Human Resources

In recent years Hewlett-Packard has gone back and forth about whether it should retain or drop its computer division. In 2002 Carly Fiorina led the acquisition of (merger with) Compaq, a rival computer company. Some felt that this bold move diverged from a long-standing strategy based on innovation. Selling computers is viewed as almost a commodity business—to succeed in this market requires a low cost strategy. Historically, HP has been a company known for innovation as a primary strategy. Its mea-surement and computer peripherals businesses (e.g., printers) were successful largely because of first-to-market benefits driven by an innovative culture. Clearly the acquisition of Compaq caused some challenges for HP’s Human Resources group. Almost from the start the board questioned the Compaq acquisition. Eventually Ms. Fiorina was asked to leave. In the aftermath of the CEO change, the battles have continued over keeping Compaq versus divesting. Using what you

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