DEll financial system

Essay by olgjUniversity, Master's July 2009

download word file, 11 pages 1.0

IntroductionDell was founded in 1984 by Michael Dell, who, in 2002, was the computer industry's longest-tenured chief executive officer. With the simple vision and business concept - that personal computer (PC) could be built to order and sold directly to customers, Dell could best understand consumer needs and efficiently provide the most effective computing solutions to meet those needs by selling computer systems directly to customers. This direct business model eliminated retailers, who added unnecessary time and cost, and also allowed the company to build every system to order, offering customers powerful, richly configured systems at competitive prices. Dell introduced the latest relevant technology much more quickly than companies with slow-moving, indirect distribution channels, turning over inventory an average of every four days. In less than two decades, Dell became the number-one retailer of personal computers, outselling IBM, Hewlett-Packard, and Compaq. ('Dell Tops Compaq in U.S. Sales," The Wall Street Journal, 28 October 1999, E6.

Dell Corporation no. 2-0014. Tuck School of Business at Dartmouth - William F. Achtmeyer Center for Global Leadership)This article is a report based on the case study of 'Dell computer in 2003: driving for industry leadership'. There are four parts of this report: 1. Analyze Dell's performance trends in financial terms and outline the strategic implications of financial analysis. 2. In the light of the key concepts of the Balanced Scorecard, map out and analyze the drivers and process critical to the strategies and performance of Dell. 3. Analyze and deduce the existing and potential corporate and operations risks faced by Dell, and recommend strategies to minimize such risks. 4. Determine and propose the critical features and capabilities of the financial management systems of Dell to support the management.

Part one: financial analysisProfitability ratios measure how well a company is performing by analyzing how...