Global Operations of a U.S. Company Hewlett Term Paper

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global operations of a U.S. company Hewlett Packard (H.P.). The company has 88,500 employees worldwide and had total revenue from continuing operations of $48.8 billion in its 2000 fiscal year. Hewlett-Packard Company is considered a leading global provider of computing and imaging solutions and services, which aims at making technology and its benefits accessible to individuals and businesses through simple appliances, useful e-services and an Internet infrastructure that's always on.

Recently Hewlett Peckard (HP) has begun to integrate a significant amount of its workforce at its new facility in the IT capital of India. In addition, H.P. has been doing business for a long-time in Europe and other parts of Asia -- Korea, Japan, and Singapore. Some of these operations -- backend IT services, customer call services, and other tactical operations -- are being done in pursuit of its cost management issues throughout its operations. As a result of outsourcing, H.P. is poised to reduce the cost of its products and services globally.

Q 2. The main comparative advantages that HP gains from its worldwide operations are in two fronts: First, by moving some of its services offshore, HP is able to reduce the costs of its products. Second, by opening its call services globally, HP can provide a high level of services to its clients. In addition, the quality of HP products is considered comparatively high because of its expertise in processors and imaging technologies.

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Q3. Life cycle stage of a product impacts the pricing of the product (Kotler, 1991). We believe that while in U.S., the market for HP.'s computers and its imaging technologies may be in declining stages. It is because in the United States the sales of the computers are not rising faster any more. A large majority of people already owns the computers. So seeing this trend, there are less opportunities for the growth of the computers, unless some new innovation takes place. In maturity state, since the sale of the product slows down, the right strategy for company is to reduce the price of the product, i.e. The computer. However, the research notes that in along period of the maturity, firms make most of the money. If the maturity period is short, many of the firms may not be able to recover their investment, however, in developing countries HP can potentially grab a large share of the market. Therefore, H.P. is in better position to market its products in developing countries where it has already established its presence.

Q 4.

The very existence of marketing is dependent on buying power of the consumers. If the income of the people increases, their buying powers also increase. The increasing power, thus, brings new innovation and better products to suit to new demands of the people (Kotler and Armstrong,….....

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