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Power Tools 1993 November - Disc 2
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Power Tools Plus (Disc 2 of 2)(November 1993)(HP).iso
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1992-08-07
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HP Business Overview
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HP01.GAL
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..pictureB:\HP\HP01.GAL,65535,49151,1,43,13,
HP GLOBAL COMPANY
-----------------
Today I would like to give you an update on Hewlett-Packard Company and how
we are positioned to maintain a leadership role in a highly competitive
computer marketplace. HP is focused on the challenges of today's
marketplace, which include global competition, increasing customer
expectations, and rapidly changing technologies.
HP has approximately 600 sales and service offices in 110 countries and 50
manufacturing facilities in 16 countries. There are now 89,000
employees worldwide.
.PA
HP Corporate Organization
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HP02.GAL
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..pictureB:\HP\HP02.GAL,65535,47586,1,45,13,
DECENTRALIZED ORGANIZATION
--------------------------
89,000 employees make up the Hewlett-Packard organization shown
here. The organization has changed substantially since Bill Hewlett
and Dave Packard started the company over 50 years ago. We consider
the ability to change to meet customer needs one of our strengths.
Although the organization chart may change, the HP WAY remains and is
a crucial factor in our success.
.PA
HP Worldwide Growth
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HP03.GAL
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..pictureB:\HP\HP03.GAL,65535,49151,1,43,13,
HP WORLDWIDE GROWTH
-------------------
This chart shows HP's growth in net revenue, earnings, and R&D
expenditures for the past several years. As you can see from
the bar graphs on the left and right, HP has experienced
steady growth in both revenue and R&D expenditures. Although
we've been able to avoid the losses reported by some other
electronics companies, HP reported declines in net earnings
in both 1985 and 1990. HP's management philosophy is to
invest for the long term, and we try not to let the pressure
for quarterly results undermine that long-term perspective.
At the same time, we recognize that, ultimately, profitability
is the best single measure of how well we satisfy our customers'
needs. So we're always working to strengthen our financial
performance.
.PA
Distribution of Net Revenue
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HP04.GAL
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..pictureB:\HP\HP04.GAL,65535,49151,1,43,13,
DISTRIBUTION OF NET REVENUE
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This pie chart shows how HP's net revenues is distributed. For
every dollar of revenue we received in fiscal 1990,
54.2 cents was spent on manufacturing and supporting our
products, 27.4 cents for marketing, selling, and administration,
and 10.1 cents for research and development. That left
8.3 cents profit -- or an operating-profit margin of 8.3 percent.
The company is working to improve its operating-profit margin
through controlling expenses.
.PA
HP Product Orders by Year of Introduction
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HP05.GAL
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HP PRODUCT ORDERS BY YEAR OF INTRODUCTION
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In today's marketplace the competitive life of specific product models
is decreasing at a rapid rate. HP strives to introduce new products
to keep pace with market and technological changes. This chart shows
how important new products are to our growth by illustrating the
portions of each year's orders that come from products introduced in any
particular year. Those products introduced in 1990 are shown in yellow,
1989 in aqua, and so forth. As you'll note from the large yellow
section in the bar at the far right, fiscal 1991 was a strong year
for new products. In fact, more than half of HP's orders in 1991
were for products introduced in the last two years.
.PA
HP Product Groupings
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HP06.GAL
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..pictureB:\HP\HP06.GAL,40748,29984,1,44,13,
DIVERSE PRODUCT GROUPINGS
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Hewlett-Packard is a leader in many diverse markets. Approximately 71
percent of our business comes from computer and peripherals, 16 percent
comes from test and measurement products and 13 percent comes from
analytical, components, and medical products.
The diversity of Hewlett-Packard's product and market portfolio has
helped to ensure strong financial performance despite downturns in
specific industry segments.
.PA
Geographical Distribution of Net Revenue
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HP07.GAL
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..pictureB:\HP\HP07.GAL,65535,49151,1,43,13,
GLOBAL COMPANY IN GLOBAL MARKETPLACE
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Hewlett-Packard is competing in a global economy. Our investment
in worldwide sales and manufacturing facilities and strong product
localization programs contribute to our success in this global
marketplace. Today, 56 percent of HP's business comes from outside
the United States, and we're the 13th largest exporter of products
from the US.
****
Note: For international customers, slide HP08.GAL breaks down sales
**** by country.
..pictureB:\HP\HP08.GAL,65535,49151,1,43,13,
.PA
Employee Concentration
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HP09.GAL
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..pictureB:\HP\HP09.GAL,65535,49151,1,43,13,
QUALITY EMPLOYEES
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Hewlett-Packard is noted for the ability to attract and retain talented
people. Today there are 89,000 employees located throughout the
world to meet its business needs. HP has traditionally located our
major facilities near leading universities and colleges, enabling us
to attract the most qualified graduates. Having top-quality employees
results in the highest quality products and services.
.PA
Commitmen* t* Qualit*
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HP10.GAL
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In 1979, John Young challenged HP to achieve a ten-fold increase in
quality. We came very close to achieving that goal. "The decade
was a year too short," Young quipped.
Even though we did not make the goal, the paybacks have been enormous:
HP increased customer satisfaction and saved more than $800 million in
warranty costs. HP also found new way of managing itself; instead of
fixing defects we are preventing them. Improvement programs have been
set in place which examine and reexamine processes as a means of self-
newal.
.PA
The HP Way
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HP11.GAL
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.PA
Corporate Objectives
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HP12.GAL
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