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!