Dell Computer Corporation's business model and financial performance

Dell Company

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Dell Computer Corporation was established in 1984 and today ranks among the world's largest computer systems companies. Dell pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service. The company designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software.

Dell's whole range of high- presentation computer systems comprise: Dell Dimension and OptiPlex desktop computers, Latitude notebook computers, and Power Superiority network servers. The company's merchandises and facilities are marketed in more than 150 Nations and lands to clients spreading from main businesses, government organizations and medical and educational establishments to small industries and individuals. The corporation services roughly 11,000 persons. Head offices are positioned in Round Rock, Texas, with industrial services in Austin, Texas; Limerick, Ireland; and Penang, Malaysia.

The Dell Company purposes in engineering that have been factually sturdy. As a result, other big businesses in the same commerce, such as Acer and Toshiba, could be valuable savings as well. Nevertheless, with incomplete capital reserve, it is completely rational to capitalize in a business that would give the most quantity of return with the bottommost jeopardy of disappointment. Therefore, founded on the unexpected success and presentation of Dell Inc. associated to others, one should buy Dell shares rather than obtaining shares of other business titans.

If you have any question regarding my advice, please do not hesitate to contact me and discuss your options.

Table of Content

I. Introduction and Statement of Purpose 3

II. Qualitative Analysis: Overview 4-6

- Company History 4

- Corporate Social Responsibility 4

- Competitors 5

- Trends 6

III. Financial Analysis….. 6-9

- Income Statement 7

- Balance Sheet 8

- Stock Performance 9

- Ratio Analysis 10

IV. Recommendation 10

V. Appendix 10-13

- Balance Sheet (Original) 10

- Income Statement (Original) 11

VI. Reference 14

I. Introduction (Statement of Purpose)

Before capitalizing, Dell is one of the foremost technology companies, proposing a wide-ranging of merchandises, counting desktop PCs, servers, networking products,, mobility, storage products, software and services, and peripherals. The company primarily operates in the U.S." Dell's chief authority center is positioned north of Austin, Texas in the small district of Round Rock. For over the previous twenty-six years, Dell has commissioned roughly 96,000 workers, in the United States and abroad. Michael Dell, founder and Chief Executive Officer, has maintained Dell's dominate force in the market with innovating technology and diversifying the brand. Mission and Dell is committed to being the most "successful computer company in the world at delivering the best customer experience in markets we serve." Dell will strive to provide our consumers with the highest quality products with the latest technologies, with a competitive pricing strategy. Dell will provide first class service and support for all of it's consumers and internal employees. Along with service and support Dell will insure exceptional corporate citizenship that will help create financial stability (Source A17). Dell is committed to our planet, our communities and our people and believes all of these are integral parts of our business strategy (Source A11). It's a commitment driven by the types of goals, strategies and accountabilities that characterize every part of our business.

And it's one that persists through all business cycles. Each year we strive to be better -- to create technology that can change the world and that makes a positive difference in the lives of our stakeholders. That's why we continue to be inspired by possibility and guided by purpose

(Source A10). Products - By breaking new ground and pioneering critical developments in home, small business and enterprise computing (Source A11). Dell's research and development (R&D) efforts now span the globe, driven by some of the industry's foremost product designers and engineers (Source A16). Customers - Our business is aligned to address the unique needs of large enterprises, public institutions (healthcare, education and government), small and medium businesses, and consumers (Source A19).

Dell has more than 41,000 services team members in roughly 90 countries, 60 technical support centers, and seven global command centers devoted to serving clienteles to use technology to making sure they reach their business goals . They have an responsibility to function more professionally, enhance returns, involve with stakeholders and act with honesty. Dell makes it an importance to involve with an assortment of stakeholders -- from our official sustainability group to our participation with Business for Social Responsibility to our joining with socially accountable investors.

Dell is committed to being a place where their team members come together to discover significant effort, involve with artistic coworkers and generate ground-breaking answers for a varied client marketplace. When Dell unite their varied involvements and originality, they create a culture that stimulates winning, where they all can hold and live their purpose in everything they do. Further, they have strengthened their focus on guaranteeing team member achievement through an efficient performance management method and augmented chances for career.

