Accounting-Pest Analysis-Political Essay

PEST AnalysisPoliticalThe external IT and electronics industries expect been characterized with intensive competition. Electronics and IT companies argon constantly reviewing their achievements as well as the competitors in wander to come up with emend business strategies in an causal agency to best all other living industry rivals. With the coalition and scholarship strategy among HP and Compaq, members of the IT and electronics industry all over the universe were threatened with the intensified effort that could result from the integration. Others were surprised because fusions and skill strategies may similarly result to negative implications on the part of the merging companies specially when differences in the context of strategies, culture and goals fail to be fully integrated. frugalFor HP and Compaq, the merger lead augment the fighting of the previously supreme companies in order to outdo the achievements of highly aggressive competitors. Both HP and Comp aq sought means to add value to their existing products and services in order to increase the level of satisfaction among their clients and customers which were do possible through the merger. Once satisfaction levels among clients and customers be met, HP-Compaq expect better economic competitiveness within the internationalistic IT and electronics industry.SocialThe existing companies have been on bear when it comes to sunrise(prenominal) market trends, unused market opportunities, new-fashi angiotensin converting enzymed customer bases, and technological infrastructure on hand(predicate) for utilization. The merger mingled with HP and Compaq lead well-nigh deally result to better social activities as sponsored by the integrated companies. Social and civic activities that were previously independently supported by HP and Compaq will be carried out in new perspective receiv sufficient mostly to the fact that the merger could expose unexpected factors that could ma ke the new play along unstable.TechnologicalOne of the primary reasons for the merger of HP and Compaq be the companies drive towards innovation and festering in their products and services. The merger enabled relatively stronger frameigate and development efforts for thebenefit of the new family since it is now characterized with more intensive concerns to come up with IT products and services that will cater to existing as well as new clients and customers thereby increasing the companies consumer bases. At return the electronics products of HP have been observed to undergone evolution with the support facilities which were made available by Compaq.Five Forces AnalysisSuppliersThe merger resulted to review and assessment of the existing suppliers of both HP and Compaq since the integration strategy implied the relatively fewer contracts between companies that provide similar services and raw materials to HP and Compaq. However, the integration withal resulted to innovation in technology which necessitated new contracts with suppliers that whoremonger provide the new services and raw materials needed by HP-Compaq as a superstar corporation.buyersWith the promised added value on the products and services of the HP-Compaq merger, clients and customers of the confederacy could expect new and better product lines and service plys as one of the primary objectives of the integration strategy. Buyer power will be intensified in this respect since the HP-Compaq will be polish offering new electronics products and services in order to slew new market trends in the international IT and electronics industry.CompetitorsCompetitors of HP and Compaq were somehow divide when it comes to the overall implications of the merger to the international IT and electronics industry. There be those who believe that the merger will result to the continuous weakening of both companies comp bed to their other stronger competitors in the international IT and electronics i ndustries. While some believe otherwise imputable to the increase capability of HP and Compaq as a single operating company to build up and strengthen the market positions in the futurity age that will come.SubstitutesSubstitute products and services are increasing within the international IT and electronics industry which contri scarceed to the integration decisionbetween HP and Compaq. With the conglomerate efforts between the new HP-Compaq corporation, it is expected the substitute products and services that competes with the provisions and offers of HP-Compaq will be lessen due to better business and manufacturing processes and technological infrastructures that cannot be afforded by small rival companies.New EntrantsNew entrant in the electronics and IT industries are confronted with relatively more difficult incoming to the international market due primarily to highly aggressive competition between and among large corporations. It is coarse knowledge that business operati ons and facilities that characterize both the international IT and Electronics industries are very expensive and sophisticated. Such factors serve as strong barriers of entry to the industries where HP-Compaq belongs.SWOT AnalysisStrengthsThe merger between HP and Compaq will increase the companies competitiveness when it comes to the possible new product lines and services that they will offer as a single company to the clients and customers. The integration strategy withal resulted fewer market competition within the context of large international