Abstract The paper examines the case study, "Merging Information Technology and Cultures at Compaq-Digital (B): Becoming A Single Firm". The paper explores how the acquisition of Digital Equipment Corporation by Compaq Computer presented both companies with major changes in how they each did business. The paper examines the goals of Compaq IM, the obstacles they faced, their approach to the problems, what they failed to do and what they did well. The paper looks at Compaq's biggest strategic error, what their options were and what the author would have done in this situation.
Outline:
Executive Summary
What Are the Issues?
What Are the Goals?
What Are the Obstacles?
What Did they Do?
What Did They Fail to Do?
What Did They Do Well?
What Did They Do Poorly?
What Were Their Options?
What Would You Do?
Why Would You Do It?
From the Paper "The case study, Merging Information Technology and Cultures at Compaq-Digital (B): Becoming A Single Firm illustrates and exemplifies the struggles of making mergers of two highly complex and significantly different businesses and the challenges of making their business processes, information management technologies and systems, selling and distribution strategies, and services strategies align with one another. The acquisition of Digital Equipment Corporation by Compaq Computer presented both companies with major changes in how they each did business, and also forced the issue of remote workers on Compaq's management, who had advocated a highly centralized IT architecture, and from reading the case, an attitude of having IT workers in the office working, not remote. This personnel issue is just one of many but aptly illustrates how wide apart Compaq and Digital were at the time of the merger."
Abstract Compaq Computer Corporation's June, 1998, takeover of Digital Equipment Corporation will be elaborated below. Eckhard Pfeiffer, as President and CEO of Compaq Corporation played an important role in the takeover and the rationale that guided his decision(s) will be the focus of this paper.
Abstract In the world of portable computing there are truly a broad range of brands, options, configurations and choices to make. The PC world is filled with competing companies who all offer the same basic thing - a compact computer in a portable format. What people want from their computers and what they get are often not the same thing; this is particularly true in relation to pre-configured systems with limited customization options. But, for those companies that offer fully customized catalogues, the differences from portable to portable become harder to discern. Two of the largest manufacturers of portable computers are Dell and Compaq. Each offers a large line of systems that are slightly different from one to the next in terms of processor, hard drive, memory, ports, optical drives and physical configurations. As both companies make Windows portable PC's, the actual functional differences between the two in terms of capability are negligible. What decisions come down to when deciding between the two companies are based upon service, quality of manufacturing and product, price and longevity of product. There are other features to the computing experience as well, but they are universal to all forms of computers and not just laptops. It is the purpose of this paper to present a comparison between the portable computer offerings of Dell and of Compaq.
Abstract This paper provides background information about the Compaq Computer Corporation, including where it stands now in terms of Personal Computer (PC) production, sales, market shares, number of employees, services offered and where company headquarters are located. Next, the paper takes a thorough look at the downward trend the company is experiencing, its mounting problems and the managerial changes prompted by the company's indecision about sales, marketing and pricing. The paper also describes some of the decisions that management at Compaq is suggesting in order to handle their current problems and the new challenges on the horizon.
From the Paper "The company is headquartered in Houston, and has 71,000 employees worldwide. Among its divisions are Compaq Capital, which provides leasing and financing products and services, Compaq Factory Outlet, which offers a full line of refurbished Compaq products including notebooks, servers, and desktop computers; Compaq Online Small/Medium business, which offers online service and product information; Compaq TestDrive, a program which allows one to test new equipment; Compaq Works, which offers returned, overstocked or refurbished products, and various divisions for laptop, personal, and professional computer products."
Abstract The merger of Hewlett Packard and Compaq would create an $87 billion global technology leader. However, this would not come without a cost. The founder's eldest son, Walter, strictly opposed the deal. During several campaigns and meetings, Walter Hewlett and Carly Fiornia battled to gain supporters, but in the end, only one side would prevail. This paper explores reasons that explain why the merger was considered in the first place, why there was such political campaigning, and whether or not the decision making process was fair or ethical.
From the Paper "Illegitimate political behavior is evident from both parties within this case. This is defined as "extreme political behavior that violates the implied rules of the game" (R 363). Behavior of this type is common when there is a lack of trust within an organization (R 367). Several events have taken place that are seemingly unethical. Hewlett Packard launched an ad campaign that bad-mouthed Walter Hewlett and accused him of ?flip-flopping.? They have also published several letters that portray him in a negative light, and Fiorina says that he has become ?more extreme in his claims and predictions.? From the other side of the conflict, Walter Hewlett has published internal documents concerning a $70 million executive pay package if the merger takes place. H-P denies these claims (Tam). All of these actions are excessive and go against standard business ethics. Team Hewlett and Team Fiorina have resorted to this level in a desperate attempt to gain the majority of the 900,000 shareholders votes. Here, the stakes are high and whoever comes out on top acquires control of a "silicon valley icon" (Tam)."
