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A bottle-rocket start Founded by Texas Instruments executive Joseph "Rod" Canion in 1983, and backed by Venture Capital fund Sevin Rosen, Compaq boasted $111 million in sales in its second year. The reason for the company's success was simple: the newest technology in a crisp, IBM-compatible package. What's more, it offered more computers more powerful than Big Blue's, for about the same price. Compaq kept its overhead costs low and boosted its sales by granting exclusive dealership rights to stores across the country. Staying strong With new, smaller competitors coming into the PC market every day, Compaq had to find a way to compete. To do so, the company developed mid-priced portable computers and cut prices on some of its best-selling models. Compaq expanded its sales force and purchased Tandem Computers in 1997. Back then the goal was to reach the $40 billion sales mark by the year 2000. With $25 billion in sales in its 1997 fiscal year, and the title "1997 Company of the Year" from Forbes magazine, the company seemed to be on the right track. Compacting Compaq Things were running smoothly for Compaq until mid-1998, when inventory began to collect and Dell Computer entered the scene with a new built-to-order program. Compaq sales leveled off and it struggled to redevelop its manufacturing and distribution process. Then in June 1998, Compaq acquired Digital Equipment for the impressive sum of $8.7 billion, making it the second largest computing company in the world. The resultant Compaq has a combined annual revenue of $31 billion. After paying $5.4 billion to finance the merger, Compaq announced that it would eliminate overlap by gradually cutting thousands of jobs worldwide -- mostly from Digital's end -- through plant closings and consolidations. When 1999 finally rolled around, Compaq's stock had dropped and profits were not what they used to be. Bye Bye Pfeiffer Not only had Wall Street lost faith in CEO Eckhard Pfeiffer, but so had Chairman Ben Rosen. During a dramatic Sunday afternoon meeting, the company's board forced company president Eckhard Pfeiffer to resign. According to Rosen, "we must have the organizational flexibility necessary to move at Internet speed." Apparently Pfeiffer wasn't moving fast enough. One of the key problems was Pfeiffer's refusal to institute a build-to-order model a la Dell and Gateway. After enduring a stressful search period Compaq selected Michael D. Capellas as its new CEO in July 1999. Capellas was formerly chief operating officer at the company, and he caught the tech world by surprise when Rosen promoted him to take the helm at such a rocky time for Compaq. Other executive positions, vacated shortly after Pfeiffer's departure, waited to be filled for months afterwards. Honeymoon's Over In an attempt to right the company's course and restore the glory days of the 1980's and early '90's, Capellas is enacting a major restructuring effort that has already included cutting 17,000 employees and shutting down several plants. Now that Compaq has lost its market share position as the number one provider of PC's nationally to long-time competitor, Dell, Capellas has to do a lot more than cut the workforce. Playing catch-up In January 1999, Compaq finally got on the e-commerce bandwagon (way behind rivals like Dell and IBM), with the puchase of Shopping.com, an online retailer and e-commerce software maker. The company launched a portal site combining the online shopping service with its Alta Vista search engine (acquired along with Digital Equipment). Since then, Compaq has focused on targeting e-businesses and becoming known as an Internet company. Most recently, that has meant launching the new and improved AlphaServers, dubbed Wildfire boxes, from which the company projects to realize an initial billion dollars. By mid-2000, the AlphaServer systems held the second highest overall market share, about 19 percent, in the total technical systems and servers market. It has also meant combining Compaq.net Internet access service with Microsoft's MSN, in addition to setting aside over one billion dollars for Internet-related business. The growing e-business services arm, NonStop eBusiness, moves at the speed of the Internet by providing nonstop e-Business solutions. "Everything to the Internet!" Capella continues to follow his cree, "Everything to the Internet," looking to change the company's image into a youthful online firm. New products coming out of the consumer unit, like the MP3 Player, are aimed to promote that image. It still remains to be seen whether or not Compaq's iPAQ Pocket will be as cool as its competitor, the Palm organizer. Regardless, Compaq expects to rake in over one billion dollars worth of tiny iPAQ's. The company continues to struggle with major competitors Dell, Sun, and IBM, but the purchase of Inacom Corp., renamed Custom Edge, will lead Compaq away from expensive indirect sales and enable the company to be more competitive. While the company is still the largest provider of PC's in the world, it still seeks to regain the title from Dell for providing in the United States. In July 2000 Compaq announced a deal with IBM to begin selling each other's products and to make their storage hardware and software interoperable. That same month Compaq also launched a joint venture with CMGI called Freeup, a company that will offer Internet-based products, services, and information for professional communities. With $9 million in backing from CMGI and $11 million from Compaq, Freeup plans to garner revenues from sales of online services.
