Officer of NCR
Corporation, a technology company, from March 2003 to March 2005 and as President from July 2001 to
March 2005. From September 2002 to March 2003 Mr. Hurd was the Chief Operating Officer of NCR, and
from July 2000 until March 2003 he was Chief Operating Officer of NCR's Teradata data-warehousing
division.
24
Joel Z. Hyatt
Director since 2007
Mr. Hyatt has served as Vice Chairman of Current Media, LLC, a cable and satellite television company,
since July 2009. Previously, Mr. Hyatt served as Chief Executive Officer of Current Media from September
2002 until July 2009. From September 1998 to June 2003, Mr. Hyatt was a Lecturer in Entrepreneurship at
the Stanford University Graduate School of Business. Prior to that, Mr. Hyatt was the founder and Chief
Executive Officer of Hyatt Legal Plans, Inc., a provider of employer-sponsored group legal plans.
John R. Joyce
Director since 2007
Mr. Joyce has served as a Managing Director at Silver Lake, a private equity firm, since July 2005. From
1975 to July 2005, he served in multiple roles for IBM, a global technology firm, including Senior Vice
President and Group Executive of the IBM Global Services division; Chief Financial Officer; President, IBM
Asia Pacific; and Vice President and Controller for IBMs global operations. Mr. Joyce is also a director of
Gartner, Inc.; Avago Technologies Limited; Sabre, Inc.; Serena Software, Inc.; and Intelsat, Ltd.
Robert L. Ryan
Director since 2004
Mr. Ryan has served as HPs Lead Independent Director since September 2008. He served as Senior Vice
President and Chief Financial Officer of Medtronic, Inc., a medical technology company, from 1993 until his
retirement in May 2005. Mr. Ryan also is a director of General Mills, Inc.; The Black and Decker Corporation;
and Citigroup, Inc.
Lucille S. Salhany
Director since 2002
25
Ms. Salhany has served as President and Chief Executive Officer of JHMedia, a consulting company, since
1997. Since 2003, she has been a partner and director of Echo Bridge Entertainment, an independent film
distribution company.
G. Kennedy Thompson
Director since 2006
Mr. Thompson has served as an Executive Advisor to Aquiline Capital Partners LLC, a private equity firm,
since June 2009. Previously, Mr. Thompson served as Chairman of Wachovia Corporation, a financial
services company, from February 2003 until June 2008. Mr. Thompson also served as Chief Executive
Officer of Wachovia from 2000 until June 2008 and as President from 1999 until June 2008.
26
5. EXTERNAL ENVIRONMENT ANALYSIS
The segmental analysis according to HP case study will be on Corporate HP Level, so the
following external analysis activities will concern with the whole HP Company as one
segment.
In addition, the external analysis in this case will be based on the Egyptian market as
expected market for growth.
The following environmental forces are currently affecting HP Company and retail supply
industry.
5.1 Socio-Economical forces

The current rescission in Egypt and all over the world; high Inflation Rate may affect
the operations and might have threatening power to the company. On the other
hand, the large size of population; high rate of growth; moderate Interest Rate and
economy stability offer good opportunity for HP company and its supply retailers to
increase their market share in the Egyptian market of technology.
5.2 Political-Legal forces

Governmental stability and Introducing new trade agreements such as the GATT
and the fall of global trade barriers provide enormous opportunities for global
expansion.
Moreover, the domination of the Egyptian policies provides excellent potential for
HP Company to start.
5.3 Technology Forces
The wide spread of the internet in Egypt, the new development of the e-business/e-
commerce concepts and Skilled Egyptian users of Technology availability would
give an overwhelming chance to have a broader marketing channel and to increase
sales and reduce costs of HP products.
5.4 Legal and Environmental Forces
Egyptian Taxes Laws stability and justice fairness and developed environmental
laws are considered good opportunities to invest in Egyptian market.
5.5 Competitive Forces Analysis

