Bus 640 Final

Running Head: MANAGERIAL DECISION MAKING RESEARCH AND ANALYSIS

Managerial Decision Making Research and Analysis

BUS 640 Managerial Economics

Introduction

One of the largest computer technology corporations in the world is Dell Inc. Working with a low capital Dell has achieved a competitive advantage by keeping their inventory low. To maintain customers they will have to maximize a low cost position. To be profitable Dell wants to drive hard line pricing to increase their market share. This paper will identify some of the managerial decisions that were made over time and in response to changes in Dell’s market and competitive environment. Identify risks and uncertainty of the company as a whole and identify the company’s financial ups and downs. Understanding the changing demands of the customer in the computer technology is very important. Dell will have to keep abreast of the consumer demands and provide products and services to meet the customer needs if the company plans on retaining their current customer.

At the age of 19 Michael Dell founded a company called PC’s Limited with $1,000. He had a vision on how technology should be designed, manufactured and sold. The company’s first computer system was the Turbo PC an Intel 8088 processor. As the company was growing rapidly Dell begin to establish customer service assistance for their consumers. The company was growing rapidly and the company goes public. In 1985 the company officially was renamed Dell Computer Corporation. (Dell.com)

“For over 28 years Dell Inc. has been one of the largest computer corporations in the world. Dell has over 100,000 employees and is the 3rd largest computer PC vendor. Fortune 500 ranks Dell 44 in the world. Dell has benefited steady growth of the company from 1997 to 2004. Even though sales began to decrease in 2005 the company showed growth in profits in 2008. Sales slowed again in 2009 until 2011.” (Money.CNN.com, 2013)

Dell decline in sales was...