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Sowjanya Kodidala – Hewlett Packard

by on October 2, 2007

Hewlett Packard CEO Carly Fiorine steps down.

Hewlett Packard (HP) is an information technology corporation, headquartered in California. It is well known for its printers, personal computers and other high-end servers. Carly Fiorina joined Hewlett Packard as the CEO and she has retained her position for around 6 years, from 1999 to begin of 2005. During her span as a CEO, she had initiated, proposed and implemented the most controversial merger with Compaq, one of its rival companies in the industry. There was a slowdown in the performance of the company, and it was then that the board of directors had become highly concerned. It was then, that they decided to ask her to resign from her post as a chairman and chief executive officer. By implementing this change, they expected to appoint a new CEO with great execution and strategic skills.

Carly Fiorina had served Hewlett Packard as a CEO for a span of 6 years, which had been highly controversial. She joined the company with a strategic plan but most of her decisions or plans have led her into a controversy. She succeeded to remain as a very visible CEO. One of the most controversial topics was her planning and implementation of the merger with Compaq. She had also opted for layoffs, when there was a severe downturn in the market. With her strategies and decisions, she often tried to reinvent HP. Most of the people opposed to these. They termed her as an excellent leader and a statesman but they wanted the strategies that would help the company make some high profits. They were not looking at breaking their company into two, one looking after business customers and the focusing consumers.

The board of directors, finally, implemented their plans of asking Carly Fiorina to resign from her post of Chairman and CEO. They were looking for a new CEO who would use good management and strategic skills and Carly Fiorina resigned from her post on February 9, 2005. She had a severe difference of opinion with the board of directors about implementation and execution of HP’s strategies.

I do think this change is a failure because they did not achieve a sudden increase in profits. The company still remained to show fluctuating results at the market. This change was a perspective and it differed from person to person on the way they look at it. It resulted in a difference of opinions. But, Carly Fiorina was a very powerful women and she would be ever remembered for the merger with Compaq.

References:
PALO ALTO, (Feb. 9, 2005) HP Chairman and CEO Carly Fiorina Steps Down
http://www.hp.com/hpinfo/newsroom/press/2005/050209a.html
HPC Wire, HP’s CEO Fiorina Steps Down
http://www.hpcwire.com/hpc/336799.html
Paul R. La Monica (CNN/ Money senior writer) (Feb 2005). Fiorina out, HP stock soars
http://money.cnn.com/2005/02/09/technology/hp_fiorina/

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