Thank You (Basic) To reproduce the video effects on this slide, do the following: On the Home tab, in the Slides group, click Layout , and then click Blank . On the Insert tab, in the Media group, click Video , and then click Video from File . In the left pane of the Insert Video dialog box, click the drive or library that contains the video. In the right pane of the dialog box, click the video that you want and then click Insert . Under Video Tools , on the Format tab, in the Sizing group, click the arrow to the right of Size launching the Format Video dialog box, select Size from the left pane and under Size in the right pane do the following: Click the Lock Aspect Ratio box. In the Height box, enter 6.03” . In the Width box enter 8.03” . Also in the Format Video dialog box, click Border Color in the left pane, under Border Color in the right pane select Solid Line , and then click the arrow to the right of Color , and under Theme colors select Black, Text 1, Lighter 25% (fourth row, second option from left). Also in the Format Video dialog box, select Border Style in the left pane, under Border Style in the right pane set the Width to 15 pt . Also in the Format Video dialog box, select Shadow in the left pane, under Shadow in the Right pane, click the arrow to the right of Colors and under Theme Colors , select Black, Text 1 (first row, second option from left), and then do the following: In the Transparency box, enter 60% . In the Size box, enter 100% . In the Blur box, enter 21 pt . In the Angle box, enter 40 degrees . In the Distance box, enter 19 pt . Also in the Format Video dialog box, select 3-D Format in the left pane, under Bevel in the right pane click the arrow to the right of Top and under Bevel , select Relaxed Inset (first row, second option from left), and then do the following: To the right of Top , in the Width box, enter 6 pt . To the right of Top , in the Height box, enter 16.5 pt . On the Home tab, in the Drawing group, click Arrange , point to Align , and then do the following: Click Align Center . Click Align Middle . Under Video Tools , on the Playback tab, in the Video Options group, select Loop until Stopped . On the Animations tab, in the Animation group, select Play . On the Animations tab in the Timing group, click the arrow to the right of Start and select With Previous . To reproduce the text effects on this slide, do the following: On the Insert tab, in the Text group, click Text Box , and then on the slide drag to draw a text box. Type text in the text box (“Thank You” – or whatever text suits your message). Select the text, on the Home tab, in the Font group, select Garamond from the Font list, select 88 pt from the Font Size list, and then click on the Bold icon. Also in the Home tab, in the Font group, select the arrow to the right of the Font Color Icon, and then under Theme Colors , select White, Background 1 (first row, first option from left). With the text box selected, under Drawing Tools , on the Format tab, click the arrow in the bottom right corner of the WordArt Styles group, click the arrow opening the Format Text Effects dialog box. In the Format Text Effects dialog box, click 3-D Format on the left pane, under Bevel on the right pane, click the arrow next to Top and under Bevel select Relaxed Inset (first row, second option from left). Set the Width to 5 pt and the Height to 3 pt . Also in the 3-D Format right pane, under Surface , click the arrow next to Material and under Special Effect select Dark Edge (first row, first option from left). Also in the 3-D Format right pane, under Surface , click the arrow next to Lighting and under Neutral select Soft (first row, third option from left). Also in the 3-D Format right pane, under Surface , set the Angle to 290 Degrees . Close the Format Text Effects dialog box. To reproduce the background effects on this slide, do the following: On the Design tab, in the bottom right corner of the Background group, click the arrow at the bottom right corner launching the Format Background dialog box. In the Format Background dialog box, select Fill in the left pane, and under Fill in the right pane select Solid fill , then click the arrow to the right of Color and under Theme Colors select White, Background 1, Darker 50% (sixth row, first option from left). Close the Format Background dialog.
Dell Corporation originationDELL INC. was founded in 1984 by Michael Dell atage 19 while he was a student living in a dormitory atthe University of Texas. As a college freshman, hebought personal computers (PCs) fromthe excessinventory of local retailers, added features such asmore memory and diskdrives, and sold them out ofthe trunkof his car. He withdrew $1,000 in personalsavings, used his caras collateral fora bankloan,hired a few friends, and placed ads in the localnewspaperoffering computers at 10%–15% belowretail price. Soon he was selling $50,000 worth of PCsa month to local businesses. Sales during the firstyearreached $600,000 and doubled almost every yearthereafter. Afterhis freshman year, Dell left school torun the business full time.
