Good Example Of Company Overview And Country Of Operation. Research Paper

Type of paper: Research Paper

Topic: Business, Company, Investment, Law, Market, Finance, Politics, Stakeholders

Pages: 2

Words: 550

Published: 2020/10/26

International Business Analysis: Hewlett-Packard

Hewlett-Packard Company operates in Diversified Computer Systems industry within the technology sector. The company was founded in 1939 and has its headquarters in Palo Alto, California. However, it was incorporated in 1947 in California under the state laws and was a successor to a partnership that had been founded in 1939 by David Packard and William Hewlett. (HP, 2014)
The company and its subsidiaries provide technologies, products as well as software and services to small and medium-sized businesses, individuals, health, government and educational sectors across the world. The business is divided into various segments including the Personal Systems segment that offers personal and commercial computers, systems and software. Other segments include the printing segment, enterprise group segment, and the enterprise service segment. Further, the business has a financial services segment that provides leasing, financing, as well as assets management services. Finally, there is a Corporate Investment segment that includes the company’s labs, as well as cloud-related business incubation projects. (Yahoo Finance, 2015)
The company’s services and products are available across the world, and that provides the company with diversity that enhances its ability to meet demand on a global market for both consumers and enterprise customers. The Company also enjoys technical expertise from its global workforce thus providing revenue streams that offset geographical, economic trends. The Company also believes that future growth is dependent on its ability to develop sales and product models that target emerging markets hence its focus on global presence. (HP, 2014) In that view, the business is increasingly conducting its businesses in emerging markets including Russia, Brazil, China, and India. (HP, 2014)

Market and legal systems and effect on company’s operations

The business is subject to various local, foreign and state as well as federal laws and regulations that concern aspects including environment protection. The laws provide guidelines for disposal and management of wastes and hazardous substances as well as clean-up of the contaminated sites. That affects the company’s operations in recycling disposal and treatment of its products such as batteries. Thus, the company has a challenge in its product design as well as procurement as it seeks to adjust to new requirements that relate to materials and chemical composition associated with its products. Other regulations and laws include the product take-back legislation. Thus, failure of the company to comply with any of the laws and regulations results to costs such as restrictions on its products access to some markets. In addition, the business faces some fines and penalties for the laws violation given the differences in various markets. (HP, 2014)

Possible sources of political risk and response

Business operations are subject to various factors including external factors that are beyond its control. Such factors include the political factors that define the political risk the business could face in local and international markets. Such political risks include conflicts, war acts as well as geographical uncertainties that may result from the political systems relations. Other political risks include enactment of laws that could be unfavorable to the business operations. Such risks may cause disruptions and/or damages to the business, its facilities, employees, suppliers, resellers and customers hence adversely affecting its logistics and communications systems. To address the risks, the business insures its operations against uncertain events. In addition, the company seeks to adhere to regulations as a means of avoiding adverse effect of political systems regulations. (HP, 2014)

Stakeholders and complexity in meeting their interest in international operations

A business operations have several; stakeholders with different interests. Those stakeholders range from those with an effect on the business operations and those who are affected by the business operations. In that respect, the following is a summary of the Company’s stakeholders. (Lawrence & Weber, 2014)

Shareholders: They have an interest in maximizing their wealth through the company’s profits.

Customers: They are key stakeholders as they have an interest and a need for safe and quality products that adequately addresses their needs.
Management: The management has an interest in maximizing the company’s profits for the purpose of providing a return to the shareholder's capital and enhances their benefits.
Community: The community has an interest in having clean environment hence the need for the business to address its environment effect issues to ensure the communities have a clean environment.
Government and regulators: Government and industry regulators have a role in ensuring that the industry operations have no adverse effect on the society through licensing and regulations that ensure safe products and operations.
Given the several; stakeholders that the business has to consider in its decision-making, their management is complex owing to some conflicting interests and the international reach that spreads the stakeholders across the globe. Such conflict exists for shareholders and the management. With the management seeking to maximize their benefits, the stakeholders expect to maximize the return on their capital. The other conflict exists on the need to increase business operations in the international market and the need to minimize environmental impact as required by the regulators. (Lawrence & Weber, 2014)

Company’s code of conduct and importance of following the code

Businesses have codes of conduct as a means of ensuring that their operations are in line with their values and overall organizational objectives. In addition, the code of conduct is crucial for ensuring that there are clear guidelines on ways to address various issues and avoid conflict of interest for those involved. In that view, Hewlett Packard has a code that guides its employees and stakeholders on various aspects including labor, ethics, management systems and environment. It is crucial for the business to follow the code as a mean of minimizing conflicts in addressing the issue in international markets. That is crucial because there could be diverse approaches that are not in line with the company’s overall strategy and goals. (HP, 2015c)

Social programs in countries of operations

The increasing market and society awareness as well as the number of stakeholders with an interest in a business’ operations, organizations are increasingly adopting social responsibility. The responsibility involves engaging in activities and initiatives that do not necessarily have direct benefits to the business but rather addresses society problems to improve its people’s welfare. Thus, in its effort to embrace social responsibility, HP has a number of social programs meant to benefits the communities within which it operates. (Lawrence & Weber, 2014)
Such initiatives take various forms including environmental programs such as the use of HP Earth Insights as an initiative collaboration with Conservation International. The program uses big data analytics power to deliver insights on biodiversity loss of the tropical forests. The business also uses technology to deliver healthcare and medical services directly to communities that need it most. The technology also enhances collaboration with NGOs as well as other private sector organizations and government. An example is the use of the cloud-based data as well as information systems such as e-health centers. The program connects primary healthcare providers, and patients from the communities underserved. (HP, 2015b)

Indications the company may monitor or guide its investments and actions in future

Business are increasingly facing challenging environment given increased competition and change in other market factors. Thus, it is becoming crucial for businesses to monitors and guides their investments in terms of operations, locations, business models and sustainability. In that view, Hewlett-Packard has sought to respond to the market and industry changes through some strategies that indicate such prospects. Some of the indications include its planned separation of the company to two independent publicly traded companies: one will comprise of the enterprise technology infrastructure, services, software and financing businesses and is expected to conduct the businesses as Hewlett-Packard. The other will be the personal systems and printing business that will conduct business as HP Inc. Under the plan, the shareholders will have shares in both companies. (HP, 2014)

References

HP. (2014). 2014 Annual Report. Retrieved from,
http://h30261.www3.hp.com/~/media/Files/H/HP-IR/documents/reports/2015/hp-10-k-as-filed.PDF
HP. (2015a). Sustainability. Retrieved from,
http://www.hpl.hp.com/research/sustainability.html
HP. (2015b). Social Investments. Retrieved from,
http://www8.hp.com/us/en/hp-information/global-citizenship/social-investment.html
HP. (2015c). Hewlett-Packard Industry Code. Retrieved from, HP. (2014a). Social
Investments. Retrieved from,
http://www8.hp.com/us/en/hp-information/global-citizenship/social-investment.html
Lawrence, A., & Weber, J. (2014). Business and Society: Stakeholders, Ethics, public policy
14th Ed. New York, NY: McGraw-Hill Higher Education.
Yahoo Finance. (2015). Hewlett-Packard Business Summary. Retrieved from,
http://finance.yahoo.com/q/pr?s=HPQ+Profile

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