Hewlett packard inc: corporate vs business strategy

When it comes to strategic decision-making in organizations, there are two key levels of strategy that need to be considered: corporate strategy and business strategy. While these terms are often used interchangeably, they actually refer to different aspects of an organization's overall strategic plan. In the case of Hewlett Packard Inc, understanding the distinction between corporate strategy and business strategy is essential for effectively analyzing and evaluating the company's strategic direction.

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Corporate Strategy

Corporate strategy is concerned with the overall objectives and scope of a business. It involves making strategic decisions that guide the organization as a whole and determine its long-term direction. Corporate strategy takes a portfolio approach, looking at all of the company's various businesses and how they fit together to create the most value. This includes examining the relationships between different business units, as well as the structure of the parent company, in order to optimize human capital, processes, and governance.

For Hewlett Packard Inc, the corporate strategy is shaped by the vision of the organization and is heavily influenced by the expectations of stakeholders, such as investors. The corporate strategy is typically expressed in the company's mission statement and guides decision-making throughout the organization. In most cases, the top management team is responsible for establishing the corporate strategy.

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Business Strategy

On the other hand, business strategy is focused on the strategic decision-making for an individual business within the organization. It is a master plan designed to help the company achieve specific goals and objectives. Business strategy highlights market opportunities, outlines the steps necessary to capitalize on those opportunities, and identifies the resources required to execute the plan.

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For Hewlett Packard Inc, the business strategy would be specific to each of its business units or divisions. It would determine how the company competes within its chosen markets and industries, aiming to gain a competitive advantage over other firms. The business strategy may involve cost leadership, product differentiation, or other strategic approaches, depending on the company's goals and market conditions.

Key Differences

Understanding the differences between corporate strategy and business strategy is crucial for analyzing Hewlett Packard Inc's strategic direction. While corporate strategy focuses on the overall objectives and scope of the organization, business strategy is concerned with the specific goals and competitive advantage of individual business units. Here are some key differences between the two:

  • Scope: Corporate strategy addresses the entire scope of the company, including which industries to compete in and the geographical scope of operations. Business strategy, on the other hand, focuses on a single area of the business.
  • Resource Allocation: Corporate strategy involves making decisions about resource allocation, organizational design, and portfolio management across the entire organization. Business strategy focuses on developing specific resources and capabilities to gain a competitive advantage.
  • Strategic Synergies: Corporate strategy looks for strategic synergies between different business units, while business strategy focuses on managing individual business units efficiently.
  • Market Environment: Corporate strategy considers the market environment and how it influences the organization's strategies, while business strategy focuses on monitoring the industry environment to ensure strategies align with market needs.

Hewlett Packard Inc's Strategic Approach

When analyzing Hewlett Packard Inc's strategic approach, it is important to consider both the corporate strategy and the business strategies of its various business units. The corporate strategy guides the overall direction of the company, while the business strategies are tailored to each individual business unit's goals and competitive advantage.

For example, Hewlett Packard Inc's corporate strategy may involve diversifying its business by entering new industries or expanding its geographical presence. This could be driven by the company's vision of becoming a global leader in technology solutions. On the other hand, the business strategies of its different divisions, such as the Personal Systems division or the Printing division, would focus on specific market opportunities and how to compete effectively within those markets.

Overall, Hewlett Packard Inc's strategic approach is likely to involve a combination of corporate and business strategies that align with its vision and goals. By carefully considering the differences between these two levels of strategy, stakeholders can gain a deeper understanding of the company's strategic direction and evaluate its effectiveness.

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What is the role of corporate strategy in an organization?

Corporate strategy provides the overall guidelines for businesses within an organization to achieve their long-term objectives. It involves making strategic decisions that consider the entire scope of the company, including its various businesses and how they fit together to create value. Corporate strategy influences decision-making throughout the organization and is typically established by top management.

How does business strategy differ from corporate strategy?

While corporate strategy focuses on the overall objectives and scope of the organization, business strategy is concerned with the specific goals and competitive advantage of individual business units. Business strategy is tailored to each business unit's market opportunities and determines how the company competes within its chosen markets and industries.

How are corporate strategy and business strategy related?

Corporate strategy builds on top of business strategy. It takes a portfolio approach, considering the strategic decision-making for all of the company's businesses. Business strategy, on the other hand, focuses on the strategic decision-making for an individual business unit. The two levels of strategy are interconnected and should be aligned to ensure the organization's overall success.

In conclusion, understanding the distinction between corporate strategy and business strategy is essential for analyzing and evaluating Hewlett Packard Inc's strategic direction. While corporate strategy focuses on the overall objectives and scope of the organization, business strategy is concerned with the specific goals and competitive advantage of individual business units. By considering both levels of strategy, stakeholders can gain a deeper understanding of the company's strategic approach and evaluate its effectiveness in achieving its long-term objectives.

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