by Ed Scannell

HP to keep strategy, adjust focus on operations

news
Feb 14, 20051 min

Product strategies should remain intact

In the wake of Hewlett-Packard Chairman and CEO Carly Fiorina’s resignation last week, most industry observers believe the first order of business for her successor will be to deal with a number of operational issues.

Although the company will need to shift the focus of some of its product strategies in the short term, the more pressing concern is to find a CEO who can profitably manage the company’s broad range of products.

“HP has two solutions to consider: One is to change the strategy, and the other is to change the operational basis of the company,” said Martin Reynolds, an analyst at Dataquest. “They have chosen to go with the operational approach.”

Reynolds said HP will need to work hard to rebuild its server business and to make its professional services group more profitable. Most analysts do not expect HP to spin off any major divisions.