HP Details Turnaround Strategy
At HP’s annual Securities Analyst Meeting this week, the company’s leadership mapped out strategic priorities for the future and provided a detailed roadmap to turn the company around.
During her keynote, HP President and CEO Meg Whitman outlined progress made over the past year to stabilize the business and lay the foundation for a multiyear turnaround. The operating and organizational models have been integrated, centralized and streamlined, and a talented executive team is in place to execute the strategy.
The company is positioned to extend its leadership into the major trends driving IT investment—cloud computing, information optimization and data security. In May, HP initiated a multiyear restructuring designed to realign its cost structure and create investment capacity to drive innovation against its strategic priorities, strengthen market leadership and rebuild its balance sheet while returning capital to shareholders. The company says it is on track to deliver on its savings targets and complete the restructuring by the end of fiscal 2014.
By 2016, Whitman expects the company’s revenues to be growing in line with gross domestic product (GDP), with operating profit growing faster than revenues, industry-leading margins and disciplined capital allocation.
“HP has a powerful set of assets, a culture of engineering innovation and a trusted brand,” said Whitman. “Now, we have to focus on bringing our incredible assets together to deliver for our customers, employees and shareholders.”
- Companies:
- Hewlett-Packard