...Introduction Dell Computers and IBM posed threat for HP (Hewlett Packard) and Compaq. Decision regarding whether HP should merge with Compaq or not. Carleton S Fiorina strongly in favor of merger while Walter B Hewlett, son of one of the founder member was against the merger. Certain pros and cons for HP regarding merger: Pros Cons i. Compaq¶s huge storage business i. New CEO could start fresh strategy ii. Compaq¶s Himilaya server ii. Merger will expose HP as PC popular computers, diluting its printing business iii. Deal could double the size of iii. Difficult to merge such two large HP¶s repair-business. firms Strengths and Weaknesses HP Strengths i. Imaging and printing system ii. Strong reputation for innovation and quality iii. Strong in UNIX servers. Weaknesses i. Declining growth of PC market ii. Weak in server market that has profit potential iii. Vague direction of working. Compaq Strengths i. Hardware business ii. Strong distribution channel iii. Known for information technology Weaknesses i. At time of merger, it had huge. inventory ii. Dell had strong position in online business iii. Less capable of taking orders and customizing computers Problem Faced Difficult for Fiorina to make up minds of all board members in favor of merger. Workers anger because of laying off workers and les salaries offered. Steep fall in Stock of HP after merger. Shares fall from $23.5 billion to $17.70 billion as investors...
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...1 The merger between Hewlett Packard and Compaq Local Team 2 Mark Hollenstein Andre Nadjarian Glasson Fonseca Patricio Ducó Jan 8th , 2014 1. What would a SWOT analysis of HP and Compaq reveal? The main takeaway from this analysis is that the macro environment was tough, especially after the 9/11 attack and the technology industry was getting increasingly competitive and ever-changing. Therefore, even though both companies had their strengths, management was aware that the same business model would not last much longer. They were both clinging from very weak businesses: HP from the imaging and printing solutions that was already threatened by other brands and was evolving into digital solutions. Compaq was relying on a PC distribution model that was already showing signs of decay, especially shown by the negative operating margins they had even though they were the leaders in the market. Clearly they both needed a profound change and understood that combining with a company with opposite strengths could be a viable solution to ensure continued growth and the needed skills to adapt their model for the future, where enterprise 2 FGV15-303: Mergers and Acquisitions Case 1: The merger between Hewlett Packard and Compaq services was developing fast (as shown by IBM resurgence) and the PC industry demanded a low-cost distribution model. 2. What are the critical resources at HP? And at Compaq? Does Compaq complement HP? For HP the critical resources...
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...Merging Information Technology and Cultures at Compaq-Digital (A): Meeting Day One Objectives On June 11, 1998, stockholders of Digital Equipment Corporation approved its acquisition by Compaq Computer Corporation, creating a $37 billion (US) personal computer and computing services firm. Within an hour of the stockholder vote, the more than 100,000 employees of the new Compaq were able to access a smgle e-mail directory via a corporate network that linked its world-wide sites. The IT units of the individual firms had banded together to successfully deliver their Day One objectives: There wasn't a whole lot of time to decide who was going to make what decision. As a team we marched off to figure out how we were going to get the networks to talk together even though they weren't the same technology. We figured out how to share mail, messaging—that kind of thing. It just had to happen pretty quickly. So we had a common task that we both went after. —Fred Jones. Vice President, Information Services. Compaq Experts inside and outside the firm recognized that the Compaq-Digital merger created a firm that could rival Hewlett-Packard and even IBM. But in order to leverage the potential synergies, Compaq's management team would need to overcome the challenges posed by the two firms' very different business models and cultures. Company Backgrounds Established in 1957, Digital Equipment Corporation introduced minicomputers to corporate computing environments. As minicomputers...
