http://www.businessweek.com/technology/content/nov2010/tc20101123_292435.htm
Key Ideas:
The title itself, “HP’s New CEO Steps Up Research Spending,” had mainly got my attention. To start off Leo Apotheker’s term as a CEO, he’d like to put attention and spend money for research and development with the goal of serving the business buyers even better. As he would say, it’s just an inkling of how he would lead the company.
Impact on Business:
As we all know, a lot of competition within the technology companies exists. Companies like Hewlett-Packard offers a wide selection of products such as desktops, laptops, and printers that have undergone through a lot of research before each product where put on the market. Being the world’s largest computer maker, it’s hard to imagine how much pressure is on Apotheker. I therefore concur that the best way to start off Apotheker’s career is put more attention on research and development. It’s a great way to know what is already in the market, what is there to innovate or any other relevant information once the research is conducted. It’s all for the goal of meeting the consumers’ need.
Hewlett-Packard had increased spending on research and development, partly to create software that can make its products more compelling to customers. Though this action, no questions asked, is also disadvantageous for the company. Increasing the spending on R&D means more expense there is for the company which consequently means there is less proceeds available for the shareholders and stakeholders. But Apotheker has assured the shareholders and stakeholders that everything will circle back and will get the benefit from that expense and the rest of article have shown how the company is doing better with regards to their revenue and EPS.
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