The history organization and strategy of compaq computer corporation

Courtesy of the Houston Chronicle. In the Houston economy was entering one of its bleakest periods of its almost year history. The price of oil was falling precipitously and the energy-centric economy in Southeast Texas was falling right along with it.

The history organization and strategy of compaq computer corporation

The history organization and strategy of compaq computer corporation

See Article History Alternative Title: The company split in into two companies: Headquarters were in Palo AltoCalifornia. Founding and early growth The company was founded on January 1,by William R.

Hewlett and David Packardtwo recent electrical-engineering graduates of Stanford University. It was the first of many technology companies to benefit from the ideas and support of engineering professor Frederick Termanwho pioneered the strong relationship between Stanford and what eventually emerged as Silicon Valley.

The company established its reputation as a maker of sophisticated instrumentation. Its first customer was Walt Disney Productionswhich purchased eight audio oscillators to use in the making of its full-length animated film Fantasia During World War II the company developed products for military applications that were important enough to merit Packard a draft exemption, while Hewlett served in the Army Signal Corps.

Throughout the war the company worked with the Naval Research Laboratory to build counter-radar technology and advanced artillery shell fuses. Following a postwar slump in defense contracts, in Hewlett-Packard returned to the revenue levels of the war years and grew continuously thereafter through a strategy of product diversification.

One of its most popular early products was a high-speed frequency counter that it introduced in It was used in the rapidly growing market of FM radio and television broadcast stations for precisely setting signal frequencies according to Federal Communications Commission regulations. Military sales during the Korean War also boosted company revenues.

Lessons from Ken Olsen and Digital Equipment Corp.

To help fund the development of new products, Hewlett-Packard raised money by issuing public stock in In addition, it embarked on a long campaign of expanding its product line by acquiring companies, beginning the year after it went public with the purchase of F.

Moseley Company, a maker of graphic recorders. In it began its climb to status as a medical-instrument manufacturer with the purchase of Sanborn Company.

The history organization and strategy of compaq computer corporation

In Hewlett-Packard instrumentation gained international recognition in a technological publicity stunt. Four years later the company introduced the first desktop calculator.

Inusing advanced integrated-circuit technology, Hewlett-Packard unveiled the first pocket-sized calculator. Selling at one-sixth the price of the original desktop unit, the pocket calculator eventually forced the obsolescence of the venerable slide rule.

Hewlett-Packard's HP calculator, Reproduced with permission of the Hewlett-Packard Company Archives Although the company never developed weapons systems, it depended heavily throughout its history on military spending, because its instrumentation has been used to develop and test military products, particularly as weapons systems have become more dependent on electronic and semiconductor technologies.

A Mega-Merger

The military expertise of Hewlett-Packard was underscored in when U. In the company released the HP general-purpose minicomputer—a product line that remains in use today—for use in business.

In an engineering intern at the company, Stephen G. Wozniakbuilt a prototype for the first personal computer PC and offered it to the company.and head of the company’s computer systems organization, succeeded Young in both positions. Carleton S. Fiorina replaced Platt as president and CEO in of HP in Carleton S.

(Carly) Fiorina Carly Fiorina, 47, graduated from Stanford University with a bachelor’s degree in medieval history and philosophy.

In , its first full year of production and the year Compaq became a publicly traded corporation, the company shipped 53, portable PCs for more than $ million in revenues—at the time the most by any first-year company in U.S.

business history. Compaq Computer Corporation was founded in February by Rod Canion, Jim Harris and Bill Murto, three senior managers who left Texas Instruments and invested $1, each to form their own company.

Their first idea was a portable personal computer that was sketched on a paper placemat in.

The Merger Rationale

Eventually, Compaq Computer bought DEC in , and then Hewlett-Packard later acquired Compaq. What have we learned from Digital Equipment Corp.'s experience? Here are three management lessons from DEC's rise . The story of Digital Equipment Corp.

(DEC) was one of a dramatic rise and fall: DEC was an entrepreneurial computer company that grew to $14 billion in sales and employed an estimated , people worldwide at one point.

Compaq Computer Corporation, former American computer manufacturer that started as the first maker of IBM-compatible portable computers and quickly grew into the world’s best-selling personal computer brand during the late s and ’90s.

Compaq - Computing History