University of Phoenix
STR/581
October 3, 2016
Mini-Strategy for Dell
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Dell Values - Vision Statement:
"Dell is committed to being a good neighbor in the communities we call home. We must continue to grow responsibly – protecting our natural resources and practicing sustainability in all its forms – and improve the communities where we live and work through our financial and volunteer efforts.“
www.dell.com
Vision Statement
Dell’s vision statement is more visionary around being a good neighbor in the community. Protecting natural resources and improving communities where we live and work though financial and volunteer efforts.
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Dell being a good neighbor in the community by donating to charities, employees volunteering time to local charitable organizations. Dell also believes in the “green” theory of making computers. Dell also makes donations to replenish the ground by planting more trees.
It doesn’t stress the strategy of where the company is going or headed, it states that the company is involved in the community and is involved in keeping the environment clean.
It is inspiring to know the company is concerned with the community and the environment. I think there needs to be a vision with the customers to show how important they are to the company. I did learn that each department or segment has their own vision statement.
The vision statement really does not promote history, customer base, strengths, unique capabilities, resources or assets.
Evaluation of Vision Statement
The vision statement speaks more about being a good neighbor and giving to the community and environment, and being a good neighbor. It really does not speak to visionary goals for the company or strategies. Dell has always given back to the community through volunteer work from employees, through financial assistance, and community involvement.
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Dell is committed to leaving a positive, measurable, and lasting contribution to our society.
Dell is committed to putting technology and expertise to work where it can do the most good for people and the planet. With the long term sustainability plan it is focused in three areas, to benefit the environment, strengthen our communities, and engage our people in a diverse and inclusive workforce.
Environment: By incorporating environmental sustainability into every aspect of what we do, we provide customers with solutions that give them the power to do more while minimizing our collective impact on the planet.
Communities: When Dell team members apply their passion and unique skills in combination with our technology toward social change, it amplifies the effect of our grants and accelerates positive results in the communities where we live and work.
People: In order to enable people everywhere to grow and thrive, we first need to build enduring relationships with our fellow team members across the globe.
Dell’s Current Goals and Objectives
Dell’s current goals and objectives talks about society and giving back to people, and being a positive influence. Dell wants to do good for people and the planet and do things to help the environment. Strengthen communities and having a diverse workforce.
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Leadership: Dell has currently purchased EMC and just formed Dell Technologies. We have a brand new leadership team that will be taking over, with new organizational change. Michael Dell as a leader is always coming up with new innovative ideas and the company has been evolving and changing about every five years. His vision is something bigger and better.
Board Members: Board Members are newly formed by Michael Dell as Director and Chairman of the board, and Directors Egon Durban, Simon Patterson, Ellen Kullman, Bill Green, David Dorman. http://phx.corporate-ir.net/phoenix.zhtml?c=254397&p=irol-govBoard
Number of Employees: 140,000 Globally
Assessment of Dell’s current status
Dell’s leadership has currently changed as far as directors under Michael Dell since the purchase of EMC. The company though is currently under reorganization. There will be realignment of managers and employees, as well as a layoff of 2000-3000 employees.
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Structure: Dell + EMC merging equals Dell Technologies. It is the parent entity. He has his Chief Executives figured out, but still going through the restructuring change for the rest of the company’s organizations.
The original PCs portions of the former Dell Inc, became a subsidiary still known as Dell Inc., including former WYSE (now Dell WYSE) and other assets acquired over the years. Branded as simply Dell (formal name: Dell Client Solutions Group).
The server related portions of the former Dell Inc became integrated with the storage systems portion of the former EMC Corp.
EMC Corp itself became Dell EMC, and also incorporating the former server related product lines of Dell Inc., known as Dell EMC Infrastructure Solutions Group
The other members of the EMC federation became subsidiaries of Dell Technologies, including Pivotal Software, RSA Security, Virtustream, Secureworks and the 80% portion of VMWare, a public company.
Portions being sold:
Dell Services, formerly mainly Perot Systems sold to NTT Data Corp
Dell Software, formerly mainly Quest Software, Sonicwall, Kace and other portions sold to Francisco Partners and Elliott Management Corporation
Con’t Assessment of Dell’s Current Status
This is currently the structuring of Dell. We have Dell and EMC merging to create Dell Technologies the parent entity. The original PC’s is under Dell Inc. The reason behind is Enterprise products fall under Dell EMC. The other members or subsidiaries EMC owned is under Dell Technologies. Dell sold part of Dell Services to NTT Data Corporation. Dell Software to Quest Software. The others to two other partners.
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Weaknesses
Part of services sold that brought in strong revenue, lost large customers
Organization bureaucracy.
Frequent job rotation causes less dedication of current role and lack of long-term commitment.
Most current software solutions rely on client-side software installations; weak cloud-based and service-based solutions.
