Dell in $24 Billion Deal to Go Private
Here are the questions due tomorrow?. However for Questions 1 & 2 must be based on Commerzbank AG as the enterprise
Question 1
Name the generic strategy you believe to most fit the behavior of your target enterprise (consult text and research for definition of terms). Explain your answer. Is this strategy choice effective? Why or why not?
Question 2
Through your research, select two of the strategic plan options (value disciplines – see Pearce text) that could apply to your target enterprise. What are the strengths and weaknesses of each option? How does each of the two choices fit with the enterprise’s strategic direction? Be sure to select specific, definitive strategies by name referred to in the course text(s).
Question 3
Earlier this year, a company announcing news many analysts and tech experts believe is blockbuster, the announcement by Dell that it is going private. With the help of private investors, and under the leadership of the company’s founder, Michael Dell, the firm is buying back all of its public stock at a value of $24.4 billion……a huge sum of money for a company struggling to remain relevant in what is becoming an intensely innovative period in the technology industry. After achieving prominence at the peak of the desktop computer trend, Dell has been on a continuous slide, that has kept earnings down for the last several years.
However, since that announcement, well known corporate raider Carl Icahn has tried to muscle his way into a significant share of ownership of the company by making large stock purchases, with the goal of stopping the firm from going public and perhaps squeezing out value from the company for his own gain, a practice that has not only made him notoriously famous, but also a multi-billionaire.
So far, this is a play that has yet to reveal its true conclusion.
Tell us what you think might be the strategic implications of this bold move consider it within the context of generic and grand strategies…and, if you think it will help the company return to its days of prominence…also, if you think Michael Dell will be successful in staving off Icahn from taking over the company he founded……explain your responses…
See: Dell in $24 Billion Deal to Go Private http://dealbook.nytimes.com/2013/02/05/dell-sets-23-8-billion-deal-to-go-private/
See: PC Industry Shifts as Dell Goes Private – Video
http://www.nytimes.com/video/2013/02/06/technology/100000002047106/pc-industry-shifts-as-dell-goes-private.html#100000002047106
See: Dell’s Buyout Fate Still Hinges Mostly on Icahn
