Personal Computer and Dell

Topics: Dell, Personal computer, Alienware Pages: 14 (4371 words) Published: June 13, 2012
Case Study # 3
Dell Inc;
Changing the Busines Model (Mini Case)
MGT 504: Strategic Management

Prepared For

Tanvir H Dewan
Course Co-ordinator
College of Business Administration

Prepared By

Group: Indestructible
Name| ID #| Program|
Dipika Mazumdar| 11104017| MBA|
Md.Heron Mia| 11304035| MBA|
Md.Zainal Abdin| 11304037| MBA|
Md.Mofigul Islam| 11304028| MBA|
Syed Badrus Sattar| 11304025| MBA|
Md.Yeasin| 12104026| MBA|
Md.Rajib Hossain| 12104021| MBA|
Md.Shohel Rana| 11204001| MBA|
Md.Sharif Hossain| 11104001| MBA|
| | |

IUBAT-International University of Business Agriculture and Technology


Dell Inc:
In 1983, Michal Dell Started his own business while in college. The company he started was PC’s Ltd.Which was the forerunner to Dell Inc, today. Dell started his business with a simple concept which is made to order computer. The computer was to be direct sales to consumer. Dell maximized his profits by bypassing distribution and retailers. Although has product was sold by retailer he soon took product out of the stores and continue to focus on direct sales.Initialy Dell started selling computers by mail and phone order then until 1994 when he started a website to sell his computer. At this point dell became the first computer company to have a website; By 1996the website sells increased dramatically leading the company to be a largest retailer on the internet by 1999.As of day .Dell is the largest personal computer supplier in the world with under 18 percent of the global market.

I. Current Situation
A. Current Performance:
Fiscal Year 2005 ( Dell’s fiscal year ended in early February or late January of the same calendar year) was an outstanding year in which the company earned $3.6 billion in net income on $55.8 billion in net income. Soon, however, increasing competition and cost pressures began to erode Dell’s margins. Even though the company’s net revenue to $ 2.6 billion in 2007 with a slight increase to $2.9 billion in 2008. The “great recession” of 2008-2009 took its toll on both Dell and the computer industry. Dell’s fiscal 2010 (ending January 29, 2010) net income fell further to $1.4 billion on $52.9 billion in net revenue. Sales improved during calendar year 2010 as the global continued to increase to $57.4 billion in fiscal year 2007 and $ 61.1 billion during fiscal year 2008, its net income dropped economy showed signs of recovery. Net revenue for February through July 2010 increased $30.4 billion compared to only $25.1 billion during the first half of 2009, while first half net income rose to $886 million in 2010 compared to $762 million during the same period in 2009. Nevertheless, Dell’s net income was only 2.91% of net revenue during the first half of 2010 contrasted with a much rosier 6.45% DURING 2006.

B.Corporate Governance

The board consists of nine directors. Michael Dell, the founder of the company, serves as chairman of the board and chief executive officer. Board members include Don Carty, Gray, Judy, Klaus Luft, Alex Mandl, Michael A. Miles, and Sam Nunn. C.Tope Management

Michal S Dell
Chairman of Board and CEO
Jeffrey W clark
Vice chairman and President of global operation
Brain T Gadden
Senior Vice president and Chief financial officer
Naamdi j orakwea
Executive assistant to CEO
Karen h Quintos
Senior vice president Chief marketing
Brad R Anderson
President Enterprise solution
Steven j felice
President chief commercial officer
David al Johnson
Senior vice president Corporate strategy
Stave H oprice
Senior vice president Human Resources

II.External Environment:

A. General Environment:

General Environment Technological SegmentDellisinthebusinessofprovidingtechnology.Because of this it must stay up to date with the current technology available to its consumers. It attempts to do this by keeping strategic partnerships with its suppliers to have current...
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