Essay about Dells Working Capital Case Solution - 2552 Words

Dell’s Working Capital Substantive Issues Dell manufactures, sells, and services personal computers. The company markets directly to its customers and builds computers after receiving a customer order. This build-to-order model enables Dell to have much smaller investments in working capital than its competitors. It also enables Dell to enjoy more fully the benefits of reductions in component prices and to introduce new products more rapidly. Dell has grown quickly and has been able to finance that growth internally by its efficient use of working capital and its profitability. Dell’s Competitive Advantage: The extent of Dell’s working capital advantage over its competitors can be assessed using data contained in Table A†¦show more content†¦Short-term investments are assumed to be constant. The projected 1996 assets equal about $2.2B, an increase of about $582 million. If 1995 profit margins of 4.3% had held, Dell would have realized $227 million in net income, leaving a funding requirement of $355 million ($582 million minus $227 million) assuming that liabilities remain constant as detailed in the Fixed Liabilities projection in Exhibit TN-1. The Proportional Liabilities projection assumes that the liabilities grow as sales grow based on the 1995 sales ratios. Those projections show that Dell would have excess funding of $139 million. Thus, as of 1995, Dell would be projected to be able to grow at 32% without increasing its leverage. Exhibit TN-2 presents Dell’s sustainable growth rate. In 1995, Dell’s sustainable growth rate was 31.6%, which was below the 52% of actual growth in 1996. Typically, when a firm grows beyond its sustainable growth rate, it either increases leverage or obtains additional equity. Dell was able to grow beyond its sustainable growth rate without increasing leverage or obtaining additional equity because short-term investments were assumed not to grow with sales in Exhibit TN-1. To gauge the impact of these short term investments on sustainable growth, the Panel B of Exhibit TN-2 presents the sustainable growth rate adjusted for the short-term investments by subtracting them from the prior-year assets and equity. Net income should also be adjustedShow MoreRelatedMatching Dell Case Analysis1033 Words   |  5 PagesKeep section headings. 2) The questions in the outline are to help you analyze the case and develop your own thought. 3) Limit your memo to three pages of text. Diagrams and tables do not count as part of the three pages of text. Do not use bullet points. 4) Double-check your grammar before submission. It matters! 5) Upload your write-up in Word format to WISE. What can we learn from this case? 1) Barriers to imitation (entry): it illustrates how fit among numerousRead More Ford Motor Company Supply Chain Strategy Essay1397 Words   |  6 Pagesincluded in the desired computer. Dell, then, buys components from several different suppliers via Internet-based JIT ordering. By using Dell’s process of JIT ordering , misallocation of company resources is avoided and unnecessary inventory is limited resulting in a core competency of considerable cost reduction. By substituting information for inventory, Dell’s lean business structure offers mass-customized machines that are ordered, assembled and delivered with reduced lead times without sacrificingRead MoreFord Motor Case Study1291 Words   |  6 PagesExecutive Summary: Ford wanted to adapt the idea of virtual integration to improve its supply chain. By the use of technology; it wanted to reduce its working capital and increase profits. Moreover, the company was emphasizing more and more on shareholder value and customer responsiveness so they were looking into reengineering some of their processes which can help improve their current forecasting model and reduce OTD cycle times substantially. With new business models prevailing, Ford did notRead More Financial Ratios for Dell Inc. Essay4757 Words   |  20 Pages Michael Dell founded the company in 1984 on a simple concept of selling computer systems directly to customers. Using this technique, Dell could best understand customer needs and efficiently provide the most effective computing solutions to meet those needs. Dell’s climb to market leadership is the result of a relentless focus on delivering the best customer experience by selling computer system and services directly to customers. Dell, a Delaware corporation, is based in Round Rock, Texas andRead MoreCase study of Dell Essay17119 Words   |  69 Pagesï » ¿Cardiff Metropolitan University London School of Commerce Subject Title: Integrated Case Study -- Dell Semester: Semester Three Student: FEI WU LSC ID: L0227CHSY1013 University ID: 20066978 Supervisor: Dr. Rajendra Kumar 19/09/2014 Acknowledgement This report is fully of supports from my parents. They give me not only financial support but also materials mentally. My sincere supervisor, to my tutor, Dr. Rajendra Kumar, whose professionalism, provided his opportunity, patience to encourageRead MoreFord Motor Company: Supply Chain Strategy Essay3076 Words   |  13 Pagesvirtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a varietyRead MoreDell Valuation2841 Words   |  12 Pagesblame for Dell’s demise, Apple and Google have established new markets for smartpho nes and tablets that has shifted demand to these new toys away from laptops/PCs. These new disruptive technologies are a cheaper and thus more accessible substitute to the old guard (laptops and PCs). COMPLICATION: With Dell’s old core business in rapid free fall and competition eating away at its margins, Dell shares have plummeted from their all-time highs. As a result any favorable returns to Dell’s investors haveRead MoreReport on International Ethical Issues2719 Words   |  11 Pages†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 5.1 Supplier Responsibility†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦10 5.2 Environmental Protection†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11 6). Recommendations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 7). Appendix †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 Appendix I Dell’s code of ethics†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 Appendix II Reference†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦15 Executive Summary Background This is a report on the major international ethical issues. In the report, we will do an in-depth study of the major internationalRead MorePersonal Computer and Dell4377 Words   |  18 PagesCase Study # 3 Dell Inc; Changing the Busines Model (Mini Case) MGT 504: Strategic Management Prepared For Tanvir H Dewan Course Co-ordinator College of Business Administration IUBAT Prepared By Group: Indestructible Name | ID # | Program | Dipika Mazumdar | 11104017 | MBA | Md.Heron Mia | 11304035 | MBA | Md.Zainal Abdin | 11304037 | MBA | Md.Mofigul Islam | 11304028 | MBA | Syed Badrus Sattar | 11304025 | MBA | Md.Yeasin | 12104026 | MBA | Md.Rajib Hossain | 12104021 | MBA | Md.ShohelRead MoreRelationship Management Strategies in Dells Supply Chain5443 Words   |  22 Pagesalso examines and gives an analysis of, using several diagrams, tables and models, Dell’s product range – and the customers who buy them. This paper also examines several Key Issues associated with maintaining positive relationships with supply chain members, and how they may be worked out, besides providing an in-depth analysis of the relationships between Dell and its suppliers, customers and competitors. Dell’s customers are many and come from many segments, but for this paper the focus will

Scrooge in A Christmas Carol by Charles Dickens Essay...

Scrooge in A Christmas Carol by Charles Dickens The novel, ‘A Christmas Carol’, is more than just a mere story instead it tries to expose the negative side of Victorian society and the reason behind this horror, the greed of the wealthy, through the development of the character Scrooge. All this while attempting to prompt readers with Scrooge’s similar wealth to make a change. As mentioned earlier, the development of Scrooge’s character is vital to this and I will explain how his character develops as the story proceeds and how it is used to accomplish the aim as mentioned above. In the first stave, Dickens tries to point out that Scrooge is a character that society considers negative. In the introduction, Dickens points†¦show more content†¦This haste to put down Scrooge’s character was carried out by Dickens to set an impression of Scrooge as an overall negative character which is supposed to reflect, in exaggeration, the negative characteristics of the wealthy businessmen in Victorian society. The first stave also tries to pass Scrooge off as an isolated character, it does this through the use of repetition as the emphasis of Marley’s death is repeated several times in the first stave that even dickens admits this with the quote ‘permit me to repeat, emphatically, that Marley was as dead as a doornail’ which basically means that Dickens is admitting that he has repeated that Marley is dead, this proves that repletion is used to allow the reader to gain the impression that Scrooge is an isolated character which. This isolation is further emphasized when Scrooge described love and Christmas, both very social occasions, in one statement as ‘the only thing in the world more ridiculous than a merry Christmas’, this proves