...Dell, Inc. BUS630- Managerial Accounting Dr. Jared Eutsler August 10, 2012 * What is Dell’s strategy for success in the marketplace? Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? Dell’s strategy “combines its direct customer model with a highly efficient manufacturing and supply chain management organization, and an emphasis on standards-based technology” (Dell, 2005, p. 1). The purpose of Dell’s multifaceted strategy is to be efficient when it comes to manufacturing products and effective when it comes to providing services. Dell feels that their business strategy allows them to “provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use” (Dell, 2005, p. 1). Dell also focuses on developing new technologies that incorporate consumer-desired features and capabilities at a highly competitive price. Utilizing feedback from customers, Dell engineers “work with a global network of technology companies to architect new system designs, influence the direction of future development, and integrate new technologies into Dell’s products [which allows them to] quickly and efficiently deliver new products and services to the market” (Dell, 2005, p. 2). Dell relies on a combination of customer intimacy, operational excellence, and product...
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...10, 2011 Hoda Bagdady-Asal PhD Abstract The following is a business analysis of the Apple Company. This analysis has been used to determine the financial health of the Apple Company through review of its financial statements. Also, I have included a summary of Apple’s technological advantages over other companies in the same industry, as well as, a benchmarking analysis also comparing Apple to other companies. To invest in a company or not, its economic activities gives idea of the status in the market. Financial statement gives information of financial status of the company as well as its stability. Financial statement is an accounting report of the financial activities of a company base on the entrance and exists of money. Managers use financial statement of the company to evaluate performance of their employees, to prepare a budget of the company base on expectations, to make a decision that can modify operations in the company, for example, when Jobs came back to Apple in 1997 as a chief executive officer, base on the financial statements, closed plants, reduce number of employees, and sold stock to Rival Microsoft Corporation. His purpose was to obtain capital to inject to the company. Also manager uses financial statement for annual report of the company to stockholders. This financial statement is important for investors, lending companies, stockholders, for example evaluated the statement to decide if stockholders can sell or buy more stock. Financial...
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...health of the company. Liquidity: The company has very strong ratios helping the company to do well. Dell’s current ratio and quick ratio are at 1.47 and 1.40 respectably, this similarity between one and the other is a reflection of their very low inventory compared to the amount of sales that the company has, also influencing the net working capital ratio of only 0.23. At first sight the current liabilities to inventory ratio of 15 might seem a bit high, although the denominator of the current liability to inventory ratio is inventory and it is really low. It’s really hard to compare the company to the industry average because there is no other company that handles its inventory like Dell does. The company’s operation ratio expense is 12.64, way below compare to their industry do to their very low inventory. Assets Utilization: Asset utilization is vital to the success of an organization, the way assets are used within the organization is their biggest and strongest strategy making Dell a leader in its industry. A reflection of this strategy is their impressive inventory turnover ratio of 45.45. Unlike the industry average low numbers on the rest of the asset utilization ratios such as fixed assets turnover, total assets ratio and asset to equity ratio, Dell’s average 50% higher than its competitors. Profitability: Dell has been successful due to its differentiated strategy compared to its competitors. The Direct Model' that Dell adopted has been...
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...Summary In general, product or brand hierarchy is defined as the process where the products and brands are categorized into elements that are used by the companies for promoting their products and services. Brand and product hierarchy is used by the companies for the purpose of increasing the branding and product relationships with their customers. Depending on the availability of brand elements, the companies categorize their products for representing their brands in the market. Within this study, five different industry sectors with each example company will be taken into consideration where researcher has conducted a hierarchical analysis for those company brands and products. On the other hand, the study even explores the information about the classes, categories, forms and brands of every company. A critical competitor analysis for those company brands will be carried out and finally the study draws a conclusion about their core competencies Hierarchical Analysis SECTOR1: CONSUMER DISCRETIONARY- RETAIL SECTOR- WALMART For the consumer discretionary industry the retail sector has been selected where again the world’s popular retailer company called Wal-Mart was selected as Example Company. According to the report of Wal-Mart (2011), Wal-mart is one of the world’s famous retailer companies which is based in USA that offers wider range of consumer products and goods to the customers across the world. Wal-Mart has different products range which...
