Mcafee Case Study
McAfee Case Study I. Current Situation A. Current Performance
McAfee is in good financial standing. * In 2004, paid down $347 million in convertible debt and repurchased $220 million in common stock. * Revenue has declined over past two years but net income has increased. * Ongoing operations generated over $350 million in cash, with the fiscal year ending in $1 billion in cash, cash equivalents, and investments. * Deferred revenue increased for the period by $220 million. B. Strategic Posture 1. Mission: a. “To secure consumers and businesses from the desktop to the core of the network by delivering best-of-breed products and services that protect … global customer’s information
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(O) 2. Collaboration with VeriFone Holdings, Inc. allows McAfee to be first to market with virus protection for point-of-sale terminals. (O) 3. Promote being recipients of the KM Reality Award, demonstrated leadership in the implementation of knowledge management practices and processes by realizing measurable business benefits. (O) 4. There are many substitute products offered by competitors. (T) 5. High rivalry exists between firms like Symantec, Computer Assoc., Trend Micro, and Panda. (T) 6. McAfee faces overseas competition. (T) 7. Symantec Products: Norton AntiVirus, Norton Utilities, Symantec AntiVirus. (T) 8. Microsoft switching to Trend Micro for use on all hotmail accounts. (T) 9. Microsoft’s entrance, acquiring GIANT Company Software, Inc. and distributing free anti-spyware software. (T) G. Summary of External Factors 19. External Factor Analysis Summary Matrix (Exhibit B). IV. Internal Environment: Strengths and Weaknesses H. Corporate Structure 20. Functional Structure: Worldwide Sales, Consumer, Mobile, and Small Business, Corporate Strategy and Business Development, Operations and Finance, human Resources, Risk and Compliance, Worldwide Technical Support and Customer Service, and etc, each have its own Executive or Senior Vice President who report to the President. (S) 21. Chief Executive Officer is also Chairman of the Board.