Hewlett Packard : Growing after the largest split in corporate history

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Hewlett-Packard Company, American manufacturer of software and computer services. The company split in 2015 into two companies: HP Inc. and Hewlett Packard Enterprise. Headquarters were in Palo Alto, California. Operating in 170 countries with a network of more than 250,000 channel partners, HP uses the power of ideas to put technology to work for everyone, everywhere. HP’s slogan is “HP invents, engineers, and delivers solutions that amaze.”

The firm’s motto is 'Keep reinventing,' which refers to both its internal operating strategy, and its ability to reinvent itself by launching new products such as the thinnest laptop in the world, or by revolutionizing manufacturing with its 3D printing technology. According to the firm’s internal figures, HP ships 1 PC & 1 Printer every second, is ranked first or second in every market and product category where it competes, while powering 430 of the global Fortune 500 companies.

Hewlett Packard - Company Highlights

  • Startup Name-Hewlett-Packard Company
  • Headquarters-Palo Alto, California, U.S.
  • Industry-Computer Hardware, Computer Software, IT Services, IT Consulting
  • Founder-Bill Hewlett, David Packard
  • Founded-January 1, 1939
  • CEO-Enrique Lores
  • Areas served-Worldwide

Hewlett Packard - About and How it works ?

The Hewlett-Packard Company, commonly shortened to Hewlett-Packard or HP, was an American multinational information technology company headquartered in Palo Alto, California, that developed and provided a wide variety of hardware components, as well as software and related services to consumers, small and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. The company split in 2015 into two companies: HP Inc. and Hewlett Packard Enterprise.

The company was founded in a one-car garage in Palo Alto, California by Bill Hewlett and David Packard in 1939, and initially produced a line of electronic test and measurement equipment. The HP Garage at 367 Addison Avenue is now designated an official California Historical Landmark, and is marked with a plaque calling it the "Birthplace of 'Silicon Valley'".

Hewlett Packard - Logo and its Meaning

The HP logo possesses a plain and simple look which is a definite representation of the company’s assurance of reliance and strength. In addition to being popular in the IT world, HP logo is well reputed among other fields.

Logo of Hewlett Packard

Shape of the HP Logo: The HP logo comes in a square with curved edges. Right in the centre of the logo is a ring which contains the font. The font is shown upright in the middle, providing elegance and distinction to the HP logo.

Colour of the HP Logo: The HP logo contains only blue and white colours. The shades together give an appearance of simplicity and sophistication to the overall logo. The sapphire background offers a sharp contrast to the white fonts, making the logo look captivating and inspiring, as well as preserving the company’s solemn approach to the business world.

Font of the HP Logo: The font used in the HP logo is simple and presented in italic. It comes into view vertically, in a bold and unique manner, capturing the entire concentration and appreciation of the viewer.

Hewlett Packard - Founder and History

The company was founded on January 1, 1939, by William R. Hewlett and David Packard, two recent electrical-engineering graduates of Stanford University.

It was the first of many technology companies to benefit from the ideas and support of engineering professor Frederick Terman, who pioneered the strong relationship between Stanford and what eventually emerged as Silicon Valley. The company established its reputation as a maker of sophisticated instrumentation. Its first customer was Walt Disney Productions, which purchased eight audio oscillators to use in the making of its full-length animated film Fantasia (1940). During World War II the company developed products for military applications that were important enough to merit Packard a draft exemption, while Hewlett served in the Army Signal Corps. Throughout the war the company worked with the Naval Research Laboratory to build counter-radar technology and advanced artillery shell fuses.

After the war, Packard became responsible for the company’s business, while Hewlett led its research and development efforts. Following a postwar slump in defence contracts, in 1947 Hewlett-Packard returned to the revenue levels of the war years and grew continuously thereafter through a strategy of product diversification. One of its most popular early products was a high-speed frequency counter that it introduced in 1951. It was used in the rapidly growing market of FM radio and television broadcast stations for precisely setting signal frequencies according to Federal Communications Commission regulations. Military sales during the Korean War also boosted company revenues.

Hewlett Packard - Mission

Mission Statement, "We earn customer respect and loyalty by consistently providing the highest quality and value. We achieve sufficient profit to finance growth, create value for our shareholders and achieve our corporate objectives."

Hewlett Packard - Business Model

HP, Inc. is a technology company that provides hardware, software, and other solutions. The company maintains three reportable business segments:

Personal Systems – This segment includes consumer personal computers (PCs), commercial PCs, thin client PCs, tablets, workstations, retail point-of-sale systems, calculators and related accessories, software, and support/services.

Printing – This segment includes commercial and consumer printer hardware, media, supplies, software and services, and scanning devices.

Corporate Investments – This segment includes HP Labs (facilities that conduct R&D), various enterprise-related business incubation projects, and venture-focused minority investments.

Hewlett Packard - Revenue and Growth

HP revenue for the twelve months ending July 31, 2020 was $56.788B, a 3.28% decline year-over-year.

HP annual revenue for 2019 was $58.756B, a 0.49% increase from 2018.

HP annual revenue for 2018 was $58.472B, a 12.33% increase from 2017.

HP annual revenue for 2017 was $52.056B, a 7.91% increase from 2016.

Hewlett Packard - Investments

Hewlett-Packard has made 28 investments. Their most recent investment was on Jun 29, 2016, when Keen raised $14.7M.

Hewlett Packard - Acquisitions

Hewlett-Packard has acquired 104 organizations. Their most recent acquisition was Bromium on Sep 19, 2019.

Hewlett Packard - Competitors

The split that led to the formation of Hewlett Packard Enterprise and HP Inc would be predicted as the downfall of this company in capturing majority share in the market. However, it seems like it still holds a significant stake in the industry.

Many brands also offer competition in the market by taking advantage of any lapses that Hewlett Packard might undergo and some includes Lenovo, Apple, Dell, Samsung, ASUS, Acer, IBM, Sony, and Toshiba.

Hewlett Packard - Challenges Faced

Hewlett Packard Enterprise Co. after splitting off its HP Inc. PC and printer division as a separate company in 2015, reported stronger-than-projected third-quarter sales on demand for servers and storage gear. Revenue was up 2.5 percent to $8.2 billion, the first time in five quarters the Palo Alto-based company beat analysts’ sales estimates.

The two big challenges for going forward :

Growth via acquisitions HPE spun out into a standalone company in 2015 and almost immediately went on an acquisition spree, buying six companies in 18 months. The company acquired Cloud Technology Partners earlier this week, marking its fifth acquisition of the year.

Running a slimmed-down operation After the largest split in corporate history and tens of thousands of lay-offs, HPE is finally running a nimble operation. While investors are happy with the company delivering billions to shareholders and erasing debt, many are concerned it will come at the cost of innovation.

Hewlett Packard - Future Plans

HP Announces Strategic and Financial Value Creation Plan that is expected to deliver $3.25 to $3.65 non-GAAP diluted net EPS by 2022. This significant expected earnings growth is supported by HP’s market leadership and track record of execution across Personal Systems, Print, and 3D Printing & Digital Manufacturing, disciplined and sustained cost actions, as well as a new capital return program of approximately $16 billion during fiscal 2020 to fiscal 2022. And it includes :

  • Expects to deliver non-GAAP diluted net Earnings Per Share of $3.25 to $3.65 in fiscal 2022
  • Announces $15 billion total share repurchase authorization program
  • Targets $16 billion capital return planned over three years, representing approximately 50% of HP’s current market capitalization
  • Plans at least $8 billion share repurchase within 12 months following its annual meeting
  • Xerox proposal: flawed value exchange, irresponsible capital structure, overstated synergies

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