Dell Computer Corporation
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Executive Summary
Dell Computer Corporation was established in 1984 and today ranks among the worlds largest computer systems companies. Dell pioneered the concepts of selling personal computer systems directly to customers; offering build-to-order computer systems; and providing direct, toll-free technical support and next-day, on-site service. The company designs and customizes products and services to end-user requirements, and offers an extensive selection of peripherals and software (Dell Executive Summary, 2006).
Dells complete range of high-performance computer systems include: Dell Dimension and OptiPlex desktop computers, Latitude notebook computers, and PowerEdge network servers. The companys products and services are sold in more than 140 countries and territories to customers extending from major corporations, government agencies and medical and educational institutions to small businesses and individuals. The company employs approximately 11,000 people. Headquarters are located in Round Rock, Texas, with manufacturing facilities in Austin, Texas; Limerick, Ireland; and Penang, Malaysia (Dell Executive Summary, 2006).
History
A student at the University of Texas at Austin in 1984, Michael Dell founded the company as PCs Limited with capital of $1000. Operating from Michael Dells off-campus dormitory room at Dobie Center, the startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PCs Limited could better understand customers needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family (History, 2013).
In 1985, the company produced the first computer of its own design — the “Turbo PC”, sold for US$795 — containing an Intel 8088-compatible processor running at a speed of 8 MHzs. PCs Limited advertised the systems in national computer magazines for sale directly to consumers, and custom assembled each ordered unit according to a selection of options. This offered buyers prices lower than those of retail brands, but with greater convenience than assembling the components themselves. Although not the first company to use this model, Limited became one of the first to succeed with it. The company grossed more than $73 million in its first year of trading (History, 2013).
In 1987 the company announced that it would change its name to Dell Computer Corporation, because it was more professional than “PCs Limited” and avoided problems with the word “Limited” as a corporate name in Britain. The company set up its first operations in Ireland; eleven more international operations followed within the next four years. In June 1988, Dells market capitalization grew by $30 million to $80 million from its June 22 initial public offering of 3.5 million shares at $8.50 a share. In 1989, Dell Computer set up its first on-site service programs in order to compensate for the lack of local retailers prepared to act as service centers. In 1990, Dell Computer Corporation tried selling its products indirectly through warehouse clubs and computer superstores, but met with little success, and the company re-focused on its more successful direct-to-consumer sales model. In 1992, Fortune magazine included Dell Computer Corporation in its list of the worlds 500 largest companies. Michael Dell became the youngest CEO of a Fortune 500 company (History, 2013
Financial Conditions
ITEM 1. FINANCIAL STATEMENTS
DELL INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(in millions)
October 29, 2013 January 29, 2013
(unaudited)
ASSETS
Current assets:
Property, plant, and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . 1,948 2,181
Long-term financing receivables, net . . . . . . . . . . . . . . . . . . . . . . . 709 332
Purchased intangible assets, net . . . . . . . . . . . . . . . . . . . . . . . . . . 1,553 1,694
LIABILITIES AND STOCKHOLDERS EQUITY
Current