corporations that alike belong to the international IT and electronics industry. Costs will be reduced as expenditures in business operations such as manufacturing and production are now handled and managed as a single proprietorship. The research and development arm of HP and Compaq can now work together as single company with similar technological and economic goals.WeaknessesThe integration strategy between HP and Compaq, on the oth er hand, resulted to the need to lay off thousands of employees since their services will be no longer needed in particular those who have similar functions. Cultural integration within the workplace is also a serious issue since HP and Compaq are composed of divers(prenominal) individuals and employees who are used to different working environments as well as career expectations. The Human resource department will be confronted with businesss and issues regarding the new members of the companys workforce. Technical operations will also make out drawbacks from the changes that will transpire within the business processes of the company.OpportunitiesThe issues and problems that may result from the merger in terms of workforce differences can be perceived as an avenue fro improvement when it comes to workplace culture of the company. The wariness should be able to device means to exhaust diverse knowledge and skills that characterize the members of the companys labor force. Operat ions should likewise be restructured and reengineered in order to come up with better manufacturing and production processes that take into account capacity and product quality.ThreatsThe failure of the merger strategy is also possible if HP and Compaq are not able to resolve issues caused by differing workplace cultures. The photo of the merged company is likewise exposed since it is only a join of years since the merger contract was signed. There is still so lots to do for the full implementation of the merger strategy and existing competitors will aggressively take the opportunity of the changes that transpired within the new HP-Compaq company. Both native and external factors may contribute to the challenges and difficulties that HP-Compaq will experience in the future in the effort to succeed in the international market competition.StrengthsHewlett-Packards primary strength is its business position. The enterprise has a large occur of cash in hand about $10 billion. Hewlett -Packard is a world(a) enterprise and especially after its merger with Compaq, the company became worlds biggest computer hardware and peripherals consort in the world and has ranked twentieth in the Fortune 500 list. Hewlett Packard is operating in more than clxx countries including both developed as well as under-developed. Being a worldwide dealer of computer hardware, it gives HP many advantages like high-and-mighty printers market, both laser and inkjet.The company attracts and focuses on consumers from even newly set markets all around the world, multinational corporations, non-governmental organizations etc. The company compete both at local and international level. It has increased its competitiveness through policies and strategies that supports free-market economies. This is one of the reasons that make HP a leadingsupplier in the ontogeny IT markets. Hewlett Packard is said to have a complete product portfolio. WeaknessesThe company was in a long term debt for many y ears which unbroken it from investing in different increase opportunities. A major problem and complaint about the hardware supplies of HP is its touch pads. The touch pads of the notebooks of Hewlett Packard like the dv series, dm3, and Envy lines needs improvement. These touch pads are either finicky, unreliable, or are difficult to use because of friction. The mouse buttons on various HP supplied machines are said to be clumsy to use, too. Poor shelling life of HP products plagued some mainstream systems and net books. When it comes to Software that HP provides there are also some weaknesses. Some heavy softwares were paired with subdued hardware like Touch Smart. The past acquisition of Peregrine made the HPs portfolio even more diverse and complete but HP Open Views lack of mainframe management capabilities created several problems. Another weakness was that it did not yet hit a CMDB product that includes discovery and mapping. This cause many customers to switch the brand.O pportunitiesThe recent acquisition of EDS puts HP at a strong position in the computer market and makes it portfolio more impressive. Hewlett-Packard was able to generate large telephone number of revenues and profits from its different deals and raised more than six billion which it can use to pay off its debts as well as invest in different research and development activities. If the products by the company are supplied at reasonable prices, there will be more chances of growth as the demand would increase. The company has formed Customer Solutions Group that helps in selling the complete IT solutions, products and services by HP.ThreatsOperating in world(a) market means many competitors and therefore, the company has to be at the head teacher of changing technologies as well as addressing the changing customer demands and needs. The global economic recession is also a threat for the companys sales and profits. The prices have also fallen as the stock markets are at historic low positions. Many other competitors including Dell are entering the printer business whereas IBM hasbecome a market leader.