Long time-to-market and low reputation on enterprise products of initial launch, usability, server installation openness and business ethics.
Threats
Fierce competition in all cloud segments.
Loss of opportunities to re-enter the mobile operating system market.
Changes of customer behavior and market needs, e.g. cloud-based and service-based solutions.
Loss of competitiveness may result in loss of bargaining power or even customers’ boycott.
Strengths
Absolute dominance in desktop operating system and office productivity markets globally.
Extremely high brand awareness.
Strong financial base.
Strong research and development teams.
Strong relationship with PC hardware manufacturers.
Opportunities
Leveraging traditional strengths on office productivity solutions on mobile.
Cloud-based solutions.
Service-based business model instead of license-based business model.
SWOT Analysis
This is a time period where we are relying on our enterprise products to bring in the most revenue. We have seen sales decline because of customers not being familiar with Dell EMC products together. It will take time for awareness from customers to learn about the products and for sales representatives to teach the customers and have them purchase the products.
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Dell Technologies – Dell is private company only financials on website.
http://investors.delltechnologies.com/phoenix.zhtml?c=254397&p=irol-newsArticle&ID=2200233
Annual Revenues
Dell is a privately owned company. I could not get five years worth of statements and the only taxes was the EBITDA. They are currently moving this to the Dell Technologies page and it is under construction. You can see net revenue declined some between 2015 and 2016 at the six month end. Operating income took a loss but not as big. Net loss from continuing operations was still at a loss but not as large. There is not a whole lot of change.
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Key Business Highlights:
14th consecutive quarter of year-over-year share gains in PCs;
Grew worldwide commercial PC's 6.2 percent and gained 90 basis points of unit share;
Consumer PC share outperformed the industry worldwide gaining 110 basis points of unit share;
Servers and Networking revenue grew 1 percent year-over-year; Dell Storage SC product line revenue grew 13 percent; and,
No. 1 worldwide flat-panel monitor provider for 13th consecutive quarter.
Financial Results http://investors.delltechnologies.com/phoenix.zhtml?c=254397&p=irol-newsArticle&ID=2200233
Fiscal Year 2017 Second Quarter Results:
Revenue was $13.1 billion, up 1 percent from the previous year;
Operating income for the quarter was $63 million, reversing an operating loss from the previous year;
Non-GAAP revenue in the quarter was $13.1 billion, flat from the previous year;
Non-GAAP operating income was $752 million, a 32 percent increase from the previous year;
Cash flow from operations in the quarter was $1.9 billion. On a trailing twelve-month basis, cash flow from operations was approximately $3.2 billion, up 50 percent; and,
Cash and investments totaled $7.5 billion, up $1.2 billion over the prior quarter.
This is the financial results with the business highlights and fiscal year 2017 second quarter results. In the 2017 second quarter results revenue was $13.1 billion up 1 percent from the previous year. Dell reversed the operating loss. The overall picture looks like Dell is slowly coming out of a slump.
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Competitor Bench Marking http://www.slideshare.net/ArghyaSarkar1/dell-analysis-43522430
In Competitor Benchmarking we are doing a Competitor Analysis. We can see that the top company with market share is Lenovo and then there is HP. Dell leads in third place. But Lenovo’s weaknesses are relatively unknown brand and HP is weak customer support. Dell’s weakness is high dependency on suppliers. If you notice the growth Lenovo is first and Dell is a close second, with HP losing in market share in third place. Lenovo’s strengths is mass production with Dell’s being no inventory build up. I believe the dependence on suppliers is due to no inventory build up. Lenovo seems to have the top advantage in the market.
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Return to core competencies – lets get back to the basics
Return the segments back to Federal, Public, Global, Large Corporate Accounts, Small, Medium Business, K-12 Education, Higher Education, State and Local Government and Personal and quit making things complicated.
Marketing road show for Dell Technologies.
Dell is very decentralized.
Strategic Advantages to Realize Growth
This would help the company get back to basics. It pushes the company to improve its competencies which helped differentiate it from the beginning. Improvements in customer service, addition of suppliers, new marketing campaigns, the modification of sales and expansion of turn-key solutions. This strategy would widen Dell’s competitive advantage through the refinement of its existing core competencies.
Dell split the accounts up according to how much revenue they bring in, and now people have to guess what segment they belong to. Lets bring that part back to basics. Get rid of the acquisition accounts that have no dedicated sales representative and be there more for our customers. The basic segments worked better.
A marketing road show would be perfect to market Dell Technologies so that customers become more aware of the technology. We built a datacenter in back of a semi truck before. Lets do it again and take it on the road and show it to our customers.
With all the outsourcing and selling of services, software and security. There seems to be no where to go when there is an issue with a customer who has a project or service with these items. Lets build an organizational chart on the Dell intranet so we know how to reach people in departments and organizations.
