Q1) How was Dell’s working capital policy a competitive advantage? Dell’s Working Capital as competitive Advantage: * Build-to-order model: Dell was first in the industry to deliver customized products within a few days. While competitors were maintaining high levels of inventory to stock resellers and stock channels, Dell focused on customer customization of products and supply to them when they wanted it, thereby saving on huge inventory cost. * Ease of upgrading new parts and products
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accounting decisions, it may be necessary to make adjustments to the affected firms’ financial statements to ensure that ratio comparisons isolate differences in strategy or performance. Common adjustments include: treating operating leases as capital leases; adjusting LIFO inventories to a FIFO basis; changing the write-off period of intangible assets; restating reserves and charges for bad debts warranties and product returns; recognizing the possible impact of unrecognized potential contingent
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Dell Computers[1] Introduction Dell Computers was founded by Michael Dell in 1984 and has its corporate headquarters in Round Rock, Texas. Michael Dell’s winning idea was to sell computer systems directly to customers, allowing him and his company to understand customer needs well and therefore to provide the customer with the most appropriate computing solutions. Dell still practices the direct business model, saving time and cost by bypassing retailers and passing on the cost savings
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. Dell Case: Question 1 :: What are the advantages to Dell of having manufacturing sites located where they are? What are the potential disadvantages? Answer: Dell’s manufacturing sites are in Brazil, China, Malaysia, Ireland, and the U.S. Advantages of these locations are that some of them are low cost (Brazil, China, Malaysia and, relatively, Ireland), they have educated work forces that are highly productive, and they are near large regional markets. Dell Case: Question 2
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A CASE STUDY PRESENTED BY: MELWIN G. MENDE MBA -2 MARKETING MANAGEMENT BA213 III. EXECUTIVE SUMMARY Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers
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In te r n a ti o n a l J o u r n a l o f M a n a g e me n t C a s es BOOTSTRAP FINANCING: FOUR CASE STUDIES OF TECHNOLOGY COMPANIES EVA M.TOMORY UNIVERSITY OF TORONTO, CANADA Abstract Innovative businesses, especially in the early stages of their life cycles, often encounter difficulty in obtaining long-term external financing. Their founders tend to seek financing through nontraditional bootstrapping methods to launch their ventures. Bootstrap financing refers to a range of creative ways to
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Executive Summary: Ford Motor Company was incorporated in 1903 in Michigan,USA by Henry Ford and 11 partners with a starting capital of 28000 US $ in cash. The company witnessed tremendous growth and became one of the top three car manufacturers in North America. Sales reached 150 billion $ in 1996 with a total of 370,000 work force worldwide. The company stayed innovative and progressive in its strategy and business model. In the 1970's, the car market became more competitive with the Japanese
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Readings on Working Capital Management Keys To Successful Working Capital Management From the perspective of the Chief Financial Officer (CFO), the concept of working capital management is relatively straightforward: to ensure that the organization is able to fund the difference between short-term assets and short-term liabilities. In practice, though, working capital management has become the Achilles' heel of scores of finance organizations, with many CFOs struggling to identify core working capital
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|ITAM | |CASO 1 | |DELL’S WORKING CAPITAL | |Claudia Mariana Avendaño Bustamante 130607 | |Cristina Vázquez Rendón
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This Strategy Working? 2 SWOT Analysis 2 Cost Competitiveness 2 Diversification Efforts 2 Financial Analysis 2 Market Share 2 % Change in Sales 2 Operating Margin 2 Net Profit 2 Net Profit Margin 2 Working Capital % Change 2 Long Term Debt % Change 2 Shareholders Equity % Change 2 Return on Total Capital 2 Return on Shareholders’ Equity 2 Gross Profit Margin 2 Operating Profit Margin 2 Net Profit Margin 2 Return on Total Assets 2 Return on Capital Employed 2
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