Management The new scorecard system - Free Essay Example

Sample details Pages: 3 Words: 813 Downloads: 2 Date added: 2018/12/26 Category Business Essay Type Speech Level High school Topics: Organization Essay Did you like this example? In business, most of the companies face stiff competition of the others. Lack of strategies to deal with the competition may lead to failure of business due to poor management. Having such business solutions, scorecard system may facilitate positive performance of the business. Managers use scorecard to keep track performance of the business (Kaplan 1996).Johansen company faced competitive threat from the investors but having Clark as the manager, he planned to sort out things to remain in the position beside scorecard suggestions that he should receive an overall rating. Various challenges had impact to the performance of the company. First, the company had financial difficulties due to failure to include executives in decision making following up over reluctant of the members. This was solved by recommending replacement of senior executives aiming at financial performance improvement since the new body was curious to initiate ideas. In addition, there was implementation of based incentive system on financial matters making store managers to drive sales critically (Norton 1996). Secondly, analyzation of employees and financial data fueled compromises n customer services besides its profitability. This made the leadership team to change the incentive behavior. Don’t waste time! Our writers will create an original "Management: The new scorecard system" essay for you Create order Besides financial performance of the Johnsens company, there is need to evaluate various possible solutions to the problem. Challenge to the financial problems may create low sales turnover in the market thus limiting investment returns of the company. Putting emphasizes on determination of sales promotions and stores marketing creates positive image to the entire business thus creating new customer demographics due to improved customer service. Furthermore, implementation of the new leadership team focuses on performance of the financial statements thus creating erosion on the success of customer service. Team work provides greater decision making especially to the places of work. The agreement to provide the new scorecard system as a new incentive and performance was initiated because of the stores managersrole. Under the performance of this new system, there will be assessment of stores managers including leadership, financial, customer service and strategy thus enabling ratings of the store managers. The ratings may be in accordance with the numerical scale, meet, below and exceeds expectations. The company strategy sets out forward movement to achieve the desired goals. It is facilitated by creation of companiesalignment and cohesiveness. Evaluation of the store managers on promotion of Johnsens materials and brands marks the journey of the strategy. Financial performance goal is the main company strategy (Norton 1996). Customers marks the start of any business in the society. Positive factors have enacted greater impact to the success of the implementation of the financial performance strategy. They include better communication between organizations thus creating room for better decision making. In addition, top managers inclusive of the executives exercises positive individual behavior. There is a big proportion of respect since managers with the highest ratings are promoted leaving no complaints. Johansens company structure on delegation and direction of duties marks its general improvement in performance. Human resource managers enact the role of forwarding the exercise results to? some? regional managers. This enable the whole leadership team to factor out various ratings of the stores managers. In addition, they also communicate employee complaints and turnover. According to the hierarchy, managers with the top ratings are promoted first to different regional levels (Kaplan 1996). Due to the nature of financial statements, orientations of short-terms and leading indicators of forthcoming financial performance Johansen saw the significance of introducing business perspectives in the business (Drucker 2011). They include, financial perspective which highlights the individual outlook of the companys shareholders. The holding capital in terms of operating income measures the strength of the shareholders. Customer perspective clearly is the simplest way of how the customers values the company. A company delivery of materials to the customer at exact time and the percentage of sales from the new products in the market identifies the company relationship to the customer. Efficiency as the measure in internal perspective highlights the flexibility and effectiveness of the operational tasks. Lastly, by use of research and development in business society innovation and learning perspective gives us room to continue with improvement while being creative in formulation of the ideas. Its measure articulates the proportional change in time margin (Norton 1996). Clark rating is below 5 because of the two reasons namely; low customer service and response rate. The physical location of Orange country was older and wealthier thus making the rate of survey to be low. In conclusion, the new scorecard system should be viewed as an organizational strategy because through it customer relations can be enhanced thus emphasizing on customer service to improve response rate. Market response rate in dependent of locality of the business enterprise having forces such as social status such as wealth and size of the market. Work cited P. F. Drucker, The Practice of Management (New York: Routledge, 2011 Kaplan, R. S., Norton, D. P. (1996). The balanced scorecard: Translating strategy into action.

