SanDisk

1
SanDisk Evaluation of Management and
Organizational Strategy
Zack Zaorski Matthew Rasmusson Aram
Shishmanian John Watters
2
General Company Overview

• Inventors of Flash Memory
• SanDisk makes nearly all of its money through the
  sale and licensing of non-volatile or flash
  based memory devices.
• It holds patents necessary to produce
  flash-memory devices, so if another company
  either uses or sells flash drives, that company
  pays a licensing fee to SanDisk. (i.e. Apple)
• SanDisk is a growing and independent company, it
  acquired another flash company (M-Systems) for
  1.3 Billion in 2006, and rejected a hostile
  takeover by Samsung worth 5.85 billion in 2008.

3
Company Mission, Culture and Organization

• Mission Statement circa 1988
• to deliver to OEMs flash data storage products
  that are cost-effective, that are enabling in
  many cases, that are highly reliable and that are
  built in very high volumes.
• SanDisk still adheres to this mission statement,
  although today it also promotes community
  sharing, strong corporate ethics and
  environmental conservation.

4
Values

• As a company, SanDisk has high moral standards
  for its employees and especially its executives
• In its statement of ethics and business conduct,
  they outline several important qualities that are
  imperative for a SanDisk executive for example
• "Certain employees have special duties to assure
  that our public filings provide full, fair,
  accurate, timely and understandable
  informationTo act with honesty and integrity,
  avoiding actual or apparent conflicts of interest
  in personal and professional relationships To
  proactively promote ethical behavior as a
  responsible partner among peers in their work
  environment and their community, etc.
• Along with these values, SanDisk forbids insider
  trading, accepting corporate contributions, and
  job gifting.
• With these responsibilities comes a duty to come
  forward if any employee witnesses unlawful acts
  within the company.

5
Organizational Issues

• SanDisk runs into trouble occasionally when
  operating overseas, one example is when they were
  at a Berlin trade show
• German officials seized MP3 players from
  SanDisk's booth at the IFA show in Berlin after
  an Italian patents firm won an injunction against
  the company.
• This example illustrates problems that SanDisk
  runs into when operating internationally. Laws
  are different in other countries, and although
  the injunction was overturned two days later,
  this shows how organizational issues can affect a
  companys business.

6
Company Management
Dr. Eli Harari Founder, Chairman and Chief
Executive Officer -20 years with the company -
pioneer in non volatile semiconductor storage
over 100 US and foreign patents and numerous
technical articles -more than 30 years
experience in the electronics industry. Sanjay
Mehrotra President and Chief Operating
Officer -20 years with company - co-founder of
SanDisk - served as director of memory design and
product engineering, VP of product development
and senior VP of engineering -Early experience
with semiconductor industry working at Intel
Corp. Judy Bruner Executive Vice President,
Administration and Chief Financial Officer -4
years with company - Responsible for accounting
finance, investor relations, human resources,
information technology, legal, and business
development. -Served as Senior VP and Chief
Financial Officer of palmOne, Inc. 1999 through
2004. Yoram Cedar Executive Vice President,
Mobile Business Unit and Corporate
Engineering -10 years -experience in design and
engineering management of electronic systems 
7
Board of Directors
8
Governance Committee

• Eddy  W.  HartensteinMember
• Michael MarksChairperson
• Purposes
• Identify and recomment director nominees selected
  by boards of directors for each stockholders
  meeting.
• Implement the boards criteria for selecting new
  directors
• Develop or review and recommend to the board a
  set of corporate governance policies applicable
  to SanDisk
• Provide oversight for the annual evaluation of
  the performance of the BOD

9
Stock

SanDisks stock has done relatively well when
compared to its competitors, and the general
market. Falling prices for flash memory, and the
economic downturn are the main contributors to
its fallen stock price.