Recommendation: HP PwC Merger

1
Recommendation HP PwC Merger

• Team 5
• Matt Kahn Jamie Klingler
• Amie Meczka Rebecca Shay
• Eric Zwiebel

2
Vision Statement

• Hewlett-Packard
• Become global IT competitor
• Become a one stop shopping experience

3
Todays Situation

• New SEC regulations
• HPs need to progress in a changing market
• CIOs are no longer looking for separate
  companies for consulting and IT implementation
• CIOs value a point of view on how and what
  technology to implement
• PwC Consulting creates a solution

4
Process to Examine

• List criteria for alternatives
• Analyze alternatives
• Determine course of action
• Benefits and risks

5
Available Options

• Do not implement any change
• Expand internally
• Invest in Research Development
• Actively seek out other investments
• Acquire PwC Consulting

6
Merger Strategies

• Merge completely
• Acquire PwC and run as separate company
• Form a subsidiary from the consultancies

7
Benefits of HP PwC Consulting

• Corporate Cultures can easily be combined
• HP will not lose product vision
• Consultants will stay independent
• Companies will compliment each other
• Anti-Trust

8
Recommendation

• Must acquire PwC Consulting
• Must make it a subsidiary
• Allow management styles to coexist
• Must have proper employee contracts and
  incentives
• Must efficiently combine corporate cultures

9
Vision Statement

• Hewlett-Packard has a 2 part vision
• Become global IT competitor
• Become a one stop shopping experience for
  customers

10
Final Thought

• With this acquisition, HP customers will no
  longer have to go to one company for business
  strategy and another for technology
  implementation.
• - Carleton Fiorina, HP CEO