TO:                  Pam Stovak

FROM:           Vince D’Agostino

DATE:                        30 March 2011

SUBJECT:     BusinessWeek Article Review (Extra Credit 4)

The name of the article is “HP Cancels the Board and the Beautiful”.  I found the article in the January 31- February 6, 2011 issue of BusinessWeek on pages 33-40 and the author is Barrett Sheridan.  Overall, the article was about how Hewlett Packard thought they might have press being leaked.  Because of this, they hired several investigators to spy on fellow directors and reporters.  This unfortunately created a scandal within the company which eventually led to the CEO leaving the company.  Hewlett Packard then found Mark V. Hurd, an unknown numbers guy from NCR.  Everything was going smooth until an actress-turned-marketing consultant triggered Hurd’s abrupt resignation. HP has been trying to overhaul their company over the past years so they can be more profitable, and have better management and leadership.  The things they have done are:

1.    Get Rid of Current CEO

a.    Carly S. Fiorina was always considered controversial, but after the press release scandal she did not fit at the company anymore.

2.    New Management

a.    Chairman Raymond J. Lane and new CEO Leo Apotheker both arrived soon after the press release scandal.

3.    Freshen Up Board of Directors

a.    5 directors either resigned or were let go in order to make way for the new faces

b.    HP is trying very hard to get its management back on track and new people are good for company who is looking for a turn around.

Overall, I thought the article was very informative and informed me about what was happening inside Hewlett Packard.  They had a few rough spots starting with the press release scandal, then having their CEO replaced because they did not like her direction only to have the new CEO resign because of a marketing consultant.  Things are improving for them though, and they feel as though they are on the right path now.