Jalal Pirzada: CEO

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• Jalal Pirzada CEO
• Maria Legos COO
• Colleen McDonald CFO

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Oracle Business Description

• Sector Technology
• Industry Software and Programming
• Oracle Develops, manufactures, markets
  distributes software
• Oracle worlds largest supplier of Database
• Oracle core products are database, development
  tools, applications for system integration
• Famous products Oracle9i databaseserver,
  e-business suite 11i, OTN online services
• Oracle offers consulting, training, and other
• These services accounted 56 revenue in FY00

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The E-Business Kit
Marketing
HR
Requisitions
Financials
Supply Chain
Sales
Expenses
Exchanges
Service
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E-Business Suite 11i, Complete Simple
Marketing
HR
Requisitions
Financials
Supply Chain
Sales
Expenses
Exchanges
Service
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History

• 1977 Larry Ellison, founded Software Development
  Laboratories. Built a new type of database,
  Relational Database.
• 1978 SDL changed their name to Relational
  Software Inc. (RSI)
• 1982 RSI changes their name to Oracle
  Corporation.
• 1983 Introduces V-3, the first portable database.
• 1987 Oracle becomes the worlds largest DBMS
  software company.
• 1988 Sells products in 86 countries.
• 1993 Cross GUI Toolset is introduced.

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• 1994 Multimedia Server Database is released.
• 1995 Larry Ellison announces the concept of the
  network computer.
• 1996 Network Computer Inc. is created to market
  the network computer Oracle 7.3.
• 1997 Version 2.1 of Oracle Designer/2000 and
  Oracle Developer/2000, Oracle brings applications
  to the web, and Oracle ships Oracle8.
• 1998 Release II of Oracle Applications, Oracle
  introduces Business Intelligence System.
• 1999 Oracle develops Oracle8i.
• 2000 Oracle delivers E-Business Suite (11i).

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Mission
To complete the process of becoming an
E-Business suite and in doing so save over one
billion dollars and also continue to be a market
leader in the software for information management.
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Vision
To use a global database by integrating all
aspects of the business e-marketplace

• Financial
• Expenses
• Supply Chain
• Requisitions
• Exchanges

• Marketing
• Sales
• Service
• HR

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Strategic Objectives

• By sharing information we can
• Eliminate duplication of effort
• Achieve specialization and economies of scale
• Standardize business processes and implement best
  practices.
• To have an internet-ready platform for building
  and developing Web-based applications.

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Strategic Objectives (cont.)

• To have a comprehensive suite of internet-enabled
  business applications.
• To have professional services to help in
  formulating e-business strategy, as well as in
  designing, customizing, and implementing
  e-business solutions.
• We want to obtain more than the top ten of the
  industries.

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Financial Objectives

• To save over one billion dollars in annual
  savings, by improving our operating margin by
  41.
• To have our revenue increase at least 15 in
  Fiscal year 2001.
• Education was our worst performance organization,
  we believe education is now capable of margins of
  50.
• We want to sell more and spend less
• We want to go above 500 in our stock
• We want to increase our application sales to 71
• Want our revenue to increase from 8.8b to 10.1b

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S.W.O.T. AnalysisStrengths

• Oracles holding of 42.2 is more than twice the
  market share than their closest competitors,
• IBM DB2 holding is 20.4
• Microsoft SQL Server is 7.8
• Others with 29.4
• All ten of the worlds largest Web sites from
  Amazon.com to Yahoo! Use Oracle.
• 98 of the Fortune 100 use Oracle for e - business.

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Strengths

• Oracles E-Business Suite, was the first and only
  set of applications to work with a single global
  database.
• Oracle practices a high-level of community
  involvement.
• Oracle became a more responsive and efficient
  organization by having all of their customers,
  suppliers and employees online.
• Oracle has low inventory compared to its
  competitors.
• In the education industry, 49 of the top 50 U.S.
  universities run Oracle.

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Strengths

• 10 of the Top 10 Financial Services companies run
  Oracle.
• 10 of the Top 10 Health Pharmaceutical
  companies run Oracle.
• 8 of the Top 10 High-Tech Manufacturers run
  Oracle.
• 10 of the Top 10 Manufacturing companies run
  Oracle.
• 9 of the 9 Media companies on the Standard 100
  run Oracle.

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Strengths

• 8 of the Top 10 Fortune 500 Specialty Retailers
  run Oracle.
• 8 of the 10 I-Builders on the standard 100 run
  Oracle.
• 10 of the Top 10 Telecommunications companies run
  Oracle.
• 9 of the Top 10 Transportation companies run
  Oracle.

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Weaknesses

• Oracle software is so powerful in capacity, the
  selling price is very high
• Oracles stock is time low
• Will be reducing size of Oracle Consultants
• Oracle was criticized for not finishing the
  product

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Opportunities

• The opportunity for obtaining more of database
  market share, there is 57.6 held by competitors.
• Oracle has a high reputation established in the
  industry on the basis of scalability, maturity
  and reliability.
• Oracle is only half way through their e-business
  transformation.
• In the new era of globalization the E-Business
  Suite works in every country and in every
  language.

