Question: In 2001 , struggling computing giant Hewlett Packard (HP) announced it would acquire similarly struggling competitor Compaq. The merger was ill-fated from the start, as

In 2001 , struggling computing giant Hewlett

In 2001 , struggling computing giant Hewlett Packard (HP) announced it would acquire similarly struggling competitor Compaq. The merger was ill-fated from the start, as critics pointed out how the HP engineering-driven culture was based on consensus and the sales-driven Compaq culture on rapid decision-making. This poor cultural fit resulted in years of bitter infighting in the new company, leading to a loss of an estimated $13 billion in the value of the merged business. Though the merger itself was widely regarded as a failure, the company has taken steps to deal with the causes and consequences of the culture clash. Significant cultural and leadership changes have resulted in long-term success. Source: www.globoforce.com 1. Explain one reason why there could have been a clash of corporate culture between HP and Compaq. 2. Analyze one possible consequence of a clash of corporate culture between HP and Compaq. 3. Discuss whether it is inevitable that mergers/acquisitions between two large businesses like HP and Compaq will result in damaging culture clashes

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