Accounting management assignment help report writing on: Dell company And HP

Q?? Compare an analysis of Dell company And HP??Executive Summary

This report has been designed in order to know about the Dell Company in comparison to Hewlett Packard. It has been evaluated that the Michael Dell proved his outstanding performance by executing well in five areas of Executing & Crafting Strategy. It has been evaluated that the Company Dell was employing the low cost strategy in order to sustain the competition among the rivals. The formation of IT services and products in addition to traditional products, the Company will be simpler in offering whole service to users at the low cost and give them more satisfaction. . The financial condition of the Dell was good due to increase in ROE from 58.2% to 77% in 2008 and gave good impression among shareholders to invest in the Company for the long run. At last, it can be said that in the market of US, the share price of the Dell is greater than HP whereas in global market, the performance of the Dell is lower than HP.Michael Dell Performance as CEO and Chairman

It is very clear that the Michael Dell has executed the greater performance in his function as the CEO. It has been viewed that he has permitted the organization Dell to become one of the leaders of the industry for sales of PC. He initiated his business of the organization to make minimal revenue and considered as the multi- billion dollar organization. He has formed the strategic mission early and settled with it. It has been noticed that Michael Dell wanted to become a leader of low cost which sold straightly to the user and he maintained the vision active and had not alter his strategy (Dell, 2008). The Michael Dell has constantly making goals for the organization and predictions for the upcoming year. Michael has controlled the performance and developments by obtaining the steady advice from the users which buy Company PC’s. This personal association permits the user for instant suggestion as well. It has been evaluated that the Michael Dell proved his outstanding performance by executing well in five areas of Executing & Crafting Strategy. He developed the planned vision for the Company. This planned vision comprised four tenets that explained the aim of having the direct and strong association to user, permitting user to buy custom make product, making efficient and non proprietary technology & supply chain must attempt to provide extra value to users. These 4 tenets were the basic to providing the excellent values of the customer.  The strategy which Michael Dell set for the Company had 7 basic elements that were relevant to the vision of the Company and formed the model of the business that implements the strong capabilities of the Company in management of the supply chain, low manufacturing cost, capabilities of direct sales to diversify into categories of product where the Company may offer added excellence to its users in the kind of low prices. Under the leadership of Michael, Dell had become the leader of low cost and implementing his strategy and business model to become top 3PCs company in the worldwide. Elements of Dell Strategy

It has been evaluated that the chief elements of the Dell’s strategy are to sale the products to the user at the lower cost. It has been noticed that the Michael has cut down all the costs related to the middleman so that continuous enhancement could be formed. This could be realized showing that Michael had the better cost in the place of the market and now constantly creating enhancements in the quality. It has been noticed that the Michael Dell has enhanced the funds spent on the Research & Development and taken into thought all suggestions and recommendations which he obtained from users on the quality changes.It has been noticed that the control on the time is vital in nearly all kinds of economic activities, like control was significant in the industry of PC and formed all the basic desire of innovation and advancement at the Dell. In these situations, time logistics shows the compression among the adjacent steps from the production of PC to the pending sale arrived as the disruptive model of the business in industry (Levine, 1991).It has been evaluated that the Company Dell was employing the low cost strategy in order to sustain the competition among the rivals. Dell applies low cost strategy to the wide section of the buyers.  In comparison, Dell has maintained the inventory of final product which is measurable in days. The minimization in time from the final product assembly to the final marketing was considered as one of the critical competitive assets of the Dell throughout the early years. It has been viewed that the creation of reports on the competitive intelligence which can implement to track and analyze material changes and trends. The ability of the Dell is to alter the delivery times and prices and manages the demand based upon the availability of the component over the usual components (Dell, 2008).

 The strategy of the Dell in the upcoming time will concentrate on users and diversify the business to various markets outside the United States. The Company wants to diversify its business to rising markets mainly in Brazil, Poland and India.  The Company strategy concentrates more on the outcome as compared to focus on product and increasing technical supports service. Dell concentrates on formation of flexible services, computers and outsourcing to create more happiness to users.Financial Ratios

The expansion of the Dell into other services and products of IT makes good sense due to various reasons.  This expansion creates to more range in product line of Dell. Thus, it offers to users more range, fulfils the need of more users. The formation of IT services and products in addition to traditional products, the Company will be simpler in offering whole service to users at the low cost and give them more satisfaction. Due to own experience and reputation in the technology field, Dell could minimize the expansion cost to another products and services of IT and get share of the market in the business field easily (Levine, 1991).

It has been analyzed that the revenue of the Dell had increased constantly from 2000 to 2008. From year 2000 to 2002, the net income of the Dell had the loss of approximately 25.5%. It is analyzed that from year 2002 to 2006 the net income of the Dell was increasing significantly. But in year 2007, Dell faced a great reduction in the net income due to this; the Company faced the reduction in profit margin ratios such as ROA and ROE.

