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Hewlett-Packard (HP): Stakeholders in Sustainable Business Transformation Essay

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Updated: Jul 9th, 2021

Part A

Using modern environmental equipment is the consequence of technological progress and the key to ensuring significant ecological safety. In accordance with the case of clean cookstoves submitted by Lawrence and Weber (2017), the application of such facilities is the evidence of competent work on protecting the environmental situation on the planet. Harmful emissions from open stoves not only destroy the ozone layer, which is a global problem, but also create local difficulties, polluting the atmosphere. Lawrence and Weber (2017) describe the situation in Kenya as the example of the dangerous consequences of using such cookstoves and argue that the introduction of innovative equipment may help reduce the risk of contamination. Accordingly, the widespread adoption of this equipment can adjust the climate on the planet.

The complexities of economic development imply a number of problems, including the poverty of certain segments of the population. Lawrence and Weber (2017) note that the lack of innovations and stagnation in this area affects the financial situation of individual regions adversely, which, in turn, slows down natural progress. The case of clean cookstoves proves that the widespread provision of such equipment will improve the current economic situation by reducing heating tariffs.

Moreover, according to Lawrence and Weber (2017), the spread of such stoves may allow establishing democratic prices for them, and many residents will be able to afford the purchase of inexpensive and convenient stoves. Lower costs are directly related to reducing the risk of poverty, which proves the effectiveness of the devices in question.

Part B

The financial strength and competitiveness of any enterprise depends largely on how skillfully its management applies the methods of adaptation to the current interests of the market and introduces appropriate development mechanisms. Based on the experience gained during the growth process, each organization develops an individual strategy that is aimed at increasing consumer interest in the products or services provided.

One of the most significant factors determining the success of a company is its ability to form a sustainable business that can meet the basic types of needs – social, economic, and environmental. Leaders’ actions coordinated to strengthen the position of their organization in a particular market depend on a number of aspects. The involvement of relevant tactical schemes that allow the company to transform its activities to more sustainable operations affects stakeholders significantly.

As an object of analysis, the well-known company called Hewlett-Packard (HP) will be considered. This corporation is one of the global companies specializing in the manufacture and sale of digital equipment. Implementing sustainable development strategies enables HP to develop its business effectively and engage new customers constantly. This work is aimed at identifying the key aspects that have an effect on the sustainable development of the enterprise, and the consequences of the decisions made. External and internal factors involved in the promotion of the corporation and determining its growth prospects contribute to strengthening HP’s position and form the image of the organization as a reliable market participant.

External Forces of Influence

The HP corporation pushed its way to sustainable development by implementing those business strategies that could provide the simplest and, at the same time, clear mechanisms of control over the activity of all the working areas. Management practices aimed at increasing environmental and social responsibilities are the result of a sound market assessment policy and the timely involvement of those tactical steps that may transform the activities of the enterprise. Several external factors adopted by HP are the productive mechanisms of changes that determine both the organization’s new priorities and the influence on stakeholders.

The external factor that stimulates the transition to an operational in accordance with the conditions of sustainable development is the adoption of the trends of strategic leadership. Burgelman, McKinney, and Meza (2017) mention the “evolution of the industry ecosystem” as a transformation system involving the assessment of the company’s management capabilities, its “social learning process,” and “key strategic leadership tasks” (p. 357).

The successful practice of controlling the key areas of HP’s work has allowed corporate leaders to strengthen their marketing position, thereby engaging new customers and investors. Such an approach may be characterized as a modern sustainable method that largely determines the socially-oriented mechanisms of work. Moreover, the solutions involved in borrowing relevant strategies for managing external organizational activities open up prospects for expansion. The clear steps of enhancing past capabilities and moving towards future accomplishments will influence the company’s shift to socially responsible business practices.

Another external factor that enables HP’s sustainable business practices is collaboration with government agencies to develop “financially responsible corporate environmental regulations” (Chan et al., 2016, p. 446). Based on the policy of transition to innovative work, the leaders of the corporation have taken steps to strengthen interaction with various boards in order to strengthen responsibility in the field of green production.

As the authors note, HP develops equipment that gives consumers an ability to use such resources as energy and water efficiently (Chan et al., 2016). This, in turn, serves as the evidence of the sound strategies of controlling the external effects of activities. The relevance of environmental practices in relation to the ecological safety of the planet has become the factor that has caused the transition to the new mode of operation.

When any company takes measures to protect the environment and uses those principles of work that are aimed at preserving the climate, it indicates the organization’s interest in expanding partnerships and maintaining a good image. Such a movement towards sustainable development is a rather common contemporary practice, and the representatives of HP implement it quite successfully.

Finally, a significant external force adopted by the HP leadership is the strengthening of a technologically competent base through market trends and requirements for efficient and environmentally friendly production. According to Burgelman et al. (2017), radical changes regarding the working policy of the analyzed corporation have affected its production side. The widespread use of innovative equipment that operates on the principle of the least possible harm to the environment has become one of HP’s features. Today, when many efforts are made to protect the ecology, the company’s leaders show their interest in following these trends and applying not only cost-effective but also socially significant business strategies.