Company Background Dell Inc. established in 1984 by MichaelDell Inc. established in 1984 by MichaelDellDell Operational regions : Americas; Europe,Operational regions : Americas; Europe,Middle East and Africa (EMEA); Asia-Middle East and Africa (EMEA); Asia-Pacific and Japan (APJ)Pacific and Japan (APJ) Employs more than 82,700 peopleEmploys more than 82,700 peopleworldwide.worldwide. Grew during the 1980s and 1990s toGrew during the 1980s and 1990s tobecome an internationally known brand.become an internationally known brand. Direct Business Model is the foundationDirect Business Model is the foundationfor Dell’s business.for Dell’s business. Dell was the number one supplier ofDell was the number one supplier ofcomputer systems and became secondcomputer systems and became secondworldwideworldwide
Company History In 1996, Dell began selling computers via its web site. 2001, Dell overtookCompaq to become the largest sellerofpersonal computers in the US. Dell achieves No. 1 ranking in global market share in 2001 In 2003 , name was changed to "Dell Inc.“ In 2006, Dell purchased the computerhardware manufacturerAlienware In January 2009, Dell announced that they will withdraw allmanufacturing from Limerickand move it to its new plant inthe Polish city of Lodz by January 2010. Raised theircost-reduction target to 4$ billion. Cost Cutting methods leaded tothe revenue Generated peremployee 1mio (tripled of IBM,twice HP’s) outsourced some operations (ie component production , expressshipping) own assembly line in low laborwages countries Cost pressuresleaded to change manufacturing strategy (closed company’sdesktop plants in Texas and Tennessee in 2008 and 2009 2011)to outsource (In Europe closed its Ireland plant and sold its
Organizational Departments Strategies Just on Time Technique Mastered process engineering andsupply chain management Spent less on R&Dthan did otherOpponents ( 1% of sales on R&Dversus the 5% typically invested byotherlarge computerfirms) Imitatorin New technologies 95% of Dell’s notebookcomputerswere assembled in Dell’s plants inMalaysia and China. Dell also plans to double itsEnterprise business (server, storageand networking) from ~18.0 billionto ~$30.0 billion by 2014. Thisexpansion activity will be backed bycontinued acquisition of scalabletechnologies and strong organicgrowth.
Dell Inc. FourP’sA technology imitating Product that have the newFeatures afterbeing standardized.Dell machines were made to orderand delivereddirectly to the customer. The company had nodistributors orretail stores.Dell PCs had consistently been listed among the bestPCs on the market by PC World and PCMagazine.Competitive Price low cost (not perceived asproviding high-quality Products)
Market is Changing 2006 sales Growth 5%with aForecast 7% sales Growth 2010-2015. Between 2006 -2010,HPreplacedDell as Market leader, & Dell wasnow battling with Acerforsecondplace Personal computerbecame acommodity , consumers were nolongerinterested in paying top dollarfora computerunless it was“unique“, what created a markettrend towards Apple Mac Laptops. New Tablet Technology Cut 25% ofPC notebooksales since itsintroduction in April throughAugust, 2010. Dell countered the iPad with a tabletcomputercalled Streakin May 2010,but failed to generate muchenthusiasm orsales forthis product.
Market is Changing corporate buyers increasinglypurchased theircomputerequipmentas part of a package of services toaddress specific problems, service-oriented rivals like IBM, HP, andOracle had an advantage overDell. Allof these competitors had made largecommitments to servers, software, andconsulting—all having highermarginsthan personal computers. IBMhadsold its laptop, hard drive, and printerbusinesses to focus on building itsservices business Hewlett-Packard acquired ElectronicData Systems in 2008 to boost itsexpertise in services. By offering customers a package ofservers, software, and storage, HPdominated the servers business with32% market share, with IBMcloselyfollowing with 28% share of themarket. Oracle’s acquisition of Sun Microsystemsgave it 8% of the servermarket. Dell offered x86 open-systemservers. Inorderto bettercompete in the largeenterprise market segment. Dell purchased Perot Systems, an ITservices company, in 2009. Even afterthis acquisition, however, servicesaccounted foronly 13% of Dell’s sales.In 2010, Dell attempted to acquire 2PAR,a data storage firm, but was outbid byHP.