Scrooge’s isolation and his anti-social characteristic. Scrooge is also comes off the first stave as an anti-social and cold character, this is proven because Scrooge repeatly dismisses his nephew who is trying to make friends with him with the quote ‘Good afternoon’ which proves Scrooge’s anti-social and cold character. Not only is Scrooge’sShow MoreRelated Scrooge in A Christmas Carol By Charles Dickens Essay1089 Words   |  5 PagesA Christmas Carol By Charles Dickens Scrooge is represented from the beginning as a miserable old man being described as a squeezing, wrenching, grasping, scraping, clutching, covetous, old sinner! I think this a perfect description of him in one sentence. People know Scrooge well and avoid him, this suites Scrooge because he does not like other people and not a big fan of being sociable. The name Scrooge was created by Dickens and is now well known in the dictionaryRead MoreThe Comprehensibility of Scrooge in Charles Dickens A Christmas Carol1184 Words   |  5 PagesA Christmas Carol: The Comprehensibility of Scrooge A Christmas Carol by Charles Dickens is one of the most classic stories that has been embraced by Western culture. There is a certain timelessness to the entire story, in that it demonstrates the powerful transformation of an incredibly stilted and unlikeable character to that of someone who is giving, kind and generous. The popularity and timelessness of this play is representative of how deeply human being want to believe in the possibilityRead MoreCharles Dickens and A Christmas Carol1613 Words   |  7 PagesCharles Dickens and A Christmas Carol: Famed British author, Charles Dickens was born on February 7, 1812, in Portsmouth, England. He was the second of eight children, living in a poor neighborhood in London. His parents were John Dickens, a naval clerk, who always lived beyond his means. Married to his mother Elizabeth Dickens, who aspired to be a teacher and a school director. Dickens went to William Giles’ school in Chatham, Kent, for approximately one year before his father’s money habitsRead MoreCharles Dickens A Great Writer1105 Words   |  5 PagesOctober 2015 Remembering Charles Dickens Charles Dickens is a famous author who wrote numerous books which were enjoyed by many throughout the years. His books are known xquisite characters and real-life settings. Charles experienced difficult times as a young boy (â€Å"Charles Dickens† par. 7). These difficult times followed him throughout his life. He uses ideas from these struggles to express his feelings through the books he writes. The many struggles of Charles Dickens’ early childhood greatlyRead MoreSocial Criticism In A Christmas Carol By Charles Dickens765 Words   |  4 Pagesbehind the world renowned classic, A Christmas Carol. Charles Dickens, born on February 7, 1812, spent the first nine years of his life living in southeast England with his father John, who was kind and likable man, although financially irresponsible. After moving to London, the twelve-year-old Dickens had his father arrested and set to debtors’ prison where his mother moved seven of their children, but arranged for Charles to live alone outside the prison. Charles spent three traumatic years away fromRead MoreCharles Dickens: Carrying a Burden of Social Responsibility705 Words   |  3 PagesCharles Dickens: Carrying a Burden of Social Responsibility Charles Dickens’ classic novella A Christmas Carol, focuses on the social responsibility of the wealthy to help the poor and less fortunate. Dickens, having lived in poverty as a child, knew of the many struggles of the lower class of London. As an author, he made it his goal to reform England as best he could. Many of his works ran in his weekly journal, Household Words, including Christmas Stories and Great Expectations. In a ChristmasRead MoreA Lack of Charity Essay example1718 Words   |  7 PagesIn Charles Dickens’s books, Oliver Twist and A Christmas Carol, the theme of lack of charity is pronounced. Throughout Oliver Twist, society turns a â€Å"cold shoulder† to those in need of help (Miller 30). The Victorian England society prohibits inhabitants of the lower social realms from moving up in society. Rarely do lower class members receive attention, and the attention they do receive is far from par (Reeves). Ebenezer Scrooge, the main character of A Chr istmas Carol, learns to be charitableRead MoreEssay on The Personality of Scrooge1338 Words   |  6 PagesEbenezer Scrooge is the major character in the story, A Christmas Carol written by Charles Dickens. A Christmas Carol is about how a â€Å"cold-hearted, tight fisted, selfish† money grabbing man is offered an opportunity of a life time, to change his behaviour, attitude... to have