The management of the corporation seeks to justify its interest in the use of harmless components for its products. Thus, the organization supports the current trend of sustainable environmental development. Such a mechanism of work helps to transform from a large market participant to the company with positive goals. The influence of the general interest in protecting the environment has been passed on to HP, and its maintenance of this practice allows speaking about its modern approach to the formation of a business strategy.

Internal Forces of Influence

In addition to the external forces that influence policymaking with respect to Hewlett-Packard’s sustainable business structure, there are internal factors that also determine specific steps in this direction. The opportunities that the corporation has achieved during its existence in the market have helped it to choose certain growth strategies not only on the basis of competitiveness but also in accordance with other indicators.

Strengthening the power of the brand is largely due to the mechanisms of the company’s internal structure and its principles of organizing activities in the conditions of constantly changing consumer needs. Based on the analysis of HP’s activities and examples from academic literature, it is possible to identify two main forces that contribute to the analyzed enterprise’s shift to environmentally and socially responsible business management practices.

One of the mechanisms determining an internal influence on HP’s activities has become the organization of work in relation to engaging various means that stimulate growth in all the areas of the corporation. As Burgelman et al. (2017) argue, “HP’s internal ecology of strategy-making has involved a multitude of strategic actors that committed the company’s technical, human, financial, and reputational resources” (p. 79). The qualified work of all the team members allows achieving the goals set not only due to competently performed activities but also the reorganization of the dynamics of work in accordance with the current market needs.

In other words, the strategic principle of leadership, which is aimed not at internal changes, has become one of the main tools that shape HP’s key success. Burgelman et al. (2017) state that the process of creating internal ecology “generates the seeds of new business opportunities,” which is particularly important in the context of modern environmental and social practices. Therefore, such structuring of leadership in the company stimulates transformational changes and affects the productivity of the corporation positively, thus creating new perspectives and opportunities for successful sustainable development.

Another internal practice of transforming HP’s business into a sustainable mechanism is realized through setting up its supply chains, stimulating interaction with suppliers based on environmental and social mechanisms. Requirements for the organization of this process include tightening control not only over purchased products but also other essential criteria – the reliability of suppliers, their reputation in the market, and other factors. Grimm, Hofstetter, and Sarkis (2016) remark that “HP seeks to increase suppliers’ commitment towards the improvement of social and environmental factors,” which is a valuable tool in achieving sustainable partnership quality.

Although the corporation in question has credibility with customers and competitors, its leaders adhere to a risk minimization strategy regarding cooperation with suppliers. This, in turn, makes it possible to exclude any threats related to the violation of the organization’s environmental or social aspects and, at the same time, increases the level of the enterprise’s reputation. Following this mode of operation strengthens HP’s equipment base and enables its leadership to build internal interaction only with reliable partners. Therefore, this practice of the regulation of work bears benefits from various standpoints and opens up prospects for quality improvements.

Based on the analysis of internal and external factors that contribute to the transformation of HP’s operations and strengthen its sustainable development, it can be noted that the existing practices are the significant mechanisms of corporate activities. All the considered tools allow minimizing risks, increasing the authority of the organization among customers and competitors, as well as ensuring compliance with environmental and social responsibilities. Such benefits offer significant growth prospects and are the example of implementation in other large corporations.

Global Impacts of Sustainable Development Initiatives

Using various initiatives aimed at increasing the growth of the influence of the company under consideration and strengthening its sustainable development is a relevant practice in many large enterprises. Some approaches promoted by HP are trends in modern organizational management systems and involve similar tactical steps. Nevertheless, certain methods cause the greatest resonance and can contribute to changes not only in the local but also the global market. Concerning HP and its business transformation initiatives, the concept of strategic leadership supported by the company’s management is a meaningful practice that can be considered an activity principle influencing global business and public interests.

The evidence of the value of this methodology in HP and its importance in the global context as a useful component of sustainable development can be found in academic literature. According to Salim Saji and Ellingstad (2016), a strategic perspective supported by leaders is more important for achieving goals and gaining respect compared to many other approaches. The quality of organizational work in such an environment contributes to maintaining its maximum efficiency, and all the processes performed are carried out in strict accordance with a predetermined plan, which minimizes any risks.

Salim Saji and Ellingstad (2016) also state that the social motivational process promoted in most large enterprises is closely related to the concept of strategic leadership. Consequently, through the implementation of the aforementioned principle of business activity, it is possible to achieve not only internal order, which is an essential task, but also undisputed consumer interest. The latter aspect is much more significant for a distributor. Therefore, the effect of this criterion needs to be considered in more detail.

In case this or that company seeks to operate in accordance with the principles of sustainable development, a number of changes occur both inside and outside such an organization. In the context of HP, providing an innovative approach to work allows the employees of the corporation to focus on key goals, in particular, sales optimization and increasing consumer demand. Client interest in the company’s products intensifies when buyers are aware of the strength of the brand and its advantages over other market participants. Accordingly, “a sustainable intensification strategy” considered by Kuhl (2018) as a mechanism for influencing the target audience makes it possible to support undisputed consumer interest (p. 138).