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...1.0 Introduction The report is aimed to investigate and identify the key element and the information system activities of the online sales system of Dell. In this system, customers are allowed to purchase electronic devices directly through the internet. First of all, let take a look on the some brief description about the company background and the system. 1.1 Company Background Dell Inc. is a world class e-commerce company that manufactures, sells, repairs and supports computers hardware and other related software and services. Dell does not own any direct stores instead the company is selling its products via online and other dealers or retailers like Wal-Mart and Best Buy. [1] Although the main business operation of Dell is in Round Rock, Texas, United State they have expanded to all the other places around the world with sizable manufacturing facilities in Austin, Texas; Limerick, Ireland; and Penang, Malaysia The founder of the company is Michael S. Dell. In 1 February 1984, Michael Dell founded a company called PC Limited with $1000 in his dorm. At that moment, he was a 19 years-old university student. [2] The company was selling IBM PC-compatible computers that equipped with stock components from various suppliers such as the processor from Intel. After he obtained $300,000 expansion capital from his family, he left the university to work full-time for his newly started business. He is the one who come out with the idea that sell directly to the consumer...
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...Dell’s Accounting Policies for Revenues, Expenses and Net Income: Dell includes both GAAP and non-GAAP financial measures in its 10k reports. The company claims that excluding certain items GAAP gives managers a better grasp on the financial performance of the company. Dell excludes severance and facility actions, and acquisition related costs from its GAAP financial measures, and also the amortization of intangible assets. Dell acknowledges that its non-GAAP financial measures may not be comparable with other companies that are using their own non-GAAP reporting standards. Dell is increasingly relying on international markets (notably Asia) for its revenue generation. Total net revenue from the US in dropped 5% from 2011 to $30.4 billion in 2012. Meanwhile, revenue from the international market increased 12% from 2011 to 2012. Dell continues to expand in these areas as growth in the US and Western European markets continue to decline. Dell distinguishes its revenues between Product Revenues and Service Revenues. According to GAAP, total operating expenses for Dell increased 18% to 19.4 billion. This is mainly due to what Dell reports as severance costs, acquisitions, and facility costs. Dell differentiates its expenses between Selling, General, and Administrative Expenses, and Research & Development and Engineering Expenses. Net income increased 33% to 3.5 billion on a GAAP basis. Dell attributes this mainly to increases in operating income and a lower effective...
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...EXECUTIVE SUMMARY Dell Inc. is an American multinational technology company based in Texas. Dell managed to enter Singapore market through foreign direct investment and relied on the sales of laptops, printers, and many more. In Singapore PC and laptop are used to assist daily activities supported with abundant Internet access, this makes Singapore a good market for computer and peripheral industry. There are a total of 6 parts in this report. In the beginning of this report, a brief history and background of Dell will be shown. Then, in the second part of this report, advanced technology is shown as one of many vital keys in computer and peripheral industry along with lesser keys like economic, political, and demographic conditions. For the third part, an industry analysis using Porter 5 forces theory will analyze how those forces affect computer and peripheral industry generally. The second and the third part will focus on the industry as a whole. For the fourth and fifth part of this report, it will highlight Dell. The fourth part will show Dell’s strategic capabilities and how they help and enable Dell to survive and competitive in the industry. Meanwhile, the fifth part of this report will talk about Dell’s business strategy and how it transforms Dell to be a better company. The last part of this report will show the evaluation of Dell’s strategy evaluation that determines the sustainability of Dell. TABLE OF CONTENT 1. BACKGROUND AND HISTORY ...
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...Executive Summary This case analysis report focuses on the declining market share faced by Dell, Inc. (“Dell”, the “Company”) and recommendations are given as to where the Company needs to alter its strategy at a business level as well as a corporate level. Broad recommendations include foraying into the retail space at a more aggressive pace, laying greater impetus in fast emerging markets such as China and India, and focusing more on R&D efforts in order to ensure that higher levels of innovation are achieved by the Company. Introduction Dell, Inc. (“Dell”, the “Company”) is a multinational company that specializes in the development, manufacture, marketing and servicing of computers and computer related products. Dell has been one of the most successful firms in the computer industry, having achieved supernormal revenue growth and above average returns for several years spanning the mid 1990’s to the mid 2000’s. This was mainly due to their prowess in customizing products as per customer requirements, coupled with effective manufacturing and supply chain processes. The Company encourages little or no intervention from distributors and middlemen, and majority of all sales are based on a direct customer relationship business model. The firm’s resources focused on supply chain capabilities, with frequent inventory turnover and direct delivery emerging as Dell’s core competencies. At the time when Dell established these core competencies, they were valuable, rare...
