Hello, please send me a message if you can help me with the following case study paper

Get perfect grades by consistently using www.essayjunction.com. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

Hello, please send me a message if you can help me with the following case study paper

Hello, please send me a message if you can help me with the following case study paper
ADMINISTRATIVE POLICY GMGT 4010 Student Number 7868177 (Please do not write student name) Word Count (including Executive Summary)______ (Not to exceed 2800 words) Page Count (including Executive Summary)______ (Not to exceed 9 pages) Jingnan Li A01 Monday and Wednesday at 7:00 PM MIDTERM TAKE-HOME EXAM. SUMMER 2023
Hello, please send me a message if you can help me with the following case study paper
9B21M067 HP INC.: POISED TO LEAD IN 3D PRINTING? Professor Andreas Schotter and R. Chandrasekhar wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a ma nagerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be transmitted, photocopied, digitized , or otherwise reproduced in any form or by any means without the permission of the copyright holder. Reproduction of this mat erial is not covered under authorization by any reproduction righ ts organization. To order copies or request permission to repr oduce materials, contact Ivey Publishing, Ivey Business Sch ool, Western University, London, Ontario, Canada, N6G 0N1; (t) 519.66 1.3208; (e) [email protected]; www.iveycases.com. Our goal is to publish materials of the highest quality; submit any errata to pub [email protected]. i1v2e5y5pubs Copyright © 20 21, Ivey Business School Foundation Version: 2021-06 -23 In April 2020, Ramon Pastor, interim president of HP Inc. (HP) ’s three-dimensional (3D) printing and digital manufacturing business, took a moment to reflect on the rise of the company ’s 3D Printing and Digital Manufacturing Center of Excellence, located in Barcelona, Spain. Pastor was a 28-year technology veteran at HP who had been promoted to his current position in September 2019. His new mandate was to spearhead HP’s efforts to transform the manufacturing ecosystems of the company ’s industrial customers by encouraging them to deploy HP’s 3D printer systems. There was a strong belief in the industry that 3D printing had reached a tipping point: from a niche position for three decades, when its applications had been confined to low-volume prototyping and specialty uses, 3D printing was about to move into high-volume industrial applications. However, 3D technologies were still evolving, albeit rapidly and much more clearly, on the path to becoming an alternative to conventional manufacturing. HP was a US multinational that operated in the global information technology sector; in 2019, it ranked 55 th in the Fortune 500 list. 1 HP had only formally entered the 3D printing business three years earlier as a manufacturer of 3D printers. It was currently moving from low-volume production to mid-volume production of an ever-growing range of 3D printers. HP was also aiming to become the leader in the 3D printing industry, particularly drawing on its own Multi Jet Fusion (MJF) technology. MJF was significantly faster and cheaper than the 3D printers that were currently available in the market. As Pastor contemplated how to move forward, he identified three questions that needed answering: (1) How should HP promote technology awarene ss among current and potential industrial customers, large and small? (2) How should HP scale up its production of 3D printers? (3) How could HP promote reductions in technology adoption cycles, which were long in manufacturing industries? 3D PRINTING INDUSTRY: BACKGROUND 3D printing was a key technology in the analogue- to-digital disruption happening in manufacturing sectors worldwide. By transforming the design and production of goods, facilitating their mass customization, and 1 “Fortune 500: HP,” Fortune, accessed November 12, 2020, https://fortune.com/fortun e500/2019/search. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 2 9B21M067 enabling their creation closer to the points of consumption, 3D printing was changing the economics of the global manufacturing industry, valued at US $12 trillion. 2 3D printing was also part of a paradigm shift in which producers were yielding power to consumers. As of the end of 2018, the 3D printing industry had reached approximately $9.8 billion in revenues worldwide and was projected to reach $40.8 billion by 2024 (see Exhibit 1). 3 The top four players — Stratasys Ltd., 3D Systems Corporation, Proto Labs Inc., and Materialise N V— together held 20 per cent of the market share in 2018. HP was a new entrant. Movement in the 3D industry was progressive. Prototype applications p rogressed to manufacturing applications even while the 3D technologies were improving in productivity, quality, and economics to become an alternative for real production runs. MJF, HP ’s innovation, was designed to move HP’s 3D printers —and lead the larger 3D printing industry itself —from prototyping applications to industrial applications. Assembly Manufacturing versus 3D Printing 3D printing brought a major disruption to the manufacturing industry: while assembly lines were geared for economies of scale and built around volume and labour efficiencies, 3D print ing was geared for economies of scope, built around small batches of customized units, often even single units. 4 The advantage of 3D printing was that a small number of goods could be produced at incremental cost without having to reach the scale efficiencies that were required in traditional production line manufacturing processes. Traditional manufacturing was good for producing large quantities of products continuously while 3D printing aligned a company ’s scaling capacity more closely to the quickly shifting or increasingly individualistic needs of markets. 3D printing also lowered the barriers to market entry, not only by reducing the minimum efficient scale of production but also by enabling production to be localized to the points of consumption, making internationalization easier, particularly during times of increasing global trade wars. 3D printing could reorient the manufacturing footprint towards local facilities feeding off local raw materials. Considering that 2 per cent of the world ’s gross domestic product was known to be in transit just on United Parcel Service (UPS) Inc .’s transportation vehicles alone at any point in time, 5 3D printing unlocked huge efficiency gains and completely new business models. It also reduced the need to outsource production to low-cost economies. 6 While assembly-based manufacturing ensured progressive reduction in unit costs as production volumes rose, 3D printing ensured lower costs from the first unit of output (see Exhibit 2). 7 2 HP and AT Kearney , 3D Printing: Ensuring Manufacturing Leadership in t he 21st Century, 2018, https://www8.hp.com/us/en/images/3D_Printing___Ensurin g_Manufacturing_Leadership_in_the_21st_Century_tcm245_254 7663_tcm245_2442804_tcm245-2547663.pdf. All dollar amo unts are in US dollars unless otherwise specified. 3 Statista, 3D Printing and Additive Manufacturing Worldwide , February 2020, https://www.statista.com/study/21960 /additive- manufacturing-statista-dossier. 4 Alysia Garmulewicz, Matthias Holweg, Hans Veldhuis, and Aidong Yang, “Disruptive Technology as an Enabler of the C ircular Economy, ” California Management Review 60, no. 3 (2018), 112–132. Available from Ivey Publishing, product no. CMR 682. 5 Thomas Friedman, The World is Flat: A Brief History of the Twenty-Fir st Century (New York, NY: Picador, 2007), 173. 6 Alysia Garmulewicz, Matthias Holweg, Hans Veldhuis, and Aidong Yang, op. cit. 7 Benjamin Grynol, Disruptive Manufacturing: The Effects of 3D Printing (Canada: Deloitte LLP, n.d.), 6, https://www2.deloitte.com/content/dam/Deloitte/ca/Docume nts/insights-and-issues/ca- en-insights-issues-disruptive- manufacturing.pdf. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 3 9B21M067 How the Printer Worked An MJF 3D printer operated like a two-dimensional (2D) inkjet print er, but instead of paper, the 3D printer used a plastic material in powder form, which was laid down in successive layers. And instead of ink, a 3D printer used a combination of fluids to form the dimensions, layer by layer, under the influence of infrared radiation. 8 The starting point for both printers was computer-fed instructions; f or a 3D printer, the instructions began with the creation of a computer-aided design of the object to be created. The digital blueprint was then transferred to the 3D printer. An important component of a 3D printer was the print bar, which was identical to a scanning bar in an inkjet printer. As the bar moved back and forth, 30,000 nozzles spray ed a print platform at 350 million drops of fluid per second. 9 The obje ct was constructed in layers from the base up, infusing a new layer of material on the old layer in an additive process. Fabricating an object layer by layer ensured a design of greater intricacy and facilitated customization. While large-scale industrial applications for 3D printing were immi nent, companies were also working on meeting consumer applications. Printing spare parts was an example of what was to come. For instance, a consumer who requir ed a spare part for a vacuum cleaner of any brand —one that had broken down at home and had also been discontinued by the manufacturer —could go online, find the part from a database of geometries, download the digital data, and print the spare part on a 3D printer at a kiosk in a mall. A major limitation of 3D printing was that it was slow to produce large volumes or large-sized products. In addition, the quality of the product, produced from an entry-level 3D printer in particular, was still inferior to the quality of that produced with traditional parts from assembly-based manufacturing methods. However, the limitations were bound to be overcome in the near future, considering the exponential progress being made in 3D printing technologies. Many companies were working on the technologies. HP, for example, held 2,285 patent s related to 3D printing ( see Exhibit 3). As a country, the United States held the largest market share in 3D printing worldwide, at 38.1 per cent ( see Exhibit 4). In 2019, US researchers filed the most 3D-related patents — 44,177 —in a single yea r, with China second at 18,838 ( see Exhibit 5). Several advanced technologies were under different stages of discovery, fine-t uning, and implementation. They included material jetting, material extrusion, binder jetting, directed energy deposition, powder bed fusion, and photo-polymerization. Each technology was unique in the technical requirements of material variety, speed, and quality of finish. Benefits The benefits of 3D printing occurred throughout the value chain. In pre-production, for example, 3D printing reduced the need for tooling, which was considered a high-cost activity. In production, 3D printing reduced the number of sub-assemblies, thereby accelerating time to market and reducing supplier-based complexities. From an inventory perspectiv e, 3D printing reduced the cost of logistics, which had a cascading effect on the value chain. It enabled manufacturers to match demand one to one, and by ensuring 8 “Lisa Harouni: A Primer on 3D Printing,” YouTube vid eo, 14:49, posted by “TED,” January 23, 2012, https://youtu.be/OhYvDS7q_V8. 