Hewlett-Packard Case Study Essay

Hewlett-Packard normally referred to as HP, is an American transnational information engineering company whose headquarter is in Palo Alto, California, USA. It is one of the universe ‘s largest Information technology supplier company next merely to IBM and operates in about every state. The company was started in Packard ‘s garage in 1939 with an initial capital investing of 538 USD. It was incorporated in Aug 18 1947 and went public on Nov 6 1957. The company chiefly concentrated on doing electronic trial signal instruments such as signal generators, voltmeters etc from 1940-1960. As old ages passed on HP diversified its concerns into assorted other Fieldss such as package production, proving, services sector etc. It is graded 9 in the Fortune 500 list of companies in the twelvemonth 2009.

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It employed different stairss of quality to guarantee its endurance and to be the market leader since its start from the 1930 ‘s. Some of the quality measurement stairss HP took from the 1930 ‘s are:

The 1930 ‘s: The Company was founded in the twelvemonth 1939.Bill and Dave formalizes their partnership and decides the name of the company with a coin flip. The entire gross generated was $ 5369 with merely 2 employees

The 1940 ‘s: Hp construct ‘s first of its new edifice ‘s and starts to fabricate several new merchandises. As the company grows Bill and Dave introduce a new manner of direction manner that becomes the footing of the HP ‘s celebrated unfastened corporate civilization. One of the new constructs introduced by HP was the unfastened door policy to make an ambiance of trust and common apprehension. It encourages employees to discourse any jobs without holding to confront any inauspicious effects. A companywide wellness insurance program was introduced which was something unusual. By the terminal of 1949 Hp ‘s gross was $ 2.2 million.

The 1950 ‘s: In 1957 Bill and Dave decide to do the company a publically traded company. The initial cost of the portions was priced at $ 16 per portion due to which the grosss raised to about 10 times. The caput quarters built at Palo Alto was designed to achieve maximal occupation satisfaction. The company makes its first acquisition of F.L. Moseley Company of Pasadena, a manufacturer of high quality. The company goes planetary by set uping itself in the European market.

The 1960 ‘s: Horsepower enters the Japan market with coaction with Yokogawa. The company develops the universe ‘s first desktop computing machine which brings in more investors. It sets up a research installation lab in1966 which became one of the universe ‘s prima commercial research Centres.

The 1970 ‘s: In 1973 Hp became the first US Company to pattern flexible working hours. With the launch of the first programmable pocket reckoner Hp pioneered itself in the hand-held systems.

The 1980 ‘s: HP introduces the Laser jet pressman which becomes the most successful merchandise of the company which was available to the populace in multitudes.

The 1990 ‘s: Hp marks partnership understanding with EPA which enables it to utilize the energy star label, which proved its attention for the environment. The launch of HP marquee Personal computer makes it more successful in the home-computing market. Hp once more set a benchmark by taking a adult female who was an foreigner to take a top 20 US led company. The gross of HP reaches a whooping $ 43 billion. It opens its ain recycling installation and hence becomes the lone computing machine fabricating company to make it. In 1999 all the concern non associating to computing machines, imaging and storage were separated to organize a separate company called Agilent Technologies. This helped Hp to concentrate on what they were good at.

The 2000 ‘s: Horsepower opened hpshopping.com as an independent subordinate to sell merchandises to the clients straight online. This helped Hp to keep a big client database and interact with the clients and better their services. March 2001 HP creates a new concern unit HP services. With the launch of this concern unit Hp made its presence felt in the services sector which was really much necessary as they had a broad scope of merchandises and outsourcing it was non a good thought. On May 3, 2002 HP acquires Compaq in a $ 25 million dollar trade. With the amalgamation of Compaq, HP became a planetary supplier of merchandises and services and therefore a planetary engineering leader. A batch of acquisitions were made by HP during 2008-2009 which resulted in high grosss and a really big work force.

Virgin Atlantic:

Virgin Atlantic is a British air hose which is owned by Sir Richard Branson ‘s Virgin group which has 51 % of the company portions. The caput office is located in Crawley in West Sussex near London Gatwick airdrome. Some of the chief finishs it operates from the United Kingdom are the Caribbean, Africa, the Middle East, North America, Asia and Australia with bases in Gatwick and London Heathrow airdrome. The type of vehicles it uses is the Boeing and the Airbus. In 2009 it carried more than 5.42 million riders.


1984 – Foundational flight from Gatwick to New York.

1985 – Launching of Virgin Holidays and Virgin Cargo, it was the new phase of quality services, quality direction and quality cargo conveyance, and supplying the assortment of sharply priced holidaies to new locations.

