History Of Hewlett Packard Essay, Research Paper
Hewlett Packard is a company for the 21st century. HP,(Hewlett Packard) uses its technological advances to heal, educate, and connect people worldwide. It is one of the world’s largest computer companies and the foremost producer of test and measurement instruments. The company’s more than 29,000 products are used in industry, business, engineering, science, medicine and education. In its 1997 fiscal year HP had a net revenue of $42.9 billion, which puts it at 14 on the Fortune 500 list. Among the top 10 U.S. exporters, 56 percent of HP business comes from outside the United States. Japan, Canada, Australia, the Far East, Latin America and Europe all count on Hp for their needs. (Hewlett Packard Site).
HP is No. 5 among Fortune’s Most Admired Companies and No. 10 among Fortune’s Best Companies to Work for in America. (Fortune Site). Headquartered in Palo Alto, California, the company employs more than 120,000 people, of whom some 69,000 work in the United States. (Hewlett Packard Site).
Cardiac ultrasound-imaging, patient-monitoring systems, and HP computer systems are used in hospitals in both clinical and administrative areas. This helps health-care organizations improve patient care and reduce costs. HP analytical instruments analyze the chemical components of liquids and gases. They are used in the chemical, energy, pharmaceutical and food industries, and in environmental monitoring, medicine, bioscience and university research. (ABC News Site).
Hewlett Packard s research facility ranks as one of the leading industrial-research centers in the world. Researchers develop and apply leading-edge technologies that support HP’s current businesses and create new opportunities for the company. In 1997, between HP Labs and some 70-product divisions, HP invested $3.1 billion in research and development. (Hewlett Packard Site).
HP is extending the frontiers of fiber-optic, wireless and visual communications through its more than 9,000 components products that help people communicate quickly, reliably and cost effectively. (Hewlett Packard Site).
Hewlett-Packard (HP) is the second-largest computer company in the world (behind IBM) and a top provider of desktop computers, servers, peripherals, and services such as systems integration. Computers, peripherals, and computer-related services account for more than 80% of sales. HP is the fastest-growing personal computer company in the world. These days HP is best known for it s printers and peripherals. This paper will soon be printed out on a HP Deskjet. Hewlett Packard is the world’s leading supplier of printers. HP sets the standard for technology, performance and reliability, including HP LaserJet and DeskJet printers, DesignJet large-format printers, ScanJet scanners, OfficeJet all-in-ones and CopyJet color printer-copiers. (NBC News Site).
Hewlett Packard s tradition of giving back to the community began in 1939, their first year in business, when founders Bill Hewlett and Dave Packard took $5 out of a profit of $1,650 and donated it to a local charity. Today HP is recognized as a philanthropic leader among global corporations. In 1997, HP gave more than $61 million in cash and equipment to nonprofit agencies and educational institutions worldwide. $47 million went toward improving education. HP also supports the arts, health and human services, civic groups and environmental organizations. Most recently, Hewlett-Packard is helping to make state-of-the-art medical care available to the children of China by donating advanced medical equipment and supplies, valued at $5.5 million, to the Shanghai Children’s Medical Center in the Shanghai Pudong district. (Hewlett Packard Site).
The document is at the center of the company’s management style called “The HP Way.” These Corporate Objectives include profit, customers, fields of interest, growth, our people , management, and citizenship. Lewis E. Platt is the current Chairman, President, and CEO of Hewlett Packard. (Hewlett Packard Site).
The company’s stock is listed on the New York and Pacific stock exchanges, with the ticker symbol HWP. Since 1965, cash dividends have been paid each year. The current rate is $0.14 per share per quarter. At Nov. 30, 1997, there were 101,591 shareholders. The Seventh split in HP s stock history occurred June 19, 1996. (Hewlett Packard Site).
This successful and powerful company came from humble beginnings. Hewlett met David Packard during their undergraduate days at Stanford. The two engineering classmates became friends and formed a partnership known as Hewlett-Packard Company in 1939. Dave Packard and Bill Hewlett graduated from Stanford University in 1934. Bill Hewlett continued graduate studies at Stanford and MIT, while Dave Packard began working at General Electric. After the encouragement of Fred Terman, a Stanford professor, they decided to start a business and make a run for it ourselves. Dave and Lucille Packard s house at 367 Addison Avenue, Palo Alto, California was the first headquarters of the future billion-dollar company. Bill Hewlett rented a cottage behind the house and with $538 in working capital Bill and Dave began part time work in the garage. The company’s first product was the resistance-capacity audio oscillator. (HP200A) was an electronic instrument used to test audio equipment. Walt Disney ordered eight oscillators for the production of the movie Fantasia and the company began its road to ingenuity and fortune. (Hewlett Packard Site).
