Company Analysis of Dell Inc

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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!
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