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Meg Whitman, HewlettPackard's (HP) new CEO, says the tech giant, the world's largest PC maker, faces a rough few years as it struggles to rebound...

1. Use the Internet and the case study attached below to research Hewlett-Packard’s current and future strategies regarding acquisitions and investment in research and development.

Determine whether or not you agree with Meg Whitman’s approach for Hewlett-Packard to spend more funds on research and development, rather than on continued acquisitions. Provide a rationale for your response.

Meg Whitman, Hewlett-Packard's (HP) new CEO, says the tech giant, the world's largest PC maker,  faces a rough few years as it struggles to rebound after weak consumer demand, supply shortages,  and management missteps brought profits to a new low. “I feel very good that we know the  challenges,” she said. “We know what we're going to do about them, and we're headed in the right  direction.” By bringing a new tablet computer to market, reducing costs, and resolving operational problems,  Whitman hopes to help HP weather a transition that will free up cash to invest in new markets and  capitalize on emerging countries' hunger for PCs (even as consumers in industrialized countries  flock to Macs instead). HP also wants to dominate in the burgeoning cloud computing market, as well  as in tech security and data management. So rather than spend the company's resources on any more large acquisitions, like its recent $10  billion purchase of Autonomy Corp., which sells server systems, Whitman foresees investing in  research and development for the next few years. “Let's optimize what we have before we go off and  do something else,” she says.
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After analyzing research on Hewlett-Packard’s current and future strategies regarding
acquisition and investment in research and development, it is clear that CEO, Meg Whitman has
analyzed the...

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