According The Porters Five Forces model which attempts to realistically assess
potential levels of profitability, opportunity and risk based on five key factors within
27
an industry. This model will be used as a tool to better develop a strategic

advantage over competing firms within Computer and technology industry in a
competitive and healthy environment. It identifies five forces that determine the
long-run profitability of a market or market segment.
- Bargaining power of Suppliers
- Bargaining power of Buyers
- Potential Entry of new competitors
- Potential development of Substitute products
- Rivalry among competing firms
The following figure demonstrates these five forces:
Potential development of substitute

products
Bargaining power Rivalry among Bargaining power

Of suppliers Competing firms Of Buyers
Potential entry of new competitors
Porters Five Forces Model

Bargaining power of Suppliers
Where Intel and Microsoft are the two most dominate suppliers in the PC industry,
the bargaining power of suppliers of Computer and technological service in Egypt is
powerful and high because:
The suitable substitute products are readily available such as Palm and PDA
also the Apple iPhone in Egypt.
HP investment and other services is almost unique service and sells to many
customers such as consumers, SMB's and Large organizations.
Nowadays, Computer and technological service becomes critical to the buyers

marketplace success.
28
Computer and technological service creates high switching costs to customers.
From all above, then it is almost strong positions of suppliers

Bargaining power of Buyers
Computer and technological service customers or buyers in Egypt are increased

rapidly nowadays; Buyer power in Egypt can be identified by the following factors:
Consumers, SMB'S and large organizations purchase a large proportion of

Computer and technological service in Egypt.
Buyers can't integrate backward to produce Computer and technological service

by themselves.
Consumers are small and many in numbers there are large and few in numbers
such as Egyptian ministries and governmental organizations.
Buyers' purchases are significant portion of suppliers annual revenues.
Buyers switching costs are high (switching to another Computer and

technological service providers with high expenses)
From all above, then it is almost strong positions of buyers

Potential Entry of New Competitors
In Egypt, the barriers to enter Computer and Technological service market as main
provider are high, These barriers are:
Economic of scale: Low marginal improvements in efficiency that a new

Computer and Technological service provider may experience as it
incrementally increases its size, it is not easy to reach the break-even point.
Factors related to large-scale entry: flexibility in pricing and market share and
costs related to scale economies. (high)
Product differentiation depends on the unique service, customer loyalty and

competitive prices.
Capital requirements such as physical facilities, inventories, marketing activities

and availability of capital. (high)
High switching costs: it is the one-time costs customers incurred when they buy
from different Computer and Technological service provider.
It is hard to access to distribution channels: stocking or shelf space, price

breaks and cooperative advertising allowances.
29
From all above, then it is almost high entry barriers to new Computer and
Technological service provider.
Potential Development of Substitute Services
Computer and Technological service faces some threat of a substitute

product/service presented in Egypt such as Palm and PDA and Apple iPhone. The
new trend toward technology is so sharp and there are some factors may be
increases the threat of the substitute product/service for Computer and Technological
service in Egypt.
Rivalry among Competing Firms
It is the most powerful of the five forces and focus on the competitive advantage of
strategies.
The numbers of main competitors are less then 10, there are not equally balanced
competitors, and that decreases Computer and Technological service rivalry in
Egypt.
The Computer and Technological service industry growth rate increases and that
also decrease the Computer and Technological service rivalry.
In addition, the low fixed costs are presented to decrease the Computer and
Technological service rivalry because the presence of outsourcing services.
From all above, then it is almost intensive rivalry among competitors
Finally, many attractive forces encourage management of HP to take a decision to

enter the Egyptian market. The following figure summarizes and supports the
conclusion
High entry barriers
Suppliers have strong positions
Buyers have strong positions

Attractive
Industry
Weak threats from substitute products
Intense rivalry among competitors
Computer and Technological service Market in Egypt
30
In addition, External Factor Evaluation (EFE) Matrix may be used as a tool for industry
Analysis. Where some data are not available, in this case so the EFE is not accessible.
6. INTERNAL ENVIRONMENT ANALYSIS
6.1 Corporate structure
The HP company structure is clearly understood by every one in the corporation,

and is consistent with the current corporate objectives, strategies and policies.
6.2 Corporate culture
The founders, known to friends and employees alike as Bill and Dave, developed a
unique management style that has come to be known as The HP Way. In Bill's
words, the HP Way is "a core ideology which includes a deep respect for the
individual, a dedication to affordable quality and reliability, a commitment to
community responsibility, and a view that the company exists to make technical
contributions for the advancement and welfare of humanity. The following are the
tenets of The HP Way:
- We have trust and respect for individuals.

