Dell's 10-K Report
Bus 630 Managerial Accounting
Aug 6th, 2012
What is Dell's strategy for success in the marketplace?
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.
Does the company rely primarily on a customer intimacy, operational excellence, or product leadership customer value proportion? What ...view middle of the document...
A shortage of components and their costs as well as reduced control over delivery schedules could also be negatively affected (Dell 10-K 2005).
How has the Sarbanes-Oxley Act of 2002 explicitly affected the disclosures contained in Dell's 10-K report?
Dell has promised to abide by the Acts two main provisions:
1) A mandate that requires Dell's Senior management to certify the accuracy of their financial statement; 2) Dell's management and auditors are required to establish internal controls and reporting methods on the adequacy of those controls.
Is Dell a merchandiser or a manufacturer? What information contained in the 10-K supports your answer?
According to Dell's 10-K, they control all of the production, development, research and sales. There is no middleman to deal with, so I would classify Dell as a merchandiser.
What are some examples of direct and indirect inventorial costs for Dell? Why has Dell's gross margin (in dollars) steadily increased from 2003 to 2005, yet the gross margin as a percentage of net revenue only increased slightly?
As an example, Dell is engaged in selling, general and administrative expenses. They have been involved in global expansion efforts, as well as in a greater mix of business on a global scale. They also buy microchips from outside sources as they employ more workers (Kramer, 2002). Dell's gross margin steadily increased from 2003 to 2005 because they have always been focusing on improving their global network, in addition to diversifying their services. Their range of services enable them to receive profits from every other sector.
What is the inventory balance on Dell's January 28, 2005 balance sheet? Why is the inventory balance so small compared to the other current asset balances? What competitive advantage does Dell derive from its low inventory levels? Page 27 of Dell's 10-K reports a figure called the crash conversion cycle. The crash conversion cycle for Dell has consistently been negative. Is this a good sign for...