In: Operations Management
you will prepare a comprehensive 3-page proposal based In this Company HP you must find additional funding necessary to purchase the company (not just to invest), and as an owner you need to identify what innovations (think beyond the obvious) are necessary to help the company achieve an improved financial status, increased global market share, and set new goals for a 5 year growth plan. As a leader, what change initiatives would you create and why? Provide a professional rationale using evidence. Include an introduction, a conclusion, and a references page Use a minimum of 3 credible sources that are cited within your proposal. I chose HP company.And provided detail information with introductions,refernces,conclusion
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HP Inc Certain recent high level development in HP Inc which will boost shareholders confidence like :
1) Company planning to deliver NON GAAP EPS of $ 3.25 - $ 3. 65 in FY 22
2) Highly confident on execution against structural cost reductions , productivity opportunity , growth of business
3) Realistic market assumption with Management team performance across our Business Portfolio
4) Company believe on consolidation , Acquisition , Consolidation in the industry through acquisition of Samsung Printing , control on cost and established incremental Revenue
5) In Print + Personal System- company established revenue growth of $ 10,5 Billion with strong earnings and cash flow growth from FY 16-19
6) Company having projected non-GAAP operating Margin by FY 22= from $ 4.17 B to $ 5,1 B
7) Projected cumulative Free cash FY 20-22 == $ 10.7 B - $ 11,7 B
8) Projected Capital return- $ 16 B ( FY 20-22)
9) Plan to optimize balance sheet with help of share repurchase
10) Company reduce total Head count by 13-16%
11) With help of material cost savings , logistic network efficiency Reduced / controlled in third party spend / consolidated of vendor management – Overall on going productivity save $ 1.0 B
12) Company having clear road map to get insight on $ 650 Million – projected operating Profit. To achieve the same , company will take following step :
a) Transition from 3 region to 1 commercial office
b) Consolidation of marketing function under CMO
c) Standardization of global process include Sales operation , pricing
d) Enablement of lean product and process development
e) Software assets and Print application portfolio consolidation ( 12 No to 2 no)
f) Growth of digital support services ( like bots,
g) Enhance of product quality to improve cost structure
h) Streamlone marketing spend , events , agencies
i) Expansion of outsourcing service , location strategy – close sites
j) Digitize – Automation like end to end business planning , Standardization of global HP reporting
k) Company having clear target of cost savings year 1 = 40% , year 2 – 75% and by end of Year 3 FY 22- 100%
13) Company established market leaderhip in personal system . revenue CAGR 9% ( fy 16-19) , operating profit 18% CAGR . Thus tremendous growth possible with hep of correct product mix , cost reduction , innovation , perfect execution
14) Company also established moderate growth in Print section
15) Company planning to maintain debt/ EBITDA ( leverage ratoio ) between 1,5 x – 2 x
16) Deploy excess cash and utilize debt capacity
17) Company creates new business like “ 3 D & Digital manufacture , Gaming and Instant Ink