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...Apple’s Financial Health MGT 521 Ocotober 31, 2012 Apple Financial Health As stated before in my business analysis paper, Apple is a very rich, prosperous, and innovative company. Its innovations and creativity has enable Apple to keep growing, striving, and propelling itself to the top of the personal computer industry. Apples dominancy and growth is not just known by people around the world it is documented and can be proven by Apple’s financial statements. Financial Statements On apples income statement one can see that their net sales rises each year for the past three years. Starting in 2009 where net sales were just $42,905 million, in 2010 $65,225 million, and then now to 2011 $108,249 million (Apple INC, 2011). This data shows that Apple’s net sales nearly triple from 2009 to 2011. Their gross margin also substantially increases starting at 17,222 million to in 2011 43,818 millions (Apple INC, 2011). This margin represents the percent of total sales revenue that the company retains after the direct costs associated with producing goods sold for a company. This means for the past three years Apple is able to make more profit then the cost that it takes to make its products. Furthermore as with every growing company comes more expenses so their expenses have risen from 2009 to 5,482 million to 10,028 million in 2011 (Apple INC, 2011). Their expenses are counteracted and accounted for by their net income which triples from 2009-2011 from $8,235 to 25,922...
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...and the business to a condo. By semester's end, he had rented office space, hired a few employees, and officially launched the Dell Computer Corporation. University days were over, and a great American business success story had begun. Ten years later at age 28, Michael Dell had become the youngest person to be CEO of a Fortune 500 company. During the 1990s, his startup had surpassed IBM to become the second largest computer manufacturer in the world. And by the end of that decade Dell passed Compaq to claim the title as top computer manufacturer and seller globally. In doing so, Dell achieved a seemingly impossible goal he had set early on. Michael Dell's success was due in part to his high intelligence, healthy ambition, and exceptional will to win. He also surrounded himself with smart people and allowed them to manage important functions of the company. He developed the strategic vision of being a global leader in personal computer markets by staying close to the customers and selling direct. And, Dell worked closely with his managers to maintain that critical focus. Dell saw mistakes as opportunities to improve, and the company is now known for learning from its errors and not repeating them. During the first decade and a half of its life, Dell's mistakes were due to the usual growing pains—or rather, the unusual explosive growth of the company. In the late 1980s, not long after the...
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...Copyright © 2010 Dell Inc. How we win Our Code of Conduct “Winning with integrity means we operate legally and ethically, everywhere we are and in everything we do.” –Michael Dell A message from Michael Winning with integrity is one of Dell’s most important values. We all work hard every day to deliver technology solutions that enable people everywhere to grow and thrive. That’s our purpose, and it’s important. It’s equally important that the actions we take as we deliver on that purpose are transparent and honorable. We are very clear about what it means to win with integrity. It means we contribute our time, technology and know-how to improve the communities where we work and live. It means we are committed to helping our customers succeed—and growing our business—in ways that benefit the environment and society. We demand high performance and high standards. It also means we operate legally and ethically, everywhere we are and in everything we do. I expect us all to operate according to applicable laws and regulations, and in accordance with the letter and spirit of those laws. Our Code of Conduct, “How We Win,” provides guidance on how to follow laws and Dell policies, and also includes our general ethical principles. Our Code is global, so it applies to Dell team members in all roles, at all levels and in all locations. We also expect our agents and other third parties acting on our behalf to adhere to equally high standards. In addition, Dell leaders have a special...
