Dell Issues

Management Issues ( Vision Statement )

It's the way we do business. It's the way we interact with the community. It's the way we interpret the world around us our customers' needs, the future of technology, and the global business climate. Whatever changes that future may bring, our vision Dell Vision will be our guiding force.

Mission Statement

Dell's mission is to be the most successful Computer Company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of:

Highest quality

Leading technology

Competitive pricing

Individual and company accountability

Best-in-class service and support

Flexible customization capability

Superior corporate citizenship

Financial stability

Organizational Structure

Michael Dell is the chairman of the board of directors of Dell Inc. He has held this position since he founded the company in 1984, In July 2004, Kevin Rollins assumed the titles of president and chief executive officer. Kevin Rollins has been with Dell since accepting the position of senior vice president, corporate strategy, in 1996. Headquartered in Round Rock, Texas, Dell Inc. is managed on a geographic basis. The three geographic segments are the Americas, Europe, and Asia-Pacific.

Dell Inc. maintains more than 7 million square feet of office, research, manufacturing, and distribution space in the United States. In addition, a new half-million square-feet manufacturing facility is under construction inNorth Carolina and is expected to begin operations in late 2006.

Dell's sales in America are reported in two different categories, Business and U.S. Consumer. The net revenue for business sales of $25,339 million in the Americas segment is by far the company's largest segment, accounting for almost 52 percent of total net revenue for 2004. With $2,579 million in operating income, business sales in the Americas segment accounted for almost 61 percent of total operating income for 2005. The net revenue for consumer sales in the Americas segment was $7,601 million, accounting for just over 15 percent of total net revenue for 2004. Consumer sales in the Americas segment generated $399 million and accounted for just over 9 percent fo total operating income for 2004. Dell holds 29.1 percent of the total markets for personal computer sales n the Americas, easily placing Dell ahead of its competitors. With total sales of $32.940 million, the Americas segment accounts for almost 67 percent of Dell's total net revenue. Combined operating income for the Americans segment of $2,978 million accounted for almost exactly 70 percent of Dell's total operating income for 2004.In addition to its Americas-based operations, Dell maintains almost 4.5 million square feet of office, research, manufacturing, and distribution space in 43 locations around the glob. The European segment based in Blackwell, England, covers the European countries and also some countries in the Middle East and Africa. In 2004, sales in the European segment generated $10,787 million in net revenue, accounting for almost 22 percent of total net revenue. In 2004, sales in the European segment generated $818 million in operating income, accounting for just over percent of total operating income. Dell's11.7 percent market share for sales of personal computer sales in Europe means that Dell is the second-largest supplier of personal computers in the segment.

The Asia-Pacific segment, based in Singapore, covers the Pacific Rim, including Japan, Australia, and New Zealand. In 2004, sales in the Asia-Pacific segment generated $5,478 million in net revenue, accounting for just over 11 percent of total net revenue, In 2004, sales in the Asian-Pacific segment generated $458 million in operating income, accounting for almost 11 percent of total operating income. Dell's 8.3 percent market share for sales of personal computer sales in the Asia-Pacific segment means that Dell is the third-largest supplier of personal computers in this segment.

Manufacturing

Dell manufactures its computer systems in six locations: Austin, Texas; Nashville, Tennessee; EL dorado do Sul, Brazil (Americas):Limerick, Ireland (Europe, Middle East, and Africa); Penang, Malaysia Asia-Pacific and Japan; and Xiamenm China. The manufacturing process at Dell's worldwide manufacturing facilities comprises assembly, testing, and quality control of its computer systems. Parts, components, and subassemblies purchased form suppliers are tested and held to quality standards. Because of its build-to order manufacturing process, Dell quickly produces customized computer systems while achieving rapid inventory turnover and reduced inventory levels. These attributes lessen Dell's exposure to the risk of declining inventory values. Another advantage of this flexible manufacturing process is that Dell can quickly incorporate new technologies or components into its product offerings. To ensure a defect-free product, testing is performed at various points during the assembly process and on the final products.

Dell Computers Strategy

Global companies play an important role in the business environment, because they connect their business together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.

Dell Inc. has realized that the most efficient path to the customer is through a direct relationship, with no intermediaries to add confusion and cost. With the power of their direct model and their team of talented people, they are able to provide to their customers high-quality, relevant technology, customized systems, superior service and support and products and services that are easy to buy and use.