II. Qualitative Analysis: Overview

Company History

The company was originated in 1984 by Michael Dell, now the computer industry's longest- tenured chief executive officer, on a straightforward idea: that by marketing personal computer techniques straightforwardly to clienteles, Dell could best comprehend their needs, and offer the most real calculating answers to meet those needs. Nowadays, Dell is improving and broadening the fundamental inexpensive benefits of the direct model by progressively applying the competences of the Internet to its whole business. Through the direct business model, Dell offers in-person relationships with corporate and institutional customers; telephone and Internet purchasing; customized computer systems; phone and online technical support; and next-day, on-site product service (Kennon). Dell positions for system connection and management, guides customers throughout technology changes, and gives an extensive choice of other services. The company projects and modifies products and services to the requirements of the organizations and individuals purchasing them, and sells an extensive selection of peripheral hardware and computing software. Nearly two-thirds of Dell's sales are to large companies, government agencies and educational organizations. Dell also aids medium and small businesses and home-PC users.

Products and Industries

The assortment of product lines and dignity in multiple businesses also make Johnson & Johnson a good-looking investment. It has a big range of clientele product lines comprising Dell's Peripherals class includes USB key drives, LCD televisions, and printers; Dell monitors includes LCD TVs, plasma TVs and projectors for HDTV and monitors. Dell Ultra Sharp is an additional a high- end brand of monitors. Dell service and support brands include the Dell Solution Station (extended domestic support services, previously "Dell on Call"), Dell Support Center (extended support services abroad), Dell Business Support (a commercial service-contract that provides an industry-certified technician with a lower call-volume than in normal queues), Dell Ever dream Desktop Management ("Software as a Service" remote-desktop management), and Your Tech Team (a support-queue available to home users who purchased their systems either through Dell's website or through Dell phone-centers). Suspended products and brands comprise Axim (PDA; discontinued April 9, 2007), Dimension (home and small office desktop computers; discontinued July 2007), Dell Digital Jukebox (MP3 player; discontinued August 2006), Dell PowerApp (application-based servers), and Dell Omniplex (desktop and tower computers formerly maintained to run server and desktop operating systems).

Competitors

The Dell Company faces major competition from other companies, this include Apple, Sun Microsystems, Gateway, Sony, Asus, Toshiba and Hewlett Packard which is also mentioned to as HP. All of these companies are its competitors but HP is its major competitor, competition rose to the top when HP came together with Compaq in the year 2006, this meant steadier rivalry and the company had lost its market place to become the second biggest vendor of computers and computer appliances.

Even so, Toshiba will continue to remain a strong competitor because of its high degree of divergence and its importance on research and expansion. Industrial Analysis Industrial analysts label the computer hardware market as being highly concentrated, with the four largest companies operating 77% of industry revenues. "The major players of this industry have been tremendously hostile in attainments during the last five years, and IBIS World expects additional attentiveness of the industry incomes in the future as the fashion of achievements continues" (IBIS World)

Trends

III. Financial Analysis

Previous to capitalizing in a company, its presentation history should be examined with precise statistics. In the case of Dell, one must observe the company's income reports, balance expanses, and stock presentation of the past recorded eras. Below are the complete income accounts (combined report of wages), balance sheets, and stock price from 2008 to 2011. Since the year 2011 has not come to a full close yet, Johnson & Johnson's 2011 financial data will not be extensively examined in this analysis except for its January data.

-Income Statement

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 61,000

624,000

665,000

Selling General and Administrative

7,302,000

6,465,000

7,102,000

Non-Recurring-

2,000

Others

Total Operating Expenses

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

Non-recurring Events

(Source: MSN: Money and Data Providers)

The given income records operate as an extremely significant instrument to examine the business. It has important signs of presentation such as gross profit, revenue, and net earnings.

In general, by observing at the income reports, the numbers appear to fluctuate up and down. It is due for to the fact