Group E:Balmaceda, Henry

Montez, MoneaParra, JorgeTjia, Claire

1986 Founder and CEO Michael Dell Mission Statement: “To be the most

successful computer company in the world at delivering the best customer experience in markets we serve ”

Sells: personal computers, servers, network switches, software, HDTV’s, cameras, etc.

Merged with Alienware(2006) and Perot Systems (2009)

DELL Description

# 1 in servicing healthcare industry #2 in education

Active in acquires of businesses in the information tech industry

2011 nine new Solution Centers opened 3 Key Integrations Form

Major Factors in the External Enviornment

Impacting industry standards 2011 4th Quarter revenue

Evaluating the company

Dell’s relatively weak research, development and engineering (R&D) capabilities

Dell’s lower margin compared to their peers

Decline in the PC market Intense competition between competitors

such as HP, IBM, Sony, and others

Major challenges faced in the past three years

Dell’s relatively weak research, development and engineering (R&D)

Dell has a lower margin compared to their peers

Decline in the PC market Keep track in consumer Shift in consumer trend Intense competition

Major challenges faced now and the next three years

The Management TeamPresidents• Enterprise Solutions• Chief Comm. Officer• Global Oper. & End User

Computing Solutions• Dell Services• Software

Vice Presidents• Chief Financial Officer• Corporate Strategy• Human Resources• Chief Marketing Officer• General Counsel

Management Around the World• Management in India is still

focused in selling personal computers. Management changed in 2010 to have a better team in becoming India’s #1 sold computer.• Management in Australia/New

Zealand was focused on expanding their IT services. A new management team of 3 top managers was establish to expand their small business solutions.

“So what’s the plan?”Dell says they want to “maintain strong internal development capabilities…partner, rather than compete, with top industry technology suppliers and original development manufacturers…”What We Say• Dell Wants to improve

the value added to their products• Dell has to look at their

Value Chain• Dell wants to do more

Joint Ventures/Acquisitions (Vertical Integration Backwards, Buy Suppliers)

What People Say• Dell needs to start

selling through suppliers (2007)• Dell doesn’t have a

competitive advantage: no cost leadership, no differentiation (2010)• Dell has a lack of

focus. Attempted tablet market (Streak) (2010)

What Really Happened• Dell computers

can now be bought through retailers.• Recently

advertised new laptop, XPS 13• Expanded from a

computer producer to IT system provider

The StructureKeeping to a traditional company structure, Dell is structured under a Functional Structure where they have functional areas instead of production areas or regional areas. This type of structure works because even though Dell is a worldwide company, the product and service is very similar with very little variation.

Michael Dell

Brad Johnson

Jeffrey Clarke*

Stephen Felice

Stephen Schuckenbro

ck

John Swainson

Brian Gladden

David Johnson Steve Price Karen

QuintosLawrence

Tu

Nnamdi Orakwue 

CEO

Executive Assistant

Presidents Vice Presidents

• Enterprise Solutions• Chief Comm. Officer• Global Oper. & End User

Computing Solutions*• Dell Services• Software

• Chief Financial Officer• Corporate Strategy• Human Resources• Chief Marketing Officer• General Counsel

PC (The XPS14z ) Increasing their R&D department storage systems, security, services and

networking Shortage in Hard Drives IT Department

Coping With Challenges

Embracing change Expanding their portfolio Expanding their R&D department Marketing their product in other countries

Lesson Learned