Group Essay- Dell

Group Essay- Dell - Dell Computers: "Dude, You're Getting a...

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Dell Computers: “Dude, You’re Getting a Report!” Scott Dalinger Daniel Rounds Peter Yacoub Jennifer Neufeld c Managerial Accounting Professor A. Llorente April 23, 2007 c
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Background: In 1983, a high school drop-out by the name of Michael Dell started an enterprise that upgraded computers for businesses by making them IBM-compatible. From that point to a year later, his business became a $6 million business. That same year, the company, known as Dell, began manufacturing their own computers, creating sales equaling $70 million by the end of the year (O’Rourke 87). Michael Dell is still the CEO, after a short recess, making him the longest-standing executive ever in computer company history. As one of the fastest growing companies in history, Dell’s mission, known as “Dell Direct,” was to create reliable, made-to-order machines for businesses and consumers. By eliminating middlemen, they figured they could keep their products affordable and focus on customer service and quality assurance (“Dell at a Glance”). After supplying several Fortune 500 companies with their computers, Dell was added to the acclaimed roster (O’Rourke 87). Although Dell is a United States-based company, set in Austen, Texas, it employs nearly 78,700 people around the world. Its products and parts are manufactured in several different countries with regional offices in Romania, Korea, and El Salvador, to name a few. Dell’s unique business visions and fresh computer ideas 2 Top 5 PC Sellers 3 rd Quarter - 2006
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lend to their profitability, with a report of $57.9 billion for the last four quarters (“Dell at a Glance”). With the good comes the bad. As Dell’s profitability began to rise, so did its liabilities. Meaning, there are always issues here and there that threaten a company and its future success. Hence, in this paper, we shall delve into the major quandaries Dell is in front of right now and offer our solutions to how they can maintain their spot at the pinnacle of the computer manufacturing mountain. Problem and Solution #1: An issue facing Dell today is one that was bound to happen with their “at-the- time” ground-breaking business move. Dell’s selling of its products exclusively on its website has excluded consumers who want to get a more hand-on feel of the product. Ironically, this problem was at one time one of the greatest strengths the company had and greatly contributed to the success Dell experienced in past years. Over a decade ago, Dell was still a struggling computer company in an endless sea of emerging technological giants (Gwynne). Most companies had so little profit margins that the end result was either declaring bankruptcy or, if they were lucky, being bought out by a bigger company. The only way for any company to survive was to distinguish itself from all the others. While many focused on advertising campaigns and exposure to the market via retail stores, Dell took a new and different path. Dell didn’t want to involve any store or
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This note was uploaded on 05/03/2008 for the course ACCT 1B taught by Professor Llorente during the Spring '08 term at CSU Fullerton.

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Group Essay- Dell - Dell Computers: "Dude, You're Getting a...

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