9 Lucas Mearian, “HP’s Move into 3D Printing Will Radic ally Change Manufacturing,” Computerworld, October 31 , 2014, https://www.computerworld.com/article/2841414/hps-move- into-3d-printing-will-radically-change-manufacturing.html. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 4 9B21M067 manufacturing on demand, 3D printing reduced the need to store certain parts over years. 3D printing also helped to eliminate scrap and waste, and it simplified the supply chain. 10 The disruptive power of 3D printing was that it led to disintermediation in the traditional manufacturing value chain. Disintermediation was already happening in the world of dentistry, where direct, digitally enabled connections between consumers and the companies that made dental products such as braces reduced the role of dentists. Business Models There were two distinct business models in the 3D printing industry: a low-cost online business model and a technology expert business model. 11 Companies following the low-cost online model provided access to easy- to-use printers at low cost. Their value proposition was convenience. The companies preferred to do business online with web shops, although some companies also used the retailer channel. Since they put little effort into innovation, the companies rarely offered specific software to operate the printers. The segment was mainly focusing on the consumer market, anticipating when the demand for consumer applications would increas e as the 3D industry became more broadly available. 12 Companies following the technology expert model provided value in expertise, innovation, and quality. Their focus was flexible printers that were supported with specific software and training. They used retailers and direct sales as primary distribution channels. Some companies operated physical stores where they also sold consumables. 13 New business models were surfacing in the 3D printing ecosystem. An example was a service bureau that enabled entrepreneurs —start-ups, small-scale, and medium-scale —to access digital manufacturing methods to either prototype or manufacture new products. Service bureaus were lowering the barriers for entry into business in addition to providing greater degrees of manufacturing speed and flexibility. 14 HP : COMPANY BACKGROUND HP was a US multinational that operated in the global information technology sector. It was part of an enterprise that was established by Stanford graduates Bill Hewlett and David Packard in 1939 in a one- car garage in Palo Alto, California. The garage had since become a landmark in the city and officially commemorated as the “Birthplace of Silicon Valley.” Producing a line of electronic t est equipment in its early years , what was then the Hewlett-Packard Company went on over the next few decades to become a leading manufacturer of personal computers (PCs). The company’s management style, known as the HP Way, was adopted by many businesses worldwide. The HP W ay was based on self-financed growth, differentiated products, respect for employees, commitment to innovation, and good corporate citizenship. 15 10 Ibid. 11 Patrick Holzmann, Robert J. Breitenecker, and Erich J. Schwarz, “Business Model Patterns for 3D Printer M anufacturers,” Journal of Manufacturing Technology Management 31 , no. 6 (2020): 1281 –1300. 12 Patrick Holzmann, Robert J. Breitenecker, and Erich J. Schwarz, op. cit. 13 Ibid. 14 HP and AT Kearney, op. cit. 15 David Packard, The HP Way: How Bill Hewlett and I Built Our Company (New York, NY: Harper Collins, 1995). Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 5 9B21M067 For the year ending October 2019, HP had revenues of $58.75 billion and net earnings of $3.1 billion (see Exhibit 6). Employing 56,000 people worldwide, HP focused on two core business segments: personal systems and printing. The personal systems segment offered commercial and consumer desktop and notebook PCs in addition to related accessories, software, support, and services. The printing segment provided consumer and commercial printer hardware, supplies, solutions and serv ices, and scanners. Every year, the company delivered 100 million products to 170 countries around the world; it shipp ed one printer and 1.7 PCs every second out of its warehouses. As of June 2019, HP’s share of global PC shipments stood at 23.6 per cent 16 and its share of global printer shipments at 26.6 per cent. 17 The company distribut ed its products through partners such as retailers, who sold the products to the public through the retailers’ physical or Internet stores; resellers, who sold to targeted customer groups with the resellers’ value-added products or services; distribution partners, who supplied the products to resellers; and system integrators, who provided various levels of services downstream. FORAY INTO 3D PRINTING In October 2013, as a strategic response to “industry declines in some of our businesses,”18 HP ’s executive team decided to leverage its established leadership in 2D printing and enter the 3D printing market. A year later, HP announced that it would produce a 3D printer that would be 10 times faster and 50 per ce nt cheaper than any existing system in the market. An increase in the company’s research and development (R&D) expenses evidenced the early-stage investment HP made in the new business segment: from $1,191 million in 2015, the R&D expenses increased to $1,209 million in 2016. The company had said at the time that the 2 per cent increase in R&D outlay was “primarily due to incremental investments in A3 printers and 3D printing.”19 An A3 printer could handle large printing projects with multiple page sizes. It cost more than an A4 printer, which could only handle regular letter-sized (A4) documents. HP introduced MJF, its first additive manufacturing technology, in December 2016. The knowledge drew on HP’s expertise in microfluidics and the precise deposition of inks employed in its industry-leading 2D printing technology. 20 De signed for producing plastic parts, MJF deployed a powder bed process that was more in common with inkjet printing than with the point- by-point laser-based powder fusion systems prevalent in 3D printing at the time. MJF technology was critical for eventually achieving the desi red quality of parts, cost reductions, and speed. The long-term plan was to target large-scale manufacturing environments, help enterprises accelerate their product design and production, create more flexible manufacturing and supply chains for the enterprises, and 16 Thomas Alsop, “HP Inc.’s (Hewlett Packard’s) Market Share of PC Un it Shipments Worldwide from 2011 to 2020, by Quarter,” Statista, January 2021, https://www.statista.com/st atistics/298967/pc-shipments-worldwide-hp-market-share/. 17 Thomas Alsop, “Printer Share by Vendor Worldwide fro m 2015 to 2019,” Statista, October 2019, https://www.statista.com/statistics/541347/worldwide- printer-market-vendor-shares. 18 HP Inc., Form 10-K: Annual Report for the Fiscal Year Ended October 31, 2015, 13, December 2015, https://s2.q4cdn.com/602190090/files/doc_financials/a nnual/2015-form-10k.pdf. 19 HP Inc., Form 10-K: Annual Report for the Fiscal Year Ended October 31, 2016, 38, December 2016, https://s2.q4cdn.com/602190090/files/doc_financials/a nnual/hpq-form-10-k-fy2016-v2.pdf. 20 “HP Partners with Deloitte to Bring Additive Manufac turing to the Enterprise Level,” Plastics Technology, August 31, 2017, https://www.ptonline.com/blog/post/bringing- am-to -the-enterprise-level. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 6 9B21M067 generally enhance efficiencies across the manufacturing lifecycle. HP sought to provide end- to-end solutions that would help customers increase innovation, acce lerate time to market, reduce costs, and eliminate waste. 21 MJF devices initially included two models: the 3200 and the 4200. The models differed in their print speeds and layer thicknesses. Targeting different application segments, the units were priced at around $270,000 each. HP on HP During product development, HP learned that 60 plastic parts that formed the innards of an MJF platform could be printed by a 3D printer. The finding set in motion an internal initiative called “HP on HP. ”22 The company went deep on the technology by increasing the number of 3D-printable parts to more than 140; it also went wide by implementing the technology across the broader HP businesses and their supply chains. It helped that HP had “one of the biggest plastic supply chains in the world.” 