Group E: Balmaceda, Henry Montez, Monea Parra, Jorge Tjia, Claire 1986 Founder and CEO Michael Dell Mission Statement: “To be the most successful computer company in the world at delivering the best customer experience in markets we serve ” Sells: personal computers, servers, network switches, software, HDTV’s, cameras, etc. Merged with Alienware(2006) and Perot Systems (2009) # 1 in servicing healthcare industry #2 in education Active in acquires of businesses in the information tech industry 2011 nine new Solution Centers opened 3 Key Integrations Form Impacting industry standards 2011 4th Quarter revenue Dell’s relatively weak research, development and engineering (R&D) capabilities Dell’s lower margin compared to their peers Decline in the PC market Intense competition between competitors such as HP, IBM, Sony, and others Dell’s relatively weak research, development and engineering (R&D) Dell has a lower margin compared to their peers Decline in the PC market Keep track in consumer Shift in consumer trend Intense competition Presidents •Enterprise Solutions •Chief Comm. Officer •Global Oper. & End User Computing Solutions •Dell Services •Software Vice Presidents •Chief Financial Officer •Corporate Strategy •Human Resources •Chief Marketing Officer •General Counsel Management Around the World •Management in India is still focused in selling personal computers. Management changed in 2010 to have a better team in becoming India’s #1 sold computer. •Management in Australia/New Zealand was focused on expanding their IT services. A new management team of 3 top managers was establish to expand their small business solutions. Dell says they want to “maintain strong internal development capabilities…partner, rather than compete, with top industry technology suppliers and original development manufacturers…” What We Say What People Say What Really •Dell Wants to improve •Dell needs to start Happened the value added to their selling through •Dell computers can products suppliers (2007) now be bought •Dell has to look at their •Dell doesn’t have a through retailers. Value Chain competitive advantage: •Recently advertised •Dell wants to do more no cost leadership, no new laptop, XPS 13 Joint differentiation (2010) •Expanded from a Ventures/Acquisitions •Dell has a lack of focus. computer producer (Vertical Integration Attempted tablet to IT system Backwards, Buy market (Streak) (2010) provider Suppliers) Keeping to a traditional company structure, Dell is structured under a Functional Structure where they have functional areas instead of production areas or regional areas. This type of structure works because even though Dell is a worldwide company, the product and service is very similar with very little variation. •Enterprise Solutions Michael Dell Nnamdi Orakwue Brad Johnson Jeffrey Clarke* Stephen Felice Stephen Schuckenbro ck •Chief Comm. Officer •Global Oper. & End User Computing Solutions* •Dell Services •Software CEO Executive Assistant John Swainson •Chief Financial Officer •Corporate Strategy •Human Resources •Chief Marketing Officer •General Counsel Vice Presidents Presidents Brian Gladden David Johnson Steve Price Karen Quintos Lawrence Tu PC (The XPS14z ) Increasing their R&D department storage systems, security, services and networking Shortage in Hard Drives IT Department Embracing change Expanding their portfolio Expanding their R&D department Marketing their product in other countries