HP_and_Compaq_Combined__In_Search_of_Scale_and_Scope

With the capabilities of eds and ibm well known it

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Unformatted text preview: ined: In Search of Scale and Scope, SM-130 p. 22 these people were uncertain about the outcomes of the merger, how it would affect their respective jobs, but they were always positive about the merger. The merger affected us directly. Still, by 2002, there has been little change in the nature of the debate and wrestling that takes place with the merged HP and Circuit City. One important early victory for the new HP was its 10-year, $3 billion contract to provide IT services to the global consumer products company, Procter & Gamble (P&G). P&G looked closely at partnering with several different companies, including EDS and IBM, but selected HP. Linda Clement-Holmes, General Manager, Global Business Services, IT Infrastructure and Governance for P&G said the company evaluated candidates on the basis of capability/quality, cost and culture. With the capabilities of EDS and IBM well known, it seemed that the deciding factors in this decision came down to cost and culture. Clement-Holmes said, “We were comfortable doing business with HP. They appear on many of the same lists as we do, in terms of being among the best companies to work for. Since we were transferring 2,000 IT employees to them and since we had to work with them for the next 10 years, that was important to us.”29 Clement-Holmes likened the relationship to a marriage. She said P&G and HP were now “back from the honeymoon and settling in to living with each other. As in a marriage, from time to time, we find out things about the other that come from living together, things that are the equivalent of one spouse squeezing the toothpaste from the center of the tube.” Clement-Holmes ran an organization at P&G that worked to resolve any such issues that arose. Each member of this organization had a counterpart at HP. For example, Clement-Holmes worked closely with Dave Middleton, the global P&G account representative at HP as well as with Dan Talbott, the HP sales executive who ran the negotiation with P&G. Wi...
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This document was uploaded on 02/16/2014 for the course MGMT 237 at UPenn.

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