DIGITAL ASSIGNMENT-1

LEAN START-UP MANAGEMENT

FACULTY: SEEMA A

SLOT: TE1

Group Members:
1. Lucky Singh Kachhawah (17BME0359)
2. Ayush Gurtu (17BEC0185)
3. Satin Jain (17BIT0113)
4. Simron Mohapatra (16BEC0661)
5. Kanav Bhatnagar (17BEI0056)
6. Sankalp Jain (17BIT0136)
Full Form : Hewelett-Packard (HP)
Founded : William Redington Hewlett
Ceo : Dion Weisler

Industry : Technology
Sector : Public
Country: USA
Website : https://www.hp.com

HP : Making it Matter
Hewlett-Packard (HP)Company Profile Hewlett Packard company (HP) is an American
multinational Information Technology organization that provides hardware and software
services to small, medium and large sized businesses across industries. It also has an extensive
range of IT products to offer.

Founders
The organization was founded by William “Bill” Redington Hewlett and Dave Packard in
1939. It was started in a car garage in Palo Alto, California, where today it is headquartered.
The first product of HP was an audio oscillator. Today, HP specializes in developing and
manufacturing PCs, networking hardware, computer storage and delivering services. HP’s
product line includes PCs, servers, networking products, storage devices, software, printers and
imaging products. There are more than 3,17,500 employees in the organization globally.
It’s noteworthy to mention some of the key milestones of HP since 1939. HP became a public
organization in 1957. In 1961 HP was listed on the New York Stock Exchange. In 1962 HP
entered the Fortune 500 list at position 460. HP entered the Asian market in 1963. In 1964,
Dave Packard was elected as the CEO and Chairman of the Board and Bill Hewlett was elected
as the President.

Company Background
HP is the first company in the United States to introduce flextime policy for employees,
an initiative to encourage work-life balance. The policy was firmed up in 1973. In 1974
HP introduced world’s first programmable pocket calculator. In 1980 HP manufactured
its first PC named HP-85. In 1982, HP-75C debuted as the first handheld computer and
in 1983 the first touch screen PC was devised.

In 1993, Dave Packard retired as the Chairman and Lew Platt was elected to replace him.
In 1993, HP introduced the Omni book 300, a supportable PC with extended bat tery life.
In 1994, HP introduced the world’s brightest LED. In 1994, the first HP’s official
personal printer-fax-copier was introduced. 2001 witnessed the creation of HP services
to provide consulting and outsourcing support and solutions deployment.
In 2002, HP and Compaq merged and subsequently the company’s stock symbol changed
to HPQ. In 2010, HP acquired 3PAR, a leading storage provider. In 2011, HP introduced
the industries’ first wireless mouse. In 2013, HP came with the revolutionary HP data
protector 8.1

Company Details

HP Enterprise Business (EB) incorporates HP Technology Services, HP Enterprise

Security Services and oversees services such as information security, network security,
and compliance. HP Software Division is the company’s enterprise software unit. Under
the office Strategy and Technology come HP Labs, which is the research wing of HP.
HP also provides consulting managed services across the globe. The HP financial services
segment provides a broad range of financial value added life cycle managed services.

History
Bill Hewlett and David Packard graduated with degrees in electrical
engineering from Stanford University in 1935. The company originated in a garage in
nearby Palo Alto during a fellowship they had with a past professor, Frederick Termanat
Stanford during the Great Depression. Terman was considered a mentor to them in forming
Hewlett-Packard. In 1938, Packard and Hewlett begin part-time work in a rented garage with
an initial capital investment of US$538. In 1939 Hewlett and Packard decided to formalize
their partnership. They tossed a coin to decide whether the company they founded would be
called Hewlett-Packard (HP) or Packard-Hewlett. HP incorporated on August 18, 1947, and
went public on November 6, 1957.
Of the many projects they worked on, their very first financially successful product was a
precision audio oscillator, the Model HP200A. Their innovation was the use of a small
incandescent light bulb (known as a "pilot light") as a temperature dependent resistor in a
critical portion of the circuit, the negative feedback loop which stabilized the amplitude of the
output sinusoidal waveform. This allowed them to sell the Model 200A for $89.40 when
competitors were selling less stable oscillators for over $200. The Model 200 series of
generators continued until at least 1972 as the 200AB, still tube-based but improved in design
through the years.

One of the company's earliest customers was Walt Disney Productions which bought eight
Model 200B oscillators (at $71.50 each) for use in certifying the Fanta sound surround
sound systems installed in theaters for the movie Fantasia.

Hewlett-Packard logo used from 1941 to 1964

In 1960s
HP is recognized as the symbolic founder of Silicon Valley, although it did not actively
investigate semiconductor devices until a few years after the "traitorous eight" had
abandoned William Shockley to create Fairchild Semiconductor in 1957. Hewlett-Packard's
HP Associates division, established around 1960, developed semiconductor devices primarily
for internal use. Instruments and calculators were some of the products using these devices.
In 1970s

Hewlett-Packard logo used from 1964 to 1979

The HP 3000 was an advanced stack-based design for a business computing server, later
redesigned with RISC technology. The HP 2640 series of smart and intelligent terminals
introduced forms-based interfaces to ASCII terminals, and also introduced screen labeled
function keys, now commonly used on gas pumps and bank ATMs. The HP 2640 series
included one of the first bit mapped graphics displays that when combined with the HP
2100 21MX F-Series microcoded Scientific Instruction Set enabled the first
commercial WYSIWYG Presentation Program, BRUNO that later became the program HP-
Draw on the HP 3000.

Hewlett-Packard logo used from 1979 to 2010

1980s
In 1984, HP introduced both inkjet and laser printers for the desktop. Along with
its scanner product line, these have later been developed into
successful multifunction products. The print mechanisms in HP's tremendously
popular LaserJet line of laser printers depend almost entirely on Canon Inc.'s components
On March 3, 1986, HP registered the HP.com domain name, making it the ninth
Internet .com domain ever to be registered.

1990s
In the 1990s, HP expanded their computer product line, which initially had been targeted at
university, research, and business users, to reach consumers. HP also grew through
acquisitions. It bought Apollo Computer in 1989 and Convex Computer in 1995.
In 1999, all of the businesses not related to computers, storage, and imaging were spun off from
HP to form Agilent Technologies. Agilent's spin-off was the largest initial public offering in
the history of Silicon Valley. The spin-off created an $8 billion company with about 30,000
employees.
In July 1999, HP appointed Carly Fiorina, formerly of AT&T and Lucent, as the first
female CEO of a Fortune-20 company in the Dow Jones Industrial Average. Fiorina received
a larger signing offer than any of her predecessors.
Sales to Iran despite sanctions
In 1997, HP sold over $120 million worth of its printers and computer products to Iran through
a European subsidiary and a Dubai-based East distributor, despite U.S. export sanctions
prohibiting such deals imposed by Bill Clinton's executive orders issued in 1995. The story
was initially reported by The Boston Globe, and it triggered an inquiry by the SEC.
HP was using a loophole by routing their sales through a foreign subsidiary. HP ended its
relationship with Redington Gulf after the SEC inquiry.

