Introduction to International Business Case 4: Dell 1. Dell’s most important FSA is their direct selling. Other FSAs are their behavior with the customer and their high level of inventory. These FSAs can be summarized with the 3 golden rules of Dell: ‘never sell indirect’‚ ‘disdain inventory’ and ‘always listen to the customer’. The macro-level requirements for the direct sales model to be successful in Dell’s case are the customers’ behavior in the 1980s. The customers became very sophisticated
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Brief Outline This case is regarding Dell computers financial status in the period from 1991 to 1995. In this analysis we intend to highlight the various issues related to working capital experienced by the company. What makes this case interesting is the turnaround of Dell’s financial structure which in turn led to its recovery from seemingly major liquidity issues. To give a brief outline‚ this study enlightens one on how a fast growing company can get into trouble due to mismanagement of cash
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“Wintel.” These two suppliers drew profits from all PC companies and minimized differentiation‚ as there were few substitutes and little options of switching to another supplier. The industry’s degree of rivalry reflected its fierce competition. As computers became more common‚ demand rose‚ prices decreased‚ and demand grew stronger‚ boosting competition between manufacturers. This rivalry is essentially what sparked Dell’s competitors to try to emulate their business model and attempt to gain a competitive
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http://www1.us.dell.com/content/topics/global.aspx/corp/en/home?c=us&l=en&s=corp&~ck=mn University of Phoenix (Ed). (2001). Operations Management. [University of Phoenix Custom Edition e-Text]. Ohio: Prentice Hall Viswanadham‚ N. (2002‚ January 25). Dell-on-Line: A Build-to-Order PC Supply Chain. Retrieved from http://lcm.csa.iisc.ernet.in/scm/nv-1.pdf.
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March 4‚ 2011 Case-Revitalizing Dell I. Diagnosis Question 1: The most critical shifts in Dell’s contextual factors‚ including industry dynamics‚ trends‚ technology changes and shift of the competitive landscape are following: The industry has changed significantly over the last 20 years. The traditional business model in the PC industry was inside-out‚ supplying machines based on orders from distribution‚ resell and retail channels‚ thus following the indirect selling concept. Dell’s direct
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Personal Computer Industry (DELL) AZIZUL RIZAL ZULKAPLI ZP01654 ZCZB6023: BUSINESS ECONOMICS AND DECISION ANALYSIS Lecturer: PROF. MADYA DR. NIK MUTASIM Table of Contents Table of Contents 2 Introduction: Five Forces Framework in Personal Computer Industry 1 Threat of New Entrants 3 Bargaining Power of Suppliers 4 Bargaining Power of Buyers 5 Rivalry among Existing Firms 6 Threat of Substitutes and Complements 7 Recommendation for DELL 9 Conclusion
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Dell Inc.: Case questions In the Level 5 manufacturing‚ the motherboard is not installed into the chassis before the shipment to the US. This means that at L5 has a longer list of cost: (1) motherboard packaging cost to protect the motherboard from damage (2) air-freight cost‚ these are separate transportation cost (3) US transportation cost are cost required to transport the motherboard from the U.S. to the SLC and to the 3rd-party integrator (4) inventory holding cost at SLC (5) Local
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1. Synopsis After the emergence of personal computer in1990‚ Dell emerged as a strong business entity in the computing industry. With the advent of personal computing‚ the major players in the industry were IBM‚ Compaq and HP. Between 1994 and 1998‚ Dell’s growth was faster and twice its major rivals (IBM‚ Compaq‚ Gateway‚ and Hewlett- Packard). It provided high performance PC at a very low price. Through the introduction of Dell’s Direct Model‚ it enjoyed high competitive advantage and earned quite
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Q3: Financing its growth in 1997 (Hint: exhibit-4 and 5) Can be done by using projected financial statements Working Capital requirements Comparison of working capital improvements and profitability improvement Forecast 1997 BS Additional sales of $2648 million imply additional operating assets of $779 million. In 1996‚ the 1997 profits would be $405 million. AFN would be $315- current liabilities may affect AFN For efficient management of working capital: Improve margins Reduce
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Q. 1) Describe how Dell (case 1‚ pp. 143-145) has influenced visibility‚ consumer behaviour‚ competition‚ and speed through the use of ICT in its supply chain. [Answer in 100 words] - > Dell is known for its hyper-efficient supply chain system‚ which has been made possible through effective use of ICT: * Just-in-time operation was made possible through constant vigil on available stock‚ communication with supplier and regular demand forecasting * Consumers were able to track their order
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