Subject category:
Strategy and General Management
Published by:
IBS Center for Management Research
Length: 22 pages
Data source: Published sources
Abstract
The case gives an overview of the merger between two leading players in the global computer industry, Hewlett Packard Company (HP) and Compaq Computer Corporation. The case explores the reasons for HP's failure to realise the synergies identified prior to the merger. It highlights that leadership, legacy and cultural issues play an important role in mergers. The case describes in detail the rationale for the HP-Compaq merger, the problems faced in integrating the merged entities and whether the merger made business and economic sense. It also describes the product profile of the merged entity and how the new HP compares with its major competitors, IBM and Dell Computers. Finally, the case presents the challenges faced by the new Chief Executive Officer of HP, Mark Hurd, in mid-2005. The case is designed to help students critically analyse a merger deal and understand the various issues involved such as product synergies, cost savings and technological compatibility. The case also provides an insight into the possible hurdles that might crop up while implementing a mega-merger.
Teaching and learning
This item is suitable for postgraduate courses.About
Abstract
The case gives an overview of the merger between two leading players in the global computer industry, Hewlett Packard Company (HP) and Compaq Computer Corporation. The case explores the reasons for HP's failure to realise the synergies identified prior to the merger. It highlights that leadership, legacy and cultural issues play an important role in mergers. The case describes in detail the rationale for the HP-Compaq merger, the problems faced in integrating the merged entities and whether the merger made business and economic sense. It also describes the product profile of the merged entity and how the new HP compares with its major competitors, IBM and Dell Computers. Finally, the case presents the challenges faced by the new Chief Executive Officer of HP, Mark Hurd, in mid-2005. The case is designed to help students critically analyse a merger deal and understand the various issues involved such as product synergies, cost savings and technological compatibility. The case also provides an insight into the possible hurdles that might crop up while implementing a mega-merger.