2013–2015
On December 31, 2013, HP revised the amount of jobs cut from 29,000 to 34,000 up to October
2014. The current amount of jobs cut until the end of 2013 was 24,600. At the end of 2013 the
company had 317,500 employees. On May 22, 2014 HP announced it would cut a further
11,000 to 16,000 jobs, in addition to the 34,000 announced in 2013. "We are gradually shaping
HP into a more nimble, lower-cost, more customer and partner-centric company that can
successfully compete across a rapidly changing IT landscape," CEO Meg Whitman said at the
time.
In June 2014, during the HP Discover customer event in Las Vegas, Meg Whitman and Martin
Fink announced a project for a radically new computer architecture called The Machine. Based
on memristors and silicon photonics, The Machine is supposed to come in commercialization
before the end of the decade, meanwhile representing 75% of the research activity in HP Labs.
On October 6, 2014, Hewlett-Packard announced it was planning to split into two separate
companies, separating its personal computer and printer businesses from its technology
services. The split, which was first reported by The Wall Street Journal and confirmed by other
media, would result in two publicly traded companies: Hewlett Packard Enterprise and HP
Inc. Meg Whitman would serve as chairman of HP Inc. and CEO of Hewlett Packard
Enterprise, Patricia Russo would be chairman of the enterprise business, and Dion
Weislerwould be CEO of HP, Inc
Vision and Mission
Our vision is to create technology that makes life better for everyone, everywhere — every
person, every organization, and every community around the globe. This motivates us —
inspires us — to do what we do. To make what we make. To invent, and to reinvent. To
engineer experiences that amaze. We won’t stop pushing ahead, because you won’t stop
pushing ahead. You’re reinventing how you work. How you play. How you live. With our
technology, you’ll reinvent your world.
 This is our calling. This is a new HP.

Keep reinventing.

HPE’s accessibility policy

Hewlett Packard Enterprise's accessibility goal is to design, produce and market products and
services that can effectively be used by people with disabilities.
Hewlett Packard Enterprise is committed to providing products and services that are accessible
for people with disabilities. This commitment supports our company's diversity objectives and
helps us ensure that the benefits of technology are available to all.
Our accessibility goal is to design, produce, and market products and services that can
effectively be used by everyone, including people with disabilities, either on a stand-alone basis
or with appropriate assistive devices.
To achieve our goal, this Accessibility Policy establishes seven key objectives to guide our
actions as a company. All Hewlett Packard Enterprise managers and employees are expected
to support these objectives and their implementation in accordance with their roles and
responsibilities.

Hewlett Packard Enterprise Company is committed to the following:

 Raising the level of awareness of accessibility issues within our company, and providing our
employees with the training they need to design, produce, market and deliver accessible
products and services;
 Developing accessibility guidelines for products and services, and holding product
development groups accountable for implementing these guidelines where competitively,
technically and economically feasible;
 Involving people with disabilities in the development of accessibility guidelines, and in the
design and testing of products and services;
 Documenting accessibility features, and making information about our products and services
publicly available in an accessible form;
 Establishing relationships with leading assistive technology and solution providers;
 Supporting internal and external research and development that will improve the state-of-the-
art of assistive technology relevant to our products and services;
 Supporting and contributing to industry standards and guidelines for accessibility.
Products

1. Printers
They have various printers for different types of printing. Each printer uses a unique
technique to print. These are all the types of printers that are made by HP.
2. Desktops/All in One PC’s
An all-in-one PC (AIO PC) is a computer that has every component within the same
case as the monitor, except for peripheral components like the keyboard and mouse.
Apart from being aesthetically appealing, compact and easy to set up compared to a
desktop computer, an AIO PC has reduced power and heat consumption.

3. Laptops
There are different laptops for different kind of work. For professional use they have
pavilion, for gaming they have omen. These are all different kinds of laptops.
4. Gaming
HP has some gaming accessories too. Apart from Gaming desktop/laptop it has VR
Gear also. These are all the gaming accessories.

5. Apps and Services

They provide software for cloud services, printing services and other photo creating

6. Scanners and Fax

7. Monitors

8. Workstations and thin clients

9. Camera and camcorder

10. Smartwatches
They make fancy smartwatches too.

11. Mobile devices

12. Calculators
13. Accessories and Parts

14. Point of sale systems

Hewlett Packard Competitors

1) Lenovo

Lenovo is the closest competitor of HP. Its market share in the PC industry is higher than Apple
and Dell. Lenovo is a giant Chinese multinational technology company that has a specialty in
manufacturing computer hardware, software, consumer, professional and industrial consumer
products.

It was founded 33 years ago and currently has its headquarters in Beijing, China. Lenovo is a
strong competitor to the Hewlett Packard and specifically in computer hardware. Its market is
growing all over the world, and presently, they have over 70 service centers in different
countries and have employed approximately 70,000 workers in such centers.

In 2017, when HP’s market share was around 21%, Lenovo’s stood at 20.8%. It has a large
product portfolio made up of gaming products, laptops & ultrabooks, tablets, desktops,
smartphones and cloud storage as well as more products and services. The brand has been
around for nearly 33 years and has acquired global fame in the meantime. Lenovo’s hold on
the Asian markets is much stronger than any of the PC brands. Like HP, Lenovo has also used
a competitive pricing strategy. However, its product portfolio is larger and varied leading to
more channels of revenue.

Lenovo’s computer hardware products have increased in the last decade across the world.
Initially, it drew attention majorly to the Mainland Chinese market but has been able to make
a mark even in nations with emerging economies. Because of its strong presence across the
globe and an in depth product portfolio, Lenovo is considered as one of the top Hewlett packard
competitors.
2) Apple

One of the biggest competitors of HP, Apple is known best for its MacBooks and I-Phones.
The brand Apple Inc is associated with the manufacturing of high-end technology, digital and
multimedia products. Under the stewardship of Steve Jobs, Apple Inc rose to become one of
the greatest private business empires in the whole world. It is guided by the doctrines of
uncompromised quality and technical but straightforward innovation in producing all its wide-
ranging products.

The brand value for Apple Inc is currently estimated to be approximately $235 billion with an
approximated annual net income of $215 billion.

However, compared to HP its market share is much smaller. The brand still enjoys much higher
profit margins than any other PC brand and that’s why it is a formidable competitor. Apart
from that, in terms of innovation, Apple is far ahead of any of its competitors. In the recent
years, Apple’s brand value has grown very fast. Its market capital has crossed the 1 trillion
dollars mark and it is the first company to have achieved this mark. Like the other PC brands,
Apple too invests heavily in research and development. Its range of tablets is larger than that
of HP. However, due to its premium pricing strategy, the customer base is comparatively
smaller.

In regards to recent competition, it is not seen as a strong competitor of Hewlett Packard for
two significant reasons; one is that Apple does not manufacture its products in large volume,
which implies that it has a segmented market to sell its products to.

The second reason is that it is currently scaling down on producing its computer hardware
products. HP on the other hand uses a more competitive pricing strategy to cater to customers
from both the higher and the lower end market. Apple is surely the market leader in
several markets for its Macintosh line of laptops and because of its premium brand positioning,
Apple is considered as one of the top HP competitors. The two global brands are among the
largest five in the PC industry based on market share.

3) Dell

It is arguably regarded as the most potent competitor of Hewlett Packard in the market. Dell has
established 33 years ago and all this time has been fundamental in producing a considerable
number of computer and technology products to the vast market segment. It has further majored
in producing other hardware and software components and is slowly recapturing the market
share that it once had in the previous decades.