a second chance in life. The theme of this novella is to look at the good you do in life and how it carries over after your death. The moral of the book is; People can make changes in their lives whenever they really wantRead MoreThe Personality of Scrooge Essay example1341 Words   |  6 PagesEbenezer Scrooge is the major character in the story, A Christmas Carol written by Charles Dickens. A Christmas Carol is about how a â€Å"cold-hearted, tight fisted, selfish† money grabbing man is offered an opportunity of a life time, to change his behaviour, attitude... to have a second chance in life. The theme of this novella is to look at the good you do in life and how it carries over after your death. The moral of the book is; People can make changes in their lives whenever they really wantRead MoreScrooges Transformation in Dickens A Christmas Carol Essay1319 Words   |  6 PagesEbenezer Scrooge is the major character in the story, A Christmas Carol written by Charles Dickens. A Christmas Carol is about how a â€Å"cold-hearted, tight fisted, selfish† money grabbing man is offered an opportunity of a life time, to change his behaviour, attitude... to have a second chance in life. The theme of this novel is to look at the good you do in life and how it carries over after your death. The moral of the book is; People can make changes in their lives whenever they really want to

Fly-by-Night Case Free Essays

Part A There were many signals shown in the financial statements and other exhibits in the case that represented poor cash flow through Year 14. The most obvious of them all is that the collectability of the accounts receivables was problematic. It seemed as if Fly-by-Night had a good system of collecting their sales on account from year 9 to year 10 as the accounts receivable number decreased during those years. We will write a custom essay sample on Fly-by-Night Case or any similar topic only for you Order Now However, the accounts receivable account increased by more than six times through years ten and fourteen. Because of this poor system of collecting accounts receivable, Fly-by-Night’s cash flow would suffer. The same can be said about the inventory account. Because the amount of inventory increased by almost five times through years twelve and fourteen, the cash would continue to decrease at the same rate. Another area of concern that affected Fly-by-Night’s cash flow negatively was their income from continuing operations. All of the companies’ expenses on its comparative income statement had enormous increases from year 13 to 14. This was the first year that Fly-by-Night recorded a loss from continuing operations and it was a pretty big loss. This suggests that they paid too much to run their business. Some of the ratios presented in the case also suggests a negative flow of cash for year 14. The long term debt ratio dropped from 88% to 0% in year 14, which means that the company paid all of its long-term debt in year 14 and that would have a huge impact on cash flow. The quick ratio also had a major drop from year 12 to year 14, which indicated that the amount of cash and accounts receivable to cover its current liabilities was becoming a problem. Part B I do not believe that FBN can avoid bankruptcy by year 15. In the case, it states â€Å"As of April 30, Year 14, the Company is in default of its debt covenants. It is also in default with respect to covenants underlying its capitalized lease obligations. As a result, lenders have the right to accelerate repayment of their loans. Accordingly, the Company has lassified all of its long-term debt as a current liability. † The way the company is moving, it does not appear that FBN will have enough cash to cover these now current liabilities. The company has to implement new strategies in order to avoid bankruptcy. First of all, there has to be better communication between the members of the board. It says that Mather received a loan authorized by the board for $1,000,000 when later that month the board said it was unaware of this loan and that it never authorized it. Obviously there was fraud occurring when Mather was the CEO. With better oversight by the board, problems such as this could be averted. Also, FBN needs a better system to collect its accounts receivables. As said in Part A, the accounts receivable amount had increased so much in the past 5 years and that negatively affected cash. It is a misnomer that high revenue is the sign of success when really it should be how much cash the company has. That is why Mather was confused why there was a problem with cash and the reason was that the company did not pay enough attention to the cash flow statement. How to cite Fly-by-Night Case, Essay examples