Business

1) Dell’s strategy is focus on Dell’s business strategy. This strategy place emphasis on the combining of its direct customer model and a manufacturing and supply chain management organization with standard-based technologies. Dell, in my opinion, focuses more on customer intimacy. Dell focuses on developing a direct individual relationship with its customers. This relationship is best obtained for reasons being that they want to get a better understanding of their customer’s expectations about their product. 2) A business risk that Dell face is to effectively manage a product transition. With this being said, Dell has to be able to keep up with the latest technology, hence keeping up with its competitors. Advanced and increasing technology is one of the biggest risks that the company has to face because if they do not keep up with it will result in a loss of customers. 3) The Sarbanes-Oxley act of 2002 was developed in a reaction to several scandals from numerous corporate companies such as Enron. The act is in relation to the Dell 10-k report due to the fact that Dell’s management report over internal control over financial report, evaluation of disclosure controls and procedures, and management’s assessment of the effectiveness of Dell’s internal control over financing reporting all stated that Dell is in good standing with its disclosure controls and procedures were effective. No change is needed for their financial situation and everything is in good standing within the company. There are financial statements and all deficiencies are clearly defined. If there was a need for change Dell method of handling it’s financial situations would indicated when and where the change is needed 4) Dell is a manufacturer. A manufacture can be defined as a business engaged in the manufacturing of some product. According to the article, Dell is engaged with the creation and development of several products. Dell develops products ranging from computers, digital cameras, even to t.v.’s. Dell works as a company to not only develop these products but provide excellent and up to date equipment for its potential and returning customers. 5) Examples of direct inventoriable costs for Dell are all costs associated with making their products. Examples of this would include its products such as monitors, laptops, cameras, etc. Examples of indirect inventoriable costs are items that focus on dealing with the companies’ operations such as warranties, staff support, etc. Dell's gross margin (in dollars) has steadily increased from 2003 to 2005, but the gross margin as a percent of net revenue has only increased slightly due to the fact that Dell is actually making more money than what it is profiting from. It takes money to create the product, however although they are making a profit it is not at an increasing rate as it takes to actually make the product. In other words Dell maintained a well balance between direct and indirect inventoriable cost. 6) The inventory balance on January 28, 2005 indicated that Dell totaled approximately $430 million. The inventory balance is small due to the fact that this is the demand needed for that time period. It seems to me that the demand was lower than previous years. It is not a good thing that Dell has a consistent negative cash conversion cycle. I say this because this shows that there is a direct negative correlation between Dell’s direct labor manufacturer and the creation of the final product. 7) Dell has incurred several types of operating expenses such as administrative, research, and developmental cost. Each of these cost are associated with the income statement and that time period. As each cost occurs it is labeled as a period cost. 8) There are four different cost objects for Dell and they are as follows: * Shipping cost: The amount it takes for one’s product to be mailed from its place of origin to its destination. This cost object is an indirect cost. * Warranties: Label placed on product for the protection of damage or potential harm to the product. This cost object is a direct cost. * Website development cost: Used to increase sales and exposure of several products. This cost object is an indirect cost * Development and Research cost: Used to assist with the development of new products and procedure for its customers. This cost object is a direct cost.