One compelling aspect to understand is that Dell Company has been in various acquisition
deals in the past. Some of such moves had shaken its production and distribution processes
whereas some of the agreement strengthened the company. Dell generates a better percentage
of its revenue from the sale of computer hardware products especially the PCs, Desktops,
Scanners, and printers and the combination of these products make it a lethal Hewlett packard
competitor.

4) Samsung

If there is an Asian multinational conglomerate technology and electronics company that

occupies a substantial percentage of the global market, then you got to give it to Samsung.

Inspired by strong foundations to produce high-quality products, Samsung has become a brand
to beat especially in the consumer, professional and entertainment technology products. It is
also ranked as the second technology company with the high number of employees worldwide
which currently stands at approximately 320,000.

However, Samsung is slowly scaling down its production of computer hardware products and
instead focus on home entertainment such as gaming consoles and household electronic
appliances. But in developing countries, Samsung still has a strong foothold in laptops and
printers and especially in Smartphones making it one of the top Hewlett Packard competitors.

5) ASUS

Asus is an ambitious Taiwanese technology company that for close to three decades now has
been in the computer and technology industry. One aspect that Asus uses to counter most of its
competitors in the market is by identifying the untapped markets and maximizing by producing
and supplying products to such markets.

Also, Asus also considers the pricing in the sense that most of their products are relatively
affordable hence making it easy for them to penetrate into such markets without difficulty. The
other aspect that Asus has incorporated in their bid to become top players in this industry is
that they have partnered with over 400 companies across the world as a way of enhancing
their brand visibility and awareness to the untapped market.

6) Acer

Acer has founded 41 years ago and has its headquarters in Taipei, Taiwan. It designs,
manufactures and sells some computer-related hardware and software products. Acer has also
in the recent past ventured in manufacturing smartphones and smart TVs. Its growing market
is a signal that with time Acer will be among the top players in this industry without a doubt.
Poor planning and business strategies, as well as political and economic stability in China, had
seen the brand name and revenue growing at a slower pace.

However, Acer has been able to make significant changes in the last decade by establishing
various business models to make it possible to capture not only the Taiwanese market but also
the broader global markets. It has worked according to their plans hence promising to be a great
computer hardware manufacturer in the near future.

7) IBM

If there is a company that has revolutionized the computer and Technology Company, then it
has to be IBM.

Over the years of its operation, IBM has stood firmly to set the trend for many other competitors
regarding technological innovations. IBM owes this to extensive research
and development that they carry out every year, time and again just to make sure that they
provide a technology-laden product that augurs well with the clientele.

It is an American-based technology firm that has now diversified to the manufacturing of other
technology products and offering related services. It is currently ranked at number one
regarding workforce with an estimated of over 400,000 employees across the world. IBM is
the elephant of the technology industry and has huge presence in products as well as
consultancy business. Due to this combination, it is considered as one of the tough Hewlett
packard competitors.

9) Sony
Just like Samsung, Sony is also another Asian based company that is widely accepted in
different parts of the world. It is known for producing some high-end consumable, professional
and entertainment electronics. It also manufacturers computer hardware products albeit in
small scale.

Similar to Samsung, this company also has numerous service centers in almost every country
and has employed a workforce of about 130,000 people to cater for different aspects of the
brand including dealership, distribution, and marketing in their respective countries.

Regarding competition to Hewlett Packard, Sony does not position itself as a strong competitor
because it is also downscaling its production of computer hardware products to focus more on
other consumer electronics and entertainment devices and household appliances.

10) Toshiba

Toshiba is regarded as the oldest Asian multinational technology firm that has played a
fundamental role in revolutionizing this industry especially for other players in Asia. It
specializes in offering quite a good number of computer products, industrial electronics and in
consumer electronics. Toshiba has its headquarters in Tokyo, Japan but has since its inception
widen its market to many countries across the world. It has several subsidiaries under its brand
name in different continents where it attracts massive purchase power.
Understandably, it is also a strong competitor to Hewlett Packard given that it still produces a
high number of innovative-driven PCs including desktops and laptops, tablets and other many
computer accessories such as monitors and keyboards.

11) Microsoft

Microsoft is popular for producing computer software more than it is known for hardware.
However, in the recent past, it has been able to get involved in acquisitions and mergers that
have seen it making an effort to produce hardware products.

Seemingly, Microsoft is concentrating much on providing software and related services such
as cloud-based services. It, therefore, means that regarding competition with Hewlett Packard,
its impact is minimal since Hewlett Packard focuses majorly on computer hardware products.

12) Epson

Epson is a Japanese based technology company. It specializes mainly in manufacturing

printers, imaging devices, and information equipment. It is a strong competitor to Hewlett
Packard, especially in printers.
One reason why this particular manufacturer stands out is that is specialty is solely in
manufacturing printers and related accessories. Epson produces all sorts of printers for all kinds
of purposes. They target all sectors including small businesses, corporates, industries and
government institutions by manufacturing a wide range of printers that suits the needs of the
specific target markets. It has over 70,000 employees as of 2017 in various parts of the world.
Because of its very good brand image in printers and peripherals market, Epson is considered
as one of the top HP competitors at least for printers.

HP Competitors in Consultancy business

13) Capgemini

The IT field is dynamic but has become fundamental in close to all aspects of life. Capgemini
– Consultancy provides sufficient IT related consultancy services to various commercial,
governmental and corporate institutions that are in need of particular IT services. It is a French
Company with headquarters in Paris but has established its market in various countries across
different continents.

As of 2017, this consultancy firm had over 200,000 employees in more than 50 countries. It
specializes in offering consultancy, technology and outsourcing service that relate to ICT. The
fact that Hewlett Packard also provides IT consultancy services implies that this firm is a
competitor in the market.

14) Wipro
This is also another highly ranked IT and related services consultancy firm. It focuses on
providing solutions to business that would place them in a better position in any competitive
market. It is currently ranked as the third Technology Company and number one in global
software and entertainment.

Wipro offers services to various fields including finance, insurance, health, security, cyber
surveillance and human capital management. It also helps majorly in providing IT integration
services that would propagate a particular industry in scaling new heights regarding efficiency
and turnover.

Awards and achievements

2018

Three Vendors Earn Inaugural BLI Reliability Awards

Most Reliable Business Printer & MFP Brand, 2018 – 2021
Note: This is a new BLI Award based on 5 years of hands-on test data and will be in place
for 3 years

Outstanding Copier MFPs Earn BLI Pick Awards

Outstanding 60-ppm Color Copier MFP, Summer 2018
HP Color LaserJet Managed MFP E87660 Series

Outstanding 60-ppm Copier MFP, Summer 2018

HP LaserJet Managed MFP E82560 Series

Exceptional Printers and MFPs from Five Vendors Earn BLI Awards
Outstanding Color Printer for Small and Home Offices, Summer 2018
HP Color LaserJet Pro M254dw

Outstanding Color MFP for Small and Home Offices, Summer 2018
HP Color LaserJet Pro MFP M281fdw
 Outstanding MFP for Large Workgroups, Summer 2018
HP LaserJet Enterprise MFP M631 Series

Outstanding Printer for Large Workgroups, Summer 2018

HP LaserJet Enterprise M607 Series

Outstanding MFP for Enterprise Environments, Summer 2018

HP LaserJet Enterprise MFP M633 Series

Outstanding Printer for Enterprise Environments, Summer 2018

HP LaserJet Enterprise M609 Series

Outstanding Ink Printer for Enterprise Environments, Summer 2018

HP PageWide Managed Color E75160dn

Outstanding Achievement in Ease of Use, Summer 2018

HP Accessibility Assistant

Outstanding Achievement in Ease of Use, Summer 2018

HP Smart App

Keypoint Intelligence Honors Leading Scanner Makers with Coveted BLI Awards
Outstanding Achievement in Innovation, Summer 2018
HP ScanJet Enterprise Flow N9120 fn2 Flatbed Scanner

2017

2017 CDP Climate and Water A Lists

One of only 25 companies to earn a position on both CDP’s climate and water “A” Lists.
U.S. Environmental Protection Agency (EPA)
Received SmartWay Excellence award for our freight and supply chain efficiency for the fourth
time in a row (and sixth time overall).