1986 – Launching of a new path from London Gatwick towards Miami, and slumberers for first category were introduced, to give first category clients a really good and choice remainder at dark.

1987 – 1,000,000th rider was on the flight, which called for a jubilation.

1988 – Launching of paths to Orlando and New York.

1989 – Terminal gap of Virgin Cargo at New York ; towards Tokyo, three flights a hebdomad service launched.

1990 – Launched defibrillators and staff to undertake cardiac arrested patients. Beauty Therapy was introduced for first category riders in first flight to LA.

1991 – Launching of messenger service on board, introduced place back Television screens, awarded with most attentive Airline Award by Travel Trade Gazette.

1992 – Launched premium economic system category, besides launched particular seats for kid safety.

1993 – In first category cabin, it introduced snooze zone.

1994 – Opening of the path towards San Francisco, day-to-day service was scheduled for Hong Kong.

1995 – Received Best Land or Check in Staff award by Executive Travel Magazine, introduced O2FLY for lung and chronic thorax patients on flight.

1996 – For first category, a thrust through cheque in service launched, some new paths were introduced.

1997 – Check in installation for manus bags were available for all categories.

1998 – Some more new paths launched, classs for quieting down during flights were introduced, kids amusement merchandises were launched, and new uniforms were introduced for the crew.

1999 – Paths opened towards Cape town and Shanghai, Double beds installation introduced for the really first clip in flights.

2000 – In-seat Telephones to earth service was launched, and some new paths introduced.

2001 – Strengthened prick cavity doors and safety pictures were introduced ; besides it was the first flight to Lagos.

2002 – First flight of A340-600 as a commercial flight.

2003 – Scheme related to passports for pets was introduced, suite for upper category launched, an award for giving value to employees was received from Business Super trade names, some more new finishs introduced.

2004 – Some new paths launched to Bahamas and Cuba.

2005 – Developed Virgin Nigeria with Nigerian Government as a Co-owner. More new paths opened.

2006 – Choice of Sol discharge for the fuel direction of jets and became first air hose globally to command hedge and procurance in fuel.

2007 – Virgin Media, Health Bank of Virgin, Virgin 1 Channel, Virgin wireless Italia in Italy and many other incidents happened.

2008 – Virgin Healthcare was launched.

2009 – Virgin Money Giving was launched.

2010 – Launched Virgin Bet oning for people to play all types of games, and besides, Virgin Launched Virgin racing and squad of Formula 1.

Main Argument of this Report:

In this study two globally recognized organisations are being discussed. The chief statement will be about how these two giant organisations have incorporated quality in their operations over the old ages to go planetary leaders in their several Fieldss, what is their current scheme in utilizing quality tools, what will the hereafter scheme be, though being two wholly different organisations in footings of nature of operations, are at that place any similarities/ unsimilarities in utilizing the quality tools. All these inquiries will be answered in this study.

Arguments will be based on how HP is utilizing the different types of quality methods to keep its place as a planetary leader in information engineering, every bit good as how it is utilizing its available resources expeditiously and efficaciously to fulfill its clients either in supplying service to the clients or in fabrication merchandises for the clients. From this statement we will be able to happen out the drawbacks in Virgin Atlantic ‘s quality methods that led to its ruin from it being a planetary leader in air power industry, which HP can avoid.

Comparison and Contrast:





1. Quality

Always offered high terminal quality merchandises and best services with competitory monetary values.

Always offered highest quality to all categories at lowest cost.

2. Cost

Cost is ever fixed.

Flexible plenty cost.

Targets immature coevals for most of its merchandises.

Targets monetary value sensitive travellers in economic system category.

First category merchandises and services for high monetary values.

First category services at less than first category menus

3. Goal

It has four major ends:

a ) To execute world-wide corporate selling activities.

B ) To further the company ‘s planetary proficient community.

degree Celsius ) To put in research and development to get by up with the of all time altering client demands.

vitamin D ) To take the corporate development.

Not merely to travel clients from one point to another but to turn winging into alone experience.

4. Awards

HP won many awards such as top topographic point in Corporate duty Magazine ‘s 100 best Corporate citizens list and was named universe ‘s most admired companies in 2010 by Fortune Mag.

VA was frequently distinguished for its quality and consistence and won many awards.

5. Servicess

Hp ‘s endeavor concern provides services and physiques everlasting client relationships.

Provided extra services such as presence of beauty healer or a seamster on flight.

6. Leisure

Encourages athleticss and leisure activities for its employees.

Motorcycle rides to Heathrow for upper category riders merely.

7. Initial Goal

Initially introduced itself as a hardware fabricating company.

