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Hewlett Packard: The Merger Project

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Page 1: Hewlett Packard: The Merger Project
Page 2: Hewlett Packard: The Merger Project

Brief History

Pre Merger

Merger Period

Post Merger

Competition

Updates

Localization

Recommendations Principals

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Founded by Stanford classmates Bill Hewitt and Dave Packard in 1938

Invented first product in their garage, which was an audio oscillator.◦ Electronic Test Instrument

used by sound engineers◦ Used in the movie Fantasia

Built the HP company on the principles of teamwork and treating co-workers with great respect

“Small Opportunities Are Often the Beginning of

Great Enterprises”

Page 5: Hewlett Packard: The Merger Project

Family

Education

Prior job

Experience

Hewlett Packard

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Compaq◦ Market share 1998:

13.7% with a growth of 17.6%

Hewlett Packard◦ Market share 1998:

5.8 % with a growth of 34.4 %

“You Must Believe In Your Company If You Expect

Anyone Else To.”

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Chief Executive Officer:◦ Lewis Platt

Term: ◦ November 1, 1992— July 18, 1999

+ Guided HP to mid 90’s Growth

- Then sells to foreign countries began plummeting

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Product

Place

Promotion

Price

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Pathway towards Fiorina’s

Observations of the Market

Waiting On a Phone Call

An Informal Request Board Meetings Public Perception

“Plans are nothing; Planning is everything”

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The Announcement Reactions Rough Details

Complications A Terrible Phone Call A Proxy War

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STOCK PRICES 2001

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NET REVENUE 2001

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NET REVENUE 2002

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NET REVENUE 2001

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Complications A War of Words Vindication… Almost A Trip to Court “Credibility of

Management”

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INTEGRATIONPRODUCT

LINEHP BRAND COMPAQ

BRANDHPQ BRAND

IA-32 Servers NetServer Prolient HP Prolient

Blade Servers HP Blade Prolient BL Both

UNIX OS HP-UX Tru64 HP-UX

Storage Arcitechture

FSAM ENSA ENSA

Storage Software

HP Openview SANworks HP Openview

Business PC’s HP Vectra Compaq EVO HP EVO

Business Notebooks

Omnibook Compaq EVO HP EVO

Consumer Notebooks

HP Pavillion Compaq Persario

Both

Hand-Helds HP Jornada Compaq iPaq HP iPaq

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Pre

Compaq◦ Market share:

13.7%

Hewlett Packard◦ Market share:

5.8%

Post

Market share:◦ 30.8%

◦ Increase 19.5%

“Competition exists from both inside and outside of the industry.”

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Definition HP course

◦ Purpose◦ Short-Term outcome◦ Long-Term outcome

“Success can breed arrogance, and

arrogance can breed failure.”

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Chief Executive Officer :◦ Carly Fiorina

Term: ◦ July 19, 1999-February 9, 2005

+ Spearheaded the largest merger in technologies history

- Gained a negative public perception because of her proxy war with Hewlett & Packard.

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interim CEO:◦ Robert Wayman

Term: ◦ February 10-March 28, 2005

+ CFO

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HP IBM Dell2007 Annual Sales ($ mil.) 104,286.00 98,786.00 61,133.00

Market Cap. 118,057.40 159,038.70 41,447.20

“A brand's position defines its closest competitors; change the position and change the competitive landscape.”

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Headquarters:◦ Armonk, NY

CEO:◦ Samuel J. Palmisano

NYSE: ◦ IBM

Synonymous Attributes

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Headquarters:◦ Round Rock, TX

CEO:◦ Michael S. Dell

NASDAQ: ◦ DELL

Synonymous Attributes

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“Most businesses begin with a great creative idea or concept for the

business, but successful businesses don't end there.”

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Headquarters:◦Palo Alto, CA

CEO:◦Mark V. Hurd

NYSE: ◦ HPQ

Synonymous Attributes

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Book

McCain Campaign

Future of the PC

Future Plans

“The past is history. Decisions can not be made in the past. Focus on

the present and the future, revisiting the past only to illuminate

the present and future.”

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1. “Small Opportunities Are Often the Beginning of Great Enterprises”

2. “You Must Believe In Your Company If You Expect Anyone Else To.”

3. “Plans are nothing; Planning is everything”

4. “A brand's position defines its closest competitors; change the position and change the competitive landscape.”

5. “Competition exists from both inside and outside of the industry.”

6. “Success can breed arrogance, and arrogance can breed failure.”

7. “The past is history. Decisions can not be made in the past. Focus on the present and the future, revisiting the past only to illuminate the present and future.”

8. Most businesses begin with a great creative idea or concept for the business, but successful businesses don't end there.