preview

Merger Of Hewlett Packard Company

Better Essays

INTRODUCTION
The paper will examine the merger of Hewlett-Packard Company (NYSE:HPQ) and Compaq Computer Corporation in 2001. The following key issues will be examined:
-reasons for the merger
-reasons against the merger
-assessment of the performance of the consolidated company since the merger completion.
BACKGROUND OF THE COMPANIES
Hewlett-Packard (HP) is a leading technology solutions provider for both consumers and businesses. “We invent, engineer and deliver technology solutions that drive business value, create social value and improve the lives of our customers” (Hewlett-Packard Company - Company Profile, 2002). Hewlett-Packard was created in 1939 by two Stanford University Graduates, William Hewlett and David Packard. The company had a product line of eight items a resistance – capacity oscillator. In 1998, Hewlett-Packard launched a comprehensive review of its operations. In July, 1999, HP named Carleton (Carly) S. Fiorina as President and CEO. Fiorina was responsible for HP’s reorganization into a company that “makes the internet work for businesses and consumers.” (Hewlett-Packard Company - Company Profile, 2002). HP had positioned itself to deliver Web services, intelligent devices and servers and infrastructure of servers and software.
Compaq Computers built a portable PC in 1980 that met a lukewarm reception. In 1982, HP entered the market with IBM clones – computers that looked and performed like IBM PCs, but with a price point much lower than the IBM

Get Access