Presented by Group H: Abigail Smith, Glen McDonald, Lee Kryzinski, Tom Hoang, Jerry Jimenez

1. Presented by Group H: Abigail Smith, Glen McDonald, Lee Kryzinski, Tom Hoang, Jerry Jimenez

2. Company Description • Currents CEO and founder Michael Dell, founded the company in 1984. • Designs, manufactures, and sells its extensive line of products. • Products include: desktop PCs, laptops, servers, peripherals among many others • Offers its technology products to consumers, education, enterprise, and government sectors in the United States and throughout the world.

3. External Environment Technological: • Constant changing technology • Increased need for resources for R&D • Playing “catch-up” in the mobile and tablet market Economic: • Increased cost of labor in United States and Europe • High unemployment rate

4. External Environment Legal: • Several lawsuits in the past couple of years • Accounting Fraud • Pricing Error • Misleading advertising • Defected products Competitive: • HP, Apple, IBM, Acer, Toshiba

5. Company Performance • Became a $12 billion company in a mere 13 years. • Reported a $61.4 billion revenue for 2011 • Stock currently valued at $17.31/share • Invest $2.7 billion in their own stock • Meets customer expectations with: competitive pricing, individual and company accountability, best-in-class service and support, flexible customization capability, and superior corporate citizenship

6. Current and Future Challenges Current: • Paid $100 million to SEC for accounting fraud • In June 2010, faced lawsuit regarding the discovery of known problems with their desktop computers Future: • Declining Sales due to desktop maturity • Dealing with the changes of a competitive technology market

7. Management Team

8. Strategy Of The Firm • Product development and innovation • Globalization and joint ventures • Diversification • Forward vertical integration • Horizontal integration • Strategic alliances

9. Structure Of The Company • Wide and flat functional structure • 3 levels, CEO Dell has a span of control of 14 executives totaling 26 employees • Highly specialized departments make up a sub-divisional structure within the main functional organization • Utilizes a divisional structure with respect to different parts of the world

10. Dealing With Current Challenges • Advanced Internet Technologies lawsuit- used the crisis management strategy which focuses on redirecting blame to the manufacturer of the capacitor, a part of the computer’s internals, and communicating its dedication to customers and quality

11. Dealing With Current Challenges • Accounting Fraud: • Minimized the crime and emphasized their positive attributes and compliance with the SEC as to save goodwill with the public • Did not explicitly admit or deny to the deed, but paid the fines, agreeing to refrain from future violations of the securities laws • Agreed to improve its disclosure process by hiring an outside consultant and expanding its training of employees

12. Dealing With Current Challenges • Declining Sales – • Controlling R&D patents in key industry technologies • Introducing new innovative services • Company is shifting focus from corporate PCs by increasing Dell’s presence in retail outlets, buying storage and software companies and getting back into the mobile device market with phones and forthcoming tablet computers

13. Lessons Learned • Efficient and effective product differentiation strategy • Optimizes profits through a four-point growth strategy • Despite problems (lawsuits, fines, and aggressive competitors) succeeds by doing exceptionally well in: • Product life-cycle management • Supplier management • Forecasting • Liquidity management

14. The End