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August 29th 2011 5:49 pm

How to kill HP in one year...

The Wall Street Journal posts an interesting piece on how one would kill HP in a year.


Fire well-performing CEO Mark Hurd over expense-report irregularities and a juicy sexual-harassment claim that you admit has no merit. Fire four board members, as publicly as possible. Foment a mass exodus of key executives who actually know how to run the giant computer company.


It starts out pretty saucy and then details all their stumbles over the past year. It's not a pretty sight. Ouch!

To be fair, I don't think you can seriously claim HP is dead. They are still one of the number one companies selling computers. It's still a huge market (then again, they apparently want to get rid of it.)

Via: online.wsj.com­/article­/SB1000142405311190478740457...

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Just read the article... pretty blunt IMHO

The problem with some of these CEOs and Executives is that they are too focus on doing things to meet analysts' quarterly earnings to boost stock prices... Most of these decisions are short term and only produce short term results - but ultimately will boost stock prices and increase the executive's performance pay for that year. Reason being is most of them plan not to stay with that company for the long term so they just want to pump and run to the next quick cash out. Also the stock prices may drop instead if these decisions don't produce results quick enough or cause sales to drop....

In Business school they teach you there are really only two things you have to do to boost the bottom line to increase shareholder value and net profits: cutting costs or increase sales/revenue. The easiest thing to do would be cutting costs and that is what most executives gun for... the second hardest is increasing sales/revenue which which may take time and not happen right away. You are considered an awesome executive if you can do both!

If HP don't have a clear product roadmap and clear goals set in place - with this public discombobulated sense of direction (sell or keep PC division) I would not be surprised if HP does die...

Even though I'm an anti-apple fan, I look at the practical reasoning for their success:

The reason Apple (APPL) stocks is the darling of investors was the fact that Steve Jobs was not too worried about meeting quarterly earnings and he was not in the quick cash out... Steve Jobs was Apple and Apple was Steve Jobs. He was more focused on creating great products that people will love and building the Apple brand and sticking to his product roadmaps - eventually everything will fall in place including stock prices. Plus he was the master of product pricing. Not all of his products was a success (i.e. first apple tv)... but he did enough to build the company to what it is today...
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Hey, the printer business is just booming, you know.
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There's one HP printer in every house pretty much, but nobody has bought them.
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