Case study -Core Values During Merger in Global Corporation based on HP / Compaq

(5 points)

One of the first steps in bringing HP and Compaq together as one team was conducting a detailed review of both companies to figure out what employees valued, what moved them and what motivated them. The analysis' project was approved and agreed by managers of the two companies. The research sample covered 127 executive directors and 138 focus groups including altogether 1,600 managers and employees from 22 countries. The objectives of this review were to identify the key attributes of both HP and Compaq, recognize the strengths of each organization and find a shared point of reference for the new HP. The new HP Way adopted HP's concentric circle framework. The selection of the cultural cornerstones was evolutionary in nature, not revolutionary, leveraging the rich historical traditions, strengths, values and objectives of both Compaq and HP. New values formed foundations for the specification of strategic goals, strategies, processes, structures, measures, policies, practices and behaviors. Each of the main values was defined and presented by the means of best practices instances.

Questions:

1. Please critically assess why is it important to redefine and develop values during the merger process? What could be the threats for the new organization in case of ignoring this?

2. Please critically analyze what are three basic ways that growth strategies can be implemented, please describe them all