Distinctive competencies on Starbucks Coffee Company and Hewlett Packard Essay Example

setup - The Coffee bean is a seasonal product. Each season the quality of coffee bean varies from one planter to others. To keep the level of quality and availability Starbucks have developed highly efficient supply chain. In 2008, they transformed their supply chain to make it simpler and effective. They reorganized their entire supply chain into 4 basic functions: plan, source, make and deliver. After reorganizing the supply chain, they focused on reducing the cost and improving the efficiencies. Finally, they created a single, global logistics system which helped them consolidate their far-flung supply chain.

b. Hewlett-Packard

HP is an American multinational company which manufactures products such as Laptops, printers, servers, desktops, printers etc. It also provides software solutions and services to customers in both small and medium sector enterprises. HP is world’s leading PC manufacturer with revenue US$ 127 billion.

Differentiating Factors

The key differentiating factor of HP is the style of management practised that is popularly known as the HP Way after the famous book of the same name written by David Packard. The HP way of management is to “manage by walking around”. In Hewlett and Packard, the senior executives are encouraged to go out and spend time with the line

workers. They believe that in this way of free dialogue between a senior management and a line worker will provide a two way communication which will enable each one to understand the others perspective. In this way line workers would understand where their work fits in the overall strategic objectives of the company.

That brings a sense of accomplishment and purpose in them. At the same time, a senior management would recognize the required changes in the corporate structure that might be warranted. Managing by walking around brings everyone on the same page. In the words of Mr. Packard, “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.” The HP way of working includes following aspects as well focus on a high level of achievement and contribution.

To conduct business with utmost integrity. To have respect and trust for all individuals irrespective of their hierarchy or roles oTeamwork is of prime importance. Objectives are won with teamwork. o To encourage flexibility and innovation.

There are few other aspects which differentiate HP. They are the objectives principle on which the entire business of HP resides and any key decisions that they take hovers around these objective principles.

-HP places a lot of value on customer loyalty.

-HP values profit earning for creating value for the shareholders

-HP does a lot of corporate social activities. It brings value to society by being an economic, social and intellectual asset to the community where HP does business.

-HP places a lot of commitment to employees and that is visible in their policies which

are employee friendly. While US companies are known for its hire and fire policies, HP is a company which people regarded as a place to retire from. HP tries to provide a secure employment environment where people can think freely and innovate better products.

-HP works for the environment sustainability. It constantly tries to reduce its carbon footprint. Another area HP focuses on is the social innovation. HP is making a big impact on the areas of education, health care, community development and entrepreneurship. For this purpose, HP supports by investing in social projects in education, economic development and environmental sustainability.