Dell’s Working Capital The Case: Dell Computers Corporation has been growing faster than its competitors. It has revolutionized the PC industry by providing customized laptops & notebooks to its customers in a few days at competitive prices. It did so by building computers after it received customer’s orders. This enabled Dell to swiftly roll out new products‚ maintain lower inventory & respond quickly to market needs. It generated more cash due to low cash conversion cycle. Low inventory coupled
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margin is the amount of money generated by selling a product over its variable cost of production. Therefore‚ mathematically it can be said that the revenue earned by a product minus its variable cost gives the contribution margin. Generally‚ the contribution margin is calculated on per unit basis by subtracting the variable cost per unit of the product from the revenue earned per unit or selling price of the product. Step 2: Calculate unit revenue or price of the product under question Determination
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Since 1998‚ Dell has faced challenges by competing in an industry that is becoming increasingly commoditized. Decreasing growth in their primary market segment and lost PC sales due to the number of growing substitutes have contributed to Dell’s decreasing profits. In 1997 Dell had a substantial dual advantage over industry leaders‚ but in recent years the wedge between Dell’s costs and consumers’ willingness to pay has been reduced. Loss of industry attractiveness as well as competitive position
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1. What are the key challenges DELL should be concerned with as it enters the large-scale server market? (3 Points) Unlike PC market‚ the support service was more critical for server market since a problem in server even for a short time could cause serious problem in the customer’s business. Competitors such as Hewlett-Packard and IBM had begun offering variety support service aggressively to enhance the quality of their service. DELL‚ through a business model that focuses on direct PC sales‚
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[pic] Table of Content: A. Objective B. Brief Background of Dell a) Strategic Vision b) Product Offerings c) Product Levels d) Current Market Situation i. Customer Segmentation of Dell ii. ESL & The Higher Education Planning Team iii. Higher Education Market (HEM) iv. Microcenters e) Competitor Analysis f) SWOT Analysis - Dell in HEM C. Current Problem & Alternatives D. Our recommendation & Action plan E. Intended Learning Outcome A.
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Case study on: dell Submitted to: Sir Muzzamil Submitted By: Students INTRODUCTION: The Dell company is one of the world’s top providers of computer products and services to businesses and consumers. This company is the "The state’s biggest revenue generating technology firm". In 1984‚ Michael Dell is the founder of the Dell company. He has the unique idea to sell computer systems directly to the customers. This case study
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The Merger of HP and Compaq: Strategy. When a major merger is announced‚ like the one between HP and Compaq‚ investors try to understand where the stock value is going to come from and whether the companies have a plan to achieve that value. Deals are often brought to market with one big synergy number and a statement that the deal will be accretive to earnings. Many acquisitions and some large strategic investments are often justified with the argument that they will create synergy. In this paper
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Background Dell traces its origins to 1984‚ when Michael Dell created PCs Limited while a student at the University of Texas at Austin. The dorm-room headquartered company sold IBM PC-compatible computers built from stock components. Dell dropped out of school in order to focus full-time on his fledgling business‚ after getting about $300‚000 in expansion-capital from his family. In 1985‚ the company produced the first computer of its own design‚ the "Turbo PC"‚ which sold for $795. PCs Limited
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Dell is also one of the in the market setting the tone for horizontal structure communication. It has adopted Hofstede’s low power distance dimension. In the Retention‚ Acquisition‚ and Development account‚ communication involves much horizontal communication with lean hierarchy. The organization has been able to run much like an entrepreneur startup even though it has reached gargantuan size. The lean hierarchy is one of Dell’s key success factors because it creates more efficiency in the workplace
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The Hewlett-Packard and Compaq Merger Analysis The Proposed Merger with Compaq HP entered into an agreement with Compaq Computer Corporation in September 2001. In this definitive agreement‚ HP is going to purchase all of Compaq’s common shares outstanding‚ and pay a total price of 0.6325 shares of its common stock for each share of Compaq’s common stock. To evaluate this transaction for the benefits of HP’s shareholders‚ we use the excess earnings model to forecast HP’s stock price if it standalone
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