Overview Of The Movie Coach Carter Essay - 1491 Words

Laying down in your bed, you hear this consistent knocking. You try to sleep through it but it seems as if it will never quit. Curious, you roll out of bed away from the comfort of your wife’s warm body but cautiously move closer, step by step downstairs into the direction of the sound. Each step you take wondering whether or not your house is being robbed. You finally ease your way downstairs and quickly flip the light switch only to find your home empty and totally void of any damage or evidence of a theft of any kind; however, you still hear the sound. You notice it’s coming from your front door, but its 3 A.M. on a school night. The hairs on the back of your neck begin to rise and your heart beats faster, wondering who is violently†¦show more content†¦Director Thomas Carter, an Austin, Texas native, with no relationship to Ken Carter, also directed the hit Save the Last Dance. Thomas Carter and Samuel Jackson worked together in this 2005 Paramount Producti ons to fully capture the peaks and valleys of Richmond High School’s special season. Coach Carter’s ability to stimulate the audience through an unique, original message; unpredictable ending; and dramatic change of characters, which are based on a true, riveting story, is what helped Coach Carter evolve the face of underdog genre. The intense plot with addition to its inner conflicts between the protagonists and antagonists had jostled the audience through the honorable journey of a new yet strong coach on a bewildered, downtrodden team as they scratched and clawed into new, more competitive territory on their way to the top. Not to forget that, this most inspirational story is based on a true story of how Mr. Ken Carter, portrayed by Samuel L. Jackson, takes a part-time and very low-budget offer to coach at his old high school. Coach Carter uncovers that the athletes are disrespectful and disobedient, while the community are willing to undercut and terrorize the coac h to support the good fortunes of their children. The conclusion to Coach Carter was so riveting and special is that the introduction and plot of Coach Carter still follows the basicShow MoreRelatedAdidas Marketing Plan20768 Words   |  84 Pagesormance,†© Original,†©and†©Style.†©Ã¢â‚¬ ©Adidas†©sponsors†©many†©events†©such†©as†©the†©Olympic†©Games,†©and†©the†©FIFA†© World†©Cup.†©Ã¢â‚¬ ©Its†©strategy†©is†©to†©Ã¢â‚¬Å"continuously†©strengthen†©our†©brands†©and†©products†©to†©improve†© our†©competitive†©position†©and†©financial†©performance†Ã¢â‚¬ ©(Overview).†© Situation†©Analysis:†©Ã¢â‚¬ ©Company†©and†©Competition†©Ã¢â‚¬ © Company†©Mission†©and†©Strategy†© Adidas’†©mission†©statement†©is†©Ã¢â‚¬Å"to†©lead†©the†©sporting†©goods†©industry†©with†©brands†©built†© on†©a†©passion†©for†©sports†©and†©a†©sporting†©lifestyle†Ã¢â‚¬ ©(adidas†©Group).†©Ã¢â‚¬ ©Its†©strategic†©goals†©are:†©Read MoreAdidas Marketing Plan20779 Words   |  84 Pagesormance,†© Original,†©and†©Style.†©Ã¢â‚¬ ©Adidas†©sponsors†©many†©events†©such†©as†©the†©Olympic†©Games,†©and†©the†©FIFA†© World†©Cup.†©Ã¢â‚¬ ©Its†©strategy†©is†©to†©Ã¢â‚¬Å"continuously†©strengthen†©our†©brands†©and†©products†©to†©improve†© our†©competitive†©position†©and†©financial†©performance†Ã¢â‚¬ ©(Overview).†© Situation†©Analysis:†©Ã¢â‚¬ ©Company†©and†©Competition†©Ã¢â‚¬ © Company†©Mission†©and†©Strategy†© Adidas’†©mission†©statement†©is†©Ã¢â‚¬Å"to†©lead†©the†©sporting†©goods†©industry†©with†©brands†©built†© on†©a†©passion†©for†©sports†©and†©a†©sporting†©lifestyle†Ã¢â‚¬ ©(adidas†©Group).†©Ã¢â‚¬ ©Its†©strategic†©goals†©are:†©Read MoreHuman Resources Management150900 Words   |  604 Pages social, cultural, and technological ones—when addressing these activities. 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Our management schools need to identify the skills managers use, select students who show potential in these skills, put the students into situationsRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pages†¢ Coping with â€Å"Temporariness† 20 †¢ Working in Networked Organizations 20 †¢ Helping Employees Balance Work–Life Conflicts 21 †¢ Creating a Positive Work Environment 22 †¢ Improving Ethical Behavior 22 Coming Attractions: Developing an OB Model 23 An Overview 23 †¢ Inputs 24 †¢ Processes 25 †¢ Outcomes 25 Summary and Implications for Managers 30 S A L Self-Assessment Library How Much Do I Know About Organizational Behavior? 