Introduction
Hewlett-Packard (HP) and Compaq Computers pulled off the largest technological merger in history. In September 2001, Carleton (Carly) Fiorina announced that HP will acquire Compaq’s stock transaction that will value at $25 billion (Hoopes, p. 4). The idea of the merger came up during a telephone conversation by HP’s CEO Fiorina and Compaq’s CEO Michael Capellas during June 2001, the original purpose of the telephone call was to speak about licensing agreement (Hoopes, p. 4). HP and Compaq, a Houston-based PC organization founded in 1982, decided that in July 2001 that the outline of the deal was established and after the announcement of the merger in September, the merger would be approved by the boards of both organizations (Hoopes, pp. 4-5). On the morning of November 6, 2001, Walter Hewlett, son of co-founder William Hewlett stated that he and his family would publicly oppose to the merger and later that day David Packard Jr., son of co-founder William Hewlett, also stated that he would publicly oppose to the merger. With little support for the merger, Fiorina had to justify why acquiring Compaq would eliminate a player in the PC market and that the merger for HP will create a full service technology firm that is capable from selling computers to developing complex networks (Hoopes, pp. 5-6). With the future of HP in jeopardy, Fiorina failed to sell the merger to the family members of the Hewlett or the Packard. An analysis of the HP and Compaq merger reveals a challenge for HP and how to manage cultural differences with proper internal communication. The methodology used for this paper will be the organizational resistance to change and organizational learning.
Brief Introduction of Hewlett-Packard
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...s, C. (2007). The cultural approach. In Organizational Change Theories: A SynthesisRetrieved from http://eds.a.ebscohost.com.ezproxy.lib.uwf.edu/eds/ebookviewer/ebook/bmxlYmtfXzMyMTM1NF9fQU41?sid=571e470a-2893-48b1-9c9b-bfe705f82ad7@sessionmgr4004&vid=3&hid=4213&format=EB
Hoopes, C. L. (n.d.). The hewlett-packard and compaq merger: A case study in business communication. (Master's thesis, Brigham Young University).
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In the year of 2005, the companies eventually found a way to make it easier for the companies to combine without having any major issues or problems. Unfortunately, around the year of 20010 the merging com...
Each organization big or small has its own values, ways of doing things and assumption that it operates in. The principles and ethics that exist in each of these companies are the baseline through which the company operates its affairs. This is what can be called as that organization’s culture. The culture in existence has an impact on the productivity, effectiveness and efficiency (Keyton, 2011). The basis of setting the most appropriate culture of a company is not only to move or increase the profitability but also to make the stakeholders happy and satisfied. One aspect of that is the employee or the human resource the firm who put their expertise in the firm and add a bit of creativity and innovativeness to move the products. Chick-Fil-A operates in a competitive industry thus it requires all the stakeholders.
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
The purpose of this paper is to attempt to recompile information about the merger of two corporations; one of many taking places i...
It has been concluded that Nortel’s growing dominance in its markets in the 1990s “led to a culture of arrogance and even hubris combined with lax financial discipline. Nortel’s rigid culture played a defining role in the company’s inability to react to industry changes.” (McFarland, 2014). While Nortel was increasing its revenue between 1997 and 2000 through a spree of acquiring other partners and tripling its share price in the same period, the company lost focus on profitability and was in a very tough position (McFarland, 2014). Nortel misread the market and was not prepared to respond to increased competition from Japan and other competitors. The accelerating rate of technological change and the power shift to customers was just too much for them. The bad taste they left in key customer’s mouths made them feel that Nortel would not be around for the long term to fulfill their promises. Their lack of resilience, strategy, structure, poor financial management, business processes, people and culture decreased the company’s ability to adapt to keep up with competitive advantage. (Nisen, 2014). Nortel, made textbook errors like failing to communicate, meet commitments, and possess a firm technology knowledge (Nisen,
The soft factors can make or break a successful change process, since new structures and strategies are difficult to build upon inappropriate cultures and values. These problems often come up in the dissatisfying results of spectacular mega-mergers. The lack of success and synergies in such mergers is often based in a clash of completely different cultures, values, and styles, which make it difficult to establish effective common systems and structuresBased on the case study, extensive research and annual reports of AT&T the writer has mapped AT&T in the different domains. AT&T should strive to attain a perfect circle as close to the centre as possible, which indicates total synergy, order and equilibrium. Where the circle is skewed drastic change is needed as it moves closer to the outer ring of chaos:
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I have assessed and incorporated the profit bundle and retirement plans for the recently blended Huge Computer Company. The accompanying report will pose as viable rival key characteristics of each one arrangement while making perceptions and proposals on uniting the two arrangements. Huge Computer Company is an effect from the merger of Huge Company together with the Computer Company. Both are decently-prestigious organizations that work in the most recent workstation programming and equipment. The union is accepted to be to the greatest advantage of each one organization and will make much more fruitful association.
