This preview shows page 1. Sign up to view the full content.
Unformatted text preview: horized use or reproduction of this document is strictly prohibited. HP and Compaq Combined: In Search of Scale and Scope, SM-130 p. 25 CONCLUSION
In May 2004, two years after the deal was announced, the integration of HP and Compaq had
been far more successful than anybody—outside of the Clean Team and HP Executive
Council—would have predicted. The strategic way in which the potential benefits of the
acquisition were analyzed, the planning and execution of the integration under difficult and
uncertain conditions, and the novel approaches developed to integrate two very large
organizations with somewhat different cultures held important lessons for those considering
similar “bet-the-company” moves. It seemed important to capture these lessons and to identify
and build on the new capabilities for managing large change that the acquisition integration had
generated, especially since several of the key architects of the integration effort, including
Bowick, Clarke and McKinney had departed the company by the end of 2003.
Going forward, however, the success of the merger would not be measured simply by HP and
Compaq’s ability to effectively integrate their two organizations, or even to cut operating costs
by several billion dollars. Rather the success would depend upon the integrated company’s
ability to grow profitably—and do so even faster—in the future. This, in turn, could only happen
if the two companies could pursue a more powerful corporate strategy by being better together.
With the enormous changes in the information technology and related industries continuing
unabated in 2004, HP would unavoidably have to meet that test within the next several years. This document is authorized for use by Xiaolei Cong, from 11/30/2012 to 2/28/2013, in the course:
MGMT 237: 001 Management of Technology - Chaudhuri (Spring 2013), University of Pennsylvania.
Any unauthorized use or reproduction of this document is strictly prohibited. HP and Compaq Combined: In Search of Scale and Scope, SM-130 Exhibit 1
HP Selected Financial D...
View Full Document
- Spring '14