Hp And Compaq Case Essay

1700 words - 7 pages

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 ...view middle of the document...

ALL CEO beginning from 1977 till 1999 have worked in the company many years. All of them new and praised HP culture.
Nineties were hardest years for HP as for the most companies. Revenues were decreasing and shareholders thought that it needed changes. IN 1999 Carly Fiorina was appointed in HP.

Carly Fiorina became chairman and CEO of HP in 1999. She received a Bachelor of Arts in philosophy and medieval history from Stanford University in 1976.  She joined AT&T in 1980 as a management trainee and rose to become a senior vice president overseeing the company's hardware and systems division. In 1995, Fiorina led corporate operations for the spinoff from AT&T of Lucent, reporting to Lucent chief executive Henry B. Schacht; she played a key role in planning and implementing the 1996 initial public offering of stock and company launch strategy .She became the
first woman to lead so large a company, and consequently, one of the nation’s most
prominent female executives. While she was chief executive at HP, the company weathered the collapse of the dot-com bubble, although the stock lost half of its value throughout her tenure. Perhaps more important to HP’s future, however, Fiorina became the first outsider to take charge of the 62-year-old company.

She thought that HP needed some changes to survive in this highly evolving industry. HP was standing still after inventing Printer and one day without innovations HP would be gone. HP was not capable for innovations way out of this problem was buying another company.
Annunciations of merger with Compaq were struck for many HP loyal fans. HP share Price has fallen next day. Everyone thought HP won’t survive.
The company is better known as Compaq Computer Corporation. This was company that started itself as a personal computer company in the year 1982. It had the charm of being called the largest manufacturers of personal computing devices worldwide. The company was formed by two senior managers at Texas Instruments. The name of the company had come from-"Compatibility and Quality". The company introduced its first computer in the year 1983 after at a price of 2995 dollars. In spite of being portable, the problem with the computer was that it seemed to be a suitcase. Nevertheless, there were huge commercial benefits from the computer as it sold more than 53,000 units in the first year with a revenue generation of 111 million dollars.
Idea of the merger came from the phone call between Fiorina and Compaq chairman
and CEO Michael Capellas in late June of 2001. Original idea of the call was possible licensing agreement.
Fiorina thought so many licensing agreements were not profitable for the company. She wanted to consolidate all parts of the PC industry and thus to offer clients more sophisticated products.
Compaq was specialized in manufacturing and selling PC, Servers, Pocket Computers and Storage. Merger would consolidate those businesses and thus boost creativity in the...

Other assignments on Hp And Compaq Case

Kittyhawk Essay

370 words - 2 pages that had incredible shock resistance and low power consumption, and weighed less than an ounce. In terms of field failure it was the most reliable product ever introduced in the disk drive industry. HP created a remarkable new technology, but its targeted market never blossomed. Just at the end of the case as the clock was running out on the Kittyhawk team, Nintendo approached HP with its Nintendo 64 system with a slot for a 1.3” disk drive

Dale Case Essay

5223 words - 21 pages within 24 hours. This can be considered ‘build to order,’ which is something HP and previously Compaq have been doing for a while. * Dell now plans to be competitive in more price bands and says they it won’t be walking away from business like it had in the past. To help accomplish this, it plans on developing specific SKUs for specific markets, broaden its portfolio with tablets, and better optimizing its channels of distribution. * Win with

What Can Hmv Do To Fight Piracy

533 words - 3 pages products released by HP would be attractive towards the young people. C. The main reason for Hewlett Packard suffering through the recent years was because of competition from other companies such as Dell and Apple. The massive rise of competitors such as apple made it very difficult for HP to keep up during the PC revolution. Having already once before beaten apple in the PC department it is questionable whether HP (though very unlikely) are

Matching Dell

2322 words - 10 pages range, there is increased chances of Dell losing their market share to other market players. The other threats are saturated markets and the problems created in trying to maintain their corporate culture. Financial Analysis In year 1998, Dell’s Inventory Turnover ratio was 51.78, which was almost ten times higher than HP, Compaq, and IBM. Only Gateway was close with a ratio of 36.32. Dell’s average Days in Inventory were 7 days, compared to 10 to