23 Around 30 per cent of the output of the HP on HP project comprised tools, jigs, fixtures, guides, and grippers. In September 2018, HP produced a new version of its 3D printer, known as the MJF 5200. Priced at $399,000, the new printer incorporated learnings from the 4200 series by prov iding built-in redundancies, better sensors, wider material compatibility, and machine learning algorithms for preventive maintenance. The new series offered 30 per cent reduction in running costs, 40 per cent higher speeds, and 50 per cent lower cost per printed part. The MJF 5200 w as more than a linear evolution; it was suited for mass production rather than prototyping. The launch of the MJF 5200 and the announcement of Metal Jet, a new technology for printing m etal parts, coincided with HP looking outward to develop an ecosystem of partnerships. The company tied up with GKN Powder Metallurgy (GKN), a German firm and the largest producer of metal powder parts in the world. GKN was known for its depth in automotive and industrial value chains. HP also tied up with Parmatech Corporation, an American firm that held some of the first patents around metal inject ion mo ulding and was known for its expertise in the medical devices value chains. HP had already tied up with Siemens AG for software support. In June 2019, HP inaugurated its 3D Printing and Digital Manufacturing Center of Excellence in Sant Cugat, just outside Barcelona in Spain (see Exhibit 7). The new 150,000- square-foot facility, housing about 100 industrial 3D printers, was home to the company ’s several R&D spaces for both the polymer MJF and the Metal Jet platforms, as well as the materials science labs. The centre also hosted co-development environments for working with partners and customers. Said to be the largest of its kind in the world, the centre brought together specialists of 60 nationalities in systems engineering, data intelligence, software, materials science, design, and digital manufacturing applications. Its obje ctive was to not only drive HP’s goal of disrupting mainstream manufacturing but also to take 3D printing to mass manufacturing. Evidence of HP’s efforts with the latter was that while all of HP’s global customers together produced 10 million parts on HP’s 3D-printers in 2018, one customer alone —the Smile Direct Club, an American orthodontic products firm —had a plan to produce 20 million parts just in 2019. 24 21 HP Inc., “HP and Deloitte Announce Alliance to Acce lerate Digital Transformation of US$12 Trillion Global Manufa cturing Industry,” press release, August 24, 2017, https://press.hp.com/us/en/press-releases/2017/hp-and -deloitte-announce- alliance- to-accelerate –digital-transfo.html. 22 Sam Davies, “HP on HP: How the Internal Use of 3D Pr inting is Shaking up One of the World’s Biggest Plastic Supply Chains,” TCT Magazine , January 14, 2019, https://www.tctmagazine.com/additi ve-manufacturing-3d-printing-news/hp- on-hp – 3d -printing-shaking- up-plastic-supply-chain. 23 Ibid. 24 Louella Fernandes, “HP Ramps U p Digital Manufacturing Revolution with New Center of Excellence,” Quo Circa, June 23, 2019, https://quocirca.com/content/hp-ramps- up-digital-manufacturing-revolution-with- new-center- of-excellence. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 7 9B21M067 Business Model HP estimated the total addressable market for 3D printing to be about $500 billion over time. 25 However, given that the total revenue of the top seven companies in the 3D printing indus try was $7.3 billion in 2018, only 1.4 per cent of the projected market was being tapped. The market was clearly still in its infancy and HP was itself at the beginning of its desired revenue generation curve. According to an estimate, the company ’s 2018 revenue from 3D printing was $250 million. 26 It would be several years before 3D printing would become a separate line item in HP’s reporting of revenues by segment to shareholders. The traditional printer and PC segments of the company had a device-driven and one-time purchase model. An exception was the recurring purchases of ink in the company ’s printer business. In contrast, the 3D printing business was being monetized as a platform-driven model whereby HP would play a collaborative role in the 3D printing ecosystem. As an equipment manufacturer, HP had the opportunity to capture greater financial value and, at the same time, likely greater strategic flexibility. Noneth eless, HP seemed to be determined that, going forward, contractual arrangements and partnerships rather t han device sales would be critical performance milestones in the company ’s 3D printing business. 27 HP was exploring different business models in monetizing not only the hardware but also the software and services related to 3D printing. That led to 3D- as-a-Service (3DaaS) as a possible revenue stream. 3DaaS would have a strong component of service and support as part of the business model. It would provide “automatic replenishment of HP 3D supplies, simplified tracking of billing and usage, and reliable r emote and on-site support services.” The company viewed the 3DaaS model as “ ideal for customers looking to accelerate product life cycles with optimized in-house rapid prototyping and final part production.”28 The company ’s 3D printers were generating data about everything going on in their ecosystem, leading to a long-term opportunity to provide services around the intelligence HP was gathering from the printers. The launch of the 5200 series had demonstrated that HP was indeed in the data business: e ach print job produced 4 terabytes (TB) of data that could be analyzed and used in advancing the business model. 29 ISSUES In contrast to its peers, the technology at HP had progressed beyond prototyping, rapid tooling, trinkets, and toys; the technology was geared to meet a diverse mass market. However, the overall market appeared to be heavily fragmented and in different stages of readiness. Promoting Technology Awareness among Potential Users HP ’s entry into 3D printing in 2016 had been perceived by the existing players in 3D printing not as a competitive but as an enabling move that would benefit overall industry development. 30 By April 2020, the ongoing COVID-19 pandemic had proven itself a catalyst for additive manufac turing. The fight against the 25 Jeriel Ong and Ross Seymore, “Highlights from HPQ’s 3D Printing Tech Talk,” Deutsche Bank Research, October 5, 2020. 26 “ 3D Printing Industry Snapshot ,” J.P. Morgan North America Equity Research, April 1, 2 019. 27 Jeriel Ong and Ross Seymore, op. cit. 28 Michael Petch, “HP Announces N ew Business Model, Network Expansion and Alliances f or Formnext 2019—What Does It Mean for the 3D Printing Industry?,” 3D Printing Ind ustry, November 13, 2019, https://3dprintingindustry.com/news/hp- announces- new-business-model-network-expansion-and-alliances-for- formnext-2019-what- does-it -mean-for-the- 3d-printing- industry-164712. 29 Louella Fernandes, op. cit. 30 Mearian, op. cit. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 8 9B21M067 pandemic was generating use-cases of 3D printing in the production of components for the manufacture of ventilators and respirators, which were in exponential demand by health care providers. The medical devices industry was known for strict standards and was also known, for that reason, to be slow to change. But the pandemic seemed to have given all key players momentum in readiness to accept new and innovative ways of production. After the pandemic, however, Pastor would still be facing the larger issue of lack of demand from customers for integrating 3D printing into their supply chains —an issue that flowed directly from lack of awareness. There were two things, he believed, that had to be in place for the awareness to set in : the “push factor, ” as Pastor saw it, represented by the agility and flexibility that 3D printing could add to manufacturing, and the “pull factor, ” represented by the efficiency and resilience that 3D printing brought to supply –demand matching. Economic benefits would be primary for a potential customer. Using 3D printing to create a part at a lower cost than could be achieved with conventional manufacturing would be a strai ght win. It was only after selling 3D printing solutions based on these economic benefits that potenti al client conversations about even greater benefits —such as lighter weights for parts, assembly consolidation, and design freedom — would happen. An investment of $400,000 in a 3D printer was a major expense for even large companies. Currently, HP was usi ng different routes to promote technology awareness among potential users. One example was the 3DaaS service, wherein a customer w ould not need to buy the printer but only pay for usage. This monthly payment provided the ability to produce up to a maximum level of parts (usually determined as the total weight of the parts) and included the needed materials, flui ds, and services to produce them, with no commitment on permeance of the service. Such a subscription mode l would not necessarily help HP scal e its own printer production as much as desired, but it would allow potential buyers to try the new technology, become familiar with it, and accelerate adoption with designers and engine ers. For illustrative purposes, usage up to 1, 000 grams of parts could be co nsidered to cost approximately $1, 500 per month. Another route to advance technology awareness was the active promot ion of the concept of 3D hubs. A 3D hub was a physical place outside HP where customers could see how a production line used 3D printing. T he hub was both technology-agnostic and brand-agnostic in the sense that it featured not just HP but all 3D printer vendors. Some hubs were also designed as training facilities especially for small and mediu m-sized businesses. Hubs existed in certain states of the United States and in other countries, such as Germany and Spain, but the view was that more hubs were needed at the regional level to promote the use of Industry 4.0 technologies. 31 Scaling Up Manufacturing HP was taking four routes to scale up manufacturing of 3D printers. Focus on Core Competence HP was strategically prioritizing 3D printer manufacturing and sales as much as possible. T he 3DaaS model came with an entire suite of additional services, from design to assembly of printed and non-printed parts. However, rather than independently providing end- to-end 3D printing solutions to its customers, HP was developing relationships with leading companies with expertise in each of those specialities. The strategy was based on the belief that the 3D printing business would be easier to scale if HP were to stick to core activities and leave the rest to partners for whom 3D printing adjacencies were core functions. One of t hose 31 Industry 4.0 referred to automation and data exchan ge in manufacturing technologies, sometimes referre d to as a “smart factory.” Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 9 9B21M067 strategic partnerships was with Siemens AG, which focused on software solutions. Others were with GKN, Materialise NV, and other companies for parts service. Focus on Applications 3D technology had already progressed to a level where the conversations with customers had escalated from “What is the material?” to “What is th e application?” Application requirements were beginning to serve as the starting point for material selection. For example, the launch of Ultrasint TPU01 powder by BASF SE for HP’s MJF platform was triggered by customer demand for a material that could be used for production of parts requiring shock absorption and flexibility. User industries incl uded sports protection equipment, footwear, and orthopaedics. HP believed that it would be easier to let applications lead the way for potential growth opportunities. Indeed, the choice of steel for the Metal Jet platform was itself triggered by steel having more applications across industries than any other metal. Focus on Verticals HP thought it was necessary to let the choice of verticals lead the way to scale. The first filter was whether the vertical itself would be amenable to scale. The second filter would be whether the chosen vertical would enable HP to leverage the assets it had already developed. A related issue would be whether an application in one vertical (like medical devices) would also be replicable at another vertical (like packaging). Other filters such as return on investment would then become relevant. A vertical-led approach would also gradually let HP go further into each vertical as part of developing further potential competitive advantages. A major challenge that all companies fac ed was finding people with the right vertical expertise who could speak the same language as the customer. HP had an edge among its competitors in the 3D printer business due to its existing and long-standing traditional printer business. The company also featured regularly in Fortune ’s annual listing of b est workplaces. It ranked 24 th in the 2019 listing, 32 which enticed applicants with good credentials. Treat 3D Printing as Means to an End, Not an End in Itself HP ’s investment was made to scale up unit sales, but the investment was not as much about the 3D printer as a product as it was about the potential enabling benefits 3D printing provided for HP’s customers. 3D printing offered a production technology that was compatible with digit al or hybrid workflows. It was thus a critical element of digital manufacturing. HP’s ultimate objective was to help customers in their digital transformation. In its bid to scale the 3D printing business, HP was looking beyond itself. There was also the matter of leveraging the customer data that would be generated by 3D printing. Capturing, storing, and analyzing the data would help HP promote the goals of mass customization, distributed manufacturing, and on-demand production, reinforcing, in turn, HP’s bid to scale up and to accelerate and diversify its own 3D printer development. 32 “Best Workplaces in Technology 2019,” Great Place t o Work, accessed December 12, 2020, https://www.greatplacetowork.com/best-workplaces/tech nology/2019. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 10 9B21M067 Reducing Long Adoption Cycles in U ser Industries Industries using a platform manufacturing strategy had long adoption cycles. Companies participating in platform-based value chains benefited from the unique skills each company brought . The strategy was common in industries such as automotive, aerospace, and some medical devices. Cars, for example, had platforms lasting between five and seven years. E ach time a platform reached the end of its life cycle and came up for renewal, opportunities were opened for new players and new te chnologies. During the intervening period, the platforms would not be op en to fresh investments. The platform had to run its course before any major disruptive changes could be made. Pastor knew that platform-based industries had the greatest potential for deploying 3D printing in their operations; they were also most welcoming of new technologies like 3D printing. One of the challenges that Pastor was facing with reducing adoption cycle s was synchronizing (or synching, as it was known in the company). Identifying the point when HP could intervene with its investment proposal for a large manufacturing platform client was not easy given variables such as the number of manufacturing locations, products, and platforms, and the differing stages of platform life cycles. The intervention had to be timed at least a year or two ahead of the end of the cycle of a platform. It also meant making investments that would not start giving a return for three to four years. Pastor was dealing with the challenge through a portfolio management model; he did not want HP to put all of its efforts towards one opportunity. Pastor believed it was better to spread risks by taking a multi- client, multi-platform, and multi-year approach. However, such an approach also came with compromises in speed and complexity of sales. The toughest challenge Pastor faced, however, was in breaking “corporate inertia ” among industrial clients. Adopting a new technology like 3D printing required a behavioural change among the key decision makers in a large company, most of whom generally had long tenures. The decision makers had a traditional manufacturing mindset based on scalable efficiencies rather than scalable agility. Taking all these reflections into account, Pastor called a leadership m eeting to develop a plan to (1) rapidly and widely increase technology awarene ss among current and potential industrial customers, and (2) reduce the technology adoption cycles in manufacturing industries. Finally, Pastor also knew that increasing the adoption of 3D printing techno logy was only one of the objectives of the business. A more important consideration was HP’s share of value capture. Usually, after a new application was developed, 70–90 per cent of the margin created was captured by the company that would be 3D printing the parts and not by HP as the technology provider. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 11 9B21M067 EXHIBIT 1: REVENUE TREND FOR PUBLICLY LISTED 3D COMPANIES (IN US$ MILLIONS) Rank Company Country 2018 2017 2016 2015 1 2 3 4 5 6 7 3D Systems Corp. Stratasys Ltd. Proto Labs Inc. Materialise NV SLM Solutions Group AG ExOne Company voxeljet AG United States United States/Israel United States Belgium Germany United States Germany 688 663 446 218 85 65 31 646 668 264 161 93 58 26 633 673 298 127 89 49 25 666 696 264 113 73 40 27 Total of 7 Companies 2,196 1,919 1,894 1,879 Industry Total 9,795 7,335 6,0 64 5,615 Source: “3D Printing Industry Snapshot,” J.P. Morgan Equity Research Report, April 1, 2019. EXHIBIT 2: TRADITIONAL MANUFACTURING VERSUS 3D PRINTING —VOLUME VERSUS COST Source: Benjamin Grynol, Disruptive Manufacturing: The Effects of 3D P rinting (Canada: Deloitte LLP, n.d.), 6, https://www2.deloitte.com/content/dam/Deloitte/ca/Docume nts/insights-and-issues/ca- en-insights-issues-disruptive- manufacturing.pdf. Used with permission. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 12 9B21M067 EXHIBIT 3: LEADING HOLDERS OF 3D PRINTING PATENTS Company Co untry No. of 3D Patents General Electric Company HP Inc . United Technologies Corp. Siemens AG 3M Company 3D Systems Corp. Harvard University Boeing Co. Stratasys Inc. Xerox Corp. United States United States United States Germany United States United States United States United Kingdom United States/Israel United States 2,516 2,285 1,855 1,529 1,145 1,055 984 933 769 679 Source: “Leading Countries for 3D Printing Patent Applications 2019,” Statista, accessed October 19, 2020. EXHIBIT 4: 3D PATENT APPLICATIONS FILED IN 2019, BY COUNTRY Country Number of Applications Filed United States China Europe Germany Great Britain Spain Austria Switzerland Sweden Denmark Portugal 44,177 18,838 15,049 10,199 8,719 6,744 6,586 6,579 6,557 6,456 6,383 Source: “Leading Countries for 3D Printing Patent Applications 2019,” Statista, accessed October 19, 2020 . EXHIBIT 5: MARKET SHARE OF 3D PRINTING, JULY 2018, BY COUNTRY Country Market Share (%) United States United Kingdom Netherlands Germany Canada Australia Singapore France Italy India Total 38.1 15.7 6.7 6.3 5.7 5.7 3.9 2.5 1.4 1.4 87.4 Source: “3D Printing & Additive Manufacturing Worldwide,” Statista, accessed October 19, 2020 . Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 13 9B21M067 EXHIBIT 6: HP INC. ’S FINANCIALS Consolidated Income Statement (in US$ millions) Year E nding October 2019 2018 2017 2016 2015 2014 Net Revenue Cost of Goods Sold Research and Development Selling, General, and Administration Restructuring Charges Acquisition Costs Amortization Defined Benefits Charges Total Costs and Expenses Earnings from Operations Interest Charges Earnings before Taxes Benefit (Provision) for Taxes Net Earnings 58,756 47,586 1,499 5,368 275 35 116 – 54,879 3,877 (1,354) 2,523 629 3,152 58,472 47,803 1,404 5,099 132 123 80 – 54,641 3,831 (818) 3,0 13 2,314 5,327 52,056 42,478 1,190 4,532 362 125 1 – 48,688 3,368 (92) 3,276 (750) 2,526 48,238 39,240 1,209 3,833 205 7 16 179 44,689 3,549 212 3,761 (1,095) 2,496 51,463 41,524 1,191 4,720 63 – 102 (57) 47,543 3,920 (388) 3,532 186 4,554 56,651 45,431 1,298 5,361 176 – 129 – 52,395 4,256 (393) 3,863 (939) 5,013 Revenue by Business Segment (in US$ millions) Year E nding October 2019 2018 2017 2016 2015 2014 Notebooks Desktops Workstations Other 22,928 12,046 2,389 1,331 22 ,547 11,567 2,246 1,301 19,782 10,298 2,042 1,199 16,982 9,956 1,870 1,179 17,271 10,941 2,018 1,290 17,540 13,197 2,218 1,432 Subtotal Personal Systems 38,694 37,661 33,321 29,987 31,520 34,387 Supplies Commercial Hardware Consumer Hardware 12,921 4,612 2,533 13,575 4,514 2,716 12,524 3,792 2,412 11,875 5,131 1,254 13,979 5,466 1,787 14,917 6,035 2,259 Subtotal Printing 20,066 20,805 18,728 18,260 21,232 23,211 Others (4) 6 7 (9) (1,289) (947) Total Revenue 58,762 58,472 52,057 48,238 51,463 56,651 Source: Company documents. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022. Use outside these parameters is a copyright violation. Page 14 9B21M067 EXHIBIT 7: HP’S 3D PRINTING AND DIGITAL MANUFACTURING CENTER OF EXCELLENCE Source: Company document. Authorized for use only by Sena Harcar in CITM707 Strategy Management and Acquisition at Ryerson University from 1/18/2022 to 2/25/2022.Use outside these parameters is a copyright violation.