4 Myth or Science? â€Å"Most Acts of Workplace Bullying Are Men Attacking Women†Read MoreStrategic Marketing Management337596 Words   |  1351 PagesButterworth-Heinemann publications visit our website at http:/ /books.elsevier.com Printed and bound in Italy Working together to grow libraries in developing countries www.elsevier.com | www.bookaid.org | www.sabre.org Contents Preface Overview of the book’s structure 1 Introduction 1.1 1.2 1.3 1.4 1.5 1.6 Learning objectives The nature of marketing The management process Strategic decisions and the nature of strategy The marketing/strategy interface Summary xi xiii 1 3 3 7 11 19 37

Dell Jit Free Essays

Dell – Supply Chain Management Case Study 1 Case Contents 1. Introduction†¦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‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2 2. Dell – Company Overview †¦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‚¬ ¦. We will write a custom essay sample on Dell Jit or any similar topic only for you Order Now 2 3. Dell Products and Services †¦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‚¬ ¦.. 3 4. Dell – Key Facts †¦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‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 4 5. Dell Timeline†¦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‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6. Dell – Business Segment Information†¦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‚¬ ¦.. 6 7. Dell’s Evolving Supply Chain Strategy†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢ € ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7 7. 1. Typical Working of Dell’s Supply Chain †¦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‚¬ ¦.. 7 7. 2. Five key strategies in Dell’s successful Direct Model †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 7 7. 3. A supply chain with old technology is of little value †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 8. Restructuring at Dell †¦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‚¬ ¦. 8. 1. New Distribution Channels – Direct Model and Retail Strategy †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 8 9. Integrating the Supply Chain †¦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‚¬ ¦. 9 This case study covers the following issues: 1. Examine and analyze Dell’s Direct model, its basic working, success and future challenges 2. Typical Working of Dell’s Supply Chain and future supply chain challenges 3. Highlights Dell’s evolving Supply Chain practices and strategy and steps being taken by it to recapture its lost market leader position Case Study Keywords: Dell, Direct model, Supply Chain Management, Supply Chain Strategies, Build-to-order model, Inventory optimization, PC Manufacturing, Retail Distribution Channel, HP, Notebook computers, Desktop personal computers, Competitive Business Strategies, Sustaining competitive advantage, Michael Dell 1 Please note: This case study was compiled from published sources, and is intended to be used as a basis for class discussion. Accuracy of information cannot be guaranteed. Please do not copy without permission.  © casestudyinc. com 2008 1. Introduction Dell thinks about their offerings as microprocessors, disk drives and frames-per-second graphics. But consumers just want a computer they can be proud of when they show it to their friends, listen to music, watch videos and do office work† – Christian Terwiesch, a Wharton professor Dell has been following its unique ‘direct build-to-order’ sales model for more than 20 years. Customers can plan th eir own configuration and place orders directly with the company via the phone or its Web site. Over the years, Dell’s supply chain efficiencies and direct sales gave it a competitive advantage. In 2006 