Cerebral Shangrila

Monday, February 14, 2005

HP & Fiorina Posted by Hello



This is not just another Garage . This is the Garage where Bill Hewlett & Dave Packard founded HP more than 65 years ago. The Commemorative Plaque outside proclaims this place as the " Birthplace of Silicon Valley" . For the uninitiated , Silicon Valley (or Bay Area) is the Stretch between San Francisco & San Jose
( Almost 50 miles if you drive on 101 Freeway) in California which is the Home of Tech Giants such as HP,Oracle,Cisco,Intel,Sun Microsystems,Yahoo,Google,Apple.


When I heard the news about the ouster of Carly , I couldn't help feeling a sense of Clairvoyance.HP is a company that I admire a lot . Aren't they afterall credited with the Creation of " Silicon Valley" ? I lived in the valley for almost 3 years . The Silicon Valley is famous for many things -- Innovation , Venture Capitalism,Entrepreneurial Spirit , Geekdom and also sadly greed. HP was one of those few companies with brain & soul in an otherwise competitive cerebral world . Folklores are legendary inside HP about its Founders' simplicity and unique " Management by Walking Around (MBWA)".

During my recent MBA projects (OB Project on HP-Compaq Merger and Costing project on " Cost of Quality" at HP) on HP , I couldn't help having a eerie feeling when I realized that 70% of HP's profits came from its Lucrative Printing / Imaging division or when the bulk of market Cap of HP was due to its "cash cow" printers (Actually catridges) . Most analysts wanted the company to be split to enhance shareholder value and also the HP-Compaq merger had not gone as well as they wanted it to be ( IBM is still a king in Services and Dell seems no signs of wearing down in PC Business enjoying the highest margins ).

Against all this Backdrop , I thought Fiorina would quit and probably pursue her political ambitions ( BusinessWeek reports that she is close to the Republicans and has aspirations to run for the Senate ). But fate (or the Board) willed otherwise .........

3 Comments:

  • Hey!!! Me too man...again the M&A thing linking us -eh? Mind if I can have a look at the OB proj of yours? If you could forward the report so as to just have an idea of the Merger in better terms!!! Just think if you can...

    By Blogger A Confused Soul, at 5:12 PM  

  • Hi,

    In here after a long time! Nice snap of the historic 'garage'!! So where were you three yrs in the valley. With CSC? They don't send u onsite for that long? Anyways how have you been doing? What about ur intersnships and all?

    By Blogger abby, at 12:18 PM  

  • Confused, Sure. Will send you the ppt today. SO all set to fizzle at Pepsico?

    Abby, I am doing good. Got to start the internship search now that exams are over. I was with a Consulting firm in Santa Clara for a few years before CSC.

    By Blogger Cogito, at 5:02 PM  

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