Dow Jones Sustainability Index

For sixth year in a row, named to the Dow Jones Sustainability World Index, which assesses
corporate sustainability performance across economic, environmental, and social factors.

World Environment Center Gold Medal Award

Received the World Environment Center Gold Medal Award for International Corporate
Achievement in Sustainable Development in recognition of its company-wide corporate
responsibility initiatives.

Corporate Knights Global 100

Most Sustainable Corporations
Ranked 1st in industry sector (Technology Hardware, Storage & Peripherals) and 82nd overall
out of close to 5,000 listed companies

CR Magazine 100 Best Corporate Citizen

Named to list of the 100 Best Corporate Citizens, an annual ranking of the most responsible
organizations in the world.

Environmental Protection Agency

ENERGY STAR Award
Received a 2017 EPA ENERGY STAR Award for Excellence in Energy-Efficient Product
Design for its commitment to improving the availability of energy-efficient products in the
marketplace.

Canada’s Greenest Employer Award

For the 10th year in a row, recognized by Mediacorp Canada as one of Canada’s Greenest
Employers for creating a culture of environmental awareness in their organizations.
RobecoSAM Silver Class Sustainability Award
For the 3rd year in a row, recognized with a Silver Class in RobecoSam’s Corporate
Sustainability Assessment for sustainability performance.

EcoVadis Supplier Sustainability Rating

Continued our Gold recognition level for the 8th consecutive time, putting us among the top
5% of companies and 1% of suppliers in our industry.

2016
CDP 2016 Global Climate Change Report
Among just 5 percent of the companies participating in CDP's climate change program to be
awarded a position on the "A" List, and the third year that HP has made this list, which
recognizes leadership in driving actions and strategies to address climate change.

U.S. Environmental Protection Agency (EPA)

Recipient of a SmartWay Excellence Award for the fifth time.

2016 FSC Leadership Award

With International Paper, Kimberly-Clark, McDonald’s, Procter & Gamble, Williams-
Sonoma, World Wildlife Fund, Conscious Minds, and Zeus Jones, honored with an
“Uncommon Partnership” award for our collaboration in helping FSC launch its first major
consumer engagement campaign in the U.S.

Dow Jones Sustainability Index

Named to the Dow Jones Sustainability World Index for the fifth year in a row and to the North
American Index for the sixth year in a row. These indexes assess corporate sustainability
performance across financially-relevant environmental, social, and governance (ESG) factors.
CDP Global Forests Report 2016
One of only eight companies—and the only IT company—to earn a position on the inaugural
“Forest A List”. The report highlights the critical challenges facing businesses in building
deforestation-free supply chains and scores companies that provided data on their corporate
deforestation programs.

Corporate Knights 2016 Global 100 Most Sustainable Corporations

Ranked 5th in our industry sector (Technology Hardware, Storage & Equipment) and ranked
96th overall out of over 4,000 listed companies.

RobecoSAM Silver Class Sustainability Award 2016

Silver Class in RobecoSam’s Corporate Sustainability Assessment for the 2nd year in a row.

CDP Supplier Climate A List

Among the top 2% of suppliers disclosing through CDP’s supply chain program to be awarded
an A grade for our climate performance.

HP FUTURE PLANS AND COMMITMENTS :

Hewlett Packard Enterprise :

 The need for Intelligent Edge capabilities is driving a very large, fast-growing market
opportunity
 To help customers turn data from every edge to any cloud into intelligence, HPE will
invest $4 billion in Intelligent Edge technologies and services over the next four years
 The strategic investment will go towards research and development to advance and
innovate new products, services and consumption models across a number of
technology domains such as security, AI and machine learning, automation and edge
computing.
  Hewlett Packard Enterprise announced that the Hewlett Packard Enterprise Board of
Directors has declared a regular cash dividend of $0.1125 per share on the company's
common stock.
 This dividend, the first in Hewlett Packard Enterprise's fiscal year 2019, is payable on
or about January 2, 2019, to stockholders of record as of the close of business on
December 12, 2018.
 Hewlett Packard Enterprise has approximately 1.5 billion shares of common stock
outstanding.

Hewlett Packard Inc :

 Estimates GAAP diluted net earnings per share (“EPS”) for fiscal 2019 of $2.04 to $2.14
 Estimates non-GAAP diluted net EPS for fiscal 2019 of $2.12 to $2.22
 Estimates fiscal 2019 free cash flow of at least $3.7 billion
 Expects to return approximately 75% of fiscal 2019 free cash flow to shareholders through
dividends and share repurchases
 HP Inc. (“HP”) announces dividend increase of 15%

For fiscal 2019, the company estimates GAAP diluted net EPS to be in the range of $2.04 to
$2.14 and estimates non-GAAP diluted net EPS to be in the range of $2.12 to $2.22. Fiscal
2019 non-GAAP diluted net EPS estimates exclude restructuring and other charges,
acquisition-related charges, defined benefit plan settlement charges, amortization of intangible
assets, non-operating retirement-related credits/(charges), tax adjustments and the related tax
impact on these items.
Based on the current environment, HP anticipates generating free cash flow of at least $3.7
billion for fiscal 2019.

Long-term HP expects to return 50%-75% of annual free cash flow to shareholders. In fiscal
2019, the company indicated that it expects to return approximately 75% of free cash flow,
with a 15% increase in the planned quarterly dividend amount, and the balance returned to
shareholders through share repurchases.

“FY18 has been a strong year for HP,” said Steve Fieler, Chief Financial Officer, “In FY19 we
will continue to execute against our core, growth and future strategy, driving productivity
improvements, and investing for the future to maximize shareholder value over the long term.”
HC Team Organization

Dion Weisler
President & Chief Executive Officer
Dion Weisler is the President and CEO of HP Inc., a global leader in innovative personal
computing devices, printers, 3D printing, and related services and solutions. A Fortune 100
company with operations in more than 170 countries, HP Inc. is focused on creating technology
that makes life better for everyone, everywhere, while championing diversity, sustainability,
and corporate responsibility in every community where it does business.
Dion became President and CEO of HP Inc. in 2015 after leading the company through one of
the largest and most complex separations in corporate history.
With more than 25 years of experience in the IT industry, and having lived in 8 different
countries, Dion has held key executive positions across multiple geographies in the IT and
telecommunications sectors.
Steve Fieler
Chief Financial Officer
Steve Fieler is HP Inc.’s Chief Financial Officer. In this role, he is responsible for all aspects
of financial operations including accounting, financial planning and analysis, business decision
support, tax, audit, treasury and investor engagement.
An eleven-year HP veteran, Steve most recently led Treasury and Corporate Finance functions
responsible for managing cash, debt, risk and capital structure as well as financial planning and
analysis, investor relations, credit and collections, and corporate development.
Steve re-joined HP after spending three years as Chief Financial Officer of Proteus Digital
Health, a pioneer in digital medicine. Prior to Proteus, Steve served in a range of finance and
operational roles at Hewlett Packard Company prior to the November 2015 separation. He
served as CFO for HP Software, VP of Sales Operations, Sr. Director of Marketing Operations,
Head of Investor Relations, and Director of Strategy and Corporate Development.

