...1. FODA HP: Fortalezas: Alta participación de mercado de imagen e impresión, calidad, valor de la marca HP, participación de consumibles. Debilidades: No contaba con servicios integrales de negocios end to end como su competidor IBM, no tenía canales directos de distribución y estaba muy integrado en su nicho de mercado Oportunidades Mercado cambiante y creciente, con necesidades de servicios más personalizados. Amenazas Competencia Mercados volátiles (emisión de acciones cercana al evento del 11 de septiembre) IBM dominaba el mercado de end to end services, sacando del mercado los productos de HP 2. No se tenía una estrategia tan sólida detrás de la fusión, ya que la estrategia de HP de poder incursionar en un mercado de soluciones empresariales de IT como lo que ofrecía IBM, no era el core del negocio de Compaq, este último era más bien un creador de hardware a bajo costo. No ofrece valor para los accionistas. La suma de esta fusión es de 1+1=2, porque además ambas compañías tenían productos que se traslapan entre sí. 3. Acuerdo a la valuación presentada por la CEO de HP, las sinergías iban a generar valor de entré $5 y $9 por acción en la nueva compañía. 4. No, porque la estrategia no tenía un trasfondo sólido. Esta fusión obedece más bien a la necesidad de HP de buscar una asociación con algún competidor que le permitiría incursionar en el nicho de mercado que aún no había podido penetrar, sin embargo como se comenta en el punto 2 esta asociación...
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... Pranshul Singh Evaluator’s comments: ____________________________________________________________ ______ Marks obtained : ___________ out of ______________________ Content of Homework should start from this page only: The external and internal environments analysis of HP-Compaq merger integration PEST Analysis Political. The international IT and electronics industries have been characterized with intensive competition. Electronics and IT companies are constantly reviewing their achievements as well as the competitors’ in order to come up with better business strategies in an effort to best all other existing industry rivals. With the merger and acquisition strategy between HP and Compaq, members of the IT and electronics industry all over the world were threatened with the intensified effort that could result from the integration. Others were surprised because mergers and acquisition strategies may also result to negative implications on the part of the merging companies particularly when differences in the context of strategies, culture and goals fail to be fully integrated. Economic. For HP and Compaq, the...
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...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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...qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwer...
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...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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...Global Executive MBA – FGV (2015) Course 303: Mergers and Acquisitions Professor: Hsia Hua Sheng Department: Accounting, Finance and Controls, Module: 3/2015 Assignment # 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)...
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...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. HP SIGNIFICANT TRANSFORMATION ……………………………………………………….. 4.1 HP Before The Transformation …………………………………………………………………4.1.1 Lewis Platt ……………………………………………………………………………4.1.2 HP's Carly Fiorina: The CEO of HP …………………………………………………4.1.3 HP's Carly Fiorina: The Transformation leader ……………………………………...4.2 Hp Transformation ………………………………………………………………………………...
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...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 to it in order to get enough shareholders votes to win. 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...
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...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 results in corrective...
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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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...Homework #2 1. There are potential agency conflicts in the exchange between HP director Sam Ginn and McKinsey experts. McKinsey consultants wanted the merger between HP and Compaq to occur because they might have been able to collect higher fees. Therefore, they immediately squashed any doubts and gave advice for the merger to happen, even if carrying out such an acquisition would have destroyed value for HP shareholders. 2. For Patricia Dunn, the past successful consolidation mergers are vulnerable but overcome key challenges in the first two years. She believes that the merger between HP and Compaq will ultimately help her company. The cost savings mentioned by McKinsey consultants provides confirming evidence in support of Patricia Dunn’s views and HP’s acquisition of Compaq. She responds positively because McKinsey consultants reaffirm her decision. 3. The technique that HP executives used is not the same or comparable to traditional discounted cash flow analyses. Two years from now, HP expects to save $1.5 billion after tax every year into perpetuity. If HP discounted those savings at 5%, then the present value of those savings would be $30 billion in Year 1, and $28.57 in current dollars (still discounted at 5%). HP executives valued the $1.5 billion in after tax cost savings as incremental earnings that extend into perpetuity. Since HP’s P/E ratio at the time was about 20, they valued the incremental earnings stream by multiplying the $1...