On January 1, 1939 a coin toss decided the name Hewlett-Packard. Products won acceptance among engineers and scientists, and the start of World War II brought a flood of orders from the U.S. government. They constructed a 10,000-foot office, laboratory, and factory building in 1942. Packard and Hewlett built it so that it could be converted into a grocery store if the business failed. In 1943, Hp developed a radar-jamming device and a signal generator for the Naval Research Laboratory. After incorporation in 1947, Hp put out its corporate objectives and started globalization. Ten years later, the first public stock was offered. In 1960 HP branched out into medical electronics and analytical instrumentation. In 1962, Hp entered Fortune magazine’s list of the top 500 U.S. companies at number 460. First computer, fetal heart monitor, and scientific calculator are some innovations of HP in the 1966-1968. Dave Packard was appointed U.S. Deputy Secretary of Defense in 1969 and served till 1971. In 1977 John Young was named President of HP, and in the 1980 s Hewlett Packard, launched inkjet and laser printers. In 1985, former President Reagan awarded Hewlett the National Medal of Science, the nation’s highest scientific honor. In 1989, Hp celebrated 50 years and moved into the top 50 on the Fortune 500 listed at number 49. In 1991 the HP SONOS 1500 echocardiograph system which allowed doctors to perform quantitative, non-invasive cardiac analysis in real time by processing ultrasound waves and the HP color scanner were introduced. In 1996, co-founder Dave Packard died, leaving behind a company with a $42.9 billion dollar revenue. (Hewlett Packard Site).
The future of Hewlett Packard looks promising, but according to “Factors that May Affect Future Results” its prosperity is not definite. “Factors that May Affect Future Results” was a section included in HP’s Form 10-Q for the period ending July 31, 1998, filed with the Securities and Exchange Commission. The Company’s numerous competitors range from some of the world’s largest corporations to many relatively small and highly specialized firms. Technology, performance, price, quality, reliability, distribution and customer service and support are factors of Hewlett-Packard s competition. Product life cycles are short and the company must update its existing products and develop new ones. HP anticipates that it will have to adjust prices and effectively manage financial returns with reduced gross margins. Inventory management has become increasingly complex as they continues to sell a greater mix of products, especially printers and personal computers, through third-party commercial and retail distribution channels. Sales outside the United States make up more than half of HP s revenues. Changes in foreign political or economic situations, trade protection measures, import or export licensing requirements, taxing and regulatory requirements, and natural disasters all could affect HP. A portion of Hewlett Packard research and development activities, its corporate headquarters are located near major earthquake faults. Hewlett-Packard is predominantly uninsured for losses and interruptions caused by earthquakes. Technology stocks are volatile because the announcement of new products, services or technological innovations by the Company or its competitors can drastically affect price. Recent trends should not be considered reliable indicators of future stock prices or financial results. The CEO of Hp said, “There are reasons for continued caution. There are no signs of an immediate turnaround in Asia, and there is some uncertainty about macro economic conditions in the United States and in Latin America. And, as always, competition across our businesses remains intense. Our recent results haven’t altered our confidence in our product programs, technologies and partnerships. We’re determined to build on these strengths to achieve the results our shareholders, customers, employees and partners expect from HP.” (Hewlett Packard Site).
Net revenue for the quarter was $11.0 billion, compared with $10.5 billion in the year-ago quarter. Net revenue in the United States was $5.2 billion, an increase of 9 percent compared with a year ago, while revenue from outside the United States rose 1 percent to $5.8 billion. “This was a tough quarter, but we did many things that we believe will position us for better performance going forward,” said Platt. “We made real strides on expenses, and we will take further actions to build on this short-term progress. In addition, we have an exciting schedule of product rollouts across the company in the months ahead. (Hewlett Packard Site).
Hewlett-Packard started from humble beginnings and through scientific and business innovations it continues to grow.
Fortune. [Online] Available http:// www.fortune.com, October 1,1997
Hewlett Packard. [Online] Available http: /www.nbc.com, October 1, 1997
Hp in brief. [Online] Available http/www.hp.com/hp brief ht, October 1, 1997