Initially aimed to be best economical air hose for immature people.

8. Income generated

From both services every bit good as its merchandises.

Largely from concern category.

9. Management Feedback

Compulsorily should update employees for their accomplishments and failures.

Proper counsel from senior directors on a regular basis.

10. Competitive Advantage

HP today promotes itself as non merely hardware and package provider but besides full scope of services to plan implement and support IT infra construction.

Buyer ‘s monetary value consciousness of Corporate travel and the increasing service outlooks of travellers.

11. Staff

Quality staff by paying competitory salaries..

Choice staff regardless of low wages paid to them.

12. Staff Philosophy

They followed the alone HP manner which had following dogmas:

a ) Trust and regard for persons.

B ) Focus on high degree of accomplishment and part.

degree Celsius ) Achieve common aims through teamwork.

vitamin D ) Behavior concern with sturdy unity.

Promote the employees separately.

15. During Recession

Hp was busy with new acquisitions.

Maintained its labour force and recruited 2602 employees.

14. Employees suggestions

Company ever welcomes new thoughts from employees.

Many suggestions from employees were implemented and are given importance.

15. Rivals

Rival was IBM.

Competitor was British Airways.


Sl. No.


Hewlett Packard

Virgin Atlantic

1. Ailment Actions

All client ailments are dealt with at the same clip in the same mode.

For upper category, within 24 hours and for economic system category, within a hebdomad

2. Range of the company Globally

Presence of its merchandises in states where the company is non officially present.

Long Haul paths

3. Culture

Hp had made its ain Culture in its working environment and had named it “ THE HP WAY ”

There was no such thing in Virgin Airlines.

4. Campuss

All the Hp campuses are eco friendly campuses with greener environments.

Virgin does non pattern this sort of Campuss.

5. Controversies faced

There was information leak of Hp ‘s long term scheme and was published as a Cheat article.

Virgin Atlantic faced the Dirty fast ones controversy from British Air passages.

6. Brand and Legacy

Hp has many sponsorships like that of Disney ‘s mission infinite, EPL nine, Formula 1

Virgin Airlines did non officially patronize any such major events or athleticss activities.

Analyzing the Differences:

Swot Analysis:


Internal Analysis


It has a Global presence.

Acquisition of good established companies gives a encouragement.

It has a taking market portion.

Presence of big figure of employees who are competent.

Presence of cutting border engineering.


Lack of new merchandises.

Limited service offerings.

The construct of its celebrated HP manner under extinction.

Internal jobs in operations at higher degrees.

Taking determinations against the stakeholders.

External Analysis


Establish in all the states.

Innovate new merchandises on par with its rivals such as Dell, IBM.

Diversify from merely being a laptop/desktop maker to amusement merchandises like music, mobiles etc.

Make its merchandises available to all client sections.

Increase the figure of clients.


Entry of new rivals such as Asus, brother etc.

Negative alterations in Demographics.

High outlooks from clients.

Rigorous authorities Torahs.

Virgin Atlantic:

Internal Analysis:


Virgin Atlantic is 2nd largest air hose of Britain, supplying quality services to its clients.

It includes, amusement, comfort and after gross revenues services, low menus, long-haul paths and changeless betterments and feedbacks from clients to better quality.

It is differentiated based on menus, quality service and diverseness ; supplying particular services for particular demands of clients.


Virgin focuses first category riders more than other categories.

Most of the services are for first category,

Focused market section is largely London

It produces no history and annually studies.

Targets concern category and does non decently work its confederations.

External Analysis:


Virgin can travel for farther partnerships, more options of deriving clients.

Can increase its finishs because of around 280 airdromes in Europe


Anti-trust statute law jobs for the growing of air hoses,

Menace of terrorist act because of increased air hoses,

Monetary value visibleness because of E-commerce, picture conferencing engineering is diminishing distances and clients do non necessitate travelling.

Difference in the quality confidence and doctrines between Hewlett Packard and Virgin Atlantic.

HP Doctrine:

HP maintains a alone corporate civilization called the “ HP WAY ”. HP believes the company ‘s success depends on the employee satisfaction. HP wants to be known as a company that

a ) Is known for invention.

B ) Is lending to the community in a positive manner.

degree Celsius ) Employees can be proud of.

vitamin D ) Believes in regard and unity.

The company believes in supplying long term employment to people. It aims at developing and back uping their employees at every degree of HP. The punch line “ Everything is possible ” shows the assurance it has in its employees who change thoughts to world. Its Doctrine is fueled by impulse, challenges and wagess.