Hello, please send me a message if you can help me with the following case study paper
1 HP INC: Poised to lead in the 3D printing case study Name Date 2 Contents Executive Summary …………………………………………………………………………………………………………. 3 HP Company Overview ……………………………………………………………………………………………………. 4 External Assessment: Opportunities and Threats …………………………………………………………………. 5 Internal Assessment: Resources and Capabilities …………………………………………………………………. 6 Internal Assessment: Financial Performance and Future Financial Capacity …………………………… 7 Current Strategies ……………………………………………………………………………………………………………. 8 Key Issues ………………………………………………………………………………………………………………………. 9 Implementable Strategic Alternatives ……………………………………………………………………………….. 10 Criteria and Evaluation of Alternatives by Criteria …………………………………………………………….. 11 Recommendation and its Implementation …………………………………………………………………………. 12 Limitations and Critique of Recommendation …………………………………………………………………… 12 Exhibits ………………………………………………………………………………………………………………………… 14 3 Exhibit 1; LEADING HOLDERS OF 3D PRINTING PATENT ……. 14 Exhibit 2; VRIO ANALYSIS …………………………………………………………………………………………… 14 4 Exhibit 3; HP INC FINANCIALS ……………………………………………………………………………………. 15 EXHIBIT 4; HPs 3D PRINTING AND DIGITAL MANUFACTURING CENTER ……………….. 16 References …………………………………………………………………………………………………………………….. 17 HP INC: Poised to lead in a 3D printing case study Executive Summary HP is a technology company that ranks among the world’s most successful. A wide variety of goods is available from the firm, ranging from personal computers (PC), laptops, servers, storage, printers, scanners, and digital cameras to information technology (IT). In 1938, the company was only a “garage” with $538 in working capital, but it has since developed into a global supplier with more than 100 billion dollars annual sales. Consequently, as the global competition grows, HP must compete with a diverse spectrum of competitors in every industrial sector to survive. One of the upcoming concerns in HP is 3D printing, and the company seems to 5 grasp well and integrate it into its processes. This paper aims to assess the situation and strategic analysis to recommend the best strategy to adopt and implement in the company for the next five years. This paper deals with the external Assessment of HP by expanding on external factors that affect its performance. It analyses the company’s internal assessment, which entails Resources and Capabilities. The resources and capabilities include; brand image, product portfolio, and customer loyalty. Some of the company’s threats include; stiff rivalry and unstable global markets; by addressing the financial statements of HP, this paper analyses the company’s financial position and its future financial capacity. Some of HP’s major issues concerning 3D printing are also addressed, current strategies addressed, and alternative strategies evaluated and analyzed. However, analyzing the threats leads to the recommendations of the best strategies to adopt and the limitations of the applied recommendations. HP Company Overview Hewlett Packard, often abbreviated as HP, is a global corporation headquartered in America specializing in information technology. David Packard and Bill Hewlett founded the company in 1939. The firm started by manufacturing electronic test equipment but eventually expanded into the manufacture of personal computers. The organization established a highly functional business style, nicknamed the HP Way, which many enterprises now utilize, and guided it toward positive growth and profit maximization. The management style was defined by providing the highest respect for workers, improving corporate citizenship, increasing product distinctiveness, maintaining a self-financed development structure, and assuring the utmost 6 confidentiality. The firm employs a platform manufacturing approach, which benefits it in various ways, including greater innovation, expanded research and development operations, and higher brand popularity. External Assessment: Opportunities and Threats Analyzing the external environment of HP, it is plausible to say that the company faces some external forces which influence its presence and performance in the market. Some of the opportunities that HP faces are as explained below: 3D printing : Estimates indicate that 3D printing technologies will see rapid expansion. By 2022, the 3D market will be worth a fortune with the high growth rate. To assist clients in succeeding in their additive and digital manufacturing endeavours, 3D Printing and Digital Manufacturing have developed a portfolio of additive manufacturing solutions and supplies available to them. HP provides comprehensive solutions in partnership with a large number of third-party partners. 7 Managed Print Services (MPS) Market : The managed print services market is expected to rise and record-high annual growth. This Service will help manage, protect, and optimize the whole fleet of devices in the markets since it provides a wide range of options available to meet the demands of a scattered workforce by combining paper and digital procedures with cloud-based technologies that increase productivity. However, there are various threats that the company faces. For instance: Increasing competition: Just as HP produces 3D printing products, so do other enterprises in technology. Other business also strives to produce better and, at times, cheaper 3D printing products, which creates competition for HP. However, the global markets are relatively unstable, making it quite difficult for HP to ensure a constant profit generation for its 3D printing business. HP operates globally and thus depends on global sales, so it is not easy for the organization. Consumer behaviour is subject to rapid shifts due to both the passage of time and particular circumstances. HP has to be aware of this and respond to the shift in customer behaviour. Gathering information from their clients and subsequently expanding into other areas is essential. Additionally, many companies are venturing into 3D printing, which puts HP in a tough position of being outstanding among rivals. HP operates in many different countries; it can face some problems due to fluctuating currency values. Lastly, the rising cost of raw materials and labour will eventually lead to an increase in the product’s price, negatively affecting the company’s sales. Internal Assessment: Resources and Capabilities Its tangible and intangible resources can define the organizational capabilities of HP. Resources and capabilities are the fundamental sources of competitive advantage and 8 profitability for every business. Resources and capabilities enable a firm to grow and compete by providing goods and services that meet client needs. Strength in physical resources allows Hewlett-Packard a wide range of options for expanding its commercial capabilities. Research and development usage: HP heavily relies on research and development to produce and distribute its products. Moreover, HP can keep up with industry changes and customer behaviour because of its research and development department. As a result of its understanding of shifting customer preferences, HP is in a position to create products that keep pace with those shifts. Brand Image: HP is a globally recognized brand that makes its products positively embraced by most of its target customers. This global recognition and loyalty have helped boost the sales of the 3D printers and their accompanying accessories. Because it is impossible to replicate or replace, HP’s brand image serves as a source of expertise. One of HP’s most valuable assets is its brand image, which cannot be replicated or replaced by any other company. Throughout the years, the HP brand image has been built up by a consistent effort and product offering from HP. As a result of its brand image, HP cannot be replaced by other companies in the business. For both sales and corporate value, a well-known brand is essential. Strong Financial base: HP’s financial strength provides more power in research, development, and marketing spending. Apart from offering competitive compensation, businesses must also provide proper incentives in monetary and non-monetary bonuses to attract the top personnel as HP does. This internal income enables the corporation to plan expansions in sync with market developments. The firm is developing Web-enabled home printers and mobile printing capabilities. Converged infrastructure solutions are on the agenda for the company’s future growth. Demand for more automation and virtualization is driving these new products. 9 Internal Assessment: Financial Performance and Future Financial Capacity It is crucial to understand the financial performance and future capacity. To help understand the financial position of HP incorporation, this paper looks at some of its financial statements. The income statement is the most important of all the companies’ financial statements to the general public for investment purposes. The statement shows the firm’s financial position over time and walks potential investors to understand how much the company spent to how much it sold. This report shows how much revenue a company has generated. We can depict how much HP owns, how much it owes, and how much is left for investors by analyzing its balance sheets. The balance sheet is most crucial for its stakeholders. Another vital financial statement for HP is the cash flow statement. The report shows changes in the income statement and the balance sheet and how it affects the amount of cash available to a firm. This financial statement helps determine a company’s performance. The company recorded its 2021 net revenue as $63.5 billion, a 12% increment from 2020. However, the company recorded a rise from $2.00 in EPS in 2020 to $5.33 EPS in 2021. The link: https://s2.q4cdn.com/602190090/files/doc_financials/2021/q4/0302cd18-964e-4bee-b427- d313202a7dd9.pdf shows HP’s financial statements. Over the past few years, HP has recorded an impressive financial performance and gained a much more comfortable position in its industry despite its sales being lower. The company, however, is expected to record better performances as per its financial statements and as the world moves from the effects of the COVID 19 pandemic. The company can raise enough resources to cater to the recommendation section’s recommendations within the coming five years . The organization will implement its future strategies using its reserves and equity debt. 10 Current Strategies HP Inc. offers the new Jet Fusion 5200 Series 3D printing system. The system is an industrial version of the Jet Fusion 5200 Series that tackles key customer concerns scaling to full production. HP also strengthened key collaborations with industry heavyweights BASF, Materialize, and Siemens and introduced the HP Digital Manufacturing Network, a large-scale 3D printing component producer. The 3D printer integrates advancements in systems and materials. The approach increases production predictability via the use of high-quality components. Currently, HP is using different routes to the promotion of technology awareness. For instance, 3 DaaS service where customers would not need to buy the product but only pay for the services. This strategy would help potential buyers to familiarise themselves with the product. Another strategy was the concept of 3D hubs where potential customers would see how a