Refers to the attitude and behaviors that establish how a company's human resources and management interrelate and handle external business communication. Often, corporate culture is indirect, not particularly defined, and develops organically over time from the snowballing behavior of the people the company employ. A company's culture will be reproduce in its dress code, business hours, workplace setup, employee payback, turnover, hiring decisions, and conduct of clients, client fulfillment and every other feature of operations.( Bouwman,2013).
The HP and Compaq merger:
The largest technological deal in the history of the computer industry leader was when HP bought Compaq for US$ 24 billion in stock, which are combined operations more than 160 countries and more than 145,000 employees. HP-Compaq would offer the most set of product and results, as a result of the merger, HP’s shares fell by 11%.
The cause of the merge is to recover HP's market share across the hardware line and double the size of HP's service unit-both critical steps in being able to contend with industry-giant IBM. Moreover, they expect to produce a full-service technology firm capable of doing everything from selling PCs and printers to setting up complex networks. The
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The financial and market results of the companies deteriorated greatly and the CEO was incapable to accomplish the predictable and what she promised to accomplish from the merger. This poor culture fit resulted in years of harsh power struggle in the new company, and resulted in a loss of an estimated 13 billion dollars in market capitalization. Through the merger it was widely regarded as a failure, the company has hung on, and has been able to make significant culture and leadership changes that have resulted in long-term
Culture is the collective attitude, intellect, and atmosphere that a community creates for itself. This includes values, traditions, and social norms. Specifically, organizational culture is within a community, group, or business that shares values, follows a code of conduct and standards, and holds its members accountable for their contributions. Organizational culture arises from the goals and mission set out by the company. A negligent culture can provoke and encourage inappropriate behavior between employees. As shown with Uber, organizational culture can become dangerous and harmful to its members if proper standards are not established.
Organizational culture could almost be considered the roots of a company. The way a company’s employees think, the way the customers feel, and the company’s decisions are made are all based around the culture that the company has laid for itself. An employee’s values, thoughts, and actions should reflect those stated in the company’s mission. Southwest Airlines and American Airlines, while both attempting to create a culture that is comfortable and pleasing to their
“Culture consists of the symbols, rituals, language, and social dramas that highlight organizational life, including myths, stories, and jargon. It includes the shared meanings associated with the symbols, rituals, and language. Culture combines the philosophy of the firm with beliefs, expectations, and values shared by members. It contains the stories and myths about the company's founder and its current leading figures. Organizational culture consists of a set of shared meanings and values held by a set of members in an organization that distinguish the organization from other organizations. An organization's culture determines how it perceives and reacts to the larger environment (Becker, 1982; Schein, 1996). Culture determines the nature
For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.
HP entered into an agreement with Compaq Computer Corporation in September 2001. In this definitive agreement, HP is going to purchase all of Compaq’s common shares outstanding, and pay a total price of 0.6325 shares of its common stock for each share of Compaq’s common stock.
Culture within an organisation is a system of shared values, beliefs and norms of individuals in the organisation and how the value consensus creates a way in which people behave. The shared values have a strong influence on the individuals in the organisation and dictates how a person acts, dresses and performs in their job. A unique culture is developed and maintained by an organisation which provides guidelines and boundaries, through informal means, for the behaviour of the people within the organisation.
The PC group within HP PPS has been refocused around customer needs. The PC group changed its product line which had a stronger focus on product design. New business models have been the focus of the print group. Business models such as Ink Advantage, is a program designed to target price-sensitive customers in emerging markets. Ink in the Office is an initiative of the print group that targets business customers. The group has expanded differentiated services and solutions by leveraging HP's portfolio of hardware and software, including combining multifunction printers with Autonomy management solutions to develop cloud-based document management services (HP,
Post-merger integration work is difficult, political, and often driven by teams that still have day jobs. Budgets are undefined, executive leadership is not clear beyond the C-level, no plans exist, and no one has done it before. Companies are willing to spend money on due diligence ahead of signing the papers, but do not always follow through to ensure that targets are met. In many cases, integration team members are plucked from the “operate and maintain” staff, and either cannot see or do not share the strategic vision of the “design and build” dealmakers. Companies that thrive from mergers do eight things (at least) correctly: Have a Plan, Communicate, and Measure Results, Dedicate the Team, Automate, Plan for Turnover, Focus on Business
Hofstede (2003) defined culture as "the collective programming of the mind that distinguishes the members of one group or category of people from another". Corporate culture refers to the intangible aspects of companies, including the interactions at an interpersonal level, and values, morals and ethics which permeate the way that decisions are made and polices are implemented (Buchanan & Huczynski, 2011). Just as when one undertakes international travel, and sees different cultures where there are different attitudes and traditions, one can also observe different
An organization’s culture shapes the attitudes and behaviors of its employees by defining boundaries, providing a sense of identity and stability. It also establishes a standard in regards to what employees should say and do. Culture can be transmitted via stories, rituals, material symbols and language. Culture within an organization is no exception.
Management researchers seem to agree that the things that companies do called "corporate culture" is an intangible concept and hence difficult to define. Among the attempts to define "corporate culture", the following definition is useful as a starting point:- "culture represents an interdependent set of values and ways of behaving that are common in a community and that tend to perpetuate themselves, sometimes over long periods of time" (Kotter and Heskett,1992,141) Peters and Watermann argue that changing a culture cannot be accomplished.
ORGANIZATIONAL CULTURE, or CORPORATE CULTURE, comprises the attitudes, experiences, beliefs and values of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outside the organization.
As we can see on attached charts - Market was not too sure about this merger (“On paper, the deal has much to commend it, many outsiders say”. But thorny issues remain, including how to accommodate the strains between consultants and auditors, potential conflicts of interest involving important clients and even the delicate matter of choosing a new name. If the negotiators are not careful, fallout could haunt the combined firm for years to come.) From the time when merger plans were made public Shares of
S: 1. Product diversity: HP not just do the software and hardware but the whole rang of service to design, implement and IT infrastructure. Right now HP is dominating the market of printer with 40% market share. The product diversity enables the company to hold its position even in the time of recession.
Page eight of the case begins to outline some of the challenges that the HP-Cisco alliance had already faced concerning the sale of joint products. For example, we learn that at HP, Cisco products did not count towards a sales representative’s quota and this resulted in a decline in sales of Cisco equipment by HP sales representatives. Further, if HP or Cisco sales staff had to master not only their parent company product line,