Managing Global Acquisitions and Restructuring - Case 1
1) Summarize the current strengths and weaknesses of HP’s PC Division. HP has been the world’s leading PC manufacturers for a long time, its reputation is well-established. Especially since 2007, HP has won over Dell and Acer to become the leader in PC market measured by units. This goes to show PC Division’s reputation and potential to continue to triumph in the market. Another is that PC Division’s wild range of products, from simple, useful designs for general consumers, to intricate and well-functioning designs for corporate uses. This is also a strength that HP’s PC Division holds. With the above mentioned strengths, PC Division also had a steady stream of revenue from its customers, such as schools, universities and corporations relying on HP’s PC to perform their tasks. PC Division is also where the company best deliver their innovation to mass consumers and establish HP’s brand name through communication enabled through their PCs. However, HP’s PC Division has some weaknesses as well. It had faced with major competition from not only other brands of PC but also mobile devices so popular nowadays. With the appearances of tablets and lighter laptops, general consumers’ need for PC declined quite a bit. I think this might also be the reason why HP wants to move forward and spin off the PC division before they start losing money facing the strong competition from Apple’s IPad and other companies. Another important point is that, as mentioned by former CEO Leo Apotheker, developing a stream of products that consumer wants requires a lot of money. It takes a lot of time, money and hardwork to make PC Division successful, but it will also come at the cost of other developments in other parts of the company. In short, PC Division is very costly to operate, leaving HP difﬁcult to move forward in other areas. All in all, HP’s PC Division is a vital part of the company for its money-earning ability...
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