Dell's 2005 Form 10-K

Dell's 2005 Form 10-K

Dell's Strategy for Success in the Marketplace

The business strategy Dell uses for success in the marketplace unites its customer model with its highly effective manufacturing and supply chain management organization and a focus on standard-based technologies. This business strategy helps Dell to deliver its customers the greater value; customized systems; greater service and support; significant technology; and services and products which are easy to purchase and utilize. Dell relies majorly on customer intimacy as well as operational excellence. As shown in its 2005 Form 10-K, the primary tenets of Dells strategy includes: direct relationship with the customer that is the most effective path; consumers can buy customized products and services; it's a low-cost leader; it delivers its customers a single point of accountability; and it provides a best value to consumers through non-proprietary standards-based technologies (www.sec.gov).

Dell's Business Risks and Control Activity

There are certain business risks that threaten Dell's ability to satisfy its stockholders, among all those risks some are beyond its control. The major risks that Dell face includes the macroeconomic trends of America and abroad; as if the economic conditions depreciates then consumers or potential consumers could decrease or delay their investments in technology. Aggressive competition in market is another business risk that Dell face, however, the company controls this risk through measures like lower price or high quality products. Further, the substantial portion of company's revenue is dependent on worldwide sales which are also subject to risks and infrastructure failure is another risk that Dell faces. These are some of the major risks that the company faces, but there are some other uncertainties like failure to attract and retain efficient personnel, exposure to fluctuation in foreign currency exchange rates or interest rates, manufacturing interruptions; delays; or inefficiencies due to single-sourced suppliers. In order to avoid these risks, Dell uses certain control activities for example the company maintains numerous single-source supplier relations, or uses derivative instruments for hedging its exposure to fluctuations in interest rates or FOREX, or attract and retain qualified personnel by granting equity awards (www.sec.gov)

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Dell's Financial Disclosure

The Sarbanes-Oxley Act of 2002 is the law that set enhanced or new standards for all the American public corporation boards, management, and public accounting companies (www.sec.gov). So, Dell's disclosure is affected by this act as the top management: CEO and CFO of the company evaluate the effectiveness of company's disclosure controls and ...