Premium Essay

Hp and Compaq Case

In: Business and Management

Submitted By avtho
Words 1700
Pages 7
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 one of the most valuable company. Most of the large companies have problems, which they haven’t had when they were small.
In 1972 HP introduced first scientific calculator, in 1980 it introduces first PC and in1985 Laser Jet Printer. These are the years of HP innovations. From 1983 Printer and it’s accessories has become HP main sales driver. These are the years on which HP was holding...

Similar Documents

Premium Essay

Hp Compaq

...‡ Sales of HP¶s Window server fall from 10.6% to 8.2% ‡ Share of HP¶s PC dropped from 7.8% to 6.9% ‡ Fiorina promised 15% revenue in 2000. But at the end of the year it was realized that company earnings of $9.22 million was 25% below. Solutions SWOT Analysis of Case Strengths ‡ HP is a renowned company and is well...

Words: 1001 - Pages: 5

Premium Essay

Hp Compaq

...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 were the printing and imaging solution, which was at that time a high demand market segment for which they had the leadership but had low growth potential. On the other hand they offered good computing products,...

Words: 919 - Pages: 4

Premium Essay

Term Paper

...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer......

Words: 1286 - Pages: 6

Premium Essay

Hp Merger with Compaq

...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....

Words: 4405 - Pages: 18

Premium Essay

Master

...The Influence of Sale Promotion Factors on Purchase Decisions: A Case Study of Portable PCs in Thailand Rangsan Nochai 1 and Titida Nochai 2 1 Administration and Management College, King Mongkut’s Institute of Technology Ladkrabang, Ladkrabang, Bangkok 10520, Thailand, knrangsa@kmitl.ac.th 2 Department of Business Data Analysis, Faculty of Science and Technology, Assumption University, Hua Mak Campus, Bangkok, 10240, Thailand, titida@scitech.au.edu Abstract. The aim of this research is to investigate the sale promotion factors that impact on consumers’ purchasing decision on Portable PCs or notebooks in Thailand. This study was designed to use the survey research method and the convenience sampling technique was used in collecting the sample data. Questionnaires were distributed to qualified respondents in Commart Thailand 2011 Event at Queen Sirikit Convention Center on 17th – 20th March 2011. A total of 191 respondents were participated in this study. The data were analyzed and summarized with SPSS software and binary logistic regression analysis was used to examine which sale promotion factors that impact on consumers’ purchasing decision of Portable PC Acer and Compaq & HP....

Words: 3120 - Pages: 13

Premium Essay

Hr Hp

...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....

Words: 2893 - Pages: 12

Free Essay

Bus 302 – Chapter 14 Case – “Hewitt-Packard Company”

...What this means is that, contra-Carly, the HP Way really did exist, it remains as powerful and useful as ever, and that its last use will be to destroy itself forever. So, What Is the Strategy? Fiorina did not believe in the HP Way, and she just followed its dictates. But the heart of the HP Way is the notion of trust, and the...

Words: 3419 - Pages: 14

Premium Essay

Matching Dell

...In the first half of 1998, Dell reported operating earnings that were greater than the personal computer earnings of Compaq, Gateway, Hewlett1 Packard, and IBM combined. On Forbes magazine’s list of the richest Americans, Michael Dell, the 33-year-old founder of Dell Computer, ranked fourth with an estimated worth of $13 billion. He trailed only Bill Gates, Warren Buffett, and Paul Allen on the list and was worth more than Gates had 2 been at the same age. O Dell Computer had pioneered the widely publicized “Direct Model” in the personal computer (PC) industry. While competitors sold primarily through distributors, resellers, and retail sites, Dell took orders directly from customers, especially corporate customers. Once it received an order, Dell rapidly built computers to customer specifications and shipped machines directly to the customer. T The success of the Direct Model attracted the intense scrutiny of Dell’s competitors. By 1997, headlines such as “Now Everyone in PCs Wants to Be Like Mike,” “Compaq Reengineers the Channel: Will It Be Enough to Slow Dell’s Momentum?” and “In Search of Greener Pastures, Gateway 3 Moves on Dell’s Turf” peppered the PC trade press. By late 1998, virtually every major PC manufacturer had taken some step to match Dell’s approach. CO The Personal Computer Industry PY History. Electronic computers emerged from military research undertaken during World War II. In 1949, the...

Words: 15270 - Pages: 62

Premium Essay

Kujkhj

...Case 1 Matching Dell Discussion Questions 1. Draw a product-market structure for Dell’s PC’s. 2. Conduct a Five Forces Analysis of the PC Industry in the late 1990’s. Is the industry structurally attractive? 3. We know that Distinctive Capabilities are apparent in a company’s activities (procedures) give a firm a competitive advantage. Enumerate these distinctive “activities” for Dell. 4. How successful have efforts to match Dell been? 5. What should the rivals do now? 5. What should the rivals do now? According to the data provided within the case we can see that with the existing models that all companies have adopted dell now only has an advantage in their inventory turnover. According to the statistics provided dell takes around 7 days to get rid of its inventory where as Compaq, IBM, HP and Gateway take 34.2, 49.4, 70.4 and 10 respectively. But the price difference between dells products and its competitors is almost nonexistent. However in trying to cut down the gap in the inventory turnover IBM and Compaq as well as the other rivals are facing problems of not being able to provide the products demanded by the consumers on time. This shows that the strategies adopted by the rivals are not properly being implemented as implemented by dell hence they are inefficient and ineffective. Hence to tackle these problems there are two strategies according to which the competition can move forward....