VISION STATEMENTDell’s vision is“… to lead in all regions we serve. The foundation of our success is the same in theUnited Kingdom and France , China and Japan, Canada and other countries.Customers want technology products that are relevant to them, offer great valueand can be easily purchased and used. That’s what our team around the globeconsistently delivers”). Dell’s vision is quite focused and assumes customerneeds to be somewhat homogenous throughout the world.Evaluate VisionDell provides a classic example of how the principles of strategicmanagement have been used to translate an innovative vision into asuccessful and sustainable enterprise. Their vision statement basically tellsthe way they do their business. They want to be successful in the digitalworld for this they rely on lates ttechnology. Dell provides quality productsto cater the needs of the people. In intend to build good relationship withtheir customers and suppliers.KEY TOWARDS STRATEGIC PLANING
MISSION STATEMENT Dell’s mission is to be the most successful Computer Company inthe world atdelivering the best customers experience in markets we serve. In doing so, Dellwill meet customer expectations of: Highest quality , Leading technology, Competitive pricing ,Individual and company accountability, Best-in-class service and support, Flexible customization capability, Superior corporate citizenship, FinancialstabilityEvaluate Mission The company primarily deals in PCs, servers and software operating on twoscales of business namely B2B and B2C. This customer base includes largeenterprises, small and medium businesses, government and consumers. Dell is aglobal company with presence in over world wideKEY TOWARDS STRATEGIC PLANING
Mission Statement Evaluation MatrixFirm CustomerProducts& servicesMarkets Profit &GrowthTechnologySelf-ConceptPublicImageEmployeesDellInc,Yes Yes Yes Yes Yes Yes Yes No Covered most of the elements that should be cover however it neglectedCovered most of the elements that should be cover however it neglectedthe employees.the employees.un-memorable Mission , Too Longun-memorable Mission , Too Long..VALUESVALUESfirst priority is to be a successful business and that means investingfirst priority is to be a successful business and that means investingfor growth and balancing short term and long term.for growth and balancing short term and long term. ´
the Board of Directors of Dell (the "Board") has established aGovernance and Nominating Committee (the "Committee") Most Of the Top Management were assembled and integrated ofexperienced executives from companies like Motorola, Hewlett-Packard,and Apple. July 2004, Kevin Rollins replaced Michael Dellas Chief Executive Officer,allowing the founder to focus on being Chairman of the Board. Thissituation did not last long. Michael Dell owned 11.7% out of the org shares , however all the othermembers owned 1% onlyCorporate Governance
Corporate GovernanceName DesignationMichael S. Dell Chairman & CEODonald J. CartyLaura Conigliaro FinanceWilliam H. Gray, III Governance and Nominating (Chair); Leadership Development andCompensationAlex J. Mandl Presiding DirectorAudit (Chair), Governance and Nominating Ross Perot, Jr.James W. Breyer Finance (Chair)Janet F. Clark AuditKenneth M. Duberstein Governance and NominatingGerard J. Kleisterlee Leadership Development and Compensation, Finance Klaus S. Luft AuditShantanu Narayen Leadership Developmentand Compensation (Chair) Board members include:
EXTERNAL ANALYSES - PEST ANALYSESExternal Environment A scan of the external macro-environment inwhich the firm operates can be expressed in terms of the followingfactorsExternal Environment A scan of the external macro-environment inwhich the firm operates can be expressed in terms of the followingfactorsPolitical FactorsIssues of environment policies has affected Dellas Dell came under significant pressure from environmentalgroups across the US to assume responsibility for its oldproducts and this experience sensitized company officials tothe risks and opportunities of state and federal e-wasteregulations and the need to take proactive steps against them.Economic FactorsHigh tariffs on IT products makes Dell difficult to enterother markets apart from USAdell aimed to manufacture its products which are moreuser friendly and can be afforded by youngprofessionals, because purchasing power of workingpopulation saw an increase over the past few decades.Social FactorsIncrease of younger population and working population haveled to the increase of the use of computers. A technologicalrevolution has been around the corner, people have becometechsavy ,that have resulted in the increase in the demandfor computers .These days people have time constrains and asa result of it they prefer to buy the product online ,which hasgiven Dell an advantage over others because of dell.com.IT FactorsTechnological changes are happening at a veryfast rate due to which Dell is able to provide advancedtechnology products to the customers. As a result oftechnological changes Dell has also increased theirproduct line. It is adopting to the technological changesas he old technology is becoming obsolete. One of themost important affets of technological changes thathave led to the increase of the demand of Dellcomputers is their Direct Business Model. They haveexcellent ecommerce capabilities, which can be seenwith the success of the dell. The recent technologicalchanges can be seen in their recent products like NewPower Edge Serversthe network-internet,extranet to reach the corners ofthe world.