Alex Cho
President, Personal Systems
Alex Cho is the President of the Personal Systems business at HP. As head of the $35 billion
business, he leads a global technology portfolio spanning PCs, displays and accessories,
services, software, and immersive computing.
A 23-year veteran of HP, Alex has served in multiple strategy and operational positions
spanning the company’s PC, Printing and Services business in the Americas, Europe and
worldwide functions. He most recently served as Vice President and General Manager of HP’s
Commercial PC business with worldwide P&L responsibility for commercial notebooks,
desktop computing, accessories and displays businesses. The business achieved significant
revenue and profit growth under his leadership, re-establishing HP as the world’s number one
commercial PC manufacturer. Alex was responsible for building HP’s commercial insight to
innovation capability, architecting the vision around HP’s Office of the Future strategy as well
as Education and Healthcare initiatives. In addition, he brought deep security knowledge and
built differentiated capabilities that have made HP the world’s most secure and manageable
PCs.

Enrique Lores
President, Imaging & Printing
Enrique Lores is the President of HP Inc.’s Imaging & Printing business, an over $20 billion
business engineering ink and laser-based solutions that provide a faster, more affordable,
exciting way to print, manage, and realize content.
Within this business is the Solutions group. With a scalable, software-rich foundation, HP
provides end-to-end solutions that tie products, services and software together.
Throughout his 26 year tenure with HP, Enrique has held leadership positions across the
organization. Most recently leading the Separation Management Office for HP Inc., he
executed one of the largest and most complex corporate separations in history.
Previously, Enrique was the Senior Vice President and General Manager for Business Personal
Systems, where he was responsible for the overall business, including defining product,
marketing and sales strategies, end-to-end product development, and business execution
worldwide.

Christoph Schell
President, 3D Printing & Digital Manufacturing
Christoph Schell is the President of 3D Printing & Digital Manufacturing and a member of the
Executive Leadership Team of HP, Inc. In this role, Christoph leads all aspects of this global
business unit, which aims to drive the Fourth Industrial Revolution.
Christoph has been with HP for over 21 years in total and has held senior management roles
across the globe, most recently as the President of HP Americas where he was responsible for
HP’s North American and Latin American business across all products, services, and go-to-
market.

Cathie Lesjak
Interim Chief Operating Officer
Cathie Lesjak is HP Inc.’s Interim Chief Operating Officer. In this role, Cathie leads corporate
strategy and development, sales strategy and operations, customer support, indirect
procurement, and real estate and workplace functions.
Cathie has served in a wide range of prominent leadership roles in her 32 years at HP, most
recently serving as Chief Financial Officer. Cathie was named CFO in 2007 and had been the
CFO of HP Inc. since the company separation in November 2015. Prior to that she was Senior
Vice President and Treasurer, responsible for managing the company’s worldwide cash, debt,
foreign exchange, capital structure, risk management and benefits plan administration.
Earlier in her career at HP, Cathie managed financial operations for Enterprise Marketing and
Solutions and the company’s software business. She was also Group Controller for HP's
Software Solutions organization and managed HP's global channel credit risk as controller and
credit manager for the Commercial Customer organization.

Stuart Pann
Chief Supply Chain Officer
Stuart Pann is the Chief Supply Chain Officer for HP Inc., a $52-billion business operating in
more than 170 countries worldwide. HP’s supply chain delivers nearly 100 million products to
customers each year through a sophisticated network of HP factories, ODM factories, and
logistics providers. He also oversees social and environmental sustainability efforts tied
directly to HP’s reputation and business growth.
In addition to his role leading the supply chain, Stuart has responsibility for HP’s global IT
Innovation and Transformation team, as well as the IT Infrastructure and Operations team.
These teams are leading HP’s largest digital transformation in its history.

Tracy Keogh
Chief Human Resources Officer
Tracy Keogh has worldwide responsibility for HP's strategic human resources activities,
employee communications and social responsibility initiatives. She leads all aspects of HR,
including workforce development and organization effectiveness, benefits and compensation,
staffing, global inclusion and diversity, and HR processes and information management.
Prior to joining HP in 2011, Tracy was the Senior Vice President of Human Resources at Hewitt
Associates, the world’s largest provider of human resources consulting services. Her
accomplishments included creating an award-winning virtual learning and development
network, implementing a disciplined global succession planning process, and designing a
comprehensive and successful employee engagement program.

Shane Wall
Chief Technology Officer
Shane Wall is the Chief Technology Officer and Global Head of HP Labs. In this role, Shane
drives the company’s technology vision and strategy, new business incubation and the overall
technical and innovation community.
Shane has been at HP for over 10 years, spanning two waves a decade apart. He has held
engineering & management roles leading peripheral development, ASIC development,
embedded systems, product and platforms, before moving to Intel.
At Intel, Shane spent over 10 years as an executive in the areas of corporate technology, channel
platform solutions and mobile communications. He was also directly responsible for ventures
and investments during his time with Intel Capital.
Shane holds a passion for the start-up community and is an active angel investor, serving on
several startup and technology boards. Shane was the co-founder of venture-backed PrintPaks,
a pioneer in multimedia imaging.

Karen Kahn
Chief Communications Officer
Karen Kahn is HP Inc.’s Chief Communications Officer and Head of Communications,
Corporate Branding and Events. With more than 25 years of reputation and storytelling
experience, both as a journalist and communications and brand leader, she is responsible for
creating and connecting HP’s narrative to the social, economic, cultural and technological
truths of our time.
Karen joined HP in 2015, and is the communications architect for HP’s reinvention, supporting
its return to relevance, operational leadership and performance in PC, Print and 3D printing.
She is best known for her work to increase gender and racial equality and leadership throughout
the industry. Social impact programs she has spearheaded include HP’s marketing and
communications agency scorecard, measuring its partners racial and gender equality efforts,
#MoreLikeMe, a pilot mentoring program introduced at Cannes Lions 2018, and "Reinvent
Mindsets" an award-winning campaign to reduce unconscious bias in hiring.
Before joining HP, Karen served as Vice President of Corporate Marketing and
Communications at $70B chip innovator Broadcom. There, she was responsible for all aspects
of communications, social responsibility, visual design and global branding. Prior to this, she
served as Vice President of Global Communications at Silicon Valley pioneer, Sun
Microsystems/Oracle.

Richard Bailey
President, Americas Region
Richard Bailey serves as the President of the Americas and is responsible for the performance
of HP’s business across PCs, Printers, Graphics Solutions, 3D Printing and Managed Services
for both commercial and consumer segments. Reporting to the CEO, Richard is a member of
the HP Global Executive Leadership team and governs HP’s operations and personnel in the
Americas region.
Richard served as the President of Asia Pacific and Japan from 2015 to 2018. During his tenure
Richard and his team transformed the business and consistently delivered strong results in HP’s
fastest growing region.
Richard has held a variety of senior leadership positions over his 30-year career. He joined HP
in 2006, and since that time has worked at county, region and worldwide levels, playing a role
in nearly every function across HP’s business from strategy, sales and marketing, to customer
support, supply chain and services.
Prior to HP, he was the Managing Director for GE Commercial Equipment Finance Australia
& New Zealand (GE Capital) and founder and Managing Director of ALC Finance Group
(acquired by GE).

