Why HewlettPackard Should Acquire the Consulting Branch of PricewaterhouseCoopers

1
Why Hewlett-Packard Should Acquire the Consulting
Branch of PricewaterhouseCoopers

• FIVE 20 Consulting Inc.
• Group 4
• October 11, 2000

2
The Situation

• PwC put its consulting arm on sales market
• HP announced interest in expanding its
  consulting services
• High margins
• Competition
• Complete solutions
• HP and PwC engage in negotiations
• 18 billion for cash and stock

3
Options for Expansion

• HPs options
• Organic growth
• Outsourcing
• Alternative acquisitions
• PwC consulting acquisition

4
The Proposition

• Hewlett-Packard should acquire the consulting
  branch of Pricewaterhouse Coopers
• Five areas of criteria and explanation
• Cultural fit
• Shared strategic vision
• Leadership in e-Space
• Global footprint
• Complementary customer mix

5
Cultural Fit

• Two different cultures combining
• Merger of individuals and groups
• Factors to be addressed
• Retaining PwC consultants and clients
• HP must offer equal or improved benefits package
• Successful integration programs
• Maintain the identity and reputation of each
  company

6
Shared Strategic Vision

• PwC Strategies
• Customer relationship management
• Data warehousing
• Enterprise application integration
• IT infrastructure
• HP Strategies
• Solutions engineered for the Internet
  environments
• Open systems
• Anticipate and embrace technology shifts

7
Leadership in e-Space

• Will offer a wider variety
• Gain competitive edge to IBM
• IBM planning on doubling e-Space

8
Global Footprint

• Acquisition will allow HP to
• meet the fundamental shift in business landscape
• Expand its consulting market overseas
• Make high marginal profits

9
Complementary Customer Mix

• Companies share customer base
• Both with something to offer
• One stop shopping

10
Recommendations

• Integrate organizational structures
• Provide autonomy to new branch
• All current PwC partners to uphold same status
• Give free reign of day-to-day operating decisions
• Separate HP manufacturing from consulting
• Do not violate antitrust laws

11
Conclusion

• HP should merge with PwC
• Restate criteria
• Cultural fit
• Shared strategic vision
• Leadership in e-Space
• Global footprint
• Complementary customer mix
• PwC is the best choice and both companies would
  prosper

12
We will now take any questions
13
Thank You!