Thursday, February 10, 2005

Yet another failed merger!

The departure of Carly Fiorina from HP marks yet another failure in the world of mergers.She was the one who pushed desparately for the HP Compaq deal to happen inspite of facing stiff resistance from Walter Hewitt(who must be all smiles now).Her departure marks the failure of the deal which never hepled in streamling its businesses or gain an advantage against its rivals like IBM or Dell.It vindicates Mr.Hewitt opposition to the merger .
It is to be seen whether the company remains the same as it was or moves into different forms of business.Already,HP has moved in a big way into services due to stiffer competition in its traditional businesses.Also,the growth in its traditional businesses have been quite stagnant for sometime.The merger had never been able to bring in any value to its stockholders.She had perhaps failed to execute the strategy or the strategic intent itself was not clear,which had the support of the board anyway.It would be exciting to see what is done to propel this innovative company to the next round of growth.This thing is for sure -it would not be a cakewalk for the new leadership to design a strategy which would work that easily.
Lets see where the tide flows!

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