This effect in the context of the global market is great because, among the diversity of companies involved in the field of computer technology, customers choose specific brands that are known for their strong positions. Consequently, this principle of organizing sustainable development promoted by HP has substantial outcomes and may have a significant impact on global business and its participants due to trust in the products distributed.

Harnessing Technology for Sustainable Development

Throughout its activities in the market, Hewlett-Packard has made quite a significant breakthrough in the formation of its technological base. Based on the principles of sustainable development as one of the main business strategies today, the management of the corporation seeks to equip production with modern mechanisms and tools that not only facilitate all operations but also contribute to the growth of the customer base.

This principle is a natural and logical step towards overcoming a competitive barrier since many large companies attract buyers with new techniques and innovative product designs. An opportunity to offer unique products that differ from others in their high-quality features is the evidence of a successful strategic management policy, and a sustainability principle supported by HP is one of the ways of implementing such an action plan. As relevant and effective technology support programs, methods for recycling old products are promoted, as well as involving the Internet, which is one of the main resources for updating the existing technological base and services.

The principle of recycling old products is one of the priorities in the work of HP that supports the method of environmentally safe production to meet modern quality standards. According to McIntyre and Ortiz (2016), the components of equipment, in particular, inkjet cartridges for 3D printers are subject to increased control. The representatives of the company promote a safe disposal system for old devices and urge consumers to collect used parts. Further, HP employees sort all these materials, create blanks for pressing, and provide “85 % recycled content plastic (RCP) replacement for virgin plastic resin” (McIntyre & Ortiz, 2016, p. 322).

Such a system of work not only meets modern standards of environmentally safe production but also contributes to creating additional raw materials, which saves money and allows using waste resources with maximum benefit. This recycling technology is one of the steps towards the formation of the corporation’s sustainable course of work and serves as the method of engaging people to environmental issues.

The active application of the opportunities offered by the Internet is another characteristic feature of the HP corporation. Noll et al. (2018) call “free access to information as catalyst for the sustainable development goals” and state that using such technologies contributes to a more successful control over strategic management principles (p. 223). Moreover, those benefits provided by the global network are not limited to the internal changes that the company’s management can make after studying relevant trends.

Due to the Internet, HP generates various promotional offers for its potential customers and distributes content that may interest investors, and the corporation’s leadership encourages its employees to establish business contacts. Noll et al. (2018) also cite the concept of digital literacy and argue that today, a large number of Internet users receive all the information by analyzing feedbacks and comparing facts found on the network. Accordingly, HP strives to ensure a stable background and credibility among the customer community, creating the image of a reliable manufacturer. Therefore, such an active use of the global network contributes to the sustainable development of the company and maintains high interest in its products.

Conclusion

The principles of sustainable development, which are promoted in Hewlett-Packard, allow the corporation to occupy a high position in the ranking of global companies and provide an opportunity to gain the trust of consumers. Both external and internal forces that stimulate the increase of performance indicators help strengthen brand confidence and open up prospects for growth. The development methods that HP adheres to are the valuable mechanisms that may have a significant impact on the working strategy of the company and the business community as a whole. The active use of modern technologies allows the management of the corporation to maintain a consistently high interest in its products and control all the areas of work carefully.

References

Burgelman, R. A., McKinney, W., & Meza, P. E. (2017). Becoming Hewlett Packard: Why strategic leadership matters. New York, NY: Oxford University Press.

Chan, T. Y., Wong, C. W., Lai, K. H., Lun, V. Y., Ng, C. T., & Ngai, E. W. (2016). Green service: Construct development and measurement validation. Production and Operations Management, 25(3), 432-457. Web.

Grimm, J. H., Hofstetter, J. S., & Sarkis, J. (2016). Exploring sub-suppliers’ compliance with corporate sustainability standards. Journal of Cleaner Production, 112, 1971-1984. Web.

Kuhl, L. (2018). Potential contributions of market-systems development initiatives for building climate resilience. World Development, 108, 131-144. Web.

Lawrence, A., & Weber, J. (2017). Business and society: Stakeholders, ethics, public policy (15th ed.). New York, NY: McGraw-Hill.

McIntyre, K., & Ortiz J. A. (2016). Multinational corporations and the circular economy: How Hewlett Packard scales innovation and technology in its global supply chain. In R. Clift & A. Druckman (Eds.), Taking stock of industrial ecology (pp. 317-330). Cham, Switzerland: Springer.

Noll, J., Mansour, W. A., Holst, C., Dixit, S., Sukums, F. K., Ngowi, H. A.,… Ngowi, B. (2018). Internet lite for sustainable development. Nordic and Baltic Journal of Information and Communications Technologies, 2018(1), 223-238. Web.

Salim Saji, B., & Ellingstad, P. (2016). Social innovation model for business performance and innovation. International Journal of Productivity and Performance Management, 65(2), 256-274. Web.

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