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Memorandum

To:

From:

Subject: Hewlett Packard

Background

Presently, Hewlett Packard (HP) is facing challenges with their sales strategy. Therefore, the company CEO needs

to establish if the company will concentrate on using work adopts a portfolio or migrate their management strategy

while maintaining their current sales strategy, which they have been using. The sales force of the company is not

satisfied with the current plan that they have recently adopted because of the negative feedback which they have

been receiving. The previous plan approved with the company relied on pushing down sales instead of depending

on customers as their sales consultants. In light of that, the company needs to use their customers as their sales

force consultant during the transition process to generate positive feedback.

Findings

 The company can continue with the current strategy adopted with their sales force, where their seller attends

to their customers. Using the latter procedure, the company will be able to leverage their brand equity only

be establishing other sellers and VAR as their sales force manager. As such, the company will have to use

push equity upstream by developing an influential down as well as mid-stream segments. Using this strategy

requires the HP to put more emphasis on their customer services as well as relationship management.

 The second alternative that HP can adopt is known as “enter an account at multiple levels with a sales

strategy." In this strategy, the company will have to establish a customer-centric approach, where their

product development depends on the insights from customers rather than being product oriented.

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Recommendations

 The best strategy that the company can adopt is establishing customer-centric products, which can be

beneficial to one of the objectives of Hewlett Packard and surpass their brand image. The strategy will

enable the company to develop operation efficiency in that manner relieving their sales reps from consultant

support.

 The company should also establish a unique branding approach where Hewlett Packard is considered as the

solution provider instead offering hardware to the organization.

Conclusion

Hewlett Packard can receive positive feedback and establish operation efficiency to attain their critical

success factor by shifting management of the upstream business from the downstream business. This elective will

not enter the marketplace from base up, preferably from the top down which aligns to Diaz' proclivity of

adjustment of HP's sales procedure.

Introduction

Towards the end of 1996, Manuel Diaz, head of Global Sales for Hewlett-Packard's (HP) Computer

Systems Organization (CSO) explored the aftereffects of HP's enterprise client administration strategies with the

target of distinguishing organizational opportunities and identifying the market that may offer HP proper

development while additionally diminishing sales and bolster costs. HP's present client administration approach,

albeit useful, had included functional changes that had constrained a profound established update of HP's popular

local sales strategy. The first-hand proposals would require additional round of intense variations in the way HP

oversees associations with its larger enterprise consumers.

Problem

Two alternatives will be adopted, the first alternative will be migration approach in their current sales force

(no change), while the second alternative will assume portfolio approach. HP is right now experiencing challenges

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whereby the organization requirements to settle on whether to proceed by its present sales system and concentrate

on relocation or embrace a portfolio managing strategy. The present methodology was acquainted as of late with the

business, and the input has not been satisfied with the business constraint being disappointed. The previous plan

adopted with the company relied on pushing down sales instead of depending on customers as their sales

consultants. In light of that, the company needs to use their customers as their sales force consultant during the

transition stage to generate positive feedback. This is prompting a burnout impact. Appendix A and B additionally

demonstrate two concerns of the treadmill as well as period drain that should be tended to and overseen. Starting at

now, HP centers around finding each prospect, which is additional motivation of expanded time seepage because

they lack high exchange rates in the exception in repurchasing circumstances where the business constraint is

pitching to prevailing customers, and keeping up these connections. The plan of action additionally has 40% of its

incomes (See (Appendix F) from the undertaking section, any progressions made to the arrangement in transition to

accommodate Minor, and Intermediate Enterprise’s (SME’s) would affect their enterprise clients who are the most

significant to the organization concerning incomes. In PC business, the Sales, Administration, and General (SAG)

costs grows steadily due to innovative products introduced regularly. In the wake of presenting a new item, the sales

force keeps on observing and overseeing associations with the old item users and additionally offer a new issue that

could tear apart sales

Solutions

The first choice is that there are no functional changes and HP proceeds with its conventional operation and

sales. Appendix A rapidly features the clients served through their venders. It is noted that the green section can be

removed from trade agents and distributed to VARS and different vendors to administer. Besides, the point here is

to use the trademark parity of the high down and mid-stream sections keeping in mind the end goal is being more

fruitful upstream, in this case, push the value upstream. In light of that, training would likewise be centered on client

administration and association management for the upstream interstellar. The burnout impact, notwithstanding, is

still in play because the business constraint still has different diverse clients that it is overseeing and they would in

any case battle in establishing and organizing the right opportunity for HP.

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Ultimately, another subject, which is astounding, is that even though the make value can be utilized to

encourage the upstream commerce; the way that the value is focused inside the down/mid-stream portion can be an

obstruction. Appendix B demonstrates the administration yields charted out with the vendors. The counter

indicates that business representatives do have an alternate part to show in correlation with alternative dealers for

HP. Deals reps require not deal with upstream and overhauling protestations, and this can be absent for VARs to

deal with as a substitute (to diminish burn out) and over-burden.

The subsequent choice is to seek after a collection approach where HP would requisite to "enter a record at

different levels with auctions strategy." This is a client-centric methodology where the point of view is from the

client in rather than the sales procedure being merchandise oriented. This is a tremendous prospect for HP. This

system centers around creating the clients the premise of the sales model and concentrating on innovation openings

that have large margins and incomes for the organization. In this option, it is likewise prescribed to include another

section titled "professionals" to serve as experts to the clients – particularly for upstream and green section. This is

featured in Appendix C. This would diminish additional affiliation administration procedure from the sales

representatives, and their business consultant contributes their time since it is a critical portion of the business that

produces great income. It is at present referred to broadly as an equipment provider and would requisite to chip

away altering the perception and brand image. Appendix D demonstrates the service-output/sales force chart. It

indicates how the experts are currently dealing with the upstream space and the green section, which is SMB space.

Professionals additionally assistance in distinguishing and elevating opportunity to the enterprise section.

Recommendation

The second alternative would be the most suitable strategy for HP to implement. This would be establishing

customer-centric products, which can be beneficial to one of the objectives of Hewlett Packard and surpass their

brand image. The strategy will enable the company to develop operation efficiency in that manner relieving their

sales reps from consultant support. In addition to that, the company should also set a unique branding approach

where Hewlett Packard is considered as the solution provider instead offering hardware to the organization. This

adjustment in customer discernment would build brand status, expand reliance with prevailing customers, and

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intensely draw in new clients in all marketplace sectors. This elective will not enter the bazaar from base up,

preferably from the top despondent which aligns to Diaz' proclivity of adjustment of HP's trades procedure.

Net income received 1994 from sales force

Sale/ Year 1994

Repurchases, replacement, and expansion project sales $60,000,000

Hardware sales $59,000,000

$119,000,000

Expenses

Consulting 1,000,000

NET INCOME $118,000,000

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