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Merger of Hewlett Packard and Compaq Computers

Autor:   •  September 25, 2013  •  Research Paper  •  1,907 Words (8 Pages)  •  959 Views

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Introduction

Hewlett Packard is the leading global provider of computing, imaging solutions and services. In addition, it is focused on making and providing technology and its benefits to all parts. Compaq Computers Corporation is the leading global provider of solutions and enterprise technology. In conjunction, Hewlett Packard Company makes a deal with the Compaq Computer Corporation in the September 2001. Because of the merging of Hewlett-Packard Company and Compaq Computer Corporation, their merger has created an agreement to generate $87 billion global technology leader. Merger can be defined as a big and bold Hewlett-Packard that was formed when the two companies merged. The management of Hewlett Packard Company believed that their merge with Compaq Computers Corporation will be of great importance since its initial development in technology had been diminishing gradually. The main reason for the merge was to consolidate all the entire activities for it to improve its performance, mostly its delivery services. In addition, the merge will benefit the entire company, for instance it will help it in the end to raise all its businesses to the next level.

Reasons for the merger of Hewlett Packard and Compaq Computers

The entire management of Hewlett Packard computers believed that the merger deal would be of great importance to the company since its development in technology initially had been diminishing gradually. The company needed greatly to consolidate all its activities in order to improve its performance in terms of better service delivery. The deal would be of economical important to the company, as it would help it to ultimately elevate all its businesses to the next level. For instance, the companies would be able to combine their individual strategies and capabilities to blend a good pair which would be effective enough to compete with their competitors. The deal would help to increase production capability of the company with offering of better services to the customers. The move would help the two companies fuse its products hence enhancing manufacture of integrated items. The deal would also see an increase in labor productivity as it would be easier to coordinate the entire staff working in one company (Weihrich, Koontz & Cannice, 2010).

Merge of Hewlett Packard and Compaq Computers is considered to be a historic event as it is believed to be much of economic significance. First, the move was seen as Hewlett Packard Company was able to integrate its major competitor Compaq Computers hence it was attributed to be a major positive step for both companies. The move was believed upon it being successfully as it would lower the cost of production with minimum competition. The merger of two companies was to produce icebergs, which would facilitate the company to emerge as the chief technology corporation in the market. According to company,

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