Virgin Doctrine:

The timeline Virgin Atlantic clearly shows the quality, as the Virgin Atlantic added more services it improved its services. The lone doctrine of VA was to supply good quality attack which would do people to utilize this service and besides it forced people to link to remain connected to Virgin Atlantic air passages, this procedure has non stopped, as the clip is go throughing through, the quality is heightening with regard to the add-on and betterment of services in Virgin Atlantic.

Quality Assurance:


Before any merchandises or package applications of HP are released they undergo a rigorous proving under production burden in an reliable environment to look into the public presentation and to supply the same quality throughout all its merchandises to accomplish maximal client satisfaction. Same is the instance with the services they provide, the employees are trained to flawlessness and each one undergoes a User Acceptance Test to measure up for a place that trades with client relationships. This ensures the same quality of service throughout the universe.

Virgin Atlantic:

VA ensures that it provides maximal safety to its client and crew. They guarantee they provide the best quality in every facet of air hose travel including nutrient, nevertheless it faces a batch of jobs to supply the same quality throughout as it entirely depends on the crew. Hence the nature of service they provide will decidedly depend on the temper of the crew.

Impact of the Differences on Innovation, alteration and fight:

In today ‘s competitory environment endeavors must stand out in invention in order to win. Innovation is about creativeness at HP. HP believes in making the best of tomorrow today. It gets to cognize its clients concern and strategic ends to do it go on. Innovation is applied at HP to better its bing merchandises and services. HP believes that Innovation is non merely about contriving new merchandises and services ; it is about developing originative procedures and thoughtful partnerships, which is really difficult to happen in Virgin Atlantic as VA has ever believed in competition instead than constructing partnerships. For VA invention is merely approximately developing new techniques to fulfill its clients which are non plenty for an organisation to win whereas HP focuses on following cardinal countries such as Solving Enterprise issues, Supplying industry thought leading, Improving merchandises and services, Making competitory advantages, Bettering entree to information.

As the company adapts to new demands it must cover with increasing complexness and volume of alterations. HP makes more informed alteration determinations based upon concern impact which helps to increase efficiency and legerity enabling more alterations. As for the on the job civilization of Hp is concerned it would ne’er alter as it has inherited from its laminitiss and it believes it the best while Virgin continuously brings alterations to forms and services and the proviso of services because it has to keep its rank while HP invents.

There is a stiff competition between companies and national economic systems around the universe which has resulted in HP to develop new quality steps to stay a planetary leader such as Promoting a clime for sustainable growing, puting in invention and R & A ; D, Investing in future occupations and instruction by which it ever tries to make something new and ever succeeds, while VA has maintained its quality in footings of fight and decreased opportunities of accomplishing the top topographic point in its concern.

Recommendations in footings of Innovation, alteration and fight:

HP should take down the costs of its merchandises and services which will assist to turn its market portion.

It should put in long term fight.

Spread in many states worldwide, it must hold better control of its substructure.

Increase the inducements and wagess to employees who focus on the client to present their aims.

It should diversify, from merely being the computing machine manufacture/service supplier to other interesting countries such as music, nomadic phones, security systems, etc, from being the leader in pressmans to leading in printing.

It should do more acquisitions of companies who are market leaders in different Fieldss.

The worsening HP manner should non be left to vanish as the company has reached to this place based on this construct and it will certainly assist in future besides.

Hp must go an built-in portion of nucleus service supplier companies such as VA to rule in the service sector by supplying them engineering.

HP should concentrate on its R & A ; D, HR, supply and client attention in the states where it is non physically present.

Much attention should be taken while electing the top degree direction such as CEO, President, who can manage such a big organisation as even a little error from their side, will impact the company image.

It should do merchandises that can fit the of all time altering client demands.

It should non depend on a peculiar merchandise or service, such as it depended mostly on HP Pavilion notebooks which can be a large hazard.

Virgin Atlantic should work with coaction, with its confederations and spouses decently, alternatively of giving them less importance.

It should catch the Asiatic markets, in order battle for being figure one air hose of Britain.

It should get down bring forthing one-year studies to be crystalline with clients.


HP, since its incorporation in 1947 has faced figure of challenges either internally or externally and competition from its ne’er giving up rivals has ever come up high in value because of the quality measures it had taken in its initial phases from its laminitiss which went on to maintain them with alterations when and where necessary for the improvement of the company. Hp diversified itself at different phases and still managed to stand out as it had made a trade name image for itself for supplying the best quality merchandises and services. Virgin ever aimed at supplying and bettering its services to a peculiar section of clients, as a consequence it has remained in the same topographic point as it was a few old ages ago, Infact worsening in footings of grosss and its diversified merchandises and services such as Virgin music are besides non making that well


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