Mcafee Case Study Essay

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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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III. External Environment: Opportunities and Threats E. Societal Environment 15. Economic . Early part of the 21st century had a decrease in IT spending. (T) �. IDC predicted a growth of 16.9% annually between 2003 and 2008 in the security software market. (O) �. There has been a steady growth of average 22% in e-commerce retail sales in the U.S. (O) 16. Technological �. Newly developed viruses, spyware, and worms affect how well they can manage their securities (T) �. Outsourcing bulk of new software development. (O) �. Increased use of broadband and DSL speed internet, growing from 9.9 million users to 22.7 million users. (O) �. McAfee holds a 19% market share among the computer protection companies. (O) (Exhibit A) 17. Political-Legal �. Potential losses that results in shareholders law suits against company. (T) �. SEC made NAI re-state earnings because of compliance issues. (T) 18. Sociocultural �. Accommodating to the aging society. The older population needs a product they can depend on, that is easy to understand and easy to use. (O) �. Society is transitioning into a wireless more mobile society. McAfee has to be aware of this and develop a product that will protect PDA’s, wireless laptops and mobile phones. (O) F. Task Environment
Strategic type =
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