Co-Founders Dave Packard and Bill Hewlett started Hewlett-Packard (HP) in 1939 inside a small one car garage behind Packard’s house. The two finished their studies as electrical engineers at Stanford University in 1934 and became close friends. They decided to start their own business "and make a run for it”, formalizing their partnership January 1, 1939. (The HP Way). They decide the company’s name with a coin toss that one car garage became the office of Hewlett-Packard. At the time it was started HP had $538 in working capital and little more than a couple hundred dollars worth of assets.
It was in that garage that HP’s legacy was born, when Bill and Dave created the first HP product – the Audio Oscillator HP200A. Following the invention of their first product, the pair moved into a small building down the street from their famed garage and hired their first employees. “Walt Disney Studios placed an order for eight HP 200B audio oscillators for the movie Fantasia—HP’s first big sale. ” (High Tech: Winning Success In Silicon Valley). Another milestone was reached in 1940 when HP sent out its first ever Christmas bonus in the amount of $5.
This Christmas bonus set the tone for all bonuses to come, as it quickly turned into a production bonus and soon helped to shape the company wide profit sharing plan that HP adapts. In 1942 HP builds its first ever company owned building, and in order to protect themselves build it so that it can be easily converted to a convenience store should the electronics industry fail. One of the most important milestones for the company was reached in 1947, as HP became a true Corporation. HP also caught attention for their Management by Walking Around and Open Door Policy programs.
In 1957 HP had its initial public offering of stock and wrote their first set of corporate objectives, which set the tone for their management style as a company. In 1958 HP made its first “sizeable acquisition when they purchased F. L. Moseley Company”, which further expanded their product line. (Maddox). The late 50’s and 60’s were an extremely important time for HP as a company as it was during this time that they became a global company by building a manufacturing plant in Germany.
It was also during this time that they created their Division Separation structure where they separated profit and loss accountability between divisions. This division was thought to help keep employees nimble while fostering motivation and creativity. During the 60’s HP further developed itself by entering into the medical field with the purchase of Sanborn Company. They also had their stock listed on the New York and Pacific Stock exchanges and were listed in Fortune 500’s top companies at 460.
It was also during the 60’s that HP created its first computer, which was used in house to control company tests. HP also creates their first scientific calculator around this time, which also gained critical success. Further helping promote HP products Dave Packard was appointed U. S. Deputy Secretary of Defense in 1969. In 1977 John Young became president of HP replacing Bill Hewlett. In the early 80’s HP took much more interest in the personal computing industry as it was during this time that they create the first mass marketed personal computer.
They also enter into creating printers for use with their personal computers, the printers HP manufactured during this time set the standard for the direction in which printers would evolve. In 1987 Bill Hewlett retired as vice chairman of the board of directors, his son Walter Hewlett and David W Packard (son of Dave Packard) step up to take his place. In 1992 Lew Platt became HP president and CEO who was the first president and CEO of HP to not be a member of the Hewlett or Packard family.
In 1993 Dave Packard relinquishes his chair of the board of director’s position to Lew Platt. Possibly one of the most damaging events hits HP in 1996 when Dave Packard one of the original founders dies. In 1999 Carly Fiorina becomes President and CEO of HP. In 2002 HP merged with Compaq Computer. This merger created an “$87 billion entity” which operates in more than 160 countries and has almost 150,000 employees. (Dykman, Davis, & Lamb). “Quite a change from a company which 70 years ago started in a 1 car garage shack with 2 college kids who had $500 to work with!
” (Hewlett Packard Company) Today, HP provides consumers a wide range of products and services from digital photography to digital entertainment and from computing to home printing. This comprehensive portfolio helps the company match the right products, services, and solutions to their customers’ specific needs. Hewlett-Packard’s Vision Statement We strive to improve the environmental performance of our customers, our supply chain, and our own operations. We give people the tools and solutions to build a better today while preparing to address the challenges of tomorrow.
Motto: Purpose Statement To lead in the marketplace by developing and delivering useful and innovative products, services and solutions. Mission Statement Committed to global responsibility by being economic, intellectual and a social asset, demonstrate commitment to our employees by promoting creative work that reflects our values, and earn customer respect and loyalty by consistently providing the highest quality and value while achieving finance growth. Values Statement HP's values embody the qualities, beliefs, and principles that will ensure organizational success.
"It is necessary that people work together in unison toward common objectives and avoid working at cross purposes at all levels if the ultimate in efficiency and achievement is to be obtained. "-Dave Packard Trust and respect for individuals We work together to create a culture of inclusion built on trust, respect and dignity for all. Achievement and contribution We strive for excellence in all we do; each person's contribution is critical to our success. Results through teamwork We effectively collaborate, always looking for more efficient ways to serve our customers. Meaningful innovation
We are the technology company that invents the useful and the significant. Uncompromising integrity We are open, honest and direct in our dealings. Issue Statement In order for the company to remain one of the world’s leading producers of the latest technological advances, HP must face the following issues head-on: 1. Their ability to remain a top tier leader in the technology industry through innovative products 2. Strive in meeting the continued needs of various shareholders by increasing HP shares 3. Maintain customer loyalty by producing quality yet reasonable prices and exemplarily customer service