Assignment on Dell

Dell

Bus630 Managerial Accounting

What is Dell’s strategy for success in the marketplace? Dell’s strategy is to sell directly to customers to better understand their needs and effectively meet those needs, combined with highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technology. Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proposition? What evidence supports your conclusion? The company currently relies on customer intimacy, this answer is supported by the relationship that Dell has with its customers. Dell believes that their direct business model is providing solutions to customer needs in turn leads to repeated customers.

What business risks does Dell face that may threaten its ability to satisfy stockholder expectations? General economics, business, or industry conditions may lead to a decrease in net revenues as well as macroeconomic trends. Examples include; failure to effectively manage a product or its transition. Infrastructure failures, customer and geographic mix are substantially different than anticipated, or if Dell cannot continue to offer products at a price lower than competitors. What are some examples of control activities that the company could use to reduce these risks? A way to reduce the risk of failure to manage a product or its transition would be to keep up with technology and its current changes.

How as the Sarbanes-Oxley Act of 2002 explicitly affected the disclosures contained in Dell’s 10-K report? A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements....