Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors. The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D. The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue. The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017. To identify: Whether its CEO, the board of directors, or both have to be blamed for Company H’s shareholder value destruction and determine whether the shareholders have any recourse.

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Chapter MC, Problem 20.1DQ

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Company H is one of the largest technology companies in the world. Started in 2010, Company H is now one of the largest with revenue of $127 billion in 2011. Company H is a leading producer of desktop computers, laptops, printers, and computer hardware. The case explains the problems in Company H’s board of directors.

The problem began when the company started to violate the code of ethics after the death of its founder, Person H. The problem grew when the company’s confidential information was leaked in an anonymous article. Person D, the CEO of Company H, started the secret surveillance of board members and found the person who leaked the information. This issue led to the outbreak of a bigger problem, which led to the resignation of one of the members of the board and the termination of Person D.

The company then selected Person H as the new CEO, under whom the company grew financially strong. However, Person H was filed a lawsuit by Person JF, who worked as a hostess at Company H-sponsored events, which made him resign. Next, the company appointed Person LA (as the CEO) who suggested focussing on enterprise software solutions business. The business constituted $25 billion and the hardware business grew to 40 percent of HP’s total revenue.

The board members fell victim to group thinking as Person RL, the board chair, supported Person AP. More problems arose when an outside firm proposed Person AP be the CEO which later led to step down of Person RL as chair of Company H’s board. Person MW, led the company as the CEO, and divided the business into hardware and another enterprise which performed decently in 2017.

To identify: Whether its CEO, the board of directors, or both have to be blamed for Company H’s shareholder value destruction and determine whether the shareholders have any recourse.

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