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DeLL Inc.|
Strategic Audit|
MAN 4720 – Strategic Management|
|
Group 7|
3/31/2012|

Dell, Inc.
Dell, Inc. is an American multinational computer technology corporation based in Texas, United States. The company develops, sells, and supports computers and related products and services. Dell Inc. is one of the largest technological corporations in the world, employing more than 103,300 people worldwide. Dell is listed at number 41 in the Fortune 500 list (2011). It is the third largest PC maker in the world after HP and Lenovo. Current Performance

Dell reported improved financial results for the second-quarter fiscal year 2010. Product shipments, revenue, operating income, gross margin and earnings were all higher than in the first quarter, and the company continued to reduce operating expenses. Shipments were up 10 percent, revenue 3 percent from the first quarter among calming spending on information technology. Combined revenue from servers and storage was up 7 percent sequentially. Revenue of $12.8 billion was 22 percent lower than the previous year’s in the same quarter. In addition, Cash flow from operations was $1.1 billion, as Dell ended the quarter with $12.7 billion in cash and investments. Therefore, Gross margin was 18.7 percent of revenue a strong improvement in cost of goods sold, disciplined pricing, a sequential increase in sales from enterprise products. Operating expenses were 13.5 percent of revenue and $288 million, 14 percent lower than in last year’s second quarter. As the result, .Operating income was $671 million. Dell’s Financial Statement from 2009 to Jan 2011.

Period Ending| | Jan 28, 2011| Jan 29, 2010| Jan 30, 2009| Total Revenue| | 61,494,000  | 52,902,000  | 61,101,000  | Cost of Revenue| | 50,098,000  | 43,641,000  | 50,144,000  | | | | | |

Gross Profit| | 11,396,000  | 9,261,000  | 10,957,000  | | | | | |
| Operating Expenses| | | |
| Research Development| 661,000  | 624,000  | 665,000  | | Selling General and Administrative| 7,302,000  | 6,465,000  | 7,102,000  | Operating Income or Loss| | 3,433,000  | 2,172,000  | 3,190,000  | | | | | |

| Income from Continuing Operations| | | |
| Total Other Income/Expenses Net| -  | -  | 227,000  | | Earnings Before Interest And Taxes| 3,350,000  | 2,024,000  | 3,324,000  | | Interest Expense| -  | -  | 93,000  |
| Income Before Tax| 3,350,000  | 2,024,000  | 3,324,000  | | Income Tax Expense| 715,000  | 591,000  | 846,000  | | Minority Interest| -  | -  | -  |
| | | | |
| Net Income From Continuing Ops| 2,635,000  | 1,433,000  | 2,478,000  | | | | | |
Net Income| | 2,635,000  | 1,433,000  | 2,478,000  |
|

Overall, Dell has had a good 2011 fiscal year compared with 2009 and 2010. However, to continue as a major player in the industry, Dell needed an acquisition similar to HP’s $13.2 billion purchase of EDS in order to compete in business information services. In addition, Dell should focus in innovate computer and digital products like the iPad and iPod.

Strategic Posture
Dell’s mission statement reads as follows:
Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. Indeed, the most important goals and objectives Dell bases on its mission statement are: * Highest quality

* Leading technology
* Competitive pricing
* Individual and company accountability
* Best-in-class service and support
* Flexible customization capability
* Superior corporate citizenship
* Financial stability
Strategy management
Dell has experienced tremendous growth over the past twenty years. Throughout this period, Dell has continued to raise its standards of excellence. The values, mission and vision of the company facilitate the achievement of these illustrious goals. Dell had 46,000 employees as...
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