Tian Chong Ng
President, APJ Region
Ng Tian-Chong (TC), President, Asia Pacific and Japan, is responsible for HP’s business in the
region, including Go-To-Market strategy, sales and marketing across PCs, Printers, Digital
Press, 3D Printing and Managed Services for both commercial and consumer segments.
Prior to his current role, TC was General Manager for HP’s Printing Business in Asia Pacific
and Japan. In this role, he was accountable for overall business excellence and growth across
the printing portfolio and for building and leading a high-performance team.
With nearly 30 years of experience at HP, TC has held key roles in sales, finance, service and
support, and marketing, spanning consumer, channel, country, and regional portfolios.
His other roles have included leadership of HP’s Personal Systems Group business in the high-
growth South East Asian, Taiwanese and Korean markets, responsibility for HP’s Commercial
Volume Sales business in APJ, and leadership of the APJ Solution Partners Organization where
he built HP into a best-in-class channel player in the region.
TC holds a B.S. degree in International Business from Menlo College in California and a MBA
from Haas School of Business, University of California at Berkeley.
Nick Lazaridis
President, EMEA Region
Nick Lazaridis is the President of the Europe, Middle East, and Africa (EMEA) region for HP
Inc. He is responsible for managing all of HP’s operations, growth, and profitability throughout
the EMEA region.
Nick has over 20 years of experience in the technology industry, with leadership roles in
strategy, sales and operations. Prior to being promoted into his current role, Nick led the Asia
Pacific & Japan (APJ) region for HP. Before joining HP, Nick managed regional businesses
for AMD, Lenovo, Dell, and Acer.
Nick is passionate about people development, education and football. He has a diverse
background and appreciation for culture, having lived & worked in Singapore, Japan, United
States, China and Australia.

Kim M. Rivera
Chief Legal Officer
Kim M. Rivera is the Chief Legal Officer & General Counsel for HP Inc. In this role, she
manages the worldwide legal department, responsible for all aspects of legal, government
affairs, compliance and ethics.
Kim has more than 20 years of experience advising Fortune 500 companies on significant
corporate transactions, governance matters, securities, compliance, risk management, audit and
litigation matters.
Most recently, Kim served as the Chief Legal Officer and Corporate Secretary for DaVita
HealthCare Partners, a Global Fortune 250 healthcare services company. Previously, Kim was
the Chief Compliance Officer and Head of International Legal Services at The Clorox
Company, where she also oversaw labor and employment counseling and litigation. Before
joining Clorox, Kim served as Chief Litigation Counsel for Rockwell Automation as well as
General Counsel for its $2B Automation Controls and Information Group.

Vikrant Batra
Chief Marketing Officer
Vikrant Batra is the Chief Marketing Officer for HP Inc. Vikrant has more than 20 years of
experience in worldwide marketing and advertising across consumer packaged goods, utilities,
finance and technology. He is an award-winning creative and marketing strategist and is the
architect behind some of HP’s most transformative and thought-provoking campaigns.
Vikrant has held a variety of marketing leadership roles since joining HP in 2010. Most recently
he served as Global Head of Marketing for HP’s $20 billion Imaging and Printing business. He
is credited with spearheading the business’ shift to emotional storytelling – an approach that is
anchored in insights, generates deeper connections with the global communities and drives
demand. In this role he led all aspects of worldwide, regional and country marketing. Under
his leadership, HP Studios released the “The Wolf,” a breakthrough web-based film series on
security starring award-winning actor Christian Slater.
Prior to this he was the global head of marketing for HP’s $30B Personal Systems business
where he led end-to-end marketing across PCs, mobility, solutions and services. During his
tenure at HP, Vikrant has also led marketing for consumer PCs, commercial printing and
corporate advertising & brand.

Geometry of an HP division
There are any number of reasons for taking a close look at the basic structure of a typical UP
product division and a typical sales organization. Before doing so, however, it's time for a brief
theoretical exercise to aid in the appreciation and digestion of that information.

Division management:
It is a division at HP that the people working together to meet well understood goals and
objectives in three areas where they have a common concern and feeling of responsibility.
First, for a division to exist, the people involved must feel a vital concern and a strong
responsibility for the success of a specific product line. Secondly, there must be a deep
concern for helping the other people involved with the product line achieve their own
personal goals and ambitions. Third, there must be a strong feeling of responsibility for
contributing positively to be general welfare of the communities in which the division
participates. A product line is a group of instruments that provide related measurement
and/or computation capability to the user. The specific application or market for any
instrument in the line may vary significantly, but the fundamental measurement or
calculation is always similar. At Avondale, for example, we are responsible for HP's gas
chromatograph product line. Gas chromatographs can be used to determine whether or not
the quality of the product produced by a large chemical plant is acceptable. They can also
be used to determine whether or not an individual has taken a specific kind of drug. The
applications differ significantly but the fundamental question of what chemical compounds
are present and in what concentrations is the same. The success of a product line and,
therefore, a division, is normally measured in terms of profit and growth. Ultimately,
however, this translates into how well we actually can anticipate and satisfy the needs of
the customers and potential customers for the instruments making up the product line. This
division's responsibility is not limited to a single geographical area or plant location but
extends to wherever the particular product line is produced and sold. In the case of the
Avondale Division, for example, we produce gas chromatographs at Avondale,
Pennsylvania, and in Boeblingen, West Germany. The people producing and marketing our
products in Germany are as much a part of the Avondale Division team as the people
working at Avondale. The people working at Avondale have a responsibility for insuring
that gas chromatographs can be successfully produced and marketed at Boeblingen. Also,
Avondale people have a responsibility to ensure that the people involved with the gas
chromatograph product line at Boeblingen have opportunities to grow and satisfy their own
personal goals and ambitions. "Divisions are normally organized into six functional areas:
research and development, manufacturing, marketing, finance, quality assurance, and
personnel. The first three are typically called line functions. This means that they have the
primary responsibility for the overall success of the product line. Finance, quality
assurance, and personnel are normally thought of as staff functions which provide
important information and assistance to the line functions to help them carry out their
responsibilities more effectively. "The division manager is responsible for making sure that
clearly understood division and product-line goals and objectives are established; that an
organizational framework and environment is provided in which people can work together
effectively to accomplish their goals and objectives; and that outstanding individuals are
selected to be responsible for each of the functional areas. In summary, this division is a
team of people working together to insure the success of their product line, their own future,
and the future of their community. They do this most effectively by making sure the
products they design, produce, and market are truly contributions in terms of satisfying the
needs of their customers.

