Authors

Washima Huq

Document Type

Honors Thesis

Abstract

This study was conducted to compare and contrast the net income, share price, and brand image of two multinational corporations that experienced CEO succession in 2011: Apple Inc. and Hewlett-Packard Co. Apple had implemented a succession plan but HP had not. This comparison helps strengthen the claim that succession planning at the CEO level is a key factor in a company’s success. This study was conducted by gathering information from the Securities and Exchange Commission, Yahoo Finance, Consumer Reports, and scholarly articles on succession planning. The opening share price increased by $13.17 for Apple and $0.47 for HP on the day of the transition. Since Apple launched many products, the consumer reports were positive, while HP did not have a substantial difference in reviews or brand image. Apple had an increase in net net income while HP had a $1 billion decrease. This reinforces the argument that a planned succession is likely to be more successful than one that is not.

Publication Date

5-1-2014

Language

English

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