Ecological FactorsThe dot com bubble was in between1997-2000 ,which was in the boom of the Company growth,however it didn’t affect the company growthrates..Legal FactorsOperating in USA that depends on the Privatesector in the economy offered Dell a bigopportunity to grow with no legal issuesHIGHModerateINTENSEHIGHHIGHExternal Analysis:Porter’s Five Forces
External Analysis: - Porter’s Five ForcesThreat of New Entrants – High IBM, Compaq and HP also entered to Market The entry of new comers is quite difficult because of the entrybarriers that are caused by:· Buyer loyalty· Brand name· Low price·Award winning customer service· Customization Decreasingprofitability shows that there is a threat of new entrants. HPovertook dell few yrs back .Substitutes – High Strong presence of PC’s throughout society· One computer for every three people in the U.S. Customer service· Direct Business ModelHowever, high price, and lack of software support prevent people fromswitching to Apple system.
External Analysis - Porter’s Five ForcesThreat of Rivalry: Moderate Price War · Decreasing profitability· Low differentiation however, in the midst of sever competition, Dellcan still gain market share from other competitors. That provesDell’s business strategies have been successfulBargaining Powerof Buyer: High Highly price sensitive· The cost leader has high market share which leads to highbargaining power relative to its suppliers· Reliability and customer service become important factors.· Dell’s products are very reliable and customer service isoutstanding.These two factors help Dell to create certain brand loyalt. But that’sgiven the fact that the Company set the prices very low. If the pricesare raised too high, customers will not hesitate to switch.
External Analysis - Porter’s Five ForcesBargaining Powerof Supplier: High Dell has to rely on many suppliers as a PC requires assembling ofthousands of independent parts. Some parts are manufactured bydell or other low power suppliers. But there are some componentsmanufactured by monopolies which are standard for all PC in theglobe. Microsoft and Intel products are standard for PC productsand these suppliers do have high power over their buyers.
External Analysis – SWOT AnalysisSTRENGTHSProduction AdaptabilityFinancial PositionProduct ReliabilityCompetitive PricesWEAKNESSES Rapid I.T. Advancement Price WarsStrong Brands in The Market (IBM)OPPORTUNITIES Global MarketsInternet UsageOutsourcingEcommerceMaintaining Low Price LeadershipGlobal PresenceTHREATS I.T. Advancement Price WarsStrong Brands in The Market (IBM)Changing Consumer NeedsHP / Compaq MergerEmerging Markets.