Division engineering:
HP is highly product oriented - very much keyed to providing a strong and steady flow of
new products that represent new and improved solutions to customer problems. The
objective for an R&D organization, therefore, is to come up with the new products - the
'black boxes.' We are very much organized to that end. "The basic molecule of the R&D
organization is the project team. This can be one person or a number of people. Ideally,
they are dedicated full time to that project rather than shared by various teams. They
probably will spend a year or more together before turning their product over to
manufacturing. There are some other basic elements. One is the individual charter that
every division has. There is 'network measurement,' and our goal is to furnish the customer
with everything he needs to characterize his network. The objective is to make money for
the company, but specifically our product charter gives us a base on which to build ideas.
You can see how this has worked, beginning with our original line of sources and sweepers
which were designed to excite a network. To this were added test sets designed to test the
inputs and outputs without disturbing the network. The next job was to compare
measurements - a job for network analysis. To display the results, we added different types
like CRT's. Later we got into a new area - controlling and refining the measurement process
via a computing device. But the questions arise in our mind: “Where do these ideas come
from?” Mostly from the own lab people - the iterative flow of ideas between manager,
section manager and engineer. Quite a bit of input also is received from marketing people
who serve as our outside antenna. On an informal basis, the 'next-bench' syndrome is an
important element at HP. If an idea appeals to our own people it is very likely to be of use
to customers also. But in a more formal way, the strategy meeting is where most new ideas
are sorted out. We hold these on a very regular basis, and they'll bring in the division
manager, the R&D manager, and members of the relevant R&D and marketing teams. "Out
of this continuing exploratory process eventually will emerge a concrete proposal that will
then result in our forming a project team. Working on such a project team, the individual
engineers are given a great deal of flexibility. Each engineer will be responsible for the
completion of a particular phase of the project. They will be in contact with all parts of the
division. Many options are open to them as the project moves along. They may want to
follow it into production or into marketing - or venture somewhere else in the company.
This is made possible because we emphasize breadth rather than specialization in recruiting
engineers. They teach them the necessary specialty on the job. They work with targets, of
course, and accounting is able to furnish us with data that tells us whether we are running
over or under our investment goal for each project. The division review tends to be
primarily a review of the division's product planning for top corporate management. It's an
opportunity to assure the company leadership that our plans are worthy of the investment.
Something they are working very hard on at this time is to improve the efficiency of our
R&D investment - how to get more for our dollar. We want to speed up development so
that products go to market sooner - say, two years instead of three. We are putting more
emphasis on earlier reliability studies so that the process of breadboarding and debugging
is improved and accelerated. Like a number of other HP products in the Instruments Group,
ours is a mature product line. Basically, we are in the business of providing electronic tools.
Fortunately, there appears to be no end in sight to the demand for these tools.

Division marketing:
New products are the lifeblood of HP but they have to make a contribution to our customers
to be successful. One of marketing's most important responsibilities is to understand our
customers' present requirements, to anticipate how they will change in the future, and to
build this understanding in our R&D engineers. The ultimate responsibility for the
division's product strategy belongs to R&D. However, in the Stanford Park Division where
one of their product lines is used for receiver testing, market-need inputs are especially
important. The "next-bench" method of product strategy definition alone is not sufficient.
Their product marketing people, together with our engineering lab people, are deeply
involved with their field engineers and customers, working to refine our understanding of
future requirements. The marketing department has all of the typical functions that need to
be done in a marketing organization, at least in most instrument divisions. These functions
include order processing and shipping, sales engineering and contract administration,
service engineering, technical writing, publications, and advertising and sales. promotion
as well as product marketing. To introduce a new product, for example, the product
manager will, with his people, have prepared the market plan, arranged the promotion,
prepared the data sheet, provided the information and theme for news releases, advertising,
and applications, as well as analysed the competition. The product manager will also be in
regular contact with his equivalent R&D section manager and manufacturing line manager.
Together they become a 'triad' a specific product management team that really is our basic
division business sub-unit. Another thing the product manager does, for example, is to
provide a sales forecast. This ties in with the production master schedule prepared by
manufacturing, and above them to predict what they will need in terms of people, parts and
facilities - to meet the demands forecast by marketing. The product manager also is
responsible for recommending and reviewing prices. Especially at the initial pricing this
involves a major analysis of the marketplace, our contribution, competition, profitability
and our overall product strategy. This is one of the most important decisions made by a
division. A positive interface with our field engineers is a very important element in our
success. The purpose of sales engineering is to provide direct sales support to this field
organization which is our major distribution system. We do almost no direct selling
ourselves. The division sales engineers are here to provide answers for the field engineers,
arrange for modification of products, change order status, provide quotations, provide
training and competitive information, and support the field people by helping them solve
their customers' problems with our products. Basically, we help him make more effective
use of his selling time. "A lot of training is involved in doing that. We bring new field
engineers in to introduce our products and technology, senior field engineers come in for
seminars on our longer-range strategy, and much new product training is done in the field
offices. Another very important part of our business is product service support. This
department works with the lab to set serviceability objectives, prepares and implements the
service plan, and writes the service manuals. The service engineers also provide worldwide
technical support to HP's field service technicians and customers on repair problems. We
also have technical writers who know how to write service procedures so that they're easily
understandable, even where English is not the primary language. Finally, order processing
and shipping is responsible for receiving customer orders from the field offices and making
sure they get 'first-come, first-served' shipment by the date we originally tell them they will.
They also manage our backlog and our finished goods inventory. That sounds simple
enough, but in fact it's a very complex process of linking up with manufacturing and with
the corporate HEART system. In all, they are responsible for handling something like
7,000-line transactions a month. Well, one thing is to look back at some areas that may
have been somewhat neglected where you can make a contribution. For example, we
discovered that a long list of lower-priced microwave test products wasn’t really getting
much promotional or selling support. This became apparent when the Santa Rosa product
lines split from us. These microwave test equipment items are the kinds that field engineers
are not usually going to be able to spend much time selling individually because of the
price. So, recently we launched a program of 'individualized' direct-mail marketing to select
lists of customers provided by the field engineers. That's marketing.

Division manufacturing:
"When a sales region sends us a customer order for a certain product, that doesn't
necessarily trigger its manufacture. Actually, they may have anticipated such an order,
though not that specific one, and thus have it in the production pipeline. Or they may have
to add the order to their backlog. The real key to our operation - to our ability to respond to
an order - is the master schedule. It's a basic document which is used for scheduling the
production of products based on forecasted demand, order backlog and a desired delivery
cycle. It is updated each month for the year ahead from forecasts prepared for them by
Marketing based originally on field-sales quotas then modified as the year unfolds. They
take these forecasts and by 'exploding' them in the computer can determine how many
people they will need on a certain production line at a given time, and what parts will have
to be requisitioned. The bigger divisions today have become very complex. Not only do
they produce many different products but many of those products are planned for
integration into systems of our own and by other divisions. Trying to keep all of the various
product strategies tracking together in the same direction would be extremely difficult if
not impossible if we didn't have some method of dealing with complexity. They actually
call that method the 'business team.' Each production line manager is a member of a
product-oriented team along with the appropriate R&D section manager and product
marketing manager. The 'team' is the three people working together. It's a sensitive,
consensus sort of thing, with no one assuming permanent leadership though perhaps there
are times when one is necessarily in a lead position. In tum, each of them reports to a
functional manager so there's also an overall division team. "At either level, the team
concept is particularly useful and active at the time new products are being introduced
which is just about all the time around here. Their best recent example was the new 2640A
CRT computer terminal. It was brought along with a great deal of enthusiasm - and a lot of
chances to make mistakes. But the teamwork prevailed, and they've had great success with
the terminal - which may not have happened if it had been handled along traditional
functional lines. The team concept serves more than just the needs of keeping things straight
between departments. It's very important at HP that people be able to see and identify with
the products they help manufacture. Let's look at a specific case - printed circuit production.
Until recently, all PC loading was done in our centralized prefab area. In looking at their
work, it was clear to us that it was difficult for employees in PC to relate to end uses or
respond easily to production pressures. So, when the opportunity came up with the
development of sufficient volume in the disc and terminal line, they made PC loading an
integral part of those lines, the results have been outstanding. Essentially, the people are
doing the same loading tasks, but their members of a team now and that seems to make a
lot of difference in their attitude and enthusiasm toward the job. Just because they are a
manufacturing department does not mean we lack opportunities to innovate. Actually,
there's a great deal of it at every level. For example, currently we are implementing a system
using an HP 3000 computer system for internal order processing. This will be a system
capable of handling all orders - from stand-alone instruments to complex systems. Its goal
will be to make clear just what their earliest delivery will be based on the availability of
component products furthest down the road in the master schedule, Waltham Division is in
the process of implementing a version of the system and we expect it will be applicable in
other HP divisions.

