Hp and compaq merger

Hp compaq desktop

We're helped by the fact that both companies have been pursuing similar organizational structures and sales force models, and there is immense talent resident in both organizations. In the end this may turn out to be a battle between product innovation, which is what HP expects to bring to the party, and business-model innovation, which has made Dell, the fast shipper of low-priced products, what it is. Another lesson: Dell Computer at the time was lauded by analysts and the business press as having the best computer industry model, the model for all time. Yet the fact that business has not picked up as expected—and will not until next year, according to Ms Fiorina perhaps optimistically —makes the merger's next phase very tricky. Stay with us as we de-layer just how much HP makes. If HP's efforts in these two areas do not bear fruit, Ms Fiorina may have to go after all. He admits that when he heard the announcement that day, he was in "a state of panic" and feared the merger would be a disaster. In summary, says Burgelman, "establishing the logic for the integration and setting the performance goals were right on target. He is expected to take the helm at WorldCom, a bankrupt telecoms firm. Ultimately, he suggested that HP might spin off the printer business to its shareholders. Right or wrong, V.

Partners say no. The speed and visibility of the move caused the tech industry to view the firings as an unnecessarily cruel public hanging, and criticism of Fiorina flared.

Worst tech mergers and acquisitions

He was greatly concerned about the potential disruption in the channel, too. There appear to be some institutional investors that believe in at least some variation of this argument. And finally, for the initial three years that the merged company was managed by Fiorina and was struggling, the criticism focused on the "folly" of the merger. It has clearly suited up for battle. For example, HP failed to pick up on key customers' concerns about the new corporate strategy: Where was the firm heading after the integration was complete? In connection with the transaction, both companies have adopted shareowner rights plans; information on these plans will be filed today with the Securities and Exchange Commission. In the issue of February 7, , Ms. By the end of the year, 10, workers will have left HP, almost two-thirds of the 16, planned lay-offs. In sharp contrast to our competitors, we are committed to leading the industry to open, market-unifying architectures and interoperability, which reduce complexity and cost for our customers. A replay will be available for 14 days following the meeting at US or international , using reservation number: Investors and security holders may obtain more detailed information regarding the direct and indirect interests of Mr. It has told at least one analyst that it finds printer consumables inkjet cartridges and the like so remarkably profitable that it believes HP has to be making more in its printer division than it is acknowledging. With this move, we will change the basis of competition in the industry. Without it, her job might be imperiled. Partners say no.

A description of the interests of Mr. Can it find rich, new veins of profit to mine and at the same time hold its competitive ground with the businesses it has?

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S, which remains an analog world. In connection with the transaction, both companies have adopted shareowner rights plans; information on these plans will be filed today with the Securities and Exchange Commission.

hp compaq merger was a bad deal

Beyond that, it is imprisoned in its structure. The enterprise-systems group, which sells software and servers, also did badly.

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Eventually, more than 1, people worked full time on this effort to set goals — both short- and long-term; define exactly how the new organization and related decision-making processes would work; and develop comprehensive operational plans for upcoming operational and strategic integration phases.

HP has, for example, by far the bestselling media center PC, which is meant to replace the living room TV and stereo.

Compaq stock price history

Lilien agrees, saying the Compaq merger fundamentally changed how HP went to market. There will also be a question and answer session for the media at a. The transaction, which is expected to be tax-free to shareowners of both companies for U. Additional Information about the Merger and Where to Find It This information pertains to this document and all related documents linked from this one. Six years later, after Fiorina's acrimonious departure — which many attributed largely to the merger — and the promotion of former NCR head Mark Hurd to lead HP, the consensus is that the merger was indeed a good idea. Or would it simply be a more operationally efficient company? In summary, says Burgelman, "establishing the logic for the integration and setting the performance goals were right on target. Three problems, all in the enterprise business, underlay this profit jolt. Photograph by John Abbott Photograph by John Abbott Evaluating a split-up Even today, echoes of the proxy fight resound in the belief of some Wall Street analysts, particularly Steven Milunovich of Merrill Lynch, that sooner or later the company will be broken up into its parts. So much for a lousy merger. It has clearly suited up for battle. He took the pieces assembled by Fiorina, applied his management skills to them, and created a growing, profitable and increasingly valuable company. Making this newest assault, Dell had in mind defense: It has publicly said that it wished to prevent HP from freely using its printer profits to make life difficult for Dell in PCs. And then there's

Capellas and Compaq's other executive officers and directors in Compaq is set forth in the proxy statement for Compaq's Annual Meeting of Stockholders, which was filed with the SEC on March 12, Lilien believes that regardless of what HP does with its PC business today, the Compaq merger was still a great move that dramatically changed HP.

The event can also be accessed via audiocast at www.

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Compaq and HP: Ultimately, the Urge to Merge Was Right