It is observed that in the last of year 2007, Michael Dell again joined the CEO position of Dell and then took out various actions to improve the situation. In year 2008, the Company performance was improved, 14.09% increase in net income, 10.75% in ROA and approximately 77% increase in ROE. The entire performance of the Dell Company was lower during the period 2002 to 2006. The increased ROE in 2008 from 58.2% to 77% gave tension to competitors of Dell such as Hewlett Packard. It can be said that Dell was successful in building of the market share in US and worldwide at the constant level.  The Dell has also improved the share of the market in other markets like Europe and Asia. The financial condition of the Dell was good due to increase in ROE from 58.2% to 77% and gave good impression among shareholders to invest in the Company for the long run (Dell, 2008).

 SWOT Analysis

2008 Financial Performance

It is very clear that the Dell Company sells servers, devices of data storage, software, computer peripherals and software. On the other side, the Dell Company sells printers, cameras, MP3 players & electronics built items by various manufacturers. During the year, 2006 the magazine Fortune has ranked the Company Dell as 25^th highest company in the 500 list of the fortune, 8^th on its yearly top 20 contains list of most appreciated Companies in U.S. In year, 2007 the Company Dell ranked 34^th & 8^th subsequently on the equal list of the year. In 2006, the publication found Dell as the 38 companies of high performance in the Standard & Poor that had constantly surpassed the market throughout the last 15 years. In year 2009, Dell shut down at $ 13.12 per share on Dec 11 2009. In year 2007, the facility of Chennai had the aim of manufacturing approximately 4lacs desktops and strategies to manufacture PCs notebook and another product in the quarter of year 2007(Dell, 2008).Strengths

It has been analyzed that Dell has significantly low cost of the operating in relation to revenue because the Company has cut out the supplies and retailer in relation to the customers. The Company uses better CRM and information technology to retrieve data on the loyal users. This permits the Company to make the computer based upon the own specification of the computer. It has been viewed that during the year 2008 the Company Dell held the 2^nd position in the sales of the computer throughout the industry as compared to the Company Hewlett-Packard.

Weaknesses

It has been noticed that the Company has great variety of products from numerous suppliers from various countries. There is an opportunity for the recall of occasional product which may impact Dell to certain embarrassment. In year 2008, it is noticed that the Company had inadequate relationship with the retailers. The Company was facing the problem of no sufficient propriety technology and large dependence on the suppliers.

Threats

The threats faced by the Company are technological changes which are anticipated while technology may get only improvement. Increased Competition, Global economy and financial ratios of Dell proves that there is no match for its competitors.

Opportunity

In normal, the Company Dell has numerous opportunities like potential expansion in the markets of overseas, the Industry IT remains in the phase of the growth and entering into the markets of the new product.

Which company is competitively stronger—Dell or Hewlett-Packard?

The weighted competitive strength analysis

(Rating scale: 1 = Very weak

 10 = Very strong)

It is very clear that in the market of US, aspect of distribution capability is not significant as capabilities of cost position and customer service, so importance proportion for them shall be 0.05, 0.3 & 0.15 respectively.

In global market, the aspect of distribution capability is important in comparison to other aspect, so importance proportion shall be 0.3 and importance proportion for customer service and cost position will be 0.1.

  83/9.1084/9.40

 It is analyzed that both companies have their competitive benefits and distinct from other. Benefits of Dell are customer service and cost position whereas benefits of HP are distribution capability, technology skills and capability of new product (Patton, 1987).   It is analyzed that in market of US, excellent customer service and lower cost play significant roles; the competitive benefits of the Dell assist the organization to become stronger as compared to its rival HP.  On the other side, in global market HP with its benefits in technology and distribution is stronger than Dell.  At last, it can be said that in the market of US, the share price of the Dell is greater than HP whereas in global market, the performance of the Dell is lower than HP. On the other side, Dell shows the entire variety of great- performance systems of the computer comprise: Latitude computers notebook, Dell Dimension and network servers of Power Edge. The products and services of the Company are sold in approximately 140 territories and countries to users expanding from chief corporations, educational institutions and government agencies to individuals and small business. During the time of 1986-1993, the Company Dell had changed its strategy to achieve credibility of the market against its competitors. The rivals comprised Lenovo, Gateway and Hewlett Packard. In 2005, the Company Dell had obtained the sales of PC approximately to 33.9% throughout its industry within the U.S with plants situated in China, Japan and Brazil. At last, it can be said that in year 2008 the Company Dell held the 2^nd position in the sales of the computer throughout the industry as compared to the Company Hewlett-Packard which showed that the Dell is competitively stronger than the Hewlett- Packard (Rubin, 2004).Conclusion

At last, it is concluded that the Company Dell is performing stronger as compared to the Company Hewlett Packard. The Dell Company is analysed on the basis of SWOT analysis, evaluation of Michael Dell, competitive strategies and Ratio analysis. In year 2008, the Company performance was improved, 14.09% increase in net income, 10.75% in ROA and approximately 77% increase in ROE.  In comparison, Dell has maintained the inventory of final product which is measurable in days and showed the effective maintenance of the Inventory. In year 2008, the Company Dell held the 2^nd position in the sales of the computer throughout the industry as compared to the Company Hewlett-Packard. It is analyzed that in market of US, excellent customer service and lower cost play major roles; the competitive benefits of the Dell assist the organization to become stronger as compared to its rival HP

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