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Born February 23, 1965 in Houston, Texas and showed an early interest in technology and gadgets. At the age 15, he purchased an early Apple computer in order to take it apart to see how it worked.
In college he started building computers and selling them directly to people, focusing on strong customer support and cheaper prices. Dell Computer’s was the world’s largest PC maker.
In the 1980’s he launched the creation of the Dell Computer Corporation in a University of Texas dorm room. By 1992, just eight years after Dell was founded, Michael Dell was the youngest CEO of a Fortune 500 company.
While in college he found the niche that became his boom. The PC world and he realized that no company had tried selling directly to customers. Bypassing the middleman and the markups, Dell tapped into his savings account for $1,000 and started building and selling computers to people he knew at college.
Profile of Michael Dell
This is Michael Dell’s profile. He started from a child interested in technology to building computers in his dorm in college. Now he is a billionaire that owns his PC company.
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In 1984, Dell’s first year in business, he had $6 million in sales. By 2000, Dell was a billionaire and his company had offices in 34 countries and employee count of more than 35,000. The following year, Dell Computer surpassed Compaq Computer as the world’s largest PC maker.
Overall, Dell’s first 20 years prove to be one of the most successful businesses on the planet.
In recent years not everything has gone right for him or his company. Poorly built computers resulted in the company taking a $300 million charge to fix the faulty machines, a huge issue that took Dell off the perch on top of the industry.
July 2010, he ran into penalties with the SEC and had to pay more than $100 million in order to settle charges of accounting fraud that had been filed by the SEC.
February 2013, he took the business private. He reached an agreement with Silverlake Partners and Microsoft to launch a buyout of all outstanding shares of stock.
October 7,2016 Michael Dell sells part of services and Dell Software and purchases EMC and now the company is Dell Technologies
www.dell.com
Profile of Michael Dell Continued
He had a bit of a shake up with faulty computers and fines with the SEC. Now he has restricted his company with the buyout of EMC and will cater mostly to enterprise products, services and cloud. I am interested to see where this will take his company since it is brand new.
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http://en.community.dell.com/dell-blogs/dell-shares/
http://www.dell.com/learn/us/en/uscorp1/2020-goals
http://globalmarketing.dell.com/ci/CI%20Portal%20Analyst%20Report/tbr_dell_1q16_cbq.pdf
http://investors.delltechnologies.com/phoenix.zhtml?c=254397&p=irol-newsArticle&ID=2200233
http://www.slideshare.net/ArghyaSarkar1/dell-analysis-43522430
http://investors.delltechnologies.com/phoenix.zhtml?c=254397&p=irol-newsArticle&ID=2200233
http://phx.corporate-ir.net/phoenix.zhtml?c=254397&p=irol-govBoard
References
Fiscal Year 2017 Second Quarter Results
Three Months Ended
Six Months Ended
July 29,
2016
July 31,
2015
Change
July 29,
2016
July 31,
2015
Change
(in millions)
(in millions)
Net revenue
$ 13,050
$ 12,975
1%
$ 25,263
$ 25,500
(1%)
Operating income (loss)
$ 63
$ (103 )
NM
$ (80 )
$ (414 )
NM
Net loss from continuing
operations
$ (264 )
$ (292 )
NM
$ (690 )
$ (738 )
NM
Non-GAAP net revenue
$ 13,115
$ 13,098
0%
$ 25,406
$ 25,763
(1%)
Non-GAAP operating
income
$ 752
$ 568
32%
$ 1,287
$ 959
34%
Adjusted EBITDA
$ 880
$ 673
31%
$ 1,519
$ 1,165
30%
Article note-taking worksheet
Center the title of the article you are reviewing here
Provide an APA formatted citation in this area as shown below:
Savicki, V., & Cooley, E. (2011). American identity in study abroad students: Contrasts, changes, correlates. Journal of College Student Development, 52(3), 339-349.
Prepared by Dr. Norman St. Clair, Dreeben School of Education, University of the Incarnate Word, 2014
In this assignment, you will use your individual approved target enterprise. Create a 10- to 12-slide Microsoft® PowerPoint® presentation for a Mini-Strategy using the Mini-Strategy Outline. Include the following in your outline:
· Develop strategic recommendations to the board of directors including rationale.
· Evaluate the potential generic strategies being considered.
· Assess the potential value disciplines being considered for the organization.
· Evaluate the potential grand strategies for the organization.
· Assess potential global strategies for the organization.
See WEEK 5 Assignment Clarification posted in the Announcements area of the classroom for additional instructions.
Format Be sure to include title slide, and reference citations must be presented on unique slide. Be sure citations list is complete, i.e. course text (Hitt, Ireland, and Hoskisson) target enterprise, and any additional research conducted.
Format Be sure to include title slide, and reference citations must be presented on unique slide. Be sure citations list is complete, i.e. course text (Hitt, Ireland, and Hoskisson) target enterprise, and any additional research conducted.