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...Change management project: The HP merger with Compaq Table of content: • HP- presentation • Subject of change- Hp’s merger with Compaq • Promoters of the change and their motivation • Resisting forces • Critical mass • Trigger. Reducing resisting forces. Results • Change process-dynamics of the forces that promote change and the inertial forces • Analysis of the result. Residual stress • Conclusions HP In 1938, two Stanford graduates in electrical engineering, William Hewlett and David Packard, started their own business in a garage behind Packard’s Palo Alto home. One year later, Hewlett and Packard formalized their business into a partnership called Hewlett-Packard. HP was incorporated in 1947 and began offering stock for public trading 10 years later. Annual net revenue for the company grew from $5.5 million in 1951 to $3 billion in 1980. By 1997, annual net revenue exceeded $42 billion and HP had become the world’s second largest computer supplier. HP posted net revenue in 2009 was $115 billion, with approximately $40 billion coming from services. In 2006, the intense competition between HP and IBM tipped in HP's favor, with HP posting revenue of US$91.7 billion, compared to US$91.4 billion for IBM; the gap between the companies widened to $21 billion in 2009. In 2007, HP's revenue was $104 billion,] making HP the first IT company in history to report revenues exceeding $100 billion In 2008 HP...
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...On November 6, 2001 Carly Fiorina HP CEO announces merger with Compaq. This is the one of the most notable days in HP history and as well as PC industry. It was called Largest merger in the PC industry and dumbest deal of the decade. When analyzing this merger after 13 year picture is changed. HP share price has raised more than 150% after merger. Carly Fiorina is not CEO and HP is still one of the most profitable companies in the world. HP is one of the famous companies found in Pao Alto in the garage. It was founded in 1938 in the year when PC industry wasn’t existing, when Steve jobs and Bill Gates weren’t even born. It is the company from which PC industry giants like Apple and Microsoft inherited corporate culture. Bill and Dave were graduates of the electrical engineering program of Stanford University. They decided to start business on drawing on Bill’s study of negative feedback. So there first product became the resistance capacitance audio oscillator, used to test sound equipment. First client was Walt Disney which used HP product in his animated movie Fantasy. From the day of founding HP was distinguished from other tech companies by it’s corporate culture. They called it HP way. Even Steve Wozniak founder of Apple praises HP corporate culture and says that the Apple seed was planted in Hewlett-Packard cubicle. It was philosophy which emphasized integrity, respect for individuals, teamwork, innovation and contribution to customers. HP grow from garage to world's...
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...MERGER AND ACQUISITION: MERGER AND ACQUISITION DISCUSSION ON INFORMATION TECHNOLOGIES, INFORMATION TECHNOLOGIES HUMAN RESOURCE ORGANIZATIONS & MANAGEMENT CULTURES ASPECT COMPAQ – DIGITAL MERGING CASE COMPAQ DIGITAL MERGING CASE 1 CONTENTS I. INTRODUCTION II. BEFORE THE MERGER III. DIFFICULTIES OF THE MERGER IV. SUGGESTIONS FOR THE ACHIEVEMENT OF THE MERGER V. CONCLUSION 2 I. INTRODUCTION Jan/1998: Official announcement the merging between Compaq Computer Corporation and Digital Equipment Corporation p g q p p 11/Jun/1998: The approval of the stockholder, the Day-One objective achievement: hi t Over 100,000 employees of the new Compaq were able to access a single email directory via a corporate network that linked it worldwide sites within 60 first minutes of the stockholder vote. 3 II. BEFORE THE MERGER DIGITAL EQUIPMENT CORPORATION: A minicomputers manufacturing 1957 Transferred from computer manufacturing to computing services During 1990s g Mid of 1980s The world’s secondlargest computer maker Jun 1998 The third largest provider of corporate computer services with $1.3 billion profits (at the merger time) Organization and resource: • • In 1997, it had 1,000 sales, production, and service sites all over the world. 70,000 employees (at the merger time) 4 II. BEFORE THE MERGER COMPAQ COMPUTER CORPORATION: Established in 1982 as a manufacturing in clone and sell personal computers. Located in Houston with around 20,000 employees, a haft of...