Abstract Effective communication with the internal organizational public at all levels is the key to the success of an organization, especially when change is happening within the organization. Communicating in a timely manner, honestly and openly, with the employees results in an augmentation of confidence and productivity, as well as a reduction of job insecurity and other related fears. Extensive research in this field proves that a sound communication mode, employee contentment, and efficiency are in direct proportion when done correctly by an organization. This paper outlines the communications within Hewlett Packard and Compaq, as well as the impact of these communications. An effective internal public relations action plan is defined as well.
From the Paper "Many different organizations over the years have realized effective internal communication is the primary reason behind every successful change, "No matter what the change -- merger, restructuring, downsizing, reengineering, the introduction of new technology, or a customer service campaign" (Larkin, 1996, p. 96). For this very reason, organizations today emphasize on the effectiveness and promptness of internal communication. However, the lesson learned came through appalling experiences when in intricate situations, companies as big as Hewlett Packard failed to inform their internal public about changes that employees neither welcome nor are comfortable with. Consequently, extreme resistance is the result, which is felt throughout the entire organization."
Abstract This report analyzes the Hewlett-Packard acquisition of Compaq. The focus is on the strategic planning process associated with the acquisition. The perspective of the analysis is Hewlett-Packard's and the conclusion is that Hewlett-Packard's strategy was effective and appropriate and benefited the company.
Abstract The paper analyzes the Hewlett-Packard/Compaq merger. The paper discusses how Hewlett Packard has internal management problems and turmoil that make it a less than perfect partner for a merger. The paper examines how Compaq's financial instability exposes HP to an entirely new set of risks. The paper further considers these factors within the scope of popular management theory. The paper concludes that, while both HP and Compaq would benefit from a merger if both organizations were stable, combining the two at this time would be ineffective and dangerous.
Table of Contents:
Executive Summary
Context of the Problem
Critical Problem
Alternative Solutions
Reordered Course of Action
From the Paper "Hewlett Packard rose from a tiny partnership between two men, started in a garage, to a massively profitable corporation and one of the driving forces behind the rise of Silicon Valley in the 1980s (Carlock and Treacey). By the year 2001, however, the firm was plagued by a new CEO who failed to connect with other executives and management, and the resulting disconnect translated into lower profits and sliding confidence among shareholders. In the midst of this chaos, HP sought to merge with Compaq, which had problems of its own."
Abstract The paper states that due to technology and competition, companies resolve to mergers and acquisitions in order to be more globally competitive against other companies. The paper comments that with every merger there are potential issues and problems that involve the viability of the new company. The paper then discusses an ideal merger, where the newly created company gets the best features from the two merging organizations. The paper continues by discussing HP and Compaq who merged together to become HP-Compaq. This paper discusses the human resource issues and comments on the implications and advantages of the merger.
Outline:
Case of HP-Compaq Merger
From the Paper "A huge amount of core HR work was planned and executed for this giant merger. For this merger, a strategy known as the Clean Room was developed where a virtual team was assembled from both companies to plan for the merger. The team adopted an HR strategy and an HR plan that tackled these issues one by one. This included harmonizing terms and conditions and implementing new job architecture and a new performance-management system right across the organization. The need to focus employees meant it was vital to have the necessary communication and information channels in place. Traditional media such as posters and leaflets and regular briefings from senior executives did their part in disseminating information."
Abstract Many mergers fail to integrate cultural differences successfully in today's global economy. This paper examines what can be done to help them succeed. It shows that one of the most neglected aspects of planning mergers and acquisitions, and one of the leading causes of their failure or success is the performance or neglect of cultural due diligence. The paper shows that Microsoft and Great Plains Software, and Cisco's merger with Cerent are examples of what to do right when merging two companies. It discusses how successful mergers employ specific and detailed approaches for pre-merger planning, which include methods for communication of vision, changes and purpose, involvement of employees, establishment of strategy, leadership, due diligence and potential process and system conflict.
Paper Outline:
Executive Summary; Introduction; Microsoft Acquires Great Plains Software; About Microsoft; About Great Plains Software; Combined Strategy; Culture Integration; Communication; About AOL and Time Warner; Recommendations; Cisco Corporation Acquires Cerent Communication; The Cisco strategy; Due Diligence ? Pre Merger Phase; Culture Perspective; Communication; Leadership; System Conflicts; Process Conflicts and Staffing Issues; Quality and Continuous Improvement; Recommendations and Observations; Future Acquisitions; Hewlett Packard and Compaq Merger; The Values of the New HP; Due Diligence Phase; Recommendations and Observations; What HP/Compaq could have done differently; Conclusion; References
From the Paper "Companies who have experienced successful mergers have found that integration of corporate cultures in an M & A environment includes the establishment of the strategic direction of the merged entities, developing a shared vision, careful scrutiny of management styles, communication to employees, suppliers, customers and shareholders, and identifying and resolving important cultural differences early and having a plan to integrate the cultures (Miller, 2002). The communication of the rationale behind the decisions, future goals and objectives, new roles and responsibilities, and managerial expectations through constructive dialogue and feedback, are vital to build trust and ensure credible leadership. In fact, this communication is more important in the period leading up to and following closure of a deal. The more dissimilar the cultures, the greater the cultural shock, particularly if the M & A was not voluntarily chosen."
