Case Study 5 : HP and Compaq Combined
1, Why did HP’s management want to acquire Compaq?
As we know, The HP and Compaq are two very large high-technology companies, They want merger together then have more power to leading technology company in the word, And also , they established cultures in the context of a highly dynamic competitive environment. But the merger would produce one very large iceberg; perhaps big enough to sink competitors, or break up under the stress of internal and external forces.
2,Describe HP’s acquisition integration planning process. How effective was it? Why or why not? In order to as smoothly as possible arrived successful in merger, they to formulate detailed about merger plan. There are four critical process that capture the strategic dynamics of an acquisition integration process.
The first process- formulating the integration logic and performance goals. This process involves the boards of directors, top managements, and consultants of the two companies. It is important to distinguish two aspects of this process.
The second process- cresting the integration plan. This process involves deciding on the new executive team and the basic organization structure of the combined companies. Planning activities related to the multiyear strategic initiatives needed to develop a new culture. The vast majority of managers and employees of both companies only have to think about delivering current business results and creating the blueprint for executing the operational and strategic integration process.
The third process- executing operational integration, This process is very hard for everyone that is they have large number of layoffs, the remaining levels of management are selected. and this process will spend at least 6 and 12 months. At the same tim , longer-term integration tasks are started – such as those related to information technology, organizational effectiveness, and corporate culture.
The forth process –...
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