When we consider the influences on a company there are many different models we can use, however, since "all businesses operate within an environment, which directly or indirectly affects the way in which they function"(Obrien, cited in Dibb et. al), macro environment analysis is one way of auditing the market, it is the systematic appraisal of all the external and internal factors that have affected a company's commercial performance over a defined period(Macdonald 1994). .
PEST analysis is a traditional way of considering the external environment (Adcock 2000). It is usually conducted to obtain understanding of the macro environment affecting the business or sector being studied. The Porter's analysis seeks to summaries the competition forces at work in a particular sector (www.defence.gov.au). Porter does not see these external factors as working alone, they act in relationship to each other, and can also be influenced by the organisation which the effect, in understanding them the organisation is in the best position to influence them (Thompson, 1998). If we apply this to Hewlett Packard then we will see a very interesting company that has some strengths as well as weaknesses.
1.1 The company.
Hewlett Packard is one of the best known companies for printers and computers and other imaging products. It position is not only financially strong, but is also seen as a good employer, being voted for as one of the "100 Best Companies in America for Working Mothers" by the working mothers magazine (Hewlett-Packard, 2002). Additionally in Fortune magazine's "Most Admired Companies in America" in 1997 it ranked fourth (Hewlett Packard, 2002).
HP founded in the late 1930s by Bill Hewlett and Dave Packard in California, USA. The 2002 merger with Compaq Computer Corporation forged a dynamic, powerful team of 140,000 employees with capabilities in 178 countries doing business in more than 40 currencies and more than 10 languages.