Presented by Group C:
Arby Artoonian, Jessica Thomas, Richard Orozco,
Alex Fajardo & Sam Hacopian
Leading company
in PC
manufacturing
Creates products
for consumer and
business
environments
Builds Desktop
PC’s, Laptops,
Storage Devices,
Software Etc.
Strengths/Opportunities:
Robust market position
Good cash flow generation
Emerging economies create
growth
Gaining market share in
cloud computing
Weaknesses/Threats:
Weak R&D
Lower margins compared to
peers
Tablets cannibalizing PC
sales
Intense completion from
Apple, HP, Acer, Cisco etc.
Increases in R&D
spending over the
past years
Reducing the portion
of low-margined
products in its sales
mix
Difficult sales climate
ahead with economic
issues and natural
disasters.
Unfavorable earning
estimates for Dell in
2012
CURRENT POSITION
($MILL.)
Cash Assets
Receivables
Inventory (FIFO)
Other
Current Assets
Accts Payable
Debt Due
Other
Current Liab.
SALES ($ mill.)
2008
2009
2010
2011
2012
61101
52902
61494
61800
61800
2009
2010
$11,008
5,837
1,051
6,349
$24,245
$11,373
$663
6,924
18,960
$14,365
6,493
1,301
6,862
$29,021
$11,293
$851
7,339
19,483
10/28/11
$13,838
6,690
1,397
6,331
$28,256
$11,107
$1,831
7,281
20,219
Low R&D
spending over
the years
compared to
competitors
Low innovation
Sales numbers
decreased in
certain years
=Revenue
=Price
Present Challenges:
Comparatively weak R&D
Lower profit margins against competitors
Future Challenges:
Tablets cannibalizing
Dependence on PC market
Intense competition from powerful rivals:
Apple, HP, IBM, servers & tablets
Dell is dynamically comprised of both the Board of
Directors and the Management Team.
Functions of Board of Directors:
Management planning and oversight
Strategic and operational planning
Financial reporting
Governance, compliance and risk management
General advice to management
Functions of Management Team:
Organizing management
Strategic and operational planning and implementation
Managing risk
Financial reporting
Key Management & Executive
Members:
Michael S. Dell - CEO
Brian T. Gladden - CFO/Senior Vice
President
David Johnson - Senior Vice
President
Jeffrey Clarke - Vice Chairman
Karen H. Quintos - Chief Marketing
Officer/ Senior Vice President
Steve H. Price - Senior Vice
President Human Resources
Stephen Felice - President, CCO,
Division Officer
Dell has implemented a growth strategy that
consists of delivering results, investing for
growth and building on their strengths.
Dell tailor’s its business based on a mixed
structure. The structure revolves around
product structure and customer structure.
Customers are divided into enterprise large
companies, medium-small businesses and
personal consumers.
Expanding products & services to
emerging markets i.e. China
Investing on Cloud computing
Developing new products such as
tablets to capture market share.
Dell’s centralized structure allows
greater control from top managers.
Keep managers and employees
engaged in the company’s goals
and standards.
Keep costs low to ensure low prices
for consumers.
Intensely research a new market
before entering to maximize
efficiency and price of the product.
THANK YOU!