Hewlett-Packard, also known as HP, is a company that produces computers and software programs. Up until now they’ve dominated both marketing points from printers, to computers, to computer software. This one-stop-shop company plans to split into two different companies. After the announcement, the company’s stocks climbed about 4.7% by the closing bell of the New York Stock Exchange. That closing price is nearly double their shares from a troubled 2013 year. The company plans to split in two so that each can focus on their prospective aspects.

“By separating into two companies with quite distinct markets and customers, we’ll be able to move faster to take advantage of the changing customer needs and accelerating our product and innovation road map,” HP Chief Executive Officer Meg Whitman, who will be taking control of the new Hewlett-Packard Enterprises, said. The company she will inherit will focus on the hardware and services portion of the old HP. The other half of the split will be HP Inc. which will focus on PC and printer operations. That portion will be led by Dion Weisler, who is currently the Vice President of HP.

While this was primarily done so that the two separate companies could focus on the different sides of the markets, many people are questioning how well this work for the company.

“After seeing these businesses evolve, there’s an increasing need for hardware and services together,” Tech analyst Bob O’Donnell stated, explaining how the company will have to try to survive in this growing market after separation.

All that can happen now is wait and see as HP splits and watch what they can do with these two new separate companies. Make or break it’s all up to how HP plays its cards with their product lines and customers.

FSA Connection Questions

1. In the article, the author would disagree that HP made the right decision?
2. In this piece, the word “revenue” means what?
3. The author seems to offer what main idea?
4. Select the best two sentences from the story that support the idea of marketing?
5. What is the connotation of the word “masses” in the story?