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...Read the following case study and then answer Questions 1 - 5 which follow: DELL COMPUTER Michael Dell founded Dell in 1984 while he was still a college student at the University of Texas in Austin. From the beginning, Dell sold directly to_th_e final customer and built PCs to users' specifications. This basic business model has not changed over the years, although it has been modified and refined as the company has grown. Dell started with telephone sales of upgraded IBM compatible PCs, and then shifted to assembling and marketing its own brand of PCs in 1985. It provided customers with a 24-hour hotline for complaints and guaranteed 24- to 48-hour shipment of replacement parts. As its customer base grew, Dell also implemented a direct toll-free technical support line. In 1990, Dell shifted course when it began selling through retail outlets such as CompUSA, Circuit City, and Price Club. Revenues grew rapidly, but problems arose in managing what had become a billion-dollar company, and Dell experienced its first quarterly loss in 1993 (Dell, 1999). In 1994, Dell concluded that even though it was successful selling through retail channels, it was not making money doing so. Dell decided to withdraw from the retail market and return to its roots as a direct seller, a move that not only helped the company's profitability but also enabled it to put all of its efforts into executing the direct model. Dell also brought in a new chief operating officer, Mort Topfer from Motorola. Topfer...
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...Model With Information Technology: Dell Computer Corporation Kenneth L. Kraemer, Jason Dedrick, and Sandra Yamashiro Center for Research on Information Technology and Organizations (CRITO), Graduate School of Management, and Department of Information and Computer Science, University of California, Irvine, Irvine, California, USA Keywords The exceptional performance of Dell Computer in recent years illustratesan innovative response to a fundamental competitive factor in the personal computer industry—the value of time. This article shows how Dell’s strategies of direct sales and build-to-order production have proven successful in minimizing inventory and bringing new products to market quickly, enabling it to increase market share and achieve high returns on investment. The Dell case illustrates how one business model may have inherent advantages under particular market conditions, but it also shows the importance of execution in exploiting those advantages. In particular, Dell’s use of information technology (IT) has been vital to executing both elements of its business model—direct sales and build-to-order—and provides valuable insights into how IT can be applied to achieve speed and exibility in an industry in which time is critical. Many of the insights gained from this case can be applied more generally to other time-dependent industries, suggesting that the ndings from the Dell case will have implications for a growing number of companies and industries in the future. ...
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...Introduction Dell computers are the best example of carrying out direct sales business in today’s business world. The direct sales business of the firm has been made by possible by using internet and digital media. However there are many issues and concerns of the corporation which has been elaborated in detail in this report analysed from the provided case study. Some of these issues are related to analysing Dell digital strategy and finding out the methods to enhance this strategy so that organization can increase its performance. The kind of challenges and opportunities available in order to implement the digital strategy has been explained briefly in this report. This report elaborates in detail how the firm is using internet and digital technology to interact with its stake holders. The second last part of the report explains change in methods of communication in organization by digital technology. The last part of the report provides details and evaluation on the digital strategy success of the firm. Company Background Dell Computer was founded by Michael Dell in 1984, while he was a student at the University of Texas, Austin. Dell began by selling upgrades of IBM-compatible PCs and in 1985 began to sell its own brand of PCs. From the beginning, Dell operated on the direct sales model, taking orders over the phone and building PCs to the customers’ specifications. Dell entered the retail PC channel for several years in the early 1990s, but a downturn in business in 1993...
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...Reporting For over 30 years Dell Incorporation has been elite when it comes to growth and sales. It generates roughly a little over one million dollars a day in sales. Dell provides the health care to information technology of its product. Here is a snapshot of the company’s history. The company was launched back in 1984 by Michael Dell. He started with $1000 and followed his dream to success. He guided the company from 1000 dollars to 85 million in a period of three years. Dell made its fortune 500 debut in 1992. Dell.com was launched in 1996 bringing in over one million dollars a day from sales. Dell became the number one computer system provider in 2001. In 2005 the company made the list for “America Most admired companies” according to fortune magazine. In 2010 the company was ranked the number one information technology service provider in the world. Dell always lists their financial statements for the public to view. In those statements you will find the current assets, cash equivalents, and the total current liabilities. This information is on display for potential creditors, investors, and employees. This information lets employees know the projected life of the company. It also lets creditors know that the company has the ability to pay back loans if it plans on doing business with them. The investors uses this to access the company’s strength and competition to its competitors. Investors also look at what the company is contributing to the community...
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