It was recently announced that Hewlett Packard has decided to create two separate entities,  with one  carrying out the production and supply of PCs and printers (plus printing related products). The other division will operate the production and distribution of various softwares and PC compartments/ hardwares (Anders) .

The decline of the Roman empire was attributed to many things. One of them was over expansion. The “uncontrollable” growth of HP was probably not the pushing reason of this division (many conglomerates have grown and still continue to exist in many countries) , but possibly a cause for taking a preventative measure in a stagnant industry such as the one they operate in. Smaller units allow energy and resources to be diverted fully into a single focus.

This division does eliminate a benefit of synergy that HP once had. In times of need the resources, expertise and money of the other division can not be easily used. However, the split smartly paired up printing with PC. The PC industry thrives on innovative and frequently changing design, whereas customers demand pretty much the same design specifications from printers. Ink cartridges also require little resource input for R+D and have high profit margins. The stability of the printing section will grant continuous revenue stream and allow creative energy to be diverted to the PC section.

Works Cited List 

Anders, George. “Hewlett-Packard Plans To Split In Two, WSJ Reports.”Forbes. Forbes Magazine, 05 Oct. 2014. Web. 05 Oct. 2014.