Company Analysis of Dell Inc.

1. Presented by Group C: ArbyArtoonian, Jessica Thomas, Richard Orozco, Alex Fajardo & Sam Hacopian Company Analysis of Dell Inc.

2. About Dell • Leading company in PC manufacturing • Creates products for consumer and business environments • Builds Desktop PC’s, Laptops, Storage Devices, Software Etc.

3. External Environment 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.

4. 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

5. 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

6. Dell’s Present and Future Challenges • 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

7. 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 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

8. Dell’s Management Team Continued • 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

9. 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.

10. 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.

11. 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.

12. THANK YOU!