Groupon Inc (GRPN): How These CEOs Chart a Course Toward Profits

Upon becoming the CEO of Hewlett Packard Company (NYSE:HPQ) in 2011, Meg Whitman stated she would develop and execute a five-year plan. So far, she’s pleasing investors. For instance, Whitman increased HP’s cash position to nearly $2.8 billion in the end of April (up nearly 175%) so that it could pursue new ventures as described below. And its fiscal second-quarter earnings beat expectations.

HPQ Free Cash Flow data by YCharts

Whitman recognizes that HP cannot continue to supply goods for the declining PC industry. As a result, Whitman and her team are committed to generating revenue by offering more products and services in the growing mobile and cloud computing sectors.

For example, HP recently landed a landmark contract as 20^th Century Fox’s strategic cloud partner. In this capacity, HP will help Fox drive growth through cloud based services while building and supporting an infrastructure to support technological functions. While the cost of the deal is unknown, HP will likely earn a profit, but perhaps even more importantly, gain the observant eyes of potential future clients.

Conclusion

Understanding the individuals who direct businesses may help lead investors to make better decisions. It is evident that competent leaders are navigating the above firms toward the land of monetary returns. Will you jump aboard?

The article How These CEOs Chart a Course Toward Profits originally appeared on Fool.com.

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