Lumongsod, Mary Nida S.

CE – 3B
Engineering Management TTh 9:20 – 10:20 AM

1. List and discuss the pros and cons for the merger.
For the company to compete with larger firms such as Dell and IBM, the deal was called. As
a result, the company's unit production would double, resulting in exceptional growth. As a part
of the acquisition, promotional, distribution, and advertising costs will all be reduced. On the
other hand, merging the two companies would not fix the company's problems. Despite HP and
Compaq merging, companies like Dell, IBM, and Sun will continue to dominate the industry.
The incompatibility of the two firms is another disadvantage of the union. HP and Compaq's
merger would be a challenge because the two firms have developed distinct cultures and
concepts within their respective companies.

2. What are the personal risk of Ms. Fiorina?

MS. Fiorina has realized that she would lose her work in this transaction and several
individuals, including the founders of the HP Group, resisted the merger from HP and Compaq.
Due to certain challenges and threats associated with the merging of the firms, Ms Fiorina was
criticized. She was also confronted by the decline of her supporters and lost the trust of many
people, including the investors, who are part of the HP corporation. This may have contributed to
the loss of many of the customers, which is important for all companies.

3. How did she influence members of the group to approve the merger between HP
and Compaq?
Ms. Fiorina seems to have been able to persuade the members of the party to push her
ideology towards creativity and high risk, a high reward. She believed that HP Company has
always supported concepts and took courageous measures. She hoped the merger would also
boost and alter the company's competition.
 4. Why do you think Ms. Fiorina lost the confidence of the work force?
Apart from the fact that proprietors of HP Company opposed the merger of HP and Compaq,
there is no clear record of mergers between corporations since there were several failing cases.
The fact that the merger did not address the principal issue of the company was also a considered
factor. The merger between HP and Compaq did not have the effect it expected and instead
created more business difficulties.

5. What should Ms. Fiorina do to build a cohesive management team of the combined
company?
A committee of HP and Compaq senior officials could have been created for them to
represent their respective businesses. This will allow all parties to evaluate the challenges they
faced and to determine the necessary positions for the fusion. This will also allow them to
establish a single vision and culture in order to promote synergy between the two businesses.