Hewlett Packard/Compaq Merger Essay by Peter Pen

Hewlett Packard/Compaq Merger
A case analysis of the merger between the two computer giants, Hewlett Packard and Compaq.
# 45637 | 1,307 words | 5 sources | MLA | 2003
Published on Nov 17, 2003 in Business (Companies) , Business (Management)


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Description:

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)."

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