to investor is not a bad thing. However‚ too much debt may cause serious financial problem. Dell’s ROE exceeds ROA by almost 50 %( average) from 2005 to 2008. In 2007‚ Dell’s ROE exceed ROA by 60%‚ which means the high returns to investor are based on use of leverage. In contrast‚ Dell’s debt to equity ratio is much higher than HP’s debt to equity ratio. This means HP’s returns to investor are more solid than Dell. P/E ratio (weakness) The stock market is pessimistic about Dell’s future earning
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Hewlett-Packard Case Assignment Iman Abdur-Rahim Prof. Brian Grizzell Principles of Management BUS302 August 19th‚ 2011 The first problem that I noticed when I read the case was the fact it mentioned that HP was under managed. In 2001‚ HP had 84‚400 employees while Carly Fiorina was Chief Executive Officer ¹. This fact lets me know that there should have been various levels of management from the CEO on down to the first level employees. In order for a company to be successful there has to
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The Hewlett-Packard and Compaq Merger Analysis The Proposed Merger with Compaq HP entered into an agreement with Compaq Computer Corporation in September 2001. In this definitive agreement‚ HP is going to purchase all of Compaq’s common shares outstanding‚ and pay a total price of 0.6325 shares of its common stock for each share of Compaq’s common stock. To evaluate this transaction for the benefits of HP’s shareholders‚ we use the excess earnings model to forecast HP’s stock price if it standalone
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COMPANY BACKGROUND Dell traces its origins to 1984‚ when Michael Dell created PCs Limited while a student at the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-compatible computers built from stock components. Dell dropped out of school in order to focus full-time on his fledgling business‚ after getting about $300‚000 in expansion-capital from his family. In 1985‚ the company produced the first computer of its own design‚ the "Turbo PC"‚ which sold for $795. PCs
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being ‘visionary’‚ ‘exemplar’‚ ‘innovative’ and ‘cutting edge’‚ Hewlett-Packard has long been recognized as possessing a successful organizational culture. However‚ what the founders could not account for was the changing global economic climate and the ever-present need to adapt their original business model to ensure the company relevance as a leader in the technology sector. As the long-established cultures within Hewlett-Packard were being challenged and new management ideas and personalities
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Ethics and Compliance - Hewlett Packard Introduction How a company conducts business is important. The U.S. Security and Exchange commission has established guidelines for publicly traded companies so investors and creditors have easy access to the information they need to evaluate the risk to invest or extend credit to a company (Kimmel‚ Weygandt‚ & Kieso‚ 2007). In this paper Hewlett Packard’s ethics policy‚ U.S. Security and Exchange compliance‚ financial ratios reported in their 2006
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Hewlett-Packard HP is an American multinational information technology corporation headquartered in Palo Alto‚ California‚ USA that provides products‚ technologies‚ softwares‚ solutions and services to consumers‚ small- and medium-sized businesses (SMBs) and large enterprises‚ including customers in the government‚ health and education sectors. It specializes in developing and manufacturing computing‚ data storage‚ and networking hardware‚ designing software and delivering services. Major product
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William Hewlett and David Packard founded Hewlett-Packard in 1945. In the early stages‚ HP has been technologically more advanced than its competitors or the market leader. HP’s earliest product was audio oscillator and technology has been HP’s major focus‚ which can be seen from its various products. Shortly‚ the company began to manufacture a broad range of products for electronic industry as well as agriculture sector. The flexible HP 3000 computers made strong sales but none of the several models
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A study on Meg Whitman and Hewlett-Packard George Davies Dr. Laura Poluka Business 520 Organizational Behavior 9/01/13 1 A Study on Meg Whitman and Hewett-Packard Introduction Meg Whitman was born Margaret Cushing Whitman on August 4‚ 1956‚ in Cold Spring Harbor‚ Long Island‚ New York. The youngest of the Hendricks and Margaret Cushing’s three children‚ Meg grew up in Cold Harbor Spring‚ New York. Her father worked for Wall Street while her mother was a stay-at-home mom. Confident and
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Case Memo of Corporate Governance Case Assignment: Hewlett Packard (A) 1. Based on your experience and general business knowledge‚ what are the key strengths and weakness of the way Hewlett-Packard structure and supported the Kittyhawk development team? Why do you think that HP made the mistake it did? (***) Key Strengths Culture The HP culture deeply valued technical innovation as a key to success‚ which means that the company encourages innovation. Structure HP favored a decentralized structure
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