Welcome to my first blog entry for the B-EYE-NETWORK. It seems a shame to start this off with the news of the resignation of one of the more colorful executives in the technology world but here goes...
Hewlett Parkard (HP) announced today the resignation of its controversial CEO and Chairman, Carly Fiorina. While the board stated that it is firmly committed to HP's business strategy, it is also widely believed that this very strategy was what caused the rub between the board and Fiorina.
Analysts today state that HP, under Fiorina, lacked direction and that the company's core business or mission was difficult to determine. Harsh criticism indeed.
At the center of the resignation is the highly disputed $19 billion Compaq acquisition in 2002 which Ms. Fiorina staked her career and reputation. HP's server, storage and PC businesses have all struggled to be profitable since the merger fueling the overall disgruntlement with Ms. Fiorina, her "imperious" leadership style, and HP's overall profitability.
There seems to be little doubt that her departure will have an impact throughout the industry -- from HP's overall strategy, the possible break up of its core business divisions, even to the role of women in leadership roles in large corporations. Whether you see this as a good move for HP or a disastrous decision by the board, her departure marks the end to a Silicon Valley icon. She certainly kept HP front and center in the press and in our minds with her every move. (By the way, HP shares rose as much as 10 percent and were up 6 percent in afternoon trading.)
I welcome your comments regarding Carly Fiorina's departure, the future of HP, and this entry.
Posted February 9, 2005 12:19 PM
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