Environmental Analysis of Dell Organization Industry Environment Competitive Rivalry The competitors to Dell are as follows: Hewlett-Packard‚ IBM‚ and Sun Microsystems (Hoovers). HP and IBM pose the biggest threat in competition. Dell ’s sales overview has increased each year except for 2001 to 2004. In 2001 the annual sales in millions were $31‚888 and a major increase in sales in 2004 at $41‚444.0. (Hoovers). In terms of Entry Barriers‚ Dells direct to consumers sales approach has increased
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SWOT Analysis of Dell Computers Strengths‚ Weaknesses‚ Opportunities and Threats Analysis Dell Computers relies on its Direct Method to sell its products. This model is not perfect.. Addressing its flaws is key to maintaining Dell ’s competitive edge. Dell Computer Corporation started in 1984 by Michael Dell with this very simple premise as its basic foundation: that personal computers could be built and sold directly to customers and by doing this‚ Dell could address their specific needs
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Total Quality Management (TQM) is a management strategy that puts awareness of quality at the heart of all organizational processes. This is combined with a strong philosophy of lowering costs by eliminating waste and defects. So TQM can be described as a management system that aims at a continual increase in customer satisfaction while continually lowering real costs. The father of TQM was William Deming‚ an American college professor‚ author‚ and consultant. Deming played a major role in improving
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Strategic Cost Management ACCT90009 Seminar 1 Seminar 1 Subject Administration Introduction to SCM oduc o o SC Administration • Subject Coordinator Dr. David Huelsbeck Email: david.huelsbeck@unimelb.edu.au Room: 08.028‚ The Spot Phone: +61 3 9035 6256 Consultation Hours: Monday 4:15pm – 6:15pm • Seminars: Tuesday: 2.15 pm – 5.15 pm‚ FBE ‐ Theatre 211 (Theatre 2) Thursday: 6.15 pm – 9.15 pm‚ Alan Gilbert ‐ Theatre 2 Teaching Format and Resources • Seminar Format 3 hour seminar
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level: high customization‚ etc Competitive Strategy: Dell chooses the customers who prioritize Variety: high product variety Quality: reasonable quality Price: reasonable price Lead time: approximately one week Implied Demand Uncertainty Impact of customer needs on implied demand uncertainty Conclusion: The competitive strategy in meet high variety and service level contribute to Dell’s high implied demand uncertainty. Dell SC Capabilities 1.Facilities 2.Inventory 3.Transportation
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QUESTION 1 Why does L5 incur higher manufacturing and logistic costs than L6? In L5‚ the chassis (without motherboard installed) are shipped to the US first and followed by the motherboards being airfreight to the US as shown in Figure 6-4. This indicates a higher logistic cost from airfreight if motherboard is not manufactured in time to be shipped (via ocean) from China to US where motherboard is in need to be assembled with the empty chassis to satisfy surge demand. At the same time‚ if
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Dell Computer – The Past‚ Present‚ and Future When Michael Dell founded Dell Computer in 1984 the company’s mission was to be “the most successful computer company in the world” (Diversity Facts‚ 2011). To achieve his goal of becoming the dominant supplier of affordable consumer grade PCs‚ Dell Computer adopted a Direct Selling business model‚ building each PC only after a customer places an order. Revolutionary at the time‚ this system allowed Dell to reduce inventory to Just in Time levels.
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Quality Cost 1 Quality is defined from the customer´s point of view l Performance l Performance or the primary operating characteristics of a product or service. Example: For a car‚ it is speed‚ handling‚ and acceleration. For a restaurant‚ it is good food. l Features l Features or the secondary characteristics of a product or service. Example: For a TV‚ it is an automatic tuner. For a restaurant‚ it is linen table cloths and napkins . l Reliability l Reliability
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Plant overhead $122‚000 D/L rate/hour $30 Youngstown has a traditional cost system. It calculates a plant-wide overhead rate by dividing total overhead costs by total direct labor hours. Assume‚ for the calculations below‚ that plant overhead is a committed (fixed) cost during the year‚ but that direct labor is a variable cost. 1. Calculate the plant-wide overhead rate. Use this rate to assign overhead costs to products and calculate the profitability of the four products. The assignment
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Environment The PC industry can be analyzed using Porter’s Five Forces. The first force is threat or barriers of entry. Here‚ the threat is high and barriers are low. Although certain brands own the majority of the market‚ the costs to manufacture are extremely low‚ and the prices of these components are declining yearly at 25% to 30%. The capital required is relatively inexpensive‚ as well. Also‚ unbranded “white box” PC makers have become prevalent overseas; showing anyone who can make a
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