Topic: Mergers - Research Paper Example

Mergers Mergers The shift in demand for technological products in the market is one of the factors driving change at HP. The second factor is the emergence of mergers as the new trend for conducting businesses. Thirdly, the decline in the profitability of the company is driving HP to change their approach to management (Dykman, Davis, & Lamb, 2012). Lastly, stiff competition in the market forces the management to adjust their approach to management in the competitive technological business.2 The management at HP will utilize Palm Inc’s innovative platform in enhancing their growth in the market.

Consequently, the management will seek professional advice from palm Inc before venturing into the market. In the diagnosis, HP will incorporate a culture that is similar to Palm Inc’s corporate culture in their operations. According to Allen (2012), the elimination of processes that increase cost in production is also necessary. HP will use the guidelines established by Palm Inc in their management. 3 The similarities in the cultures of Hp and Compaq necessitated their mergers. The management in both companies believed in mergers that would expand their operations in the market.

Besides, the management at HP had shown interest in collaborating with Compaq since the company was experienced in electronic manufacturing (Cote, 2012). Additionally, the management of the two companies shared similar ideologies in maintaining their position as the leaders in manufacturing technological products. 4 Fiorina addressed the needs of the customers and the employees when she was merging the production processes of the two companies. She focused on the short term goals of the company at the expense of the long-term goals when communicating her plans to the management.

However, she failed to incorporate the cultures of the two companies in merging their operations. Indeed, it was necessary for her to update the management on a weekly about the mergers.5 Fiorina should have readjusted the strategy of HP by integrating the corporate structure of the company with the structure of Compaq in the post merger period. Consequently, she should have addressed the communication challenges at the organization through consensus.ReferencesAllen, A. (2012). Culture Integration in a "Clean Room".

OD Practitioner, 44(3), 50-54.Cote, M. (2012). HP-Compaq Merger Remains Carly Fiorinas Legacy. Coloradobiz, 39(1), 7.Dykman, C. A., Davis, C. K., & Lamb, A. (2012). A case study of mergers in the information technology industry. Allied Academies International Conference: Proceedings Of The International Academy For Case Studies (IACS), 19(1), 5-8.