24
Sep

HP IDENTITY

Escrito el 24 septiembre 2011 por Jesus Guerro en General

If we said, last week, that Hewlett Packard marked a clear route in its overall business strategy of turning their efforts from selling hardware to the deployment of software services, we can say today that the decision to abandon the PC business has brougth the Board of Directors´ decision to fire at recently appointed CEO and President, Leo Apotheker.

It seems that those intentions have not been understood neither by large HP shareholders nor by its Board of Directors who has not only dismissed Apotheker from his maximum responsibility but It has left him without any chair inside the council. Just struck.!

Apotheker, German, has faced a completely different culture and even an opposite way of doing business that has nothing to do with his background at the other side of the pond. His success at the forefront of SAP has not provided him a guarantee against the shareholders, tired of watching how the market value of the company falls day after day to worrying 50% of its value earlier this year. An unprecedented financial disaster in an  internationally prestigious company as Hewlett Packard.
No doubt, the announcement of abandoning PCs market has meant  definitely the straw that broke the camel after a series of acquisitions undertaken by Apotheker for which shareholders have not found any meaning.

Especially the purchase of Autonomy by 10,000 million dollars which had been already critized so strategically as economically even claimed as a terrible wasteful by some sector in press.

So HP turns back to put things where they were.

The new HP president, Ray Lane, was quick to report on CNBC: “Why we would come out of a business of 43,000 million dollarswhich is the number one on profit margins?”  referring to the PCs business unit.

The charges of President and CEO have been separated again and the position of the latter has been delivered to Meg Whitman, former Ebay CEO and last candidate to Republican Governor of California.

With this move, HP aims to shelter in its core, stepping back to the traditional model inside the house and trying to recover and boost the image and even the Identity through a more conservative strategy.

The financial markets, whi hates uncertainty, after HP announcing the replacement, has brought down another 5% on the share, who  and the company will have to wait for reward,  if it happens.

Now we wonder .. what will be the new strategic value of IT services in this new term? 

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