Macroeconomic Perspective of Dell Inc

Macroeconomic Perspective of Dell Inc

Introduction

Dell incorporation started operations in 1984 and created its market by offering personal computers directly to customers. It entered in the market when already there were many big computer suppliers were present but it used its unique model marketing module by providing computers directly to customers and in the shortest lead time than others. We will be looking at Dell Inc in light of macroeconomics and economic in general. We will be looking at the financial health and financial position of the organization and will review it from the economic perspective. We will review the effect of fiscal policy on the company.

Discussion

This entrepreneurial company has revenues of $61 billion and has currently employing more than 0.1million employees around the globe. The revenues in the United States alone are more the $ 31 billion. The economic activity generated by this company in twenty eight years of operations is remarkable and the impact of this company on the economy can only be estimated.

An entrepreneurial idea of this company is contributing in the reduction of unemployment, increase in the expenditure of people, effective utilization of resources, increase in production, creation of effect on the global economy by investing and acquiring companies in different parts of the world. The company is using approx $6 billion in long term debt which is contributing towards utilization of public money stored in banks. Dell Inc is paying $ 748 million in taxes (Yahoo, 2012).

Initially Dell has to give up the benefit of sharing risk with the distributors and economy of scale when it started operations. Other companies use to make standard models of computers and supply them to the customers in a way which was most profitable to them. Dell worked and still works with low margins ...