- We focus on a high level of achievement and contribution.
- We conduct our business with uncompromising integrity.
- We achieve our common objectives through teamwork.
- We encourage flexibility and innovation.
Hewlett-Packard's Certified Professional (HP-CP) program was developed to

confirm the technical skills, sales competencies and knowledge that is required to
propose and deploy, service and support technology and solutions sold by HP. HP-
CP is intended for customers, resellers, and HP employees.
6.3 Corporate resources
6.3.1 Marketing
Market leadership is cope with the mission of HP to grow by continually providing

useful and significant products, services and solutions to markets HP already serve-
and to expand into new areas that build on its technologies, competencies and
customer interests. The underlying beliefs supporting this objective:
31
- There are more places we can contribute than we will be capable of

contributing.
- We must focus.
- To be average in the marketplace is not good enough, we play to win.
- We must be No.1 or No. 2 in our chosen fields.
6.3.2 Finance
As for the financial analysis refer to the current situation analysis section mentioned
previously.
6.4 Internal factors Evaluation (IFE) Matrix

In addition to above issues, Internal Factor Evaluation (IFE) Matrix may be used as a tool
for industry Analysis. Where - in this case -some data are not available, so the IFE is not
accessible.
7. COMPETENCIES
7.1 Core competency

HP competency has resulted from making social investment part of its business, by doing
good in local communities is a wonderful opportunity for a company to demonstrate its
beliefs. Sometimes it is rather challenging to support community projects and to contribute
to solve social issues, which at the same time are burning issues but also correspond with
a companys business strategy and core competencies. At HP, core competencies are
clearly with IT technology and the expertise of its people.
7.2 Distinctive competency

Hewlett Packard has a distinctive competence in the HP Way and in product
innovation. The HP Way is how they treat their people with respect and trust. Product
innovation is pursued to stay ahead of the competition.
32
8. SWOT ANALYSIS
8.1 External Environment analysis (Opportunities and threats) PESTEL analysis
Probability of occurrence Seriousness
Fundamental
Fundamental
Opportunity
Opportunity
Marginal
Marginal
Medium
Neutral
Threat
Threat
(Opportunities/Threats)
High
Low
1 Governmental Stability
Political
2 Nationalization threat
3 Consistency of policies and
regulations

4
Economic
Economy Stability
5 Inflation Rate
6 Interest Rate
7 Culture, custom, and values
Social
8 Class antagonism
9 Size of population; rate of growth
10
Technological
Technology Availability
11 Technology Cost
12 Skilled users of Technology

availability
13 Taxes Laws
Legal
14 Justice Procedures
15 Justice Fairness
16
Environmental
Environmental Laws
17 Environmental Effects
18 Waste Disposal Facilities
33
8.2 Internal Environment analysis (Strengths and weaknesses)

Performance Importance
Fundamenta
Fundamenta
l weakness
weakness
l Strength
Strength
Marginal
Marginal
Medium
Neutral
High
Low
Internal Strengths/weaknesses
1 Relative market share

