PESTEL ANALYSISOF

HEWLETT-PACKARD FOUNDERS

DAVID PACKARD

WILLIAM REDINGTON HEWLETT

ABOUT THE BRAND

• Deals in – Computer hardware– Computer software– IT services– IT consulting

• Founded –January 1, 1939• Palo Alto, California, United States• Area served: Worldwide• Chairman, President and CEO

– Meg Whitman

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POLITICAL

• Corporate Tax is 40% in US.• Vulnerable to China-U.S.A. diplomatic

disputes.• Operates in more than 170 countries and

thus, is vulnerable to change in each country’s Political Regulations.

• Enjoys greater political support in developing countries.

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ECONOMIC

• GDP growth 2% in Q3• Inflation Rate 1.2%• Revenue mainly from- Printing

hardware, financial investments, internet solutions.

• Exports led by- computers and electrical machinery.

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SOCIAL• Smartphone sales overtaking PC sales.• Grasp over the new generation of tech-

zealots.• Less need for outsourcing due to

increasing number of Technical Institutions, providing skilled manpower.

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TECHNOLOGICAL

• Cloud Computing- the future• Large patent pool, aided by Palm and

WebOS acquisition.• Q4 of 2010, HP announce 16% increase in

their R&D to tackle global competition.

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LEGAL

• Filed lawsuits over patent infringements in ink-jet printing technologies

• Constant target of patent law suits, leading to reduced economic benefits.

• On April 9,2014; HP agreed to indulging in improper payments as per FCPA (Foreign corrupt payment act), in Russia and Mexico.

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ENVIRONMENTAL

• Reduced energy consumption and associated GHG emissions by 40% compared to 2005.

• Operations subject to federal, state, local and foreign environmental laws.

• Top spot on ‘Corporate Responsibility Magazine’

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CONCLUSION

Being an international company now, HP is effected by nearly any change in global as well as local environment