Fromthe SWOT Analysis it is clearthat:- firms very strong in the market and major weaknessesarekeeping up with the I.T. advancement, and ensuring tocatch with industry leader HP.Dell’s global presence creates opportunities forexpansion inthe overseas markets. Its awareness about theenvironment makes it a responsible investor. Its userfriendly web site makes it easy for those who are notcomputer expert to go online and do the shopping in avery safe environment.External Analysis – SWOT Analysis
External FactorEvaluation Matrix4 = Superior Response; 3 = Above Average Response; 2 = Average Response and 1 = Poor ResponseNo. Weight RatingWeightscore CommentsOPPORTUNITIESThe 3.50 WEIGHTED SCORE in Dell’s EFEMatrix represents that Dell is respondingin an excellent way to it’s opportunitiesand threats in the I.T. industry.In other words we can conclude thatDell’s strategies efficiently and effectivelytake advantage of its opportunities andtake serious steps to minimize thepotential threats.The WEIGHTS are industry based andRATINGS represent the effectiveness offirm’s strategy. Or we can conclude howeffectively Dell’s strategy is responding tothe factors.1 Global Markets 0.1 3 0.32 Internet Usage 0.1 3 0.33 Outsourcing 0.1 4 0.44 Ecommerce 0.2 4 0.85Maintaining Low PriceLeadership 0.05 3 0.156 Global Presence 0.05 2 0.17 EMS 0.1 4 0.4THREATS1 I.T. Advancement 0.05 4 0.22 Price Wars 0.05 4 0.23 Strong Brands in The Market(IBM)0.1 3 0.34 Changing Consumer Needs 0.05 4 0.25 HP / Compaq Merger 0.05 3 0.15Total Price ($ ) 1 3.5
External FactorEvaluation MatrixIn CPM ratings represents Strengths and Weaknesses. 4 = Major Strength; 3 = Minor Strength; 2 = Minor Weaknessesand 1 = Major Weakness.DELL IBM HPNo. Critical Success factor Weight RTG SCR RTG SCR RTG SCR Comments1 Ecommerce 0.15 4 0.6 4 0.6 4 0.6Dell’s 3.65 score represent that it iscompeting fiercely with itscompetitors in the domestic andglobal markets.2 Leader Ship 0.15 4 0.6 4 0.6 4 0.63 Global Expansion 0.1 3 0.3 4 0.4 3 0.34 Competitive Prices 0.05 3 0.15 4 0.2 4 0.25 Service/Repair 0.1 3 0.3 4 0.4 3 0.36 Direct to Customers 0.05 4 0.2 3 0.15 4 0.27 Adaptability 0.1 3 0.3 4 0.4 3 0.38Understanding Customers0.1 4 0.4 4 0.4 3 0.39EMS0.05 4 0.2 3 0.15 3 0.1510World’s Leading Web Site0.05 4 0.2 4 0.2 3 0.1511Quality Control0.1 4 0.4 4 0.4 3 0.3Total 1 3.65 3.9 3.4
Internal FactorEvaluation Matrix4 = Superior Response; 3 = Above Average Response; 2 = Average Response and 1 = Poor ResponseNo. Internal Factors Weight RatingWeightscore CommentsStrengthDell’s WEIGHTED SCORE of 3.50represent that it is excellent in its overallinternal strategies when it come toexplore strengths and weaknesses.The WEIGHTS are industry based andRATINGS represent the effectiveness offirm’s strategy. Or we can conclude howeffectively Dell’s strategy is respondingto the factors.1 Production Adaptability 0.1 4 0.42 Financial Ratio 0.1 4 0.43 Product Reliability 0.1 4 0.44 C. Relationship 0.1 4 0.45 Build To Order 0.1 3 0.36 Comp Prices 0.1 3 0.37 Leading tech 0.1 3 0.38 Distribution channel 0.1 4 0.4Weakeness1 Little Product Diversification0.05 3 0.152 No Business Diversification0.1 3 0.33 One Man Show0.05 2 0.1Total Price ($ ) 1 3.45
Strategic Factors Analysis Summary (SFAS) Matrix4 = Superior Response; 3 = Above Average Response; 2 = Average Response and 1 =Poor ResponseNo. Internal Factors Weight RatingWeightscore Duration CommentsShort Med LongS1 Products Adaptability 0.11 4 0.44 x Key Factor of successS2 Build To Order (JIT) 0.05 3 0.15 x xIncrease the window for dircectcustomerS3 Competitve Prices 0.08 3 0.24 x ximprove its position againstmarket leaderS4 Distrubution Channels 0.05 2 0.1 x x Increase the distribuor channelsWeakenessW1Narraw Product Diversification0.05 3 0.15 x xDell to increase the diversity ofproductsW2 CRM 0.08 3 0.24 xW3 One Man Show 0.07 3 0.21 xOpportunitiesO1 Global Markets 0.1 3 0.3 xO2 Ecommerce 0.08 4 0.32 xO3 Outsourcing 0.03 4 0.12 xTHREATST1 New technologies 0.05 4 0.2 xT2 Strong Brands in The Market(IBM) 0.1 3 0.3 x xT3 Changing Consumer Needs 0.1 4 0.4 x xT4 New Market Mergers (HP /Compaq )0.05 3 0.15 xTotal 1 3.32