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Opportunities

• Opportunities available by using the Internet are
  endless, every business function marketing,
  sales, supply chain, manufacturing, customer
  service, accounting,and human resources all use
  the same global network and the same global
  database.
• Competitors application software such as
  Epiphany for marketing, Clarify for service etc
  are not designed or built to work together.
• Oracles marketing programs are increasing their
  reach due to generating leads via e-mail.

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Threats

• The problem with new technology and security
  issues which are not fully explored.
• Potential customers still choosing to use
  application software for each part of their
  company.
• Low entry of barriers increase the threat of
  competition.
• Constant change of technology, Oracle as a market
  leader must reinvest into Research Development.

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Market Data Oracle 2000

• HQ Located Redwood City, CA
• Employees 41320
• Nasdaq ORCL
• 52-Week High, Low43.47, 22.75
• Shares Outstanding (M) 5615.1
• Market Value (M) 201808.3
• Revenue Growth for Oracle 15.2
• Revenue Growth for Industry 12.6

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Annualized Financial Performance
Trailing 12 Months FY 00 FY 99
Revenue
10.7 B 15
2.5 B 79
Net Income
Operating Margin
35.0 vs. 22.9
Database License
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Application License
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10 Quarters of Margin Improvement
Y-Y Operating Margin Change
13.7
11.7
11.8
10.8
6.2
2.3
1.7
1.5
0.1
1.4
FY 1999
FY 2000
FY 2001
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Financial Ratios Analysis

• Profitability Ratios
• 1. Net Profit Margin measures the percentage
• Of profits earned per dollar of sales
• All figures in millions
• Net Profit Margin Net Profit/ Net Sales
• 6296.8/10130.1 63.28
• Oracle 63.28 Industry 9.54
• Oracle earns 63 cents on every 1 of sales.

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Profitability Ratios
2. Return On Assets measures the percentage
of Profits earned per dollar of asset Return
On Assets Net Profit / Total Assets
6296.8/13076.8 76.2 Oracle 76.2
Industry 3.6 Oracle makes 76 cents on every
1 dollar of Assets it Employs in its operations.

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Liquidity Ratios
1. Current Ratio measures how liquid is a
Company on a balance sheet date Current ratio
Current Asset / Current Liability
10883.3 / 5862.2 2.15 Oracle 2.151
Industry 3.421 Oracle has 2.15 current
assets to meet every 1 Dollar of its current
liability.
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Liquidity Ratios
2. Quick Ratio companys ability to pay off
short Term obligations without relying on the
sales of its Inventories. Quick Ratio Current
Assets Inventories / CL 10883.3 483.1 /
5862.2 2 Oracle 21 Industry
3.21 Oracle has 2 of quick assets to meet every
1 of its Current liabilities.
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Leverage Ratios

• Interest Coverage Ratio measurement of how
• Many times interest payment could be made from
• Firms earnings before Int, Exp, Tx.
• Interest Coverage Ratio Earnings before
  interest
• taxes / Interest Expense
• 10123.4 / 17.5 578.2
• Oracle 578.2 Industry 22
• Oracle has a higher ICR then Industry, It is more
  
• Solvent can meet interest obligations many
  times.

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Leverage Ratios
2. Debt-To-Equity Ratio funds provided by
Creditors versus owners. Higher D-T-E ratio
means Creditors have more stake risk then
shareholders Debt-To-Equity Total Debt /
Stockholders Equity 6615.4 /
110257 0.06 Oracle 0.06 Industry
0.06 Oracle has 6 cents of debt for every 1
dollar of Equity to meet its long term
obligations.
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Activity Ratios
1. Days of Sales Outstanding how long in days
It takes a company to convert sales receivables
into Cash from customers. Days Sales
Outstanding T. AR / T. C sales x 365
2790.2 / 15701.8 x
365 64.86 Oracle 65 Days
Industry 105 Days It takes 65 days for
Oracle to convert its receivables Into cash. Net
terms 30 days, 65 30 35 days
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Activity Ratios
2. Asset Turnover If a companys ratio is below
the Industry ratio then a company is not
generating Sufficient sales given the size of
its asset investment. Asset Turnover Sales /
Total Assets 13076.8 / 9340.57
1.4 Oracle 1.4 Industry 0.4 Oracle
earns 1.4 sales from every 1 of investment In
assets.
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Recommendations

• Oracle9i or Oracle Student version Versus MS
  Access SQL. Advertise more.
• Less consultant more Quick Implementation with
  Oracle 11i Suite. Wrong strategy consulting
  services accounts 56 revenue.
• Security Issues Global Database (Internet) Data
  encryption, firewall, antivirus.

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The Strategy