production line used 3D painting. The company, however, had plans to expand the hubs from the limited countries and regions where it was located. Numerous businesses turn to digital manufacturing service providers to accelerate product development, decrease time to market, streamline supply chains, and minimize their carbon impact. To address these demands, HP launched the HP Digital Manufacturing Network, a worldwide network of HP manufacturing partners dedicated to assisting in the planning, manufacture, and delivery of both plastic and metal components at scale using HP 3D printing technologies. Key Issues 11 Unlike most of its competitors in its industry, HP has technologically progressed beyond prototyping. The technology, however, was geared to meeting a diversified mass market. One major issue HP faces are promoting technology awareness among potential users. HP’s entry into the 3D industry is beneficial for its development. COVID 19 acted as a catalyst whereby the pandemic was generating use cases of 3D printing to produce ventilators for health care facilities. However, HP still faces a lack of demand for 3D printing in their supply chain, resulting from a lack of awareness. HP faced another vivid issue with synchronizing with the companies HP planned to work with. For instance, the locations, products, and methods of running the processes differed, challenging HP Inc. To add, HP faced breaking corporate inertia among industrial clients. Adopting 3D printing required relevant behavioural change among key decision-makers with a traditional manufacturing mindset. Another key issue was that increasing the adoption of 3D printing technology was only one of HP’s business objectives, and the company still had to face its share of value capture. For instance; 70-the 3D printing company holds 90 per cent of the created margin Implementable Strategic Alternatives Choosing to maintain 2D and not venture into the 3D printing business is one of the available alternatives. It is maintaining 2D as the company’s printing avoids incurring many costs. However, given that most of the competition already adopted 3D technology, failing to shift would cause the position of HP in the market to drop significantly. Another alternative may be to invest less in research and development: putting the least investment in research and development would have enabled the company to invest the least amount. On the other hand, 12 inadequate investments in R & D would mean technically lacking human resources that would not help develop a 3D printing system of the desired quality. Pastor believes that two issues can counter the lack of awareness among HP customers about 3D painting. He puts forward the ‘push factor,’ representing the agility and flexibility 3D printing would add to the manufacturing industry. He also argues that the pull factor will represent the efficiency and resilience that 3D brought to supply-demand matching. Criteria and Evaluation of Alternatives by Criteria HP’s focus on core competence : strategically prioritizes 3D printer manufacturing and sales as much as possible. Instead of independently providing end-to-end 3D printing solutions to the public, it sorted to developing relationships with leading companies in specified specialities. The criteria are plausible since they will help GP focus on its core activities and leave the technical parts to the partners who specialize in 3 D printing. This alternative is a crucial and long-term solution, and it will yield positive results for HP since its stakeholders will enjoy better and improved services. Focus on Application: 3D technology has progressed and developed into a better and more effective tool. HP believes that it would be plausible to let applications lead to potential growth opportunities. Applications began to serve as a starting point for material selection. Based on the argument that the choice of steel for a metal jet platform was triggered by steel having more applications across industries than any other metal. Focusing on the application is an effective strategy, but it will need constant monitoring and updating of the software. Focusing on the application should be a short-term goal for the company. 13 Focusing on vertical: HP Inc. thought it necessary to let the choice of vertical lead the way to scale. Like many other companies, HP faced finding people with plausible expertise who could speak the same language as HP’s customers. This alternative is not the best to adopt because of communication barriers. To achieve scalability, Hewlett-Packard has to choose to follow the choice of verticals. It has a big issue in hiring the right personnel with the appropriate vertical knowledge. Therefore, HP’s long-standing and well-established conventional printer business will enable HP to enjoy an advantage over its rivals in the 3D printing market. Treating 3D printing as a means to an end, not as an end: HP’s main aim was to close its sales but was not inclined to use 3D printers as its products. However, 3D printing offers a compatible production technology for workflow, making it crucial in digital manufacturing. This strategy would help capture, store and analyze HP’s customers and mass customization. Recommendation and its Implementation HP should maintain a competitive advantage over other enterprises in the market by focusing on increasing its technology awareness among its current and potentially 3D printing products’ potential customers. HP should improve its routes of promoting technology awareness, such as the 3DaaS Service and the 3D hubs. Creating technological awareness is vital, especially with the influences that the Covid-19 pandemic has imposed on the market. HP should increase its share of value capture by cementing its position as a 3D printing technology provider to reduce the high margins registered by the companies that 3D print the parts of new applications developed. About 70-90 % of the created margin is often captured by the organization that 3D prints parts of newly developed applications. HP needs to reduce this margin. 14 Limitations and Critique of Recommendation HP struggles to maintain a competitive advantage over its rivals in its industry by focusing on improving its technology. Its competitors are also making necessary changes to accommodate the market change, so HP has to make the most effective changes, which may be expensive. However, HP faces the inevitable challenge of the ever-changing technology, meaning that its recommendations will be affected and will need to change with the change in external forces. As HP aims to increase its value share, its concentration will shift. The shift from its goals and main purpose might make HP lose its market share, profits, and positioning in the market. As HP focuses on 3D printing, it may relax its course and effectiveness in other sectors or products. 15 Exhibits Exhibit 1: External Analysis  3D Printing and Digital Manufacturing have created a range of additive manufacturing solutions and materials to help customers succeed in their additive and digital manufacturing endeavours. With the help of its partners, HP offers a wide range of solutions.  All devices on the market will benefit from the use of this Service. To satisfy the needs of a dispersed workforce, it offers a broad choice of possibilities for communication.  HP: The global economy is uncertain, making it difficult for HP to maintain a steady revenue stream. It’s not simple for HP since the company relies on worldwide sales, which is why it’s difficult. The company’s revenues would suffer as the price of its products rises due to the increasing cost of raw materials and labour. 16 Exhibit 2; VRIO ANALYSIS Value Chain Activities Specific Attributes Along the Value Chain V R In W/S/DC/SDC O Competitive Implication: Likely to have Purchasing high-quality inputs Yes No – Strength Yes Competitive Parity Inventory Holding reliable supply able to meet unexpected orders on short notice Yes Yes No Yes – Yes Strength Sustainable Distinctive Competence Yes Yes Competitive Parity Sustainable Competitive Advantage Design & Engineering speciality containers for multiple purposes Yes Yes Yes Sustainable Distinctive Competence Yes Sustainable Competitive Advantage Manufacturin g inconsistent product quality No – – Weakness – Competitive Disadvantage * Distribution speedy & flexible delivery Yes Yes No Distinctive Competence Yes Temporary Competitive Advantage Sales fast, reliable order processing Yes Yes Yes Sustainable Distinctive Competence No Unrealized Sustainable Competitive Advantage 17 Service & Tech Support speedy & competent maintenance and quality technical advice NO Yes Yes Sustainable Distinctive Competence Yes Sustainable Competitive Advantage HP’s ability to adapt to varied external environments and regional cultures is a unique resource that has helped the firm gain better penetration, increased accessibility, stronger brand recall, and greater exposure. Customers want to return because of the company’s comprehensive approach to customer service, which includes various touchpoints. Technology innovation and integration at HP is also valuable resource for gaining an edge in the marketplace.s EXHIBIT 3; FINANCIAL ANALYSIS: RATIO ANALYSIS Name of the Ratio Year Year Year PROFIT RATIOS 2021 2020 2019 1. Return on Investment 137.31 85.79 87.87 2. Return on Assets 16.84 8.2 9.4 3. Return on Equity -394.12 -127.64 -264.20 4. Gross Margin 21.13 18.42 19.01 5. Operating Margin 8.35 6.11 6.59 6. EBIT Margin 8.3 6.11 6.59 7. EBITDA Margin 9.58 7.5 7.8 8. Pre-tax Profit Margin 11.83 5.7 4.29 9. Net Profit Margin 10.23 5.02 5.36 LIQUIDITY RATIOS 1. Current Ratio 0.76 0.78 0.79 2. Quick Ratio ACTIVITY RATIOS 1. Asset Turnover Ratio 1.64 1.63 1.75 2. Inventory Turnover Ratio 6.3 7.7 8.2 3. Receivable Turnover Ratio 11.52 10.52 9.7 4. Days Sales in Receivables 31.68 34.67 37.46 LEVERAGE RATIOS 1. Debt to Assets Ratio 2. Debt to Equity Ratio -3.03 -4.54 -2.79 3. Long-term Debt to Capital Ratio 4. Interest-Coverage Ratio SHAREHOLDER-RETURN RATIOS 1. Total Shareholder Returns 16.76 10.86 10.50 2. Price-Earnings Ratio 3. Market-to-Book Ratio 4. Dividend Yield 2.68 4.04 3.77 18 5. Book Value Per Share -1.5 -1.7 -0.8 6. Operating Cash Flow Per Share 2.21 -0.01 0.2 7. Free Cash Flow Per Share 2.14 0.019 0.07 Consolidated income statement 2021 2020 DOLLAR S %NET VALUE DOLLAR S %NET VALUE Net revenue 63487 100% 56639 100% Cost revenue 50,070 78.9 % 46,202 81.6 % Gross profit 13,417 21.1 % 10437 18.4 % Research and development 1,907 3.0 % 1478 2.6 % Selling, general and administrative 5,741 9.0 % 4906 8.6 % Restructuring and other charges 245 0.4 % 462 0.9 % Acquisition-related charges 68 0.1 % 16 Amortization of intangible assets 154 0.2 % 113 0.2 % Earnings from operations 5,302 8.4 % 3,462 6.1 % Interest and other, net 2,209 3.4 % (231) (0.4)% Earnings before taxes 7,511 11.8 % 3,231 5.7 % (Provision for) benefit from taxe s (1,008) (1.6)% (387) (0.7)% Net earnings 6,503 10.2 % 2,844 5.0 % The criteria show the firm’s core strengths and limitations. Liabilities have decreased. It’s excellent for the corporation to save that much. HP’s disclosure of contingencies also impacts the company’s perception and potential benefits or losses. In 2021, the company’s net sales increased 13% to $63.5 billion. In 2021, EPS rose from $2.00 to $5.33. Over time, the company may be able to raise enough funds to implement the proposals. The company will finance plans through 19 cash reserves and equity loans. Overall, the ratios have improved. Mid-range ratio, but rising. It is reported as an impairment charge to Interest and others. Exhibit 4; COMPREHENSIVE STRUCTURE OF A STRATEGIC ALTERNATIVE  Jet Fusion 5200 Series 3D printing system  Tackles key customer concerns scaling to full production  The 3D printer integrates advancements in systems and materials.  