An industry report on Compaq, covering subjects such as: an analysis of the competition, market share, SWOT analysis, functional analyses, strategy and focus.
5,043 words (approx. 20.2 pages), 24 sources, 2001, $ 127.95
From the Paper "Today Compaq Computer Corporation is a Fortune 50 and Fortune Global 100 company. It is a worldwide information technology company, with worldwide sales of $24.6 billion in 1997, $31.2 billion in 1998, and $38.5 in 1999 (Compaq Annual Report, 1997, 1998, 1999). Compaq develops and markets hardware, software, and solutions and services. The company is logging experience in several new technological fields; the Internet, handheld systems, and the combination of computers and televisions. The company's latest products emphasize innovation and diversity, such as high-end PC servers that link several systems resources, and machines that compete with low-end UNIX systems. Compaq is the world largest personal computer manufacturer and the fourth largest information technology (IT) company. The company is an industry leader in environmentally friendly programs as well as business practices."
Tags: build, order, to, industry, economy, internet, computers, investment
This research paper presents a strategic audit of Compaq Computer Company, describing the internal situation of the company as well as the external factors shaping goals, strategy and implementation in the current business environment.
Abstract This paper discusses the company in terms of production and operations, with consideration to how marketing, finance, human relations and Information services contribute to the scenario. Also discussed is the company's need to remain competitive while integrating with Hewlett Packard following the merger of the two companies.
From the Paper "Compaq Computer Corporation was founded in 1982 by a group of disgruntled Texas Instrument employees who felt they could run a better company and make better products on their own. Led by Joseph "Rod" Canion, they set out to build personal computers and digital products compatible with the IBM industry-standard architecture which would be technologically superior to those available at the time.
Compaq quickly built a reputation in the personal computer market for providing powerful and reliable systems, setting standards the other, more established computer companies ended up following. Compaq experienced initial huge success and growth, becoming the first company in history to reach $2 billion in sales after only five years in business. Factors contributing to this achievement included an underlying young and dynamic digital culture, enabling Compaq was able to take advantage of the exponential market growth and high visibility of the industry through sales and serving of products such as desktop personal computers, laptops and notebook computers (?Managing,? 1988)."
Abstract This paper focuses on the merger of the aforementioned companies. It looks at the history behind the merger and opposition to it. It mentions the corporate staff involved and lists the events leading up to the merger. It deals with the position of stock holders and lists the benefits of the merger. The paper concludes with a look at how the merger has been accepted by the market.
From the Paper "Hewlett Packard is a Houston based corporation that has a reputation for selling computer accessories, such as printers, calculators, electronic notebooks, computer software, etc? Compaq headquarters is a Dallas based corporation, headquarters in Plano TX, that sells mainly computers. Carly Fiornia, HP?S CEO, decided that in a rapidly changing economy, the company would be more productive by merging together and combining into one big company."
Abstract Effective communication with the internal organizational public at all levels is the key to success of an organization. Communicating with the employees results in augmentation of confidence and productivity and the reduction of job insecurity and other related fears. The first part of this paper presents the issue of the merger of two giant companies, Hewlett Packard and Compaq and the dire need for the companies to make their internal communication effective. The second part of the paper discusses the impact of effective internal communication. The third part outlines the essentials for an expedient internal public relations action plan. The fourth and the last part conclude the research paper.
From the Paper "Hence from the above discussion, it is evident that effective communication with the internal public of an organization does not only play a vital role in determining the success of an organizational change but it also confirms its wellbeing. The employees at Hewlett Packard wanted assurance, job security and a sense of belongingness and being wanted by the company. In such changes, job security is always threatened and it is effective and prompt communication that breaks down all barriers and helps in pacifying the frightened and agitated work force. Hence, when the firm started explaining, assuring, in short. communicating effectively with their internal people, it not only received favorable response but also managed to keep the organizational peace alive and employee satisfaction in line."
Abstract This paper explores the possibility of Hewlitt Packard Corporation and Compaq Corporation merging. The author discusses the background and history of each company as well as business mergers in general. Then the paper is tied together with a discussion about the potential merger of the two companies in question. There were three sources used to complete this paper.
