HP named Meg Whitman, who is a member of HP’s board of directors, as the company’s CEO. While it is still too early to pass the verdict if Ms. Whitman can successfully turn the embattled company around, the new CEO does has her work cut out for her.
Share prices have declined by half since the start of the year and HP’s decision to spin off its PC division (Personal System Group) and stop TouchPad sales two months after launching the product confounded both investors and HP’s customers. Ms. Whitman stressed that the board intends to stick to its earlier decisions. Euromonitor International wrote in August that HP’s decision to stop TouchPad sales makes sense in view of the competitive OS landscape. We also expressed our misgivings that there will be any takers for its PSG and suggested HP to explore licensing model.
All eyes will be on Ms. Whitman as she determines her next course of action. Whatever decisions she makes, it has to be swift and incisive in order to instill confidence in HP’s employees, business partners and customers. Failing could lead to the CEO carousel continuing.