Hp and Compaq Merger

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Webster University
November 6, 2011

Hewlett- Packard Company, referred to as HP, is an American multinational information technology company. Its headquarters is based in California USA. The company was founded in 1939 built in a Palo Alto garage by Bill Hewlett and David Packard and is now one of the world’s largest information technology companies operating worldwide in almost every country. It has 87,000 employees in 120 countries. HP specializes in developing, manufacturing computing, data storage, and networking hardware. In addition it designs software and delivers services. A majority of HP’s product lines include storage devices as well as computing devices, and a wide range of imaging products and last but not least, printers. Its products are widely available to households, small to medium sized businesses, as well as through online distribution, office supply retailers, and major technology vendors. It also caters to enterprises and office supply retailers. The late 90’s brought innovation but low sales growth, as HP faced troubles in keeping up with the changing market. It was at the point where Carly Fiorina was appointed as the new CEO. The focus then became on customer and internet sales. Carly revamped organizational structure. This led to a revenue growth however, share prices still declined and HP faced recession in 2001, which led to pay cuts and layoffs. Stock prices continues to soar which led to the consideration of acquisitions. HP is committed to the development of products, information, and services that are widely accessible to everyone including those with disabilities. The commitment it provides in catering to everyone supports its diversity and “Total Customer Experience” objectives ensure that its technological benefits serve all. According to Dave Packard, “it is necessary that people work together in unison toward common objectives and avoid working at cross purposes at all levels if the ultimate in efficiency and achievements is to be obtained.” HP has a vision of diversity as being a main factor that drives success as well as personal leadership from everyone within the company. Their competitive advantage allows them to learn and to adjust through the depth of their values. It is vital for HP managers to come together regularly in order to discuss and assess the “HP Way” which ensures their top priorities through lower costs, information technology system improvements, increase in business growth, an improvement in efficiency, and customer service improvements. HP is organized in the form of two groups. The first is the Business Customer Organization, and the second group is the Consumer Business Organization (Wagonfeld, Rubenstein, and Block, 2001). Both groups are supplied through the following product divisions: Computing systems, imaging and printing systems, and embedded personal systems. In addition HP services are available which works between the consumer, the product, and the groups. Major product lines include personal computer (PC), desktop and mobile personal computers, software solutions, copiers, scanners, networking solutions, and consulting services. In addition, the company’s support group offers consulting, education, and solution financing to its users. Compaq was founded in 1982 by Rod Canion, Jim Harris, and Bill Murto and its headquarters is based in Houston, Texas. The three founders invested $1,000 each in order to begin the formation of their company and began their first product, a portable personal computer to run all the software being developed at the time for the IBM PC. Four years into operation, the company was able to pave way to the Fortune 500 more rapidly than any other company in the same domain. Compaq products were developed and placed in three different groups. The first group is the Enterprise Computing Group which designs and develops servers, internet products, and networking products. The second group is the...
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