Is Dell a Merchandiser or a Manufacturer?
Part 4. Is Dell a merchandiser or a manufacturer?
Dell Inc. is both, a merchandiser and a manufacturer. The company emphasizes its business model on delivering a quality product to fit customers’ needs, in the process Dell may create custom-made products from a variety of suppliers and merchandise them as a finished product directly to a customer. On a different scenario Dell may manufacture a product itself and them merchandise or distribute it within its chain of subsidiaries.
What information contained in the 10-K supports your answer?
The information contained in Dell’s 2005 10-K annual report is the following excerpt from the company’s business model:
“Dell designs, develops, manufactures, markets, sells, and supports a wide range of products that are customized to customer requirements. These include enterprise systems, client systems, printing and imaging systems, software and peripherals.”
ITEM 9A — CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures — Dell’s Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of Dell’s disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures, Dell’s disclosure controls and procedures were effective.
Management’s Report on Internal Control Over Financial Reporting — Dell’s management, under the supervision of Dell’s Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act). Management evaluated the effectiveness of Dell’s internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that
Dell Inc. is both, a merchandiser and a manufacturer. The company emphasizes its business model on delivering a quality product to fit customers’ needs, in the process Dell may create custom-made products from a variety of suppliers and merchandise them as a finished product directly to a customer. On a different scenario Dell may manufacture a product itself and them merchandise or distribute it within its chain of subsidiaries.
What information contained in the 10-K supports your answer?
The information contained in Dell’s 2005 10-K annual report is the following excerpt from the company’s business model:
“Dell designs, develops, manufactures, markets, sells, and supports a wide range of products that are customized to customer requirements. These include enterprise systems, client systems, printing and imaging systems, software and peripherals.”
ITEM 9A — CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures — Dell’s Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of Dell’s disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) under the Exchange Act) as of the end of the period covered by this report, have concluded that, based on the evaluation of these controls and procedures, Dell’s disclosure controls and procedures were effective.
Management’s Report on Internal Control Over Financial Reporting — Dell’s management, under the supervision of Dell’s Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) or 15d-15(f) under the Exchange Act). Management evaluated the effectiveness of Dell’s internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that