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...17th Jan’2015 Marketing And Consumer Behaviour “Compaq Computer : Focus Groups” Dilema : Whether to Launch New Note book Group-2 Aditya Singh 14MBAGES003 Anuj Kumar Jain 14MBAGES006 Ashish Bhargawa 14MBAGES008 Deepak Sharma 14MBAGES012 Pankaj Naithani 14MBAGES018 Ramesh Kumar Koul 14MBAGES024 1.) Summary of the case * Compaq Computer is in business of designing and selling notebooks. * Consumer division market share is only 3% compared to market leader share of 60%. * Company expertise is in commercial division so company is less focussed on retailer’s relationship. * Company is launching a new product ‘Shark’ for consumer division in late summer 1996. * With expertise of engineers and manufacturer, new product has to be optimized features viz. size, weight, battery life, CD-ROM facility, screen, modem availability and floppy drive etc. | | * December 1995, Greg Memo, leader of the consumer notebook design team, had ordered a set of focus groups as part of his efforts to design. * Focus group participants reviewed seven different products, based on four different form factors. * Mid – December 1995, Company has placed an order for 40000 notebooks to manufacturer. * Greg is reviewing the report of Focus Group & rating of machines to check the survey response with respect to the features planned on model code Shark. | 2.) Objective of decision maker Compaq computer Corporation’s Consumer Division’s objective...
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...Assignment # 2 – Chapter 14 Case – “Hewitt-Packard Company” 1. Discuss the three most serious problems you have identified in the case. Defend why you think they are the most serious. When Mark Hurd, the new CEO, took over, he found matrix structures ambiguous, confusing and inefficient. The main reason is that there is no clarity on the roles that each unit in the matrix is intended to play. Unit roles suppose, responsibilities and relationships in a way that is clear, but not excessively detailed and hierarchical. Although the matrix seems to be a logical organizational solution, Fiorina, has not found it an easy structure. She has struggled with ambiguous responsibilities and reporting relationships, been slowed down by the search for consensus decisions, and found it hard to get all the different units to work constructively together. In fact, CEO Carly Fiorina was so preoccupied with immediate issues that she lost sight of her ultimate objectives. Fiorina and her staff consider that the HP Way is an anachronism of a different, slower time, and that for the company to survive and succeed in the future it must be driven purely by a rational business strategy. After all of the layoffs, organizational changes, assertion of executive hierarchies and the destruction of traditional company rules of behavior, the HP Way that the old-timers are fighting to save is probably already dead. Fiorina and her team appear not to believe in the Way, they are now reduced to appealing...
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...เสนทางสู Blue Ocean ตอนที่ 1 บทความโดย บุริม โอทกานนท ชาน คิม และเรเน โมบอรค ไดระบุไวในหนังสือของพวกเขาโดยบอกไววา หากเราตองการที่จะหลุดพนออกจากนานน้ําสีแดงนั้น เราตองพยายาม เปลี่ยนแนวคิดจากรูปแบของการดําเนินธุรกิจแบบเดิมๆ โดยการสราง ขอบเขตการดําเนินธุรกิจขึ้นมาเสียใหม พิจารณาไดจากมุมมองใหมเพื่อ คนหาโอกาส และใชโอกาสที่มองเห็นนั้นในการเปลี่ยนวิธการดําเนินธุรกิจ ี และพนจากการดําเนินงานรูปแบบเดิมๆ และมักเปนประเพณีปฏิบติของธุรกิจ ั ในการขายสินคาและบริการ อยางไรก็ตามผูที่เคยทําอะไรแบบเดิมอาจจะมองวิธีการคิดในรูปแบบของ บลูโอเชียนวาเปนเรื่องที่ทําไมได หรือไรสาระ เพราะหลงติดอยูในเรดโอเชียน และคิดวาสิ่งที่เปนวิธีการ ใหมๆ ที่จะทําใหเกิดนั้นเปนเรื่องที่เกิดขึ้นไดยากหรือหากจะลงมือทําก็ตองเสียเงิน เสียเวลา ที่จะ ดําเนินการรูปแบบวิธีคิดใหมๆ นั้นเกิดขึ้นโดยเปลาประโยชน แตหากมองกันลึกๆ แลว และถาเปดใจยอมรับความคิดและวิธีการใหมๆ เราก็จะสามารถมองเห็นนานน้ําสี ครามที่ถูกบดบังอยูในนานน้ําสีเลือดได ผมขอยกตัวอยางซักตัวอยางหนึ่งในการทําธุรกิจที่ตดอยูในวังวน ิ ของเรดโอเชียน เชนหากเราเขาไปพักโรงแรมระดับ 3 ดาว ซักแหงหนึ่ง ธุรกิจโรงแรมชั้น 3 โดยโรงแรม นี้มีวิธีดําเนินการบริหารโรงแรมแบบเดิมๆ ดังนั้นมีรายไดหลักก็คือการขายและบริการ หองพัก อาหาร มินิ บาร หองประชุม (ถาบางแหงมี) สิ่งเหลานี้เปนบริการหลักๆ ที่โรงแรมระดับ 3 ดาวในนานน้ําสีเลือดจะ สามารถจัดหาใหลูกคาได แตคิม และโมบอรค แนะนําใหทานสามารถมองใหไกลและคนหาใหมากกวา นั้น โดยพวกเขาคนพบวาการจะพบเจอะเจอธุรกิจในแบบบลูโอเชียนนั้น มีเสนทางพื้นฐานสูนานน้ําสี ครามอยู 6 ประการ ซึ่งหากนําเสนทางพื้นฐานทั้ง...
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...Octavia Brown MGMT303 – Professor Runyon July 29th, 2011 SWOT Analysis Introduction Hewlett-Packard is a global technology company that provides various products, software, and services to a range of customers, including data storage, servers and solutions to business customers as well as a consulting services segment that offers information technology integration solutions for a range of technology issues. After its merger with Compaq, it became the world’s biggest computer hardware company, ranking number 20 in the Fortune 500 list. HP is doing business in more than 170 developed and under-developed countries. Being a large company gives HP many advantages such as dominating the market for printers (laser and inkjet), both for consumers and businesses using the economies of scale. The company is also taking an active role in developing the capacity of new markets all around the world, engaging with other multinational corporations, non-governmental organizations, and other world governing bodies to reignite the competitiveness at home and abroad through policies and strategies that can support free-market economies. This is one of the reasons HP a leading technology company in the growing IT markets (HP Annual Report, 2003). (S) Strengths Hewlett-Packard generated nearly $6.1 billion in cash flow from its operations and increased its cash and equivalents by 3 billion in 2003 (Datamonitor, 2004). Debt levels in this year were also very low which was significantly...
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...Growing from a two-person operation in 1939 to a present-day IT powerhouse, HP has experienced a remarkable journey .Nowadays, Hewlett-Packard is a global enterprise and especially after its merger with Compaq, the company became world’s biggest computer hardware and peripherals consort in the world and has ranked 20th in the Fortune 500 list in 2009. This led to general revenues of $118.4 billion, HP announced the acquisition of 3Com with the deal closing on April 12, 2010. On April 28, 2010, HP announced the buyout of Palm for $1.2 billion. On September 2, 2010 won its bidding war for 3PAR with a $33 a share offer ($2.07 billion) which Dell declined to match. At HP, it is believed that diversity is a key driver of their success. Putting all their differences to work across the world is a continuous journey fueled by personal leadership from everyone in their company. HP’s aspiration is that the behaviors and actions and actions that support diversity and inclusion will come from the conviction of every employee in the company making this diversity and inclusion a conscious part of how HP runs its business throughout the world . HP leaders have an advantage that enables them to learn and adjust as few others can. The depth, and vitality that come alive on a daily basis through the firm’s values “the HP way” are assets from which most of the silicon Valley continues to learn. Their general managers regularly discuss and assess the vitality of the HP way, a process , which inevitably...