The PC industry is highly competitive and constantly changing as technology evolves and customer needs change. Some of the top competitors in the PC industry are IBM, Hewlett-Packard, Dell and Apple. Theses rivals are constantly jockeying for the top competitor’s position. They compete in prices, product innovation, advertising, etc.
Chapter sixteen in our textbook highlights the benefits of organizational culture and what it can do for any company with a strong culture perspective. In fact chapter sixteen-three(a) speaks widely on how a strong culture perspective shapes any organization up well enough to perform better than any of its competitors who do not balance any organizational culture. If not mistaken after viewing SAS institute case they are well on track with facilitating a high performance organization culture. First, SAS institute motivate all employees to become goal alignment in their field of work. This is where they all share the common goal to get their work done. In one of the excerpts taken away from this case, an employee- friendly benefits summary expresses the statement “If you treat employees as if they make a difference to the company, they will make a difference to the company.” “SAS Institute’s founders set out to create the kind of workplace where employees would enjoy spending time. And even though the workforce continues to grow year after year, it’s still the kind of place where people enjoy working.” Clearly highlighted from this statement that SAS Institute is mainly ran off of a fit perspective. Which argues that a culture is only as good as it fits the industry. Allowing a good blueprint or set up will
Schultz, D. E., 1996. The inevitability of integrated communications. Journal of Business Research, Vol. 37, pp. 139-146.
Companies merge and acquire other companies for a lot of strategic reasons with different degree of success. The success of a merger is measured by whether the value of the acquiring firm is enhanced by it. The impact of mergers and acquisitions on organization can be small and big in other cases.
My report is on the company Hewlett – Packard (HP) which was founded in 1939. I mainly focused on the Personal Systems Group (PSG): business and consumers PCs mobile computing devices and workstations which is one of the major industries of HP. In order to succeed in the business industry a company needs to understand its customer’s needs and create wants for them. HP found out that the customer needed light weight, useful notebook PCs through its Research & Development (R&D) centre. Hence, it created a want; a New Commercial Notebook PC Compaq Evo Notebook N1015v which packs the power and performance necessary for mobility into a stylish design for only $899(US $). HP also finds out about its customer needs through online feedback forms and survey. Via that, HP was also able to understand that not everyone are able to use their products hence it has created this HP accessibility products which can be accessed by anyone including people with disabilities and age – limitations. Example of such product under the PSG industry is the Mobile Speak Pocket which was specially made for the visually impaired people. ( Refer To Exhibit 1a – 1c )
However, Wirtz argues that “Microsoft is increasingly integrating internet services, media services, and telecommunications services with its traditional software products into a bundled systematic solution,” which is a similar approach to AT&T’s strategic plans (2001, p. 495). With this information, it shows that companies in other industries are attempting to close the gap between media and telecommunications and, therefore, AT&T’s acquisition plans should be allowed by the Department of Justice. Additionally, the evolution of technology is forcing companies like AT&T and Microsoft to dabble in a variety of industries to provide the best customer experience. With an ample amount of press regarding this merger, some people do not understand
McDougall, Gilles. (1995). The Economic Impact of Mergers and Acquisitions on Corporations. Retrieved on July 9th, 2006 from http://strategis.ic.gc.ca/epic/internet/ineas-aes.nsf/vwapj/wp04e.pdf/$FILE/wp04e.pdf