Mpmpm

2871 words - 12 pages becoming increasingly competitive in both desktop and mobile computers. Gateway, for example, found ways to reduce its costs and fight its way back to profitability. The same was true for Hewlett-Packard (HP) once it had digested its acquisition of Compaq. Asian manufacturers, such as Acer, Toshiba, and Lenovo, with strengths in laptops were becoming major global competitors. Ironically, by driving down supplier costs, Dell also reduced its rivals

Hewitt-Packard Company

1183 words - 5 pages structure by dividing up the sales division, so that each of the major HP product divisions had its own dedicated sales division. He simplified the complex reward system by linking bonuses directly to divisional and company performance. He proved to match more closely to the traditional “HP Way”, which was friendly, approachable, and supportive of its employees. Finally, within two years of Hurd taking the CEO position, sales increased by $10 billion, and the stock price rose 80 percent. Reference Williams, Chuck. (2010). Management Case Study, Hewitt-Packard Company Matrix Management, http://en.wikipedia.org/wiki/Matrix_management

Cpu Analysis

853 words - 4 pages Intel will manage more processes than the AMD. The Intel processor also has a larger cache size than the AMD, having a higher cache size should also help to increase the computer performance. I used PC Wizard and done a benchmark test on both of the computers. The score for the workshop PC’s processor is 98887.76 marks and my PC scored 138662.4. THE HP Pavilian p6013uk scored significantly higher than the HP Compaq dc5750. From the comparison you

Marketing Mix

1527 words - 7 pages preferences in which may satisfy the customer’s needs or wants. When HP shifted the organizations’ focus from the handheld calculator to the personal and business computer, this gave emphasis on the constant change Hewlett-Packard was implementing to meet the need of the consumer. Some of the product factors that Hewlett-Packard thought of to satisfy those needs and the marketing strategy consisted of the following: • The customers needs and wants

Mr Khalid

299 words - 2 pages 1.) What were the problems faced by Income in this case? How were the problems solved by the new digital system? Incomes insurance processes were very tedious and paper-based. This resulted to humongous Income also experienced frequent breakdown of the HP 3000 mainframe which hosted the core insurance applications and the accounting and management information systems. In addition to this, HP 3000 back-up system only allowed restoration to the

Business To Business Marketing Of Processors

942 words - 4 pages fabrication related technologies. Further, AMD is loosely partnered with end-user companies such as HP, Compaq, ASUS, Alienware, Acer, Evesham Technology, Dell and several others to facilitate processor distribution and sales. Computer System vendors: Apple: In the middle 1980s Apple Computer's strategy was focused on developing desktop publishing as a competitive advantage. The Macintosh was the first computer to integrate laser

Interets In The World

2027 words - 9 pages problem is understanding the relationship between the interest rate and rate of compounding. While Timmy is quoted several different interest rates, the rate he will actually earn on his bank account in each case also depends on the number of times per year interest is compounded on each bank account. To answer this question we need to determine and compare the effective annual rate (the interest rate that Timmy actually earns) for each bank

Similar Documents

Tim 685 Strategic Planning Company Audit Hewlett Packard

2849 words - 12 pages Analysis, market position analysis, corporate governance analysis. The analysis uses industry standards for company audits such as, Porter, SWOT, and PEST as a guideline for the areas to be assessed. HP Background Hewlett Packard is a publicly traded company on the New York Stock Exchange. The firm was started by Bill Hewlett and David Packard. The merger with Compaq was one of HP’s major strategic moves recently. Even in naming the new

Hp Invent Essay

278 words - 2 pages , its merger with Compaq in 2002, and the acquisition of EDS in 2008, which led to combined revenues of $118.4 billion in 2008 and a Fortune 500 ranking of 9 in 2009. In November 2009, 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.

Porter Essay

2792 words - 12 pages the weak competitors have disband their production while others (HP and Compaq) have consolidated their business due to decreasing margins with the passage of time and economic crunch that have started after the insolvency of Lehman Brothers. Most of the competitors are trying their level best to differentiate their offerings from the competitors in order to reduced value for their consumers, while other are trying to produce aesthetic design

Strategic Planning At Apple Inc Essay

1116 words - 5 pages one of the largest sellers of PCs and servers throughout 1980s and 1990s. It was the second largest seller after HP. HP’s merge with Compaq was in 2002. Dell was one of the first to succeed in utilizing the strategy of customization and direct selling. Due to low profit margin Dell stopped the use of retail strategy and in 2002; Dell Inc. opened kiosks to give the personal services to the customers in various shopping malls of United States. In