Reduce carbon footprint and speed product development by working with digital manufacturing service providers (DMSPs). FEASIBILITY JUSTIFICATION FOR THIS STRATEGIC ALTERNATIVE  HP has technologically progressed beyond prototyping  HP had to overcome industrial clients’ corporate inertia. It was necessary for key decision-makers with conventional industrial mindsets to undergo essential behavioural changes to adopt 3D printing.  The weakness; HP’s corporate goals, and the corporation still had to confront the share value 20 Exhibit 5; EVALUATION OF ALTERNATIVES BY CRITERIA Criteria Focusing on vertical HP’s focus on core competence Shareholders Net Present Value Provide NPV number here along with units of money Provide NPV number here along with units of money Stakeholders Customers Effect: Positive Level of effect: High Effect: Positive Level of effect: High Employees Effect: Negative Level of effect: Moderate Effect: Positive Level of effect: High Environment (Sustainability) Effect: Negative Level of effect: Low Effect: Negative Level of effect: Moderate Competitors Effect: Negative Level of effect: High Effect: Positive Level of effect: High  While 2D printing saves money, switching to 3D printing may cost HP market share. Also, the company may reduce R&D expenses. 21  The ‘push factor’ represents the industry’s increased agility and adaptability. 3D’s efficiency and resilience in supply-demand matching will be the pull factor. Exhibit 6; Implementation Schedule / Action Plan  A strong position as a 3D printing technology supplier would help HP expand its value capture share and diminish the high margins enjoyed by firms that 3D print components for novel applications, according to Bain Capital analysts.  HP could strengthen its technological awareness campaigns, like the 3DaaS Service. Increasing technology understanding is critical, particularly in light of the Covid-19 pandemic’s commercial impact. This might provide the firm with a competitive edge. References https://s2.q4cdn.com/602190090/files/doc_financials/2021/q4/0302cd18-964e-4bee-b427- d313202a7dd9.pdf
Hello, please send me a message if you can help me with the following case study paper
Administrative Policy, GMGT 4010 Summer 2023 Take-home Individual Mid-term Examination Professor: Jingnan Li Section: A01 Class time: Monday & Wednesday (7:00 – 9:45 p.m.) IMPORTANT NOTICE – READ THIS FIRST STATEMENT OF INTEGRITY This assignment is intended to exercise and evaluate your capabilities in Administrative Policy. This take-home exam is to be completed on an individual basis and no consultation about this case with anyone else, either within or outside the Administrative Policy course is permitted. Any violations of this policy will be considered a breach of academic integrity by all the students involved, and will be referred to the Dean’s office for disposition according to Faculty policy. To reinforce the importance of this stipulation for the academic integrity of this examination, your report must include the following signed statement, attached as a separate page to the front of your paper. I, __________________________________(please print your name), certify that I have completed this take-home mid-term examination written analysis strictly on my own, without consultation with any other individual, either within or outside the Administrative Policy course. Further, I certify that I have not provided any advice or assistance with regard to this take-home mid-term examination to any other student currently enrolled in Administrative Policy at the University of Manitoba, Summer 2023. Finally, I certify that I have not used any information after the time of the case and that the paper meets length and other format specifications given in these mid-term case instructions. Its word count (including executive summary) is: _____________ (Not to exceed 2800 words) Its page count (including executive summary) is: _____________. (Not to exceed 9 pages) ______________________________________ Signature and Name Examinations will not be accepted unless they are accompanied by this signed statement. However, this statement should be uploaded as a separate file so that the grading can proceed on an anonymous basis. (SAMPLE) TITLE PAGE ADMINISTRATIVE POLICY GMGT 4010 Student Number_________ (Please do not write student name) Word Count (including Executive Summary)______ (Not to exceed 2800 words) Page Count (including Executive Summary)______ (Not to exceed 9 pages) Instructor’s Name Section Number Class Day & Time MIDTERM TAKE-HOME EXAM. SUMMER 2023 GMGT 4010 – Administrative Policy Take-home Midterm Case Instructions A. The Deadline 1. Papers are due BY 11:59 p.m. ON THURSDAY, JUNE 8, 2023 AT um learn website of the course. You should plan to upload the paper by 11:30 p.m. to avoid any chances of being late. Any papers that arrive late will receive a late penalty as described in these instructions and the course outline. The late policy will be strictly enforced to keep the level playing field for all students. B. The Assignment 1. Enrique Lores, President and CEO of HP, Inc. and his team, aware of your extraordinary skills in strategic analysis, have asked you to help them assess the situation and to recommend a strategy for the company for the next five years. Please prepare a report for them giving your appraisal of the situation and your recommendations, considering strategy formulation as well as implementation issues, and using the format given in the “General Guidelines for Analyzing and Writing Cases” provided at the UM Learn website of the course. The midterm assignment covers all the sections from the “General Guidelines …” on page one (i.e., Executive Summary, External Assessment, …, Limitations and Critique of Recommendation, and Exhibits). Please do not limit yourself to the alternatives, if any, given in the case so you may build other strategic alternatives and consider them before making a recommendation. 2. The case is available for purchase at the Ivey Publishing’s website. Its title is “HP INC.: POISED TO LEAD IN 3D PRINTING?” and its number is 9B21M067. The case is from Ivey Publishing (www.iveycases.com). Be sure to buy the case mentioned above because there are other cases on HP. 3. In addition to the case, we have added another pdf file at UM Learn in the Midterm Exam folder. It is called “HP Midterm Exam Case Update” to provide further information about the case. As mentioned below, you may conduct external research on the case up to December 31, 2022. Please feel free to ask if you have any questions. C. External Research 1. You are required to access the company’s annual financial information (Income Statement, Balance Sheet, Cash Flows, and Stock Prices) from the Internet for at least three years (2020-2022). As you may know, this information is easily available at several websites, e.g., Yahoo Finance, Google Finance, Marketwatch, Macrotrends, Wall Street Journal, etc. Some of these websites may also have key financial ratios of various companies available for several years. Usually, trends of these ratios for the most recent five years is sufficient. You may use the ratios from these websites in your report but be sure to provide the reference. As you know, it is more important to know how to interpret these ratios than how to calculate them. 2. This assignment is primarily based on the case, the update file (provide at UM Learn), and the financial information. Thus, you are not required to conduct any other external research on the company and its industries. You may search for other information up to December 31, 2022, if you would like to (the company’s fiscal year ends in October). Even if you are searching for information from external sources, external research should not be the focus of the paper. Moreover, search for or use of any information or data regarding this company and its industries after the above-mentioned date will be subject to hind-sight bias and will be considered a violation of university policy on Academic Integrity. 3. Be sure to provide references on a separate page for any search before the date given above and attach this page at the end of the paper. This page may contain only references and can be in addition to the text-pages and exhibits. The words on the reference page are not included in the word count of the paper. You may use APA or any other proper format for the references rather than simply providing the links. You may provide the citations (e.g., when you are providing Assumptions and their Justification exhibit) by the name of the author and year (e.g., Smith, 2020). If the source material does not have an author, you may use the name of publication (e.g., Wall Street Journal, 2020). Please note that there is no need to cite the case and the update file called the “HP Midterm Exam Case Update.” 4. Please use your own words throughout the paper and do not use any direct quotations from the case or from the external sources. 5. Please keep in mind that you are not allowed to consult any case solutions or teaching notes for the midterm case or any other case that may be related to the midterm case in any way. D. Midterm Examination Case Specifications 1. The paper must be between 2,000–2,800 words and printed on a maximum of nine (9) pages in double-space with 12-point Times New Roman font and one-inch (2.54 centimeters) margins on all sides (maximum 23 lines per page). 2. You must use paragraphs and headings in keeping with appropriate business writing form. Use a tab at the beginning of the paragraph to clearly distinguish it from previous paragraphs. Do not use any footnotes. You may use either left justification or both left and right justification. 3. The word-count limit and the nine-page limit do not include the Title Page or any exhibits. However, they do include the executive summary. Therefore, ignore the Title Page and begin page number one with the Executive Summary. 4. Please do not use fancy fonts. Avoid extended use of bold or italics also. 5. Papers that grossly violate these guidelines will receive a failing grade (e.g., using a font smaller than the one specified here or using single space text in the body of the paper will receive a failing grade). Points may be deducted for other violations (e.g., at least ten per cent points will be deducted for each additional page or part thereof {Hint: “part thereof” here means at least ten per cent points will be deducted for any part of the tenth or any subsequent page}). Ten per cent deduction means that if you receive 80 per cent marks in the exam, violation of one page (or part thereof) will reduce it to 70 per cent. 6. Please be sure that the text of the paper as well as the exhibits are readable. It may be better to copy and paste exhibits from Excel to Word rather than use their pictures or screenshots. As you know, pictures or screenshots make the numbers difficult to read. 7. Clarification: Stop when you reach 2,800 words or nine pages in the given format. In other words, the paper must meet both conditions: Not more than 2,800 words and not more than nine pages in the given format. Include the Word Count and the Page Count on the statement of integrity and the title page (as shown above). Keep in mind that the word count and the page count include the headings and subheadings that are part of the text of the paper. You may underline or use bold letters for the headings of various sections to show them clearly. E. Submitting the Case – Uploading at UM Learn 1. Papers must be submitted in a pdf format by the deadline at UM Learn in the Midterm Exam folder of the course. The pdf copy must have all pages of the text as well as the exhibits. The papers should have a Title Page as given in these instructions. Papers with any student’s name or without the word count will not be accepted (No student names anywhere on the exam!). Each page of the report should contain a header or footer with the student number, section number, and page number. 