2 Reputation
3 Previous performance
4 Competitive stance
5 Customer base
6 Customer loyalty
7 Breadth of product range
8 Depth of product range
9 Product quality
Program of product
10
Marketing Factors
modification
11 New product program
12 Distribution costs
13 Dealer network
14 Dealer loyalty
15 Geographical coverage
16 Sales force
17 After sales service
18 Manufacturing costs
19 Manufacturing flexibility
20 Raw material advantage
21 Pricing
22 Advertising
Unique selling
23
proposition
24 Structure of competition
25 Cost of capital
Financial Factors
26 Available of capital
27 Profitability
28 financial stability
29 Margins
ufac
F t
30 Production facilities
turi
ng
34
31 Economies of scale
32 Flexibility
33 Workforce
34 Technical Skill
35 Delivery capabilities
Supplier sourcing
36
flexibility
37 Culture
Organizational Factors
38 Leadership
39 Managerial capabilities
40 Workforce
41 Flexibility
42 Adaptability
8.3 SWOT analysis summary
Strengths Opportunities
S1:Financial Capabilities and Available Cash ($ O1: Stable Egyptian economy, and government
16 billion) policy.
S2: Relative market share O2: Many rival firms are small and medium size
S3: Product quality O3: The evolution of e-commerce
S4: Previous performance
S5: Leadership
S6: Depth of product range
S7: Customer loyalty
S8: Customer base
S9: Competitive stance
Weaknesses Threats
W1: Product development (no more a competitive T1: Dell Internet and Phone PC.
product of Phone-PC & PDA) - Delay in R&D.
T2: Egyptian Justice Procedures
W2: Giant weaknesses of how to unify standards,
T3: Egyptian Justice Fairness
cultures, languages and how to manage such
huge business. T4: Egypt Inflation Rate
35
9. TOWS ANALYSIS
Strengths- S Weaknesses- W
W1: Product development (No
S1:Financial Capabilities and Available more a competitive product of
Cash ($ 16 billion) Phone-PC&PDA) - Delay in
S2: Relative market share R&D.
S3: Product quality W2: Giant weaknesses of how to

unify standards, cultures,
S4: Previous performance languages and how to
manage such Egyptian
S5: Leadership business.
S6: Depth of product range
S7: Customer loyalty
S8: Customer base
S9: Competitive stance
S10 Outstanding customer service
S11 Flexibility in managing operations
Opportunities- O SO Strategies WO Strategies

O1: Stable Egyptian economy and - S1O2: Integration strategy - W1O1: Building new
government policy. (Horizontal and Forward) might R&D excellence center
be taken, Also Growth actions with great financial
O2 Many rival firms are small and medium may be taken that includes support from HQ.
size merger, acquisition, partnering,
joint venture, - W2O3: Aggressively
O3 The evolution of e-commerce, e-banking, invade new segments of
e-Learning, e-Culturing, etc. - S5O2: Market development the business (such as the
O4: Egypt Inflation Rate strategy to open new retail chain Egyptian Education
in new areas in Egypt. sector) by acquiring firms
operating in these
- S2O3: Develop a flexible system sectors (Electronic
of ordering items through the Content).
companys site on the internet
with efficient delivery system. - W2O3: Using e-
commerce and MIS to
- S9O4: Increase product and
service prices to generate more customize the customers
profit. orders online as Dell do.
36
Threats- T ST Strategies
WT Strategies
T1: Dell Internet and Phone PC. - S9T1: Product development to
have a competitive product of - W1T1: Partnering Dell to
T2: Egyptian Justice Procedures iPad and Dell Streak have HP Phone PC
T5: Recession - S7T1: Promote and develop the - W1T1: Introduce new
customer service tools. products and promotions
T6: Severe market competition to overcome competition
T7: Market domination by small/mid stores - S11T5: Entering the international
markets will result in - W2T7: Reduce the no. of
diversification of recession risks stores to reduce cost and
from one country to another. overheads and sticking to
franchising.
- S10T6: Expanding the service in
new sectors in Egypt such as
community service awareness
and education sector.
- S4T2: Working on the previous
performance to have advantage
of reducing the justice routine
procedures.
10. STRATEGIC ALTERNATIVES
After applying the previous TOWS matrix process and combining
a. Strengths with opportunities

b. Weaknesses with opportunities
c. Strengths with threats
d. Weaknesses with threats
We can have the following strategic alternatives according to there implementation

priorities:
1- Intensive Strategy through Product Development
To increase the HP market share in Egypt in related field of computer and

technological services, and due to the competes in this industry characterized by rapid
technological developments, the Product development strategy is selected as strategy that
seeks increased sales by improving or modifying present products or services. The new
HP invented products such as Blade Servers and High security hard disks may be
developed to peat the competitors. To pursue this strategy, the following issues should be
considered:
- Product development usually entails large Research and Development expenditures so

