This is what happened during the merger of Compaq and Hewlett Packard, which is part of the study. Both Compaq and HP are long time rivals in the field of computer hardware and components. However, looking at the benefits of their merger, both the companies as part of each others’ strategic management initiated the merger drive. So, in the initial phases, a lot of issues regarding the merger was analysed in an overview kind of manner. That is, in the initial phases, key strategic management issues that preceded the merger on both sides were first focused and discussed. Then as a continuation of that discussion, the key management changes that took place as well as that were initiated by both the companies in the post-merger period were discussed.
From the research that was done about both the companies in the pre-merger period it is clear that it was not smooth sailing because descendants of HP and Compaq founders opposed the merger. Although key stakeholders in HP particularly the scions of the founders opposed the merger deal, the merger was actualized by the narrowest of margins. The merger was expected to yield savings projected to reach $2.5 billion annually by 2004. (Hoopes 2004). The next important issue that was focused in the initial phase is how both the companies became ‘congruent’ on certain issues. That is, instead of creating a challenge and competition between the two major but different corporations, the HP-Compaq merger suggested that the cooperation will give much better results for the both of two corporations. By sharing experiences and Trade Marks, the merger (but of course based on the long term results) was expected to aid both the companies or the combined entity to reach the required targets
In the initial phase, as part of the designs and synthesis of ideas, research and analysis was done on both the companies including