Saving $3 Billion The HP Way

from the how-mergers-get-done dept

There have been plenty of articles recently about the “one-year after” look at the HP-Compaq merger, but most of them were pretty boring. However, this article, in Business 2.0 takes a close look at how the two companies went about the merger from an operational standpoint. It explains how they built the team to handle the merger, and how they made decisions on what to cut and what to save. So far, it’s allowed the company to save more money faster than was predicted – though, not surprisingly, it left some very unhappy people out of work. It’s still a bit too early to say how successful the merger has been, but from an execution standpoint, it sounds like they made a lot of the right moves. Since that was the biggest issue everyone brought up when the deal was announced (just how do you merge such large companies?), it’s good to see that they did a pretty solid job in going about it. The question that still remains, is whether or not the single company really is much greater than the sum of the two companies.

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