The strategy for achievement
Dell has seen its growth and success in the market due to the implementation of appropriate strategies. The main strategies applied by the company combine several aspects put together. This involves mixing direct relationships with customers and ensuring efficient procedures in the manufacture and supply of products. The combination of these approaches enables the company to offer high-value products and adequate service delivery to the customers.
Since the company mainly believes in the customer intimacy approach, it puts focus on ensuring that customers are supplied with quality products at low costs. This is attained by the extremely sufficient procedures of direct business transactions between customers and the company. The company also ensures that customers are supplied with products according to their need of advancing in technology. This strategy has majorly contributed to the success of Dell since it cuts down the cost of retail and wholesale agents.
Business risks towards stockholder satisfaction
One of the risks faced by Dell entails the Company’s ability to avail commodities at cheaper prices than other companies competing for the share in the market. The revenue of the company also depends on its ability to control the market despite the economic decline in profitability due to reduced investments (Noreen, 2010). The uncertainty in the global market is a threat for Dell due to other companies’ strategies upon technological transformation.
Control over the risks
With many risks at hand, Dell should ensure the business strategy is implemented. This will enable the company to ensure procurement of the company and ensure a stable supply of their products to customers while maintaining a stable customer to management relationship. To ensure adequate control over the risks, the company should stress on implementation of management procedures based on chain management. This will enable the company to enhance its customer relationship program hence more sales in the market.
Sarbanes-Oxley Act
According to the report, the disclosures of the report have been positively affected by the Sarbanes-Oxley Act. The act calls for independent members of the company to be available in the audit team. This is mainly based on the fact that the managers of the company maintain ethics in company management (Noreen, 2010). The effects of this act ensure that Dell performs all obligatory duties in settling incurred revenue based on contracts and available warranties.
Dell as a manufacturer
Dell Company is a manufacturer which provides diversified products for technology. According to Noreen (2010), the company offers services through customer relationships to ensure customers are provided with the required commodities to satisfy their technological needs.
Increase in gross margin
The gross margin for Dell has increased while the net margin has decreased. This is because of the cost involved in servicing and warranty due to agents who did not reach the standards of the company. To add to this, the company also experienced additional costs on the realignment of the labor force and the company’s main focus on price reduction in terms of infrastructure.
Examples of inventoriable costs, reasons for smaller net revenue
An example of inventory costs is income costs. The inventory balance is smaller than the subsequent balances because the company mainly engaged in investments towards growth. As a company, dell uses the low inventory capabilities to provide adequate facilities to its customers. The crash conversation cycle is reported to describe the ability of the company’s expenditure on investments (Noreen, 2010). This has been implemented positively by Dell. The aspect has been constantly negative since the company has increased its expenditure on investments to yield profits.
Operating expenses
The main expenses incurred by Del include; financial activities, paying off, depreciation, and overdue revenue.
Dell’s cost objects
They mainly include expenditure on customer relationships such as the direct supply of products without agents. The second cost involves expenditure towards the development of the company for the enhanced supply of Dell’s products. The third cost has been used to enhance employee reliability and lastly to ensure appropriate production of Dell’s commodities.
Reference
Noreen, E. W., Brewer, P. B., & Garrison R. H. (2010). Managerial accounting for managers. New York: McGraw Hill.