Dell, Inc 10-K 2005

Dell, Inc.

Megan Ehrhart

Managerial Accounting

BUS 630

Anton Narinskiy

August 6, 2012

1. 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 success in the marketplace is a “result of a persistent focus on delivering the best possible customer experience by selling products and services directly to customers” (Dell, Inc, 2005, pg. 5). Dell relies on operation excellence because it targets customers by letting them know that they “can deliver products and services faster, more conveniently, and at lower prices than their competitors” (Noreen, 2011, pg. 4). In Dell’s 10-K form it states that “Dell’s business strategy combines its direct customer model with a highly effective manufacturing and supply chain management organization and an emphasis on standards-based technologies” (Dell, Inc, 2005, pg. 5).

2. What business risks does Dell face that may threaten its ability to satisfy stockholder expectations? What are some examples of control activities that the company could use to reduce these risks? Some business issues that could affect Dell and threaten the stockholders expectations would be Dell’s economic climate could deteriorate from overseas customers and potentially this could reduce or delay their technology investments (Dell, inc, 2005, pg. 7). This could make it so that their profitability and revenue would be negatively affected (Dell, 2005).Another issue that could arise is the lowered cost of competitors prices. Dell cannot ensure that they can keep their computers and software at the expected low price. This could affect market share, loss of revenue and profitability (Dell, 2005, pg. 8). Some control activities that Dell could implement to reduce these risks would be to implement a performance report. “Performance reports suggest where operations...