Tows Matrix External Opportunities(O)O1. Global MarketsO2. EcommerceO3. OutsourcingExternal Threats(T)T1. New technologiesT2. Strong Brands in The Market (IBM)T3. Changing Consumer NeedsT4. New Market Mergers (HP /Compaq )Internal Strengths(S)S1. Products AdaptabilityS2. Build To Order (JIT)S3. Competitive PricesS4. Distribution ChannelsSO1. Using Competitive prices tolead the law income Marketsthrough E Commerce and GlobalMarkets.(S3 O1,O2)2.New Distribution Channels forthe new global markets .(S4-O1)3. Can adopt new product tosatisfy global markets needs.(S1-O1)ST1.being a flower in the New tech. , thatwill minimize the threat of the newtechnologies(S1-T1)2.Competitive Prices and easydistribution channels will compete withStrong competitor Brands and newCollations(S3,S4T2,T4)-Internal Weaknesses (W)W1. Narrow ProductDiversificationW2. CRMW3. One Man ShowWO1. Marketing the existing productsin naïve markets.(O1,O2- W1)2.Outsourcing new CustomerCare Teams to enhance CRM(O1-W2)WT1. develop new products with imitatingtechnologies.(T1-W1)2. Enhance the CRM system tocompete with competitors (T4,T2-W2)
COMPETITVE STARTEGY EVALUATION Dells major competitors include: Hewlett-Packard(HP), Acer, IBM, Apple Dells business strategy is a successful cost leadership strategy. The companysformula for success has been based upon its unique customization, delivery, andcost proposition. First, Dell must integrate its cost leadership skills with differentiated productfeatures and related services to create value for its customers and achievethe benefits of an integrated cost leadership/differentiation strategy. Secondly, becoming a diversified IT company opens up opportunities in relatedbusinesses, where similar products, buying processes, target customers, or otheroperationally-related activities can produce synergies. This business-level and corporate-levels trategy combination offers Dell a methodof dealing with the companys competitive realities. Both strategies arediscussed below.BUSSINESS STRATEGY
BUSSINESS STRATEGYCORPORATE STARTEGY EVALUATIONMeasure the Relative ProductShareProducts/Services of the Business Saels of 200Relative AverageSalesDESKTOP PCs 19573 1.70SERVER AND NETWORKING 6474 0.56LAPTOPS 17423 1.51STORAGE&PRINTERS 2435 0.21Total 43470 -Cash Cow -Dells PC division includingLaptops segment (running position andownership of over 18% of the worldmarket )-STAR- Servers Networking BusinessDells market share has increasedsubstantially over the last several years toalmost 11%,overtaking Sun to rank as the#3 producer of servers-QUESTION includes printers, digitalcameras, monitors, storage, HDTVs andmany other products. These productstogether make up 16% percent of Dellsoverall revenue and have shown moreEnterprisePC& LaptopStorage
Strategic Alternatives & Recommended StrategyDell Should adopt the following strategic in order to go with the change inmarkets :Corporate StrategiesCorporate StrategiesGrowth Strategy•Dell adopts the Product Development Strategy, by taking the existing products tothe new markets; and Dell can benefit the E-Commerce expansion andglobalization in implementing this strategy.The top Management team can implement another Strategies that concerned withthe Growth Rates of the Sales:•Invest more in the R& D department to come up with new technologies to coupwith the marketInvest in acquiring new organizations the services, systems & Networking to coupwith the changes in the B2B field
Implementation• On the Business level , DellShould Steer it’s Strategy toKeep on Cost leadership ascompetitive strategy, as theyare know as a low costproduct with imitatingproducts , what will make itharder to reposition thisimage in the mind of theaudience with the sameBrand• On the functional strategies ,Dell should re- engineer theR&D dpt. And invest more tobe able to come up with newcompetitive technologies .• Should also concentrate onCRM and increase the Staffof the customer service andreview the policies as thenumber of the customercomplaints is increasing lately Business StrategiesBusiness Strategies Functional StrategiesFunctional Strategies