But the owners were against the merger due to the following beliefs of the owners: The new portfolio would be less preferable: The position of the company as a larger supplier of PCs would certainly increase the amount of risk and involve a lot of investment as well.
It has 87, employees in countries. Also, operating expenses normally consists mainly of the cost of items sold, but could also incorporate some unusual items. When such companies merge, many of the intellects come together and work towards a common mission to excel with financial profits to the company.
Even though these were supposed to serious problems with respect to the merger, the CEO of HP, Fiorina justified the same with the fact that the merger would remove one serious competitor in the over-supplied PC market of those days.
Lack of Determination: When organizations involve, they have plans in their minds, they have a vision set; but because of a variety of problems as mentioned above, development of the combined company to accomplish its mission is delayed. Financial Analysis is the regular evaluation of the business and its degree of profitability.
There were a number of options like Change Management, Economic wise Management, and Organizational Management which could be considered to analyze the issue. The company could also conduct a better segmentation of the market to forecast its revenues generation. In IT companies such as HP and Compaq, many problems can take place because both the companies have worked on different strategies in the past.
This leadership style can be reflected from her first moves after joining HP. The analyst might want to discover the main factor for the unexpected variance for management wages.