HP Changes Executive Leadership for Quick Turnaround

As part of Hewlett-Packard Company tactic to prevent a larger-than-expected decrease in profits and forecasted zero sales growth in 2014, changes on the executive leadership rank has been implemented, repositioning a key executive in identifying probable acquisitions.

Reuters reported that the decision is a move to escape further loss in sales of personal computers due to its rivalry with smartphone and tablets. in fact, Hewlett-Packard Company’s Chief Executive Meg Whitman has been reshaping the company for the past couple of years..

Whitman appointed Bill Veghte to replace Dave Donatelli to be in control of the company’s Enterprise Group, the second-largest business division.

Donatelli, the former chief of the department which sells software, servers and storage services to huge organizations, will now focus on distinguishing early-stage technologies for investments. He has led most of the company’s very important achievements in the past years, which includes 3Com and 3PAR that aid propel the company deeper into the storage and networking markets.

For HP’s continued transformation, as acclaimed by Whitman in an interview with Reuters, it will be back in the market for strategic acquisitions.

Mr. Veghte, on the other hand, quickly took over as the head of the division and will not be reinstated as the company’s chief operating officer. Mr. Veghte, after his two decade career at Microsoft Corporation, which honed his heading in business side of the Windows Department, joined Hewlett Packard in 2010. He was also trained in Microsoft’s server software development and marketing.

Hewlett Packard’s overall net income of in the quarter closed to $1.39 billion or 71 cents per share, in comparison to $8.9 billion loss a year earlier when it engulfed a huge writedown of the IT outsourcing business it experienced when the company acquired Electronic Data Systems in 2008.

Given this company’s revenue trend, nothing is risky. All efforts must be exhausted in order to make a big comeback and defeat the revolutionary smartphone and tablets.