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Dell’s product categories include mobility products, desktop PCs, software and peripherals, servers and networking, services, and storage.for software and peripherals Dell offer Dell-branded printers and displays and a multitude of competitively priced third-party peripheral products, including software titles, printers, televisions, notebook accessories, networking and wireless products, digital cameras, power adapters, scanners, and other products.
There are several services provided by Dell which is Infrastructure Consulting Services, Deployment Services, Asset Recovery and Recycling Services,Training Services, Support Services and also managed service.
There are few company that become Dell’s competitor such as Lenovo,Apple,Samsung, Hewlett Packard(HP),Compact.Acer,IBM,Toshiba,Sony,Asus and Microsoft.
Dell’s customers include large corporate, government, healthcare, and education accounts, as well as small and medium businesses and individual consumers.
Within each of our geographic regions, we have divided our sales and marketing resources among these various customer groups. No single customer accounted for more than 10% of our consolidated net revenue during any of the last three fiscal years.
Most of Dell’s supplier provide onputs to multiple products and sometimes multiple suplliers are qualified for a single component.Dell’s supplier come from various company such as Intel,LG,Panasonic,Samsung,Sharp,Toshiba and so on.
Dell’s market and distribution of its product
Dell’s strategy is global.
For large business and institutional customers, we maintain a field sales force throughout the world.For large, multinational customers, we offer several programs designed to provide single points of contact and accountability with global account specialists, special global pricing, and consistent global service and support programs.
Dell market their products and services to small and medium businesses and consumers primarily by advertising on television and the Internet, advertising in a variety of print media, and mailing or emailing a broad range of direct marketing publications, such as promotional materials, catalogs, and customer newsletters.
Dell also sell product indirectly through selected partners to benefit from the partner’s existing end-user customer relationships and valuable knowledge of traditional customs and logistics in the country, to mitigate credit and country risk, and because sales in some countries may be too small to warrant a direct sales business unit.
Dell’s business strategy is a cost leadership strategy. Dell uses efficient cost structures to protect their markets from the competitors. Dell focused on improving our competitiveness by reducing overall costs. In May 2008, we announced a $3 billion cost reduction initiative, which includes both cost of goods sold and operating expenses. In the fourth quarter of Fiscal 2009, we identified additional savings opportunities and have increased our cost-reduction target to $4 billion by the end of Fiscal 2011.
Dell’s critical business process given its basic business strategy?
Dell’s business strategy of cost leadership is achieved through its supply-chain management..To optimize Dell supply chain to best serve their global customer base.Dell have manufacturing locations around the world and are expanding their relationships with third-party original equipment manufacturers.An efficient supply chain management allowed for low inventory levels and the ability to be among the industry leaders in selling the most relevant technology, at the best value, to Dell’s customers. Furthermore, first-rate customer service is the cornerstone at Dell, so this has always been a critical business process- ensuring good communication between customers and Dell responding to customer’s current and future needs.The direct relationships between Dell and their customers allowed them to bring to market products that featured customer driven innovation, thereby allowing Dell to be on the forefront of changing user requirements and needs.
Accounting information that is associated with the critical business processes and the way Dell measure up on the information
The accounting information associated with the business process are:
Supply chain management: inventory, cost of sales, and revenues
Customer support services: accounts receivables, selling & admin expenses, advertising expense, research and development expenses.
Accounting methods Dell use to report the accounting information associated with critical business processes and the risk of material misstatement
Inventory – state at lower cost or market with cost being determined on a first-in, first-out basis(FIFO). The risk of misstatemet is low because Dell is good in maintaining the low inventories levels.
Revenues – Dell recognizes revenue for these products when it is realized or realizable and earned. Revenue from the sale of products are recognized when title and risk of loss passes to the customer(on shipment date).There is some risk of misstatement given Dell’s superior revenue performance as compared to its competitors.
Account receivable -.Dell recognizes an allowance for losses on accounts receivable in an amount equal to the estimated probable future losses. The allowance is based on an analysis of historical bad debt experience.Some misstatement will incurred because the business economy are weak for Dell’s primary market.
Selling&admin expenses – costs are expensed as incurred.The risk of misstatement are low to happen.
Research and development expenses – Research, development, and engineering costs are expensed as incurred.The risk of misstatement are likelihood to happen because Dell follow customer’s needs so its maybe need a frequent research and development process.
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