Words: 529 - Pages: 3

Premium Essay

Hp Alliance

...Value was being added to both HP and Cisco. In 2002 it was time to expand the alliance. Due to HP’s merger with Compaq, the alliance generating activities were sluggish at first. At both HP and Cisco, the primary responsibility for the management of the alliance fell on the alliance manager. The role of an alliance manager was “to...

Words: 1193 - Pages: 5

Free Essay

Ethics

...The origin of HP and its future lies in technological progress. It was relatively easier for HP to outperform competitors because the pace of new breakthroughs was slower decades ago then it is now in the 21st century. It is thus important for HP to continue monitoring changes in technology and react decisively or it may be left behind. As mentioned in the case, HP failed to take advantage of the Internet and thus lost...

Words: 328 - Pages: 2

Premium Essay

Transformation Leadership in Hp Cor.

...TRANSFORMATION Leadership at HP | Under supervision of DR. Ahmed Farouk | | This report will present transformation process of hp corp. By discussing the following topics: Organization background, organization culture specifically “hp way”, One of the leaders who leaded the company towards a great transformation, hp before and after the transformation and finally discussing the role of the human resource in the transformation process. | | | 1/30/2012 | | CONTENTS 1. INTRODUCTION …………………………………………………………………………………… | 03 | 2. ORGANIZATION BACKGROUND ……………………………………………………………….2.1 HP Background …………………………………………………………………………………..2.2 HP Mission Statements …………………………………………………………………………..2.2 HP Vision Statements ……………………………………………………………………………2.3 HP Workforce …………………………………………………………………………………… | 0505111212 | 3. THE RISE AND FALL OF "THE HP WAY" ……………………………...................................... 3.1 Rising the HP Way ……………………………………………………………………………….3.2 Losing the HP Way ……………………………………………………………............................ | 131316 | 4....

Words: 21565 - Pages: 87

Premium Essay

Venezuela Report

...Venezuela Infrastructure Deployment MBA 530 Management Information Systems – Ashland University Kevin Metzger 1. OBJECTIVES: The purpose of this report is to describe all the work we did to implement network infrastructure in the Venezuela offices. In summary, we will present the following: - A list of activities performed to upgrade the Venezuela offices. -The infrastructure situation after the upgrade. (This is shown by separate areas, like network, desktops, printers and others.) - An outline of the next actions and future issues regarding the Venezuela Offices. - A review of lessons learned (and comments to consider in future projects in Venezuela.) 2. OFFICES OVERVIEW: Lubrizol is present in Venezuela in two cities: Caracas and Valencia. In Caracas, which is the federal district of the Venezuela, there is a sales office with three computers and only a few local printer devices. Valencia is an industrial city and has a medium-sized structure that contains an administrative staff and a storage warehouse to keep products imported from other countries. In Valencia there are about ten desktops and many local printer devices. Both places have local network infrastructure implemented. Understanding the size and complexity of these environments was the first step to plan the migration project. Picture 1 shows the building of Valencia and Picture 2 shows some products in the warehouse....

Words: 2205 - Pages: 9

Premium Essay

Dell Case

...When Dell entered the PC manufacturing industry there were already established competitors like IBM, HP, COMPAQ, Gateway and Apple.IBM was the pioneer with respect to technical standards in the PC industry and also had an open architecture allowing developers to build applications suitable for running on the IBM machines. The industry was rallying around the standards set by IBM and all major players in the industry had IBM clone machines except for Apple which was using alternative standards and had its own proprietary architecture. The major players had strong sales force teams and dealer networks .So the PC industry had a lot of competition and there was very less opportunity for any substantial growth in the industry. Because of presence of so many competitors in the industry price wars were common and locking in customers could only be done by providing them with a cost effective solution. Also the PC manufacturing industry had two prominent suppliers for the microprocessor (Intel) and the operating system (Microsoft) ,the two most important things required in building a PC. Even though Intel made the microprocessor available to purchasers at a standard price it rationed new products to PC makers based on the proportion of their previous purchases. So the industry had to some degree supplier power if not directly but definitely indirectly....

Words: 2182 - Pages: 9

Premium Essay

Aem 4230 Hw 2

...Because the incremental earnings would occur in two years, HP discounted the associated $29.4 billion by about 15% per year. There is no attempt to figure out what P/E value makes sense. The original $2.1 billion premium that HP perceives that it paid for Compaq stems from the nature of the sharing rule. Effectively, the sharing rule provided HP shareholders with 64.4% of...

Words: 1059 - Pages: 5