HP should increase its Research and Development capabilities.
37
- Hp Products should be in maturity stage of life cycle
2- Intensive Strategy through Market Development

Due to the potential demand in Egypt where Egyptian market is untapped or
unsaturated market, this strategy will Introduce HP present products and services into
Egypt as new geographic area. To pursue this strategy, the following issues should be
considered:
- The new HP channels of distribution should be reliable, inexpensive, and good quality.
- Maintaining HP to be very successful at what it does in Computers and technological

services.
- HP Capital and human resources are necessary to manage expanded operations in

Egypt.
- Most important issue is that HP basic industry rapidly becoming global which requires
excess production capacity.
3- Diversification Strategy through Concentric Diversifications

When HP enters Egypt, this strategy may be pursued by HP to add new, but related,
HP products and services to increases sales of current products. also New & related
products offered at competitive prices to customers. This strategy may applied when the
Current HP products are in decline stage of the product life cycle, in addition it requires
strong management team.
4- Vertical Integration Strategy through Forward Integration

When HP enters Egypt, HP can Gain ownership or increased its control over
distributors or retailers such as MANTAC Company because of their modest performance
in distribution, also because the distributers of HP in Egypt have high profit margins.
11. RECOMMENDED STRATEGIES

The best-recommended- strategies are that achieve HP mission and objectives, so
there are two recommended strategies selected from above mentioned alternative
strategies as follows:
38
- Intensive Strategy through Product Development

It is recommended as short-term strategy, to apply this strategy at the current
economic recession situation, Appropriate monitoring and control tools are to be applied to
ensure that the companys strategy is on the right track. When improving present HP
products or develop new HP product to compete iPhone, PDA and iPAD that belong to the
other rival companies such as Apple, Dell and IBM research and development plan should
be considered.
- Intensive Strategy through Market Development
It is recommended as medium and long-term strategy, HP Company should look for

the right opportunity and time to apply this strategy and to enter new markets rather than
Egyptian market. It is not recommended to rush into this strategy for the time being due to
the nowadays world wide recession, the expected time to apply such strategy is within
2012 / 2013.
12. RECOMMENDED STRUCTURE

The current HP segmental structure as illustrated in part 1.3 of this report is
"Divisional Structure by product" this structure is most effective for implementing
strategies when specific products or services need special emphasis. In addition, this type
of structure is widely used when an organization offers only a few products or services, or
when an organization's products or services differ substantially. The divisional structure
allows strict control and attention to product lines, but it may also require a more skilled
management force and reduced top management control. Plus that Technology Solutions
Group (TSG) is involved as strategic business.
The new HP segmental structure will be also "Divisional Structure by product" it

will be the same as the original HP segmental structure with the following modifications:
- Extract each of HP Financial Service (HPFS) unit and Corporate Investment unit.
- Adding new Research and Development unit (RDG)
The following figure illustrates HP new segmental structure
39
HP Egypt
Personal Imaging and Research and

System Printing Group Development
Group (PSG) (IPG) Group (RDG)
Enterprise
Storage and
services (ESS)
Technology
HP Services Solutions
(HPS) Group (TSG)
Software
The illustrated segmental structure is also part of HP main divisional structure by

geographic area that is appropriate for HP as one of organizations whose strategies need
to be tailored to fit the particular needs and characteristics of customers in different
geographic areas in future. This type of structure can be most appropriate HP because it
has similar branch facilities located in widely dispersed areas. A divisional structure by
geographic area allows local participation in decision-making and improved coordination
within a region.
13. IMPLEMENTATION
13.1 Intensive Strategy through Product Development (Short term strategy

