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 analyzed 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. .
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 on 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 both 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 were done on both the companies including .the focus and strategy leading to the merger. Compaq Computer Corporation, American PC Company, was founded in 1982 by Rod Canion, Jim Harris, and Bill Murto. It existed as an independent corporation for 20 years exhibiting good growth until 2002, when it merged with HP.