1|Page Dell ’s Direct Business Model Dell ’s Direct Business Model Presented by Riti Behal – FT 14459 Gagan Dawar – FT 14221 Vaibhav Agarwal – FT 14276 Great Lakes Institute of Management‚ Chennai Riti Behal‚ Gagan Dawar‚ Vaibhav Agarwal 2|Page Dell ’s Direct Business Model Describe the “Direct Business Model” The direct model has become the backbone of our company and the greatest tool in its growth. – Michael Dell. Dell ’s direct business model bypasses the dealer in the supply chain
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Finance - Case Study Situation - Computron (expansion Program) A. Sales have been below forecasted numbers B. cost have been higher than projected C. They suffered a profit loss instead of a gain D. Management‚ investors and directors are concerned. E. It’d tsking s long time for dvertisement programs to get across all business units‚ including sales and operations Problem - Computron is faced with alot of problems that have impacted their business and caused them to suffer financially
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Richard Shim‚ Analyst‚ IDC "The old Dell was phenomenal at balancing growth and profitability. The new Dell appears to be still having to struggle" Rob Cihra‚ Analyst‚ Caris & Co. "Businesses are spending with a lot more conviction at this point in the year than they were at this point in time last year‚ We feel like we’ve been chasing demand‚ and we’re feeling like we are starting to get out in front." Michael Dell‚ CEO‚ Dell Inc. Introduction On February 18th 2010
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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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Solution to Case 23 Evaluating Project Risk It’s Better to Be Safe Than Sorry! Questions: 1. What seems to be wrong with the way the NPV of each project has been calculated? Indicate without any calculations‚ how Pete and John should go about recalculating the projects’ NPVs. The NPV of each project has been calculated by discounting the cash flows at the 8% before-tax cost of debt. This is incorrect. Since the company has debt‚ preferred stock and common
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Dell Computers: A Case Study in Low Inventory When managers discuss low inventory levels‚ Dell is invariably discussed. Hell‚ even I’ve mentioned Dell on this site. So why all the commotion? Has their low inventory REALLY helped out that much? In short‚ yes. This article is primarily going to discuss how much it helped. This article will not discuss how they achieved such high inventory turns using a state of the art just in time inventory system. Reasoning behind need for lower inventory
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I leaned back in my chair as I opened my notebook. Entrepreneurial Finance is a good class; I really do enjoy it. Today was a particularly interesting topic for me‚ as we were talking about segmenting markets to better predict demand. We talked about TAM‚ target markets‚ segmentation‚ targeting‚ etc. But what really caught my attention was when the professor mentioned the geographical segmentation of the United States. “Some say that the United States‚ in terms of culture‚” he clarified‚ “is more
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asset-backed financings or single-lessee leasing arrangements. 2.) Even though the investment risk is greater than 10% of the total assets for LeaseMed‚ you still have to demonstrate that the equity is sufficient to permit the legal entity to finance its own activities according to ASC 810-10-25-45a‚b‚c. LeaseMed does not meet qualification A because it is not able to issue investment grade debt and there is no evidence that it has invested into other similar entities (qualification B). So it
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------------------------------------------------- A Case study of Dell supply chain management Liu Xingrui 920514-7482 tml10xlu@student.hig.se Xiao Ziye 920801-6619 tml10zxo@student.hig.se Peng Yunyi 930204-9128 tml10ypg@student.hig.se Liu Siqi 921026-9628 tml10slu@student.hig.se Date Summary Dell’s supply chain is typical paragon among the computer manufacturing industry. The advantage of supply chain lead to a rather strong marketing performance for dell than it ever had been. This paper takes
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of the Italian State to buy this stake before the group is put on the market so as to present a streamlined structure? Or would it be preferable to leave things as they are? Why? TABLE OF CONTENTS 1. Executive summary In the above case study Roberto Group incepted 30 years ago by IRI one of the largest holding companies
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