Mergers and Acquisitions †The life of Hewlett †Packard Essay

The archetypical big customer of HP was Walt Disney Studios. The bon ton purchased octet oscillators from HP for their movie Fantasia. These oscillators were purchased in order to arise an innovative sound system for the movie.HP has structured profit sharing and social commitment in the keep ships social club through its values and corporate objectives that take over been with the union since 1957, these principles guide them to be focused and act to the order and were represented by the co founders and are being followed to this day.Through trust, police squad work, change and integrity the company has been achieverful in making enough net to finance their vexth as well as keep all the stakeholders satisfied. They respect customer committedness and the role of employees and there fore their contribution in the company. They look for opportunities and grow but not at the stake of beau monde, they serve as an asset to the society and country where ever they are d oing business.Dave Packard used a watchfulness technique that was incorporated into HPs corporate culture. He called it managing by walking well-nigh which later came to be known as focal wind by Objectives which had employee involvement, recognition and communication for better management and fall uponment of organizational goals.The company went public in the year 1957 and Bill and Dave curb always abandoned respect and appreciation for the employees efforts. Therefore after going public they gave the tune grants to the employees automatically who have been serving for at least six months in the company. This meant that the employees were given shares of the company, which will give them some get to of ownership in the company and motivate them more(prenominal) for the performance and growth.The first acquisition of the company took settle in the year 1958 of a high timbre graphic producer company. The name of the company was F.L. Moseley community of Pasadena, Califor nia. This acquisition was not seen as a affright to its flexibility because this gave opportunity to HP to enter into plotters food market practice which was a needed for the companys printer business. And to counter the problem of growing business the company had practiced decentralization of business divisions which will be responsible for their own products.Bill was looking for opportunities internationally for Hp to enter foreign markets and he found some in Europe after the agreement of Rome and also the European Common market in the year 1957. These paved way for startle operation of Hp in the European markets and as Bill visited Europe he found it a viable decision and the company became global in the year 1959.The first joint venture of the company was in Asia with a Japanese company named Yokogawa Hewlett-Packard (YHP) in the year 1963.The CEO identified the factors that lead to major acquisitions by HP till the year 2005. HP was performing well in the industry. Its revenue and pelf were rising and which made it attractive for the investors point of view as the companys stock value also rose. The company was able to execute cost control and pay bonuses to the employees at the kindred sentence. The company had a tender financial side with an impressive figure of $6.8 billion as an join on in revenue growth. The company wanted to achieve cost competitiveness. The company made some changes in the number of workers and their retirement programmes.The company consists of a team of dedicated workforce which is willing to put in their maximum efforts to enhance the value and performance. Moreover the company wanted to evolve in the bigger markets. The company had cash and potential to prosper in sales, they had no burden of operational debt. They have a strong customer base with a brand obedience from them. All these led to the successful acquisitions of the company.The merger and acquisitions that took function between HP and other companies around the humans made HP a much stronger company in borders of market share as well as sales growth and innovation and created value for the company. The slew with Compaq was seen as an opportunity to grow into the IT sector in the world. One of the long term goals of the company is to become the worlds largest data processor company. All these mergers and takeovers were taken in order to turn out the competition, step-up market share, share expertise which potful be used to produce further products.The muss between Compaq and HP was seen as a success in the industry after five age of the deal. Compaq was its strong competitive at the same time one of the largest PC makers. The two companies by integrating have took forward the companys net and sales to another level altogether. The merger took place at the right time when both the companies were miss the production of key products.But after the deal both the companies were able to fill in the prison-breaking that the y had while operating independently. They were committed to the infrastructure computer software which helped the company go into the management layer from the good hardware. The company was at a stronger position to get by with the global service providers. The deal was able to increase the revenue and profits for the company being in the competitive environment of the industry.