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...Managing the strategic Dynamics of Acquisition Integration: Lessons from HP and Compaq Suggala Indraneel 012513187 Aim of the paper: This article discusses about the Hewlett Packard company and Compaq merger and analyzing the final result of the acquisition of the companies. The aim of the paper is to examine the operational integration process, process of formulating the integration logic, and strategic integration processes of two large high technology companies, HP and Compaq, which are well established in a highly dynamic competitive environment. Introduction: In 2001, HP CEO proposed to acquire the high technology computing company Compaq. They expected to have a longer term revenue and profit goals after merging the companies as both of the companies are already grown computing companies. But many of the analysts were against this idea. Even HP board members showed opposition towards the merger leading to a proxy fight. They argued that the integration risk was eventual as there was never a success in big companies acquisition the two companies have their own way of strategies and plans for the development of organization. This varied cultures create integration difficulties, revenue risks offset cost synergies, financial risks etc. This way, proxy fight was severe and success seemed narrow. But finally the organization integration was successful with...
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...Initiators of Organizational Change Nic Pedersen Management 380 November 13, 2012 Wayne Ellis Initiators of Organizational Change Every company faces a time when an organization change will happen for the good or bad of the company. Organizational changes can be a profitable venture for a company and organizational change can lead to the demise of a company. A change to a company’s organization is a process discussed, decided on, and conducted during a hallway meeting of upper management. Tough decisions are made before an organizational change is made and the outcome of the decision is only known after the completion of the organizational change. The reasoning behind organizational changes varies from company to company, but organizational changes are initiated by two driving forces, internal and external forces. The following paragraphs will address the initiating forces behind organizational changes and provide an example of one of the initiating forces. Internal and External Forces Companies have various reasons whether good or bad to commit to an organizational change, but all companies share the two initial initiators behind organizational change, internal and external forces. External forces are defined as,” The forces compels from outside the organization, (on which organization normally have no or minimal control) are termed as External Change Forces” (Rawat, 2008). External forces contain...
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...nearly twenty years of knowledge and expertise in sales and marketing to the company, which was seeking to reverse a declining market position relative to its competitors such as Apple. Her successes included recreating HP's image from that of an ordinary printer manufacturer to one as a supplier of a variety of Internet products. Fiorina overcame a number of challenging hurdles in undertaking the merger of HP with Compaq Computer Corporation, while enduring the public-relations uproar associated with a proxy fight initiated by the Hewlett family, who strenuously objected to the acquisition of Compaq. She bolstered HP's image as a state of the art American engineering company while taking the company into what was becoming known as the Internet Age. However, Fiorina had material obstacles to overcome. She was considered by many at HP as an “outsider”, since she had never worked for HP. Unlike the company's founders, she was a marketing/salesperson, not an engineer. Fiorina was also chastised for the mismanagement of the merger between Hewlett-Packard and Compaq, an acquisition which led to major losses for HP shareholders. Her relations with...
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...Time for an Upgrade Who would think that all those empty plastic bottled water bottles lying around your house come from a global operation that relies on their data networks in all parts of the manufacturing process? Riordan Manufacturing is the leader in the plastic molding and injection business operating globally with 5 state of the art facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China. Riordan manufacturing is proud to be one of the leading manufacturers of heart valves, medical stents, fans, and of course plastic bottles. In order to keep up with the competition and be able to supply a superior product for their buyers at in a timely manner, their telephone and data networks need not only to be up to date, but to be able to withstand the network load for years to come. Current Topologies Each of the 5 locations operates on their own network with a satellite connection to the corporate offices in San Jose, California. Though a couple facilities are not as far back in the stone ages of networks as others, all locations need to be analyzed separately to help build the backbone of what’s to come. Over all, the main focus in this summary is to be able to access any information at any time from any location. This can and will be done with careful planning and lots of network expertise. San Jose, California With 250 employees working out of San Jose, it is one of the better sites network wise. Being the company’s corporate headquarters...
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