Dell Computer Corporation
Case 7-5 Dell Computer Corporation
Measuring and Controlling Assets Employed
Dell, an American computer hardware company based in Round Rock, Texas, develops, manufactures, supports, and markets a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. As of 2006 it employs more than 63,700 people worldwide and manufactures more computers than any other organization in the world. According to the Forbes 500 2005 list, Dell ranks as the 28th-largest company in the United States by revenue. In 2005, Fortune magazine ranked Dell as No. 1 on its annual list of the most-admired companies in the United States, displacing Wal-Mart.12
Dell has shown its ability to adapt to the marketplace and diversified its business to appeal to a variety of market segments over the years. Products range from Dell PowerEdge servers, Power Vault, Dell EMC storage systems as well as PowerConnect switches for corporate clients. For individuals and professional customers alike, Dell products give the consumer a broad range of choices, such as Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offers a wide array of ancillary products and services, including printers, projectors, Axim handhelds, and other accessories (Annual Report 2006).1 More recently, to generate recurring revenues, the company has announced intentions to explore printers, LCD television/computer monitors, as well as digital music players. 8 Discussion Questions:
1. What is Dell 's strategy?
2. What is the basis on which Dell builds it competitive advantage?
3. How do Dell 's control systems help execute the firm 's strategy?
Business Strategy
Dell 's business strategy combines direct customer contact with highly efficient manufacturing and effective supply chain management. Dell has emphasized
Measuring and Controlling Assets Employed
Dell, an American computer hardware company based in Round Rock, Texas, develops, manufactures, supports, and markets a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. As of 2006 it employs more than 63,700 people worldwide and manufactures more computers than any other organization in the world. According to the Forbes 500 2005 list, Dell ranks as the 28th-largest company in the United States by revenue. In 2005, Fortune magazine ranked Dell as No. 1 on its annual list of the most-admired companies in the United States, displacing Wal-Mart.12
Dell has shown its ability to adapt to the marketplace and diversified its business to appeal to a variety of market segments over the years. Products range from Dell PowerEdge servers, Power Vault, Dell EMC storage systems as well as PowerConnect switches for corporate clients. For individuals and professional customers alike, Dell products give the consumer a broad range of choices, such as Dell Precision workstations, OptiPlex desktops, Dimension desktops, Inspiron and Latitude notebooks. Apart from these core products, the company also offers a wide array of ancillary products and services, including printers, projectors, Axim handhelds, and other accessories (Annual Report 2006).1 More recently, to generate recurring revenues, the company has announced intentions to explore printers, LCD television/computer monitors, as well as digital music players. 8 Discussion Questions:
1. What is Dell 's strategy?
2. What is the basis on which Dell builds it competitive advantage?
3. How do Dell 's control systems help execute the firm 's strategy?
Business Strategy
Dell 's business strategy combines direct customer contact with highly efficient manufacturing and effective supply chain management. Dell has emphasized
References: 1. Anthony, R. & Govindarajan, V. (2004) Management Control Systems (11th ed.). New York: McGraw-Hill/Irwin 2. Vinas, T 3. Dell, Inc. 2006 Form 10-K. Retrieved July 25, 2006 from http://www.dell.com/downloads/global/corporate/sec/10k-fy06.htm 4. Goodson, R 7. (2002) Gaining Competitive Advantage Through Product Customization http://www.rtec.executiveboard.com/Images/RD/PDF/RD49957.pdf 10. Finney, R. (2002) Dell Business Strategy Secrety (Part 1). Retrieved July 24, 2006 from http://www.itmweb.com/f070802.htm 11. Moltzen, E (2006) Dell Vows More Price Cuts To Regain Momentum 12. Wikipedia (Dell) Retrieved July 24, 2006 from http://en.wikipedia.org/wiki/Dell,_Inc.