Executive Summary This report discusses the use of project teams in achieving objectives of a given project in an organization. In this case, the report discusses the use of project team in a merger between Hewlett-Packard (HP) and Compaq companies in the computer industry. The merger was important in trying to solve the crisis facing both companies. Although the management of these two companies enabled the companies to grow significantly, they failed in achieving set targets of their respective companies. These crises with both companies were accelerated by high competition in the computer industry. This led to an agreement between the CEOs of both companies to merger them. The process of a merger between these two companies meant changes in human resource, communication and management. The report thus discusses how teams are used in the merger project to ensure its success. The merger starts with approval by stakeholders of both companies after a hard convincing by management. The teams called clean teams are formed from employees of both companies. The clean teams adopted different strategies to create a unified culture out of the different cultures of the two companies. The team members carry out different responsibilities but reporting to two team leaders selected from both companies. These clean teams are faced with conflicts regarding which aspects to adopt and which to drop from both companies. The aspects and products which are more advantageous are chosen while others are dropped. Those employees whose products are dropped lose their jobs but are compensated or taken in other jobs. The management communicates either good or bad news to employees to gain their trust and reduce their resistance. The merger thus succeeds through use of clean teams to implement the project. Introduction Organizations in the same industry normally compete against each other in the same market as they sell the same products. When the individual organization’s internal strategies fail to enable them meet targets, they face a great risk of failure. In the many options of trying to avoid failure organization in the same industry can merger to form one company which will succeed and comp­­­ete efficiently in that industry. This report discusses the merger between Hewlett-Packard (HP) and Compaq companies in the computer industry. This report analyses different aspects of the merger with emphasis on human resource, communication and integration of management (Piven 2001). Merger Background In 1999, HP chose Fiorina as its CEO, who worked hard to transform the company old culture and structure as a way of improving it. Her work of pushing for more focus in services led to an increase of the company’s stock from $54.43 to $74.48 (Carleton, and Lineberry, 2004). Though this was a great success to her, the company failed to meet its targets. The company started to cut down on jobs but with no success with its stock value declining significantly. The company’s internal strategies were not working anymore. Fiorina came up with the idea of merger between HP and Compaq through buying of stock (Williams 2001, 3). Merger context The merger was to happen in 2001 with Carly Fiorina planning to acquire Compaq through buying of its stock. Fiorina wanted to ac