Bus 630

BUS 630: Managerial Accounting

Instructor: Dr. Dana Leland

Assignment 1: Dell Computer Inc.

Templeton C. Crawford

July 31, 2012

While Michael Dell was a freshman at the University of Texas, he started building computers in 1984 in his dorm room and selling them to students. Michael Dell started his company with $1000.00. The original name of the company was called PC’s Unlimited but was later changed to Dell computers. By 1992, he was the youngest CEO of a fortune 500 company. The company faced a lawsuit of 100 million dollars based of filing fraudulent accounting practices in 2010.

Dell began to use a basic concept to build customize computers based on the needs of the customer and focused on relying on meeting the computer solutions. Dell income statement made approximately 13.2 billion in the first quarter of 2012 and believe it will have a net profit $ 61.2 billion or better for the year. The company offers a numerous of services and products which allows the customers to have diverse choice in technology. The products are offered globally to their clientele and assist in building internet infrastructure and information technology systems. The marketing strategy is based on selling directly to the consumer which has given Dell a fair share of the marketplace. Their concept has allowed the company to be number one seller of personal computers around the globe and the United States. Dell’s business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. This strategy enables Dell to provide customers with superior value; high-quality, relevant technology; customized systems; superior service and support; and products and services that are easy to buy and use (Dell, 2005, p. 1).

The company has a lot issues to resolve to settle stockholder expectation and produce the profits that they expect. According to the 10k report, Dell is...