Linked by Howard Fosdick on Wed 29th Aug 2012 20:25 UTC
Hardware, Embedded Systems Can Hewlett-Packard bounce back? Third quarter results are in and they don't look good. Total revenue is down 5% year over year, and profits tanked on a $9.2 billion noncash write-down on the 2008 EDS acquisition. What's HP's strategy? Meg Whitman has now been CEO of the struggling giant for a year. She compares HP's turnaround to that of Starbucks, saying "Usually these kinds of turnarounds take anywhere between four or five years... There's nothing fancy about these turnarounds. This is not advanced business, this is 101." I question if refocusing on core competencies is enough. Maybe HP needs to get into the smartphone and tablet markets. Maybe it needs to expand its services business. Think I'm wrong? Then bet your money on HP stock and get rich. HPQ trades at its lowest point in a decade and sells for an rock bottom forward P/E of 4.2.
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try hiring an engineer as CEO
by unclefester on Thu 30th Aug 2012 08:33 UTC
unclefester
Member since:
2007-01-13

Here's a novel idea. Sack Whitman and hire an engineer or scientist as CEO. The best way to send a high tech company broke is to employ someone from a consumer goods marketing background (eg Steve Ballmer, Mike Spindler or Carly Fiorino) as CEO.

Mercedes-Benz has a policy that all the highest level executives require a PhD in mechanical engineering . They are still going strong after 130 years.
[edit -typo]

Edited 2012-08-30 08:33 UTC

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