2. Make sure you put the signed Statement of Integrity (SOI) in a different file and name it so it is easily identifiable. 3. Students are also required to submit an exact electronic copy of the paper in the Microsoft Word format at UM Learn. This file should have all the text as well as the exhibits. 4. Please do not email the electronic copies to your instructor. When you submit a file at UM Learn, you will get a receipt. Also, AACSB Assurance of Learning Committee will need to access them at UM Learn for their use. 5. Please name the files as follows: GMGT4010-Midterm-Section Number-Student Number. Please do not submit more than these three documents (a pdf file, a Word file, and the Statement of Integrity (SOI) file). As you know, the pdf document ensures that the formatting stays the same, irrespective of the computer settings. 6. As mentioned in the course outline, please note the following for late penalty (on weekdays as well as weekends): Late submissions, including those delayed by computer-related difficulties, will be penalized ten percentage points for every 24 hour period, or portion thereof late. For example, a student who earns a score of 80% on his/her paper will receive a score of 70% if the paper was submitted one day late. Exam papers will not be accepted after 48 hours. Exceptional circumstances which might jeopardize your ability to meet this deadline must be brought to your instructor’s attention prior to the due date, or else they cannot be considered as grounds for exemption from this late penalty. If you are involved in any co-curricular activities (e.g., case competitions at another university), you are expected to complete and submit the paper prior to the deadline. F. Saving Copies of the Paper 1. Neither the department nor the university accepts any responsibility for potential loss of papers during handling. Such a loss may be extremely rare; nevertheless, to protect against this theoretical possibility, all students are required to keep a hard and an electronic copy of the paper that they submit. 2. Don’t forget to save multiple soft copies to avoid any chance of losing your disk, computer crash, or other such problems! 7 of 6 | Page
Hello, please send me a message if you can help me with the following case study paper
A. The Deadline 1. Papers are due BY 11:59 p.m. ON THURSDAY, JUNE 8, 2023 AT um learn website of the course. You should plan to upload the paper by 11:30 p.m. to avoid any chances of being late. Any papers that arrive late will receive a late penalty as described in these instructions and the course outline. The late policy will be strictly enforced to keep the level playing field for all students. B. The Assignment 1. Enrique Lores, President and CEO of HP, Inc. and his team, aware of your extraordinary skills in strategic analysis, have asked you to help them assess the situation and to recommend a strategy for the company for the next five years. Please prepare a report for them giving your appraisal of the situation and your recommendations, considering strategy formulation as well as implementation issues, and using the format given in the “General Guidelines for Analyzing and Writing Cases” provided at the UM Learn website of the course. The midterm assignment covers all the sections from the “General Guidelines …” on page one (i.e., Executive Summary, External Assessment, …, Limitations and Critique of Recommendation, and Exhibits). Please do not limit yourself to the alternatives, if any, given in the case so you may build other strategic alternatives and consider them before making a recommendation. 2. The case is available for purchase at the Ivey Publishing’s website. Its title is “HP INC.: POISED TO LEAD IN 3D PRINTING?” and its number is 9B21M067. The case is from Ivey Publishing (www.iveycases.com). Be sure to buy the case mentioned above because there are other cases on HP. 3. In addition to the case, we have added another pdf file It is called “HP Midterm Exam Case Update” to provide further information about the case. As mentioned below, you may conduct external research on the case up to December 31, 2022. Please feel free to ask if you have any questions. C. External Research 1. You are required to access the company’s annual financial information (Income Statement, Balance Sheet, Cash Flows, and Stock Prices) from the Internet for at least three years (2020-2022). As you may know, this information is easily available at several websites, e.g., Yahoo Finance, Google Finance, Marketwatch, Macrotrends, Wall Street Journal, etc. Some of these websites may also have key financial ratios of various companies available for several years. Usually, trends of these ratios for the most recent five years is sufficient. You may use the ratios from these websites in your report but be sure to provide the reference. As you know, it is more important to know how to interpret these ratios than how to calculate them. 2. This assignment is primarily based on the case, the update file, and the financial information. Thus, you are not required to conduct any other external research on the company and its industries. You may search for other information up to December 31, 2022, if you would like to (the company’s fiscal year ends in October). Even if you are searching for information from external sources, external research should not be the focus of the paper. Moreover, search for or use of any information or data regarding this company and its industries after the above-mentioned date will be subject to hind-sight bias and will be considered a violation of university policy on Academic Integrity. 3. Be sure to provide references on a separate page for any search before the date given above and attach this page at the end of the paper. This page may contain only references and can be in addition to the text-pages and exhibits. The words on the reference page are not included in the word count of the paper. You may use APA or any other proper format for the references rather than simply providing the links. You may provide the citations (e.g., when you are providing Assumptions and their Justification exhibit) by the name of the author and year (e.g., Smith, 2020). If the source material does not have an author, you may use the name of publication (e.g., Wall Street Journal, 2020). Please note that there is no need to cite the case and the update file called the “HP Midterm Exam Case Update.” 4. Please use your own words throughout the paper and do not use any direct quotations from the case or from the external sources. 5. Please keep in mind that you are not allowed to consult any case solutions or teaching notes for the midterm case or any other case that may be related to the midterm case in any way. D. Midterm Examination Case Specifications 1. The paper must be between 2,000–2,800 words and printed on a maximum of nine (9) pages in double-space with 12-point Times New Roman font and one-inch (2.54 centimeters) margins on all sides (maximum 23 lines per page). 2. You must use paragraphs and headings in keeping with appropriate business writing form. Use a tab at the beginning of the paragraph to clearly distinguish it from previous paragraphs. Do not use any footnotes. You may use either left justification or both left and right justification. 3. The word-count limit and the nine-page limit do not include the Title Page or any exhibits. However, they do include the executive summary. Therefore, ignore the Title Page and begin page number one with the Executive Summary. 4. Please do not use fancy fonts. Avoid extended use of bold or italics also. 5. Papers that grossly violate these guidelines will receive a failing grade (e.g., using a font smaller than the one specified here or using single space text in the body of the paper will receive a failing grade). Points may be deducted for other violations (e.g., at least ten per cent points will be deducted for each additional page or part thereof {Hint: “part thereof” here means at least ten per cent points will be deducted for any part of the tenth or any subsequent page}). Ten per cent deduction means that if you receive 80 per cent marks in the exam, violation of one page (or part thereof) will reduce it to 70 per cent. 6. Please be sure that the text of the paper as well as the exhibits are readable. It may be better to copy and paste exhibits from Excel to Word rather than use their pictures or screenshots. As you know, pictures or screenshots make the numbers difficult to read. 7. Clarification: Stop when you reach 2,800 words or nine pages in the given format. In other words, the paper must meet both conditions: Not more than 2,800 words and not more than nine pages in the given format. Include the Word Count and the Page Count on the statement of integrity and the title page (as shown above). Keep in mind that the word count and the page count include the headings and subheadings that are part of the text of the paper. You may underline or use bold letters for the headings of various sections to show them clearly. 6. As mentioned in the course outline, please note the following for late penalty (on weekdays as well as weekends): Late submissions, including those delayed by computer-related difficulties, will be penalized ten percentage points for every 24 hour period, or portion thereof late. For example, a student who earns a score of 80% on his/her paper will receive a score of 70% if the paper was submitted one day late. Exam papers will not be accepted after 48 hours. Exceptional circumstances which might jeopardize your ability to meet this deadline must be brought to your instructor’s attention prior to the due date, or else they cannot be considered as grounds for exemption from this late penalty. If you are involved in any co-curricular activities (e.g., case competitions at another university), you are expected to complete and submit the paper prior to the deadline. 4 of 6 | Page

Writerbay.net

We offer the best essay writing services to students who value great quality at a fair price. Let us exceed your expectations if you need help with this or a different assignment. Get your paper completed by a writing expert today. Nice to meet you! Want 15% OFF your first order? Use Promo Code: FIRST15. Place your order in a few easy steps. It will take you less than 5 minutes. Click one of the buttons below.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now


Order a Similar Paper Order a Different Paper