however, Dell faced several problems. Many customers complained about long delays in supplies. Recall of Sony battery cells in its laptops brought undesirable media hype to the company. Increasing discontent of customers led to a slowdown in sales. Consequently, Dell lost its market leadership to HewlettPackard Co. (HP). Industry analysts felt that, with Dell’s competitors also improving their supply chains and matching Dell’s direct model, the company had been losing its competitive edge. Dell will have to bear additional costs with its foray into retail distribution thereby minimizing its cost advantage. Besides, profit margins of Dell will drop further since it will have to offer incentives to compete with HP in retail stores. Though Dell spruced up its product design and range but Apple is clearly far ahead of it. Many experts feel that such new initiatives will only distract Dell from its supply chain operations. 2. Dell – Company Overview Dell is a leading technology company, offering a wide range of computer product categories. Its product categories include: desktop computer systems, mobility products (notebooks), servers, storage, software and peripherals, and services. Dell is the number one supplier of personal computers in the United States, and the number two supplier worldwide. Dell also offers various financing alternatives, asset management services, and other customer financial services. Dell has manufacturing locations worldwide. Dell’s build-to-order manufacturing model allows it to substantially reduce costs and at the same time offering customers the ability to customize their product purchases. 3. Dell Products and Services Product Lines and Brands Desktop PCs †¢ OptiPlex †¢ Dimension †¢ XPS †¢ Alienware †¢ Vostro Servers and Networking PowerEdge and PowerConnect Storage Dell | EMC and Dell PowerVault Mobility XPStm and Alienware, Inspiron and Latitude lines of notebook computers Software and Peripherals Dell branded Printers, software titles, televisions, notebook accessories, networking and wireless products, digital cameras, power adapters, scanners, and other products Enhanced Services †¢ Infrastructure Consulting Services †¢ Deployment Services. †¢ Asset Recovery and Recycling Services. †¢ Training Services †¢ Enterprise Support Services †¢ Client Support services †¢ Managed Lifecycle services Financial Services Various customer financial services for business and onsumer customers in the U. S. through Dell Financial Services L. P 4. Dell – Key Facts Dell: Quick Facts Company Type Corporate Headquarters Revenues Industry Employees Manufacturing Facilities Distribution Product Lines Brands Major Competitors Business/Growth Strategy Key Executives Name, (age),Designation Website Public (NASDAQ: DEL L) Round Rock, Texas $57. 4 billion (fiscal 2007) Hardware, PC Manufacturing Approximately 90,500 total employees (Fiscal 2007) †¢ Brazil — El Dorado do Sul †¢ Florida — Miami (Alienware) †¢ North Carolina — Winston-Salem †¢ Ohio — West Chester †¢ Tennessee — Lebanon and Nashville Texas — Austin †¢ Ireland — Limerick and Athlone (Alienware) †¢ China — Xiamen †¢ Malaysia — Penang Worldwide †¢ Desktop PCs †¢ Mobility products †¢ Servers and Storage †¢ Software and peripherals and †¢ Services †¢ OptiPlex †¢ Dimension †¢ XPS †¢ Dell Precision and Alienware MJ-12 ® †¢ PowerEdge †¢ Dell PowerVault †¢ Inspiron †¢ Latitude †¢ HP †¢ Acer †¢ Lenovo Direct customer model Highly efficient manufacturing and logistics, and New distribution channels to reach customers Michael S. Dell (42) Chairman of the Board of Di rectors and CEO Donald J. Carty (61) Vice Chairman and CFO Michael R. Cannon (54) President, Global Operations Stephen J. Felice (50) Senior VP and President, Asia Pacific-Japan Mark Jarvis (44) Senior VP, Chief Marketing Officer David A. Marmonti (48) Senior VP and President, EMEA www. dell. com 5. Dell Timeline Dell Timeline 1983 Michael Dell used to upgrade IBM compatible PCs in his spare. (He was a freshman at the University of Texas, Austin) 1984 Michael Dell established PC’s Ltd with sales US$ 6 million in its first full