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Group E: Balmaceda , Henry Montez, Monea Parra, Jorge Tjia , Claire

Group E: Balmaceda , Henry Montez, Monea Parra, Jorge Tjia , Claire . DELL Description . 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 ”

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Group E: Balmaceda , Henry Montez, Monea Parra, Jorge Tjia , Claire

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  1. Group E: Balmaceda, Henry Montez, Monea Parra, Jorge Tjia, Claire

  2. DELL Description • 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)

  3. Major Factors in the External Enviornment • # 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

  4. Evaluating the company • Impacting industry standards • 2011 4th Quarter revenue

  5. Major challenges faced in the past three years • 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

  6. Major challenges faced now and the next 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

  7. The Management Team • 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. • Presidents • 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

  8. “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

  9. The Structure Keeping 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. • 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 CEO Executive Assistant Vice Presidents Presidents

  10. Coping With Challenges • PC (The XPS14z ) • Increasing their R&D department • storage systems, security, services and networking • Shortage in Hard Drives • IT Department

  11. Lesson Learned • Embracing change • Expanding their portfolio • Expanding their R&D department • Marketing their product in other countries

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