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HP Forum Archive 20

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Comparing HP and Dell
Message #1 Posted by Palmer O. Hanson, Jr. on 15 Mar 2011, 10:25 p.m.

The article "Rebooting their systems" on pages 73-74 of the March 12-18 issue of The Economist discusses prospects for HP and Dell. It is interesting readiing. Here's a sentence from the article:

Quote:
HP's boss will also need to decide whether the computers-to-calculators company, which has $126 billion of annual revenues and 325,000 employees, can continue to dabble in so many areas.
      
Re: Comparing HP and Dell
Message #2 Posted by bill platt on 15 Mar 2011, 10:52 p.m.,
in response to message #1 by Palmer O. Hanson, Jr.

$388.000, revenue per employee

            
Re: Comparing HP and Dell
Message #3 Posted by Martin Pinckney on 16 Mar 2011, 1:20 a.m.,
in response to message #2 by bill platt

I guess you are using the European radix.

In my little company, I would consider one fourth of that to be wonderful.

                  
Re: Comparing HP and Dell
Message #4 Posted by Bill Wiese on 16 Mar 2011, 3:59 a.m.,
in response to message #3 by Martin Pinckney

When we were targeting ourselves to be bought (or other 'exit strategy' perhaps) we were trying to achieve/exceed the magic > $1 million per employee that investors love. That's the sign of growth + a lean operation.

Bill Wiese San Jose CA

                        
Re: Comparing HP and Dell
Message #5 Posted by Andrés C. Rodríguez (Argentina) on 16 Mar 2011, 7:53 a.m.,
in response to message #4 by Bill Wiese

These kind of ratios (revenue/employee, etc.) are meaningless and misleading, except for a few cases where other data is also taken into account. Revenue is not the same than profit, profit is not the same than return from investment, and so on. But, sadly, many decision makers make their assesments just based on such ratios... Some of the consequences are visible almost everywhere.

                              
Re: Comparing HP and Dell
Message #6 Posted by bill platt on 16 Mar 2011, 10:47 a.m.,
in response to message #5 by Andrés C. Rodríguez (Argentina)

Yes! You could have $2millions revenue per employee, but be borrowing to make their paychecks....

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