CORPORATE ACQUISITION: THE CASE OF HP AND 3PAR Instructor Institution Date Introduction Corporate strategies include acquisition of companies or businesses in order to achieve competitive advantage within the market and thus achieve an increase in the market share…
The 3PAR acquisition was desirable and convincing to the shareholders of the bidders due to the timely acquisition of storage utilities and thus ability to meet the market demand and the needs of the customers. This research paper gives a critical analysis and discussion of the bidding process, the actual bids and the factors which enabled the bidders to convince their shareholders to support the high bids which were laid for 3PAR. Moreover, the advantages and disadvantage of the acquisition are explained within the paper. Company Background HP HP or Hewlett-Packard Company is a US multinational company with its headquarters in California. HP is an information technology company which provides its international customers with innovative technologies and software applications in addition to computer and system solutions for various businesses and organizations regardless of their scale of operation or size.1 The company’s products and services have achieved an increasing market share within government agencies, the health sector, and private and public business organizations. In addition to software and application packages, the company manufacturers hardware for data storage and networking.2 Computer accessories such as scanners and printers are among the hardware that the company provides to its customers. To achieve growth within the information and technology market and attain a high level within the competitive ladder, the company has employed various corporate strategies such as mergers and acquisition. As a result of effective corporate strategies the company has been able to beat its business rivals such as Dell. Nonetheless, it must be noted that the company has experienced inevitable challenges within the business environment. These challenges emanate from the economic, political, legal and social environmental forces. To overcome these challenges, HP endeavored to acquire 3PAR Inc. as a way of promoting its storage function and thus creating an appeal to its customers across the world.3 The executives of HP were convinced that through the acquisition of 3PAC Inc. it would be able to create enhanced storage possibilities for its customers and thus achieve a positive impact on individual, government, societal and business computing and business activities. 3PAR Inc 3PAR Inc. is a US company which manufactures computer systems and software applications for the data storage needs of businesses and organizations. Additionally the company produces packages for organizational management such as human resource management systems and finance and accounts information systems. Hewlett-Packard is the larger company which holds wholly ownership for 3PAR Inc. The storage utilities manufactured by the company have attained success in the market and as a result the company was categorized among technology companies which registered highest growth rate and large shares in the market.4 The company’s products are categorized within the utility storage as they enable organizations to store and process large amounts of information with increased efficiency and effectiveness. As a global leader in provision of utility storage 3PAR Inc. has dynamically tiered, highly visualized, multitenant storage which is designed to provide private and public users with cloud computing services at coat effective prices without compromising on efficiency, quality and reliability.5 Therefore it is through a virtual storage ...
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It is the need for expanding growth and increasing the market share that Dell and HP were determined to acquire 3PAR through a bidding process. 3PAR Inc. which provides storage utilities through its platforms and architectures and cloud computing, was a desirable acquisition by the two information technology giants and business rivals.
The environment was theirs to plunder without regard, because, again, the bottom line was paramount. And charitable contributions were not considered by these corporations, as they took time and money away from corporation, which was seen as abusive to the shareholders.
In America, it has its presence in Brazil, Mexico, the United Sates, Venezuela, Colombia, Canada and Argentina among others. The countries of Asia Pacific involve Australia, India, China, Hong-Kong, Japan, Malaysia, New Zealand and various others. The European countries where products and services of HP are available include Austria, Germany, the United Kingdom, Spain, France, Turkey, Switzerland and few other countries.
Acquisition Team Introduction The term acquisition, which is the improved version of procurement, was adopted in 1970, and remains a characteristic and parcel of Department of Defense (DoD) contracting activities (Engelbeck, 2002). Acquisition is part of Federal Acquisition Regulation (FAR) that was established in 1984.
This has been made possible through creativity and innovativeness of its computer hardware and software in addition to computer peripherals, internet services and digital music devices. Regardless of the company’s business success, it is faced with challenges of achieving a greater share in its corporate market.
In this way, Multinational Acquisitions can be seen as a way that firms seek to reduce risk. Yet, various complications arise when a multinational company acquires another multinational company (Ernst & Young, 1994, p. 212). Similarly, due to difference in culture, regulations, tax laws and policies complications arise.
Both HP and Compaq have similar positioning within the same industry, however, and this establishes somewhat of a foundational culture that can be seen to naturally unite a merger of two similar companies. The case can also be seen in terms of
The acquisition process may involve what is known as a company takeover. This is usually fulfilled by acquiring adequate shares of the targeted company’s stocks to force a sale. There are very successful examples of acquisition strategies that
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