Studying The Current Trends In The Computer Services Industry

Submitted By jfog24
Words: 611
Pages: 3
Open Document
Part Two Number 3
A. Fsa
B. As a manager, we would like to monitor the current trends in the computer services industry. We believe that this could be a very profitable industry for Dell in the near future that they could take advantage in. We would also like to monitor the personal industry and how we can keep and convert more consumers to buy from Dell. Dell has a strong presence in the personal computer industry already, but we would like to monitor it to make sure they can keep their strong records. As for ratios, we would like to monitor the net profit margin, debt to assets, and inventory turnover. We would like to monitor the net profit margin to make sure that it continues to increase over the next few years. We want to watch the debt to assets ratio because that tells us the proportion of total assets that creditors finance. This ratio is currently high and we would like to see it decrease over the next years. The inventory turnover is important to monitor because it tells us how frequently inventory is bought and sold during the year. We would also like to monitor some of our competitors to make sure that we stay ahead of them in future years.
C. The main variable costs that Dell has to deal with are its costs of components, wages of workers, and miscellaneous components for its products. Some of Dell’s fixed costs are the building rents, utilities, and insurance. We believe that Dell uses a job order costing because they create personal computers for consumers that vary with each order. We do not believe that Dell should change their cost structure because it creates unique products that are customized to the needs of the customer. If they were to change their cost structure, it would dramatically increase their costs because they would have to change the products after to fit to each customer’s needs.
D. Dell Inc. uses a Corporate Bonus Formula which is an incentive to make more money. They use Target Annual Incentive x Corporate Performance Modifier x Individual Performance Modifier = Annual Incentive Payout. Dell Inc. also uses long term incentives and Business Unit Performance in the Definitive Proxy Statement used by management. They are assigned a performance scorecard with goals relating to business unit revenue, adjusted operating income, cash flow contribution, relative unit growth (based on IDC data), net
Show More

Related Documents: Studying The Current Trends In The Computer Services Industry

Matching Dell Case Analysis Essay

1. Synopsis After the emergence of personal computer in1990, Dell emerged as a strong business entity in the computing industry. With the advent of personal computing, the major players in the industry were IBM, Compaq and HP. Between 1994 and 1998, Dell's growth was faster and twice its major rivals (IBM, Compaq, Gateway, and Hewlett- Packard). It provided high performance PC at a very low price. Through the introduction of Dell's Direct Model, it enjoyed high competitive advantage and earned quite…

Words 1670 - Pages 7

Senior Project Manager Essay

| U02A1 Dell Supply Chain | James DeHaven | BUS3022 Fundamentals of Supply ChainCapella University | Why has Dell’s Direct Supply Chain been so Successful? The direct supply chain model that Dell has been using for many years to sell customized PC’s to customers via the internet has been very successful. Dell designed and structured the supply chain to provide customized computers in a quick manner and with a reasonable price. Customers can visit the Dell website and configure the PC…

Words 1079 - Pages 5

Comparing And Contrast Essay And Macbook Pro Notebook Vs. AIU Online

order to stay in business and remain productive. This organization is on the rise to find the most reliable and best personal computer for excelling students by comparing and contrasting the prices, performances and models from three different brands sold by the most popular vendors. Our company selected the Apple-13.3” MacBook Pro Notebook, the HP-Envy 15.6” Laptop, and the Dell-Ultra book 15.6” Touch-Screen Laptop. After careful reviews and investigations, the organization decided that the HP Envy…

Words 1091 - Pages 5

Questions On Strategic Management

acquisition and process efficiency. 5. 1.1.1 Dell Incorporated – Company Profile Figure 2: Turbo PC Dell was founded as PC’s Limited in 1984 by University of Texas’s student, Michael Saul Dell, with capital of $1, 000 on a simple concept. Initially, Michael Dell was selling and assembling computer at his hostel. Next year, he was abandoned University during the planning stage in order to focus full-time in his first in-house computer design and rawness business after gained $ 300, 000 expansion…

Words 8262 - Pages 34

Dell Analysis Case Study Essay

Case Analysis: Dell Introduction Present CEO and chairman of the board Michael Dell founded Dell in 1984, as a leading technology provider that designs, develops, manufactures, and supports PCs, software and peripherals, storage and servers, and associated services. With operations in four geographic areas and additional business centers and manufacturing sites in more than 20 locations around the world, Dell is able to reach more than 24,000 retail locations worldwide. Dell’s ability to process…

Words 5226 - Pages 21

Dell 27s Working Capital Essay example

Introduction Dell Computer Corporation (Dell) designed; manufactured, sold and serviced personal computers and other related digital devices. Dell emerged from purchasing personal computer division of IBM and soon expanded to sell its own brand to personal consumers and business clients. It sold computers through magazines, online distributors and it takes order on the phone as well. But unlike Apple or Sony, Dell does not have any retail stores. Dell was also the first in the industry…

Words 1342 - Pages 6

Report on International Ethical Issues Essay

1). Executive Summary…………………………………………………………………3 1.1 Background and learning goals of the report …………………………………3 2). Introduction to Dell Inc………………………………………………………………4 2.1 Background of Dell Inc. ………………………………………………………4 2.2 International activities of Dell Inc. ……………………………………………5 3). International ethical issues facing Dell Inc. ………………………………………6 3.1 Employment Practices…………………………………………………………6 3.2 Environmental Pollution………………………………………………………7 4).…

Words 2740 - Pages 11

Essay on task 1

TASK 1 NEW MARKETING OPPORTUNITY Dell considers the environment at every stage of the product lifecycle starting with how a product is designed. Instead of one eco-friendly product, they consider the following when designing all of the products. Environmental responsibility is about more than creating an eco-friendly product or initiative. It’s about incorporating sustainability into every aspect of what we do, using our technology and expertise to innovate on behalf of the customers, the communities…

Words 504 - Pages 3

Essay about Case 3

Case #3 is about Dell Computer Corporation and its development of computers. Corp. made its name with its popular desktop computer model. After huge growth and profits, Dell corp hit a wall. The company attempted to bring life back to the corporation by entering the portable computer market (laptops). The attempt at laptops resulted in failure and a damaged reputation. In the case, Dell is struggling with the development of new laptops that will hopefully resuscitate the company. Dell is faced with…

Words 847 - Pages 4

Quality: Personal Computer and Bargaining Power Essay

play games, read e-book, and so on. The in built battery lasted for 10hours of video and 140 hours of audio playback. Apple goes against outsourcing the resources. Apple has decided to open its own stores to service its customers and sell Mac computers, software, iPods, iPhones, iPads, third party accessories and other consumer electronics. RIVERLY BETWEEN ESTABLISHED COMPETITORS: Sometimes when new firm enter into the industry already exiting firms reduce their prices or focus on advertising…

Words 1429 - Pages 6