A research Proposal to find the Compaq failures and appropriateness of its acquisition by Hewlett-Packard Company.
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A research to find the Compaq failures and appropriateness of its acquisition by Hewlett-Packard
Background Information
With rapidly developing technology, consumers tend to look for unique and developed features of Pc’s from various companies in the US. In 1982, Compaq firm started and was the largest supplier of Pcs as it had the best system with better graphics and improved performance compared to its competition (Frontain, 2020). Due to these unique features, Compaq continued to rise, contributed by engineers who are experienced, became the youngest firm recording very huge sales. It was the market leader in PCs and shipped more units internationally than in the united states (Pillar, 2002).
However, in 2002, Compaq firm collapsed, having a lot of debts of $2 billion and its stock was trading at $12, which has lowered by 23.5%, from $51 (“Four companies that failed spectacularly, and the lessons of their premature demise,” 2015). Its sales had lowered, showing poor marketing strategies alongside other failures. These conditions led to the firm’s acquisition by Hewlett-Packard, a company which exists to date, but went through a lot of challenges after the acquisition (Editors, 2015). Compaq firm started with experienced managers and well-developed marketing strategies that led to its short period of success. Nevertheless, this paper attempts to find the reasons for Compaq firm failure after twenty years of operation.
Objectives of the Research
The main objective of this research is to:
Understand the failures that led to Compaq Firm collapse and acquisition after twenty years of successful operations.
Identify the strengths of Hewlett-Packard that may have worked for Compaq company.
To understand whether current consumers prefer Hewlett-Packard products compared to Compaq in relation to affordability, quality, and efficiency.
Determine whether the acquisition was the best option for Compaq Firm and identify alternative options.
Qualitative methods
Focus Group
In this research, five of the former management team personnel of Compaq company will take part to give their experience and views of their actions and occurrences that led to Compaq failure. Also, they will provide suggestions on possible actions that could be taken to save the Compaq company rather than acquisition. Also, ten consumers of Compaq products then and have been using Hewlett-Packard products will be asked a variety of questions to give their comparisons of satisfaction. Also, two members of the Hewlett-Packard management team will be asked questions on their strength over Compaq company.
Themes Discussed
In the research, issues to solve the objectives will be discussed. First, the failures of Compaq firm in 2002. Second, the strengths of the Hewlett-Packard company over Compaq, third, Factors that lead to the satisfaction of current consumers and lastly, alternative options for Compaq company to find solutions for reduced sales and a lot of debts.
The methods to be used in this research are in-depth interviews and discussions to conduct an analyzed study that provides answers to the study questions.
Quantitative Methods
Since the qualitative response will be based on a group answer, a questionnaire will be used to get more information on the individual perspective on product satisfaction and ways for improvement.
The questionnaire will consist of both the Likert-style and open-ended questions. Likert-style questions will provide a scale of 1 to 10 to show experience and satisfaction with the two comapnies. One will represent the lowest level of satisfaction, while ten will show the highest satisfaction. The open-ended questions will work well for the sampled managers, to provide information and their views on alternative ways to save Compaq and also the different management methods for the companies.
The Likert style questionnaire will include these questions:
I would consider Hewlett-Packard products to Compaq due to its efficiency
I am more satisfied with Compaq prices than Hewlett
Compaq PCs are more durable than Hewlett-Packard
I am a regular consumer of Hewlett-Packard products
The open-ended questions will include:
What were the Compaq management methods?
What were the marketing reasons for Compaq failure?
Was acquisition the best solution for Compaq firm? Give reasons
What were the possible alternative ways to solve Compaq challenges then?
Which management methods make Hewlett-Packard different from Compaq?
The questionnaires will be issued to the sample group of consumers, Compaq managers, and Hewlett-Packard managers. Analysis of the information that will be provided will be done according to the three categories while considering individual opinions of the named concepts. The various groups will give exclusive details required for the research other than concentrating on only the consumers.
References
Editors, Z. (2015). Worst tech mergers and acquisitions: HP and Compaq | ZDNet. ZDNet. Retrieved 26 February 2020, from https://www.zdnet.com/article/worst-tech-mergers-and-acquisitions-hp-and-compaq/.
Four companies that failed spectacularly, and the lessons of their premature demise. Managers.org.uk. (2015). Retrieved 26 February 2020, from https://www.managers.org.uk/insights/news/2015/september/four-companies-that-failed-spectacularly-and-the-lessons-of-their-premature-demise.
Frontain, M. (2020). COMPAQ COMPUTER CORPORATION | The Handbook of Texas Online| Texas State Historical Association (TSHA). Tshaonline.org. Retrieved 26 February 2020, from https://tshaonline.org/handbook/online/articles/dnc01.