implementation)
To apply the Intensive Strategy through Product Development strategy, HP
should organize an intensive R&D plan to improve the present products and services and
to develop new products and services to target new market niche or segment. This
required some changes in HP segmental structure as illustrated in HP recommended
structure part mentioned above in part 1.3.
HP Marketing plan and advertising strategies should be developed to match needs

and wants of targeted segments after studying carefully the marketing mix and the
competition in the prospective segment.
HP management should consider the precise determination of responsibilities

between the marketing and sales divisions that is crucial for the success of the process. In
40
addition, Operations and Logistics, as well as Finance and commercial division should be
involved to participate in the offered mix each in the related field.
Financial budgets for new R&D unit, programs and action plans with time frame,
milestones and dead lines should be conducted after the approval of the top management
on the intensive proposed marketing plan and the new targeted sector of Computers and
technological services.
13.2 Intensive Strategy through Market Development (Medium/long term strategy

implementation)
A committee from the top management of HP should start studying the global
changes in the market and try to come out with proposals for the potential markets to be
penetrated to implement the medium/Long term strategy of Intensive Strategy through
Market Development. The HP current financial situation as well as the HP current
human resources capabilities should be taken into consideration.
Budgets, programs and action plans with time frame, milestones and dead lines
should be conducted after the approval of the board of directors to the new markets to be
implemented/ penetrated.
14. REFERENCES
The following references are used to fulfill the HP case analysis:
1. Strategic Management concepts and cases textbook, 12th edition, Fred David
2. http://www.hp.com/
3. http://finance.yahoo.com/
4. http://www.answers.com/topic/list-of-acquisitions-by-hewlett-packard
5. www.Hardware.seekingalpha.com/
6. www.channelinsider.com
7. www.crn.com
8. www.investor.reuters.com
9. www.money.cnn.com
10. www.wsj.com
41

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Case Study no.7: Hewlett-Packard Company

8.3 SWOT analysis summary.................................................................................... 35

1.2 Company and Competition

Net Income Hewlett-Packard

1.3 Company Products and services

Desktops PCs for business

Point of Sales (POS)

Printers & All-in-ones for Home & and Home Office

Printing and Multifunction for business

Handheld PCs for business

Calculators for Home & Home Office

Scanners and Fax for business

Digital photography for business

Monitors for business

Software and operating systems for tasks such as network

Total Care Services

Personal Imaging and HP Financial Service Corporate

HP Personal Systems Group (PSG) claims to be "one of the leading vendors

HP Enterprise Business (EB) incorporates Technical services, Enterprise

H P Business Segment Financial Overview (Reference to Given Case Data)

Net Revenue per Business Segment Earnings per Business Segment

Agreement date Acquisition date Company Business Country Value (US$)

F&M Scientific Analytical

Data Systems, Information

November 1991 Avantek Transistor United States

Four Pi Systems Medical

Metrix Network Computer

September 13, October 1993 EEsof Inc. Computer United States

September 21, Convex Computer

Business related Information

March 27, 1998 Heartstream Medical United States

Transoft Storage area

Security Force Computer

September 21, Information

Procter & Information

Extreme Logic Information

September 3, 2003 Talking Blocks Web service United States

November 11, Persist Computer

CEC Europe Information

April 15, 2005 Snapfish Photo sharing United States

November 1, 2005 Scitex Vision Printing service Israel $230 million

November 30, Computer

December 13, Online photo

December 19, Peregrine Computer

June 6, 2006 Silverwire Imaging Switzerland

September 28, Computer

December 12, Knightsbridge Information

December 20, Computer

SPI Dynamic Computer

September 13, MacDermid Printer

Atos Origin Information

EYP Mission Information

TOWER Computer $101.529

November 11, Computer

3.1 Corporate performance Financial Analysis

Return on Total Equity

Fixed Asset Turnover

3.1.2 Financial Data Compared to Competitors

July 2007 results HP CANON DELL IBM Industry

3.2 Strategic Posture

3.2.1 Current Vision:

3.2.2 Current Mission, Values and Objectives: