company analysis of dell inc
DESCRIPTION
Presented by Group C: Arby Artoonian , Jessica Thomas, Richard Orozco, Alex Fajardo & Sam Hacopian. Company Analysis of Dell Inc. About Dell. Leading company in PC manufacturing Creates products for consumer and business environments - PowerPoint PPT PresentationTRANSCRIPT
Company Analysis of Dell
Inc.Presented by Group C:Arby Artoonian, Jessica Thomas, Richard Orozco,
Alex Fajardo & Sam Hacopian
About Dell Leading company
in PC manufacturing
Creates products for consumer and business environments
Builds Desktop PC’s, Laptops, Storage Devices, Software Etc.
External EnvironmentStrengths/Opportunities: Robust market position Good cash flow generation Emerging economies create
growth Gaining market share in cloud
computingWeaknesses/Threats: Weak R&D Lower margins compared to
peers Tablets cannibalizing PC sales Intense completion from Apple,
HP, Acer, Cisco etc.
Company Performance
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 2009 2010 10/28/11 ($MILL.) Cash Assets $11,008 $14,365 $13,838 Receivables 5,837 6,493 6,690 Inventory (FIFO) 1,051 1,301 1,397 Other 6,349 6,862 6,331 Current Assets $24,245 $29,021 $28,256 Accts Payable $11,373 $11,293 $11,107 Debt Due $663 $851 $1,831 Other 6,924 7,339 7,281 Current Liab. 18,960 19,483 20,219
SALES ($ mill.) 2008 61101 2009 52902 2010 61494 2011 61800 2012 61800
Major Challenges in the past three years
Low R&D spending over the years compared to competitors
Low innovation Sales numbers
decreased in certain years
=Revenue =Price
Dell’s Present and Future Challenges
Present Challenges:Comparatively weak R&DLower profit margins against competitors
Future Challenges:Tablets cannibalizingDependence on PC marketIntense competition from powerful rivals:Apple, HP, IBM, servers & tablets
Dell’s Management Team
Dell is dynamically comprised of both the Board of Directors and the Management Team.
Functions of Board of Directors:Management planning and oversightStrategic and operational planningFinancial reportingGovernance, compliance and risk managementGeneral advice to management
Functions of Management Team:Organizing managementStrategic and operational planning and implementationManaging riskFinancial reporting
Dell’s Management Team Continued
Key Management & Executive Members:Michael S. Dell - CEOBrian T. Gladden - CFO/Senior Vice
PresidentDavid Johnson - Senior Vice
PresidentJeffrey Clarke - Vice ChairmanKaren H. Quintos - Chief Marketing
Officer/ Senior Vice PresidentSteve H. Price - Senior Vice
President Human ResourcesStephen Felice - President, CCO,
Division Officer
Strategy and Structure of Dell
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.
Potential Solutions for Dell’s Challenges
Expanding products & services to emerging markets i.e. China
Investing on Cloud computing Developing new products such as
tablets to capture market share.
Lessons Learned from Dell
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!