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Commentary on the present and future of culture, politics, economics, and social values................... "At any given instant/All solids dissolve, no wheels revolve,/And facts have no endurance." W.H. Auden.

Friday, February 11, 2005

Hewlett Packard Sinking

So, Carly Fiorina has been pushed out as the boss of Hewlett Packard.

Sorry to say "we told you so." But we did. When she was appointed we said it was a mistake. When she negotiated the purchase of Compaq in 2002, we advised everyone who owned shares in the company to sell them STAT. Buying Compaq was the wrong choice and indicated Carly did not know what she was doing. Old thinking in a time that required creativity and innovation.

Carly thought she could be safe by becoming a media celebrity. The only woman to head a super Fortune 500 company, etc. Well, celebrity status did not save her, though it prolonger her career beyond any reasonable point . Incompetence and failure finally trumped celebirity.

The only problem is that the HP board waited too long to dump her. Her damage to the company was total. While HP might stagger into the right decision -- specializing in manufacturing printers -- it is too late. HP will not survive. The rise in the share price of HP since Carly's firing is a false positive. HP is hurrying on a dowward trajectory. Its only hope for survival is to be bought by someone else (Dell?).

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