HEWLETT-PACKARD & A COMMON SUPPLIER CODE OF CONDUCT Harvard Case Solution & Analysis

HEWLETT-PACKARD & A COMMON SUPPLIER CODE OF CONDUCT Case Solution

Problem Diagnosis

            Hewlett-Packard of HP for short is one of the leading providers of the range of different products in the electronics industry such as printing, imaging and the personal computing products. The company is the leading technology solutions provider to the businesses, consumers and different institutions globally. The company operates one of the most complex and the biggest supply chain globally within the global electronics industry. The global sourcing operations of the company are being managed by the supply chain council of the company.

The company has also been ahead of its peers with regard to corporate social responsibility and its management has also developed a comprehensive set of standards for governing the environmental, labor, safety and the human rights of its suppliers. However, there have been many issues of supplier compliance and issues of reputational vulnerability. Now, the management of the company and the Manager of the corporate social responsibility of HP is considering that whether a common code of conduct for the industry suppliers could advance the interests of the company.

The company had also created its own common supplier code of conduct however, after facing compliance issues and criticism on these issues, HP is not considering the alternatives of whether it would be the best path to cooperate with all the other suppliers within the industry to collaborate on the common supplier code of conduct for the entire electronics industry or the company should continue with its own common supplier code of conduct.

Situation & Contextual Analysis

            The situation and the contextual analysis for HP has been performed and the issues, resources along with the overall industry have been examined by using two different models which are the SWOT model and the PESTEL analysis model for the overall electronics industry.

SWOT Analysis (Internal)

            The Internal analysis for HP has been performed by analyzing the strengths, weaknesses, opportunities and the threats against the company.

Strengths

  • HP is a global provider of the printing, imaging and the computing products and it provides the best of the technology solutions to its customers. The company is also the largest player within the laser printer and the inkjet printer market. It is also one of the biggest players in the servers, PC and the enterprise storage markets.
  • The highest growth rate in sales for HP had been seen in the year 2008 when the company had recorded sales of $ 118 billion which was approximately an increase of 14% in the sales as compared to the previous year.
  • The product portfolio of the company is diversified which minimizes the overall business risk.
  • The brand reputation and the brand awareness is strong for HP due to high brand trust.
  • The company ranks among the first 20 companies in the list of the Fortune 500.
  • The distribution network of the company is diverse and strong. This is the reason due to which the management of the company had initiated the supplier common code of conduct for its biggest international suppliers around the globe.
  • The company has developed a strong reputation for its corporate social responsibility which creates more trust among its customer base.

Weaknesses

  • The presence of the company is poor in the tablets markets and its majority income (30%) is derived from the personal systems division.
  • The company has no specific policies for the retention of its employees, thus the intellectual capital of the company is not protected. The Intellectual Capital of the company is underestimated.
  • The company is more profit oriented as compared to value oriented with regard to its customers....................
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