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...Like Campbell’s (1993) hero who faces many obstacles in his path to win the true treasure, Carly persevered to transform HP through the Compaq merger, arguing for synergies in products and services. She even believed a successful meld of the two companies’ very different cultures would occur. Each had elements the other did not, so combined they would create a great new culture. This view was shared by all board members, save Bill Hewlett’s son, Walter. He opposed the merger believing the end company would make little impact in the PC business and that the cultures could not be integrated. Former HP marketing manager, Theresa Wilcox, supports this, finding that Compaq people were more aggressive and boastful than the humble and honest engineers of HP. Compaq was more autocratic and much less collaborative, with an “us and them” attitude, which would perhaps terminally damage the HP Way. While Carly had been hired to renew the culture, its risk-aversion and past-orientation resulting from the leadership style of previous CEOs again meant she faced resistance from employees. This supports de Vries’ (1988) argument that leaders can unwittingly disrupt the company for the successor and explains why employees may have idolised Walter, as he represented the past and was perceived as trying to preserve the current culture. In addition, the models in Fig.6 suggest that the level of national collectivism during this time may have seeped into the corporate culture (as employees are...
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...streamlined its order-taking and production process. It can ship a computer within two days of taking an order. Personal computers lose 1 percent of their value every week they sit on a shelf. Thus, having virtually no inventory is a great advantage to Dell. Compaq tried to adopt Dell’s approach, but with limited success. The second shock to Compaq came when it acquired a company even larger than itself—Digital Equipment. Mr. Pfeiffer believed that the purchase of Digital, with its huge and respected technical sales force, opened new opportunities for Compaq as a global service company. But combining the two companies proved to be hugely expensive and extremely complicated. Ultimately Compaq decided to merge with Hewlett-Packard (HP) (www.hp.com) in order to survive. After this merger, HP lost significant market share to Dell because its higher cost structure made it hard to compete with Dell on price. Dell created a buzz in the financial press when it decided to enter the computer printing business—a segment that HP had long dominated. Many predicated that Dell would soon take over printers as well. But just when it appeared that Dell could not be beat, HP regained its footing and Dell stumbled. HP reduced its costs by adopting many of Dell’s “lean” practices. Thus Dell lost much of its competitive advantage. In addition, computer purchasing habits changed, and Dell wasn’t able to adjust fast...
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...Fortune magazine. Prior to joining HP, Fiorina spent nearly twenty years at AT&T and Lucent Technologies, where she held a number of senior leadership positions (Cara Carleton Fiorina. (2014). In 1999, Hewlett-Packard hired Carly Fiorina, former senior executive of Lucent Technologies, as its Chief Executive Officer. Carly brought 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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...MAC 600 Business Management and Governance 3rd Trimester – AY 2013-2014 CASE ANALYSIS Hewlett-Packard Under Carly Fiorina and After Her Submitted by: Chris L. Espina Date of Submission: May 17, 2014 I. Perspective held by the Students This case talks about the management and leadership of Carly Fiorina, the chosen CEO of HP after her long years with AT&T and Lucent Technologies. She was known to be a woman of “silver tongue and iron will”. She dropped out of law school and pursued for Business Administration and Marketing Career and found herself successful in the field of sales and marketing, thus paving her way to be a top choice for the chief executive position of Hewlett-Packard. The perspective taken in this analysis was on Carly Fiorina. It is then to be assessed, her actions and decisions made for the company and how did it affect in the entity’s performance. Recognition of elements and factors were done regarding on the negative effects of the actions she took for HP, that made her lose her credibility in the company and resulted to her resignation from the position she was handling. II. Case Facts Hewlett-Packard is known to be the second largest computer maker in the world. In 1999, the company hired Carly Fiorina to be its Chief Executive Officer, who is the first outsider who ever filled a top position in the company for the past 60 years. She was a student of philosophy, medieval history and marketing. With her skills in sales...
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