 Division accounting:
The finance department of Santa Clara performs a wide variety of tasks. Our functions
might be divided into three areas: accounting, information systems, and office services. The
most visible function is accounting. This function performs two related tasks - collecting
and reporting historical data and projecting future information. General accounting is
probably the most popular area in finance since the payroll section is responsible for each
of their pay checks. In addition, general accounting pays the division's bills and keeps track
of the 10,000 pieces of equipment at Santa Clara. However, the primary function of general
accounting is the preparation of the division financial statements. These include the
monthly divisional statement, the monthly and quarterly statements which break the facility
into product lines, and the year-end package for reporting outside HP. These financial
statements are very important to a number of people, beginning with the division manager.
He views it as a monthly report card with the knowledge that corporate is evaluating the
division's progress. In addition, each of the division's functional managers uses the financial
statements as his progress report on his performance. To make it easier for these managers
to analyse their performance, we also prepare highly summarized reports which concentrate
on highlighting deviations from target. We provide these critical data within nine working
days of the month end - a significant turnaround time compared to many other large
companies, which often run a month behind. Their next major area is cost accounting. Here
we determine the actual cost of existing products and also forecast their cost to build in the
future. Projecting costs in the future has always been difficult; however, with today's
inflation, it's even tougher. In this division, we have over 20,000 parts, and each one can
have substantial swings in price. You cannot just average the price increases. In order to
help marketing, determine the correct price for each of our products, we must carefully
identify the specific cost to produce each one. At the end of the year, they must determine
the true cost of all products shipped during the year. With the assistance of almost every
employee in the manufacturing area, we take a physical inventory and determine its value.
Since they know what we purchased, and now know what's left, they can accurately
establish the cost of our sales and make minor adjustments to financial statements. In
addition to providing costs on existing products, we're responsible for generating estimates
on the costs of new products. They try to arrive at a price for a new product at the time it is
emerging from the lab. They start by costing the parts used in the prototype and obtaining
estimates of the amount of labour required to do each operation, attempting to be realistic
and reasonable. Here cost accounting acts as a buffer between the marketing and R&D
areas, which tend to be optimistic, and the manufacturing department which must
ultimately build the product and tends to be pessimistic concerning costs. Introduction of
new products is always a major concern to the division. If the price is established
incorrectly, it can cause us to introduce a product that will not be profitable or to drop a
product that would have been profitable. They obviously can't afford to make either of these
errors. Next, one of the most important functions - one that isn't visible on an organization
table - is internal control. When you have something like 5 million transactions,
representing $60 million per year flowing through an organization, you must establish a set
of good checks and balances to make sure you know where it all goes. Considering that the
difference between their accounting books and the physical inventory at year-end is
negligible, our internal control has been satisfactory. The second area under the finance
umbrella is the information systems department. Accounting has traditionally been the
largest user of computer systems at Santa Clara; however, the division is making a
concerted effort to expand the use of the computer to other applicable disciplines. Overall,
finance is a pretty broad umbrella - very much involved in the basic business of the division.

 Division personnel:
"Look at it this way: If we attempted to fix peoples' problems then they probably would
come unfixed again rather soon. A problem is really solved only when people understand
the nature of the problem and agree on a solution. So, at HP the fixing has got to be done
between the supervisors and their people. We're here to provide some professional 'third-
party' assistance when it's needed. Support really is the key role of an HP personnel
department. "Let's start with employment. We don't do the hiring. Supervisors make that
decision. The same with recruiting-technical people are the best judges of technical talent,
although we can help them in other respects. Again, while wage and salary reviewing takes
up a lot of my time, the final decision in this area is up to the supervisor. We can provide
data relative to how a job category compares with the industry at large or across functional
lines within HP. But the supervisor is the one who must evaluate the relative merits of the
individuals. This is one area in which we get a lot of feedback in the form of ideas about
new and different methods of compensation and benefits. We pass this along to Corporate
- which does take notice, as witness the response to the payroll changes last year. "~ow let's
look at 'Affirmative Action,' a program whereby industrial organizations undertake to go
beyond the letter of the law in support of community objectives such as the employment
and development of minority people. The administration of this area in a division our size
can easily take one person's entire time monitoring the activity and maintaining the
necessary records. But real affirmative action can only be generated by HP people on the
job, starting at the first level of supervision. Training and management development are in
the same boat – supervisors have the basic responsibility for encouraging people to prepare
themselves for future opportunities. We are a resource here though we don't always
respond simply by demand, but we do have some special experience to offer and we do
initiate programs that we think will expand the opportunities for development drawing from
corporate efforts and those of other divisions. Probably what we seem to do most is listen.
And I would say that of all the roles we play that listening and counselling are the most
important in maintaining the HP way of doing things. Because if you turn yourself 'off' to
people, then you're going to lose credibility. You've become an adversary-or even worse,
they'll think you don't care.
 Division product quality:
All of the divisions in HP have the same functions to perform when it comes to quality and
performance of products. But medical products - especially those in life-support areas as a
number of ours are - are looked at very critically, require a high degree of tolerance to
abuse, must be reliable, and are affected by government actions beyond our control. For
example, our safety and reliability group are concerned with the complex problems of
industry standards, regulations, liability, clinical field evaluations, design review,
environmental testing, and overall reliability. It's virtually certain that more and more
government regulations and procedures will be enacted in the near future affecting what
we can and must do in these areas. Reliability is being stressed by the medical profession
now. Within HP it is being approached on a company-wide basis coordinated by the
Corporate Engineering staff. Reliability is directly related to HP's first two corporate
objectives generate the highest profit level consistent with our other objectives and provide
products and services of the greatest possible value to our customers, in our own case, we
do stress an environmental testing of medical equipment and plot the probabilities of
failure. The goal is to make our people aware of potential problems so they can take the
necessary action in the factory instead of letting problems happen in the field. Doctors, after
AU, are interested only in the output of our equipment They expect it to operate no matter
how they treat it. The department we call 'Quality Assurance' is the one that audits our
manufacturing functions. Auditors sample the manufacturing and production areas and
work closely with the supervisors in reviewing errors and problems that are discovered.
These auditors have a real feel for the needs of customers, and conduct tests that a customer
is likely to make rather than always copying the tests made by the production-line test
technicians. They are not there as law enforcement people looking over everyone's
shoulder, but are members of the team providing products of the highest possible quality to
the medical profession. We have other functions that may not be typical of QA departments.
They must be able to recall products if potentially hazardous problems are discovered. We
are also responsible for materials engineering. Additionally, the materials engineering
group is responsible for incoming inspection. This provides for a tighter feedback loop on
the quality of our components. The overall performance loop is closed by going into the
field and talking with our customers. They tell us how it really is.