Dell Case

Outline of the relevant auditing guidance:

1. To read the financial statements

2. To identifying information relevant for company business risk and strategy.

3. To provide experience link to the business risk.

4. To write a formal business memo.

Q1:

Dell is a technology company which has its branch all around the world. The ideal of Dell Company is that make technology solutions more efficient to use and manage than before.

Dell’s business strategy is to develop what customer needs. And with time goes by Dell become end-to-end technology solution company.

Dell also divides business into four segments: Large Enterprise, Public, Small, Medium Business and Consumer in order to give each of segments faster innovation and greater responsiveness. Also they give their customers financial service and much more than that.

Q2:

Dell sales 2012: $62071millions

Net income: $3492millions

Cash flow from operating activities:$5527millions

Total assets: $44533millions

Number of employees: 109400

Q3

Dell sells a wide range of products. Such as software, computer, storage, printer, TV, smartphone, tablets and so on.

Q4

All companies do the same business are Dell’s competitor.

Q5

Dell customers can divide into four segments: Large Enterprise, Public, Small-Medium Business and Consumer.

Q6

Most of Dell’s suppliers are from third-party manufacture. Also, Dell purchases materials, supplies, product component and product from a large number of vendors.

Q7

Dell sells its products directly to customers and through various other sales distribution channels such as retailer store.

Q8

Dell basic business strategy is cost-leadership.

Q9

Dell becomes an end-to-end technology solutions company is good to cost-leadership strategy.

First, Dell directly communicates with customers in order to know what they needs. Other part, Dell acquires more than 10 companies to satisfy their solution company. Also, Dell improves their technology in order to have more...