Compaq accepts resumes through both e-mail and regular mail. Applicants should consult the company's career Web page, located at www.compaq.com/jobs. The Web page enables applicants to construct a resume on-line, provides a link to a list of career opportunities, and offers a calendar of Compaq's upcoming recruiting visits around the nation. Insiders say Compaq looks for "self-driven, friendly, customer-oriented, friendly workaholics." Once in the door, our contacts say, "you could expect to be in a position for 18 months before being eligible to move to your next job at Compaq." You may email your resume to Compaq at careerpaq@compaq.com. Plain ASCII text, please.
Giant benefits A "universally-respected" industry giant, Compaq has created a "high energy," "fluid" work place for its employees. So-called "fast-trackers" in the company sometimes work "intense, long weeks," but they are rewarded with a pay scale that is "substantially above average" for the computer industry. Added to the compensation is a profit-sharing plan that insiders say paid six percent of a full-time employee's salary each of the last four years. "Middle management and above" receive stock options. "Compaq has a culture that employees have grown to love," says one insider. "It pays its people well and rewards successful ones. It is definitely a team effort, with everyone pulling together." This "team" atmosphere has some very concrete manifestations: "Almost everyone lives near the main campus." Says another: "Most of Compaq is on a first name basis." Diversity: still a ways to go As for diversity issues, employees report that there is a "high percentage of women and also a significant percentage of employees of Asian, Hispanic, and African American descent." However, one female insider reported "mentoring relationships which are easier between older white males in power and younger white males in whom they see themselves reflected a generation ago." "At Compaq we've made a lot of progress but there is still more to do," the insider said. Cush environs... to come Employees at Compaq's Houston headquarters call the campus a "technological mecca" that provides perks such as an "an outstanding internal Web site" and intramural sports. Internal job postings, meanwhile, create "frequent" advancement opportunities within the company. "We have very comfortable and attractive facilities" at the Houston headquarters, says one insider. "We are now building a gym and central cafeteria facility on site. It will be called Compaq Commons. There will be a conference and convention center there too." Crowded employees at this rapidly expanding company are also pleased to note that "they are building two new 10-story office buildings, as we are at overcapacity now." Houston HQ bonuses Employees dress casually in the Houston heat. "Dockers is a well-known name around here, and Fridays are generally known as blue jeans and T-shirt days. Some shorts tend to slip in during the summer too." Despite a bit of crowding, employees still enjoy the main campus (or, as it's known to techie employees, CPQMS). "I have a lovely office that faces a woodland, and I can see deer at night," says one insider. Another contact praises the also praises the locality: "There are several nice and reasonably priced subdivisions nearby." Other bonuses include athletic facilities and a plethora of eating choices. "For lunch, we have the Olive Garden, Shipley's Donuts, and a few fast food restaurants." Also, "we have a running track that winds through the campus. We have showers too." One employee adores Compaq's "check-out policy" which allows you to "take home the latest in Compaq tech for your personal use. When it's obsolete, just return it and get a new one."
Human Resources
Personal Computers; Servers; Business solutions
Apple Computer;Dell Computer;Gateway;IBM;Hewlett-Packard;Micon Electronics More Company Profiles For more career information, go to Vault.com ©2000, Vault.com Inc
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