Chandan Vij

Dell Computer Corporation – 2002

Nicole Seminario: Francis Marion University

Forest David,: Mississippi State University

A. Case Abstract

Dell Computer is a comprehensive business policy and strategic management case that includes the company’s year-end 2001 financial statements, competitor information and more. The case time setting is the year 2002. Sufficient internal and external data are provided to enable students to evaluate current strategies and recommend a three-year strategic plan for the company. Headquartered in Round Rock, Texas, Dell’s common stock is publicly traded on the New York Stock Exchange under the ticker symbol DELL.

With 34,800 employees at mid-2002, Dell designs, develops, manufactures, markets and services and supports a range of computer systems, including desktop, notebooks, and enterprise systems (includes servers and workstations). DELL also markets software, peripherals, service and support programs. For the 13 weeks ended May 30, 2002, Dell’s revenues rose less than 1% to $8.07 billion while net income decreased

1 % to $457 million. Results reflect increased desktop sales, offset by reduced margins.

Headed by CEO Michael Dell, Dell Computer Corporation plans to enter the printer business by the end of 2002. Dell has been dropping hints for months that it might start selling its own line of printers. But after the company's annual meeting with shareholders Thursday, Dell President Kevin Rollins' said, "My guess is sometime soon, you'll see us in the printer business with a Dell-branded printer. Probably by the end of the year, you'll see something." Students should prepare a three-year strategic plan for CEO Michael Dell.

B. Vision Statement (actual)

It's the way we do business. It's the way we interact with the community. It's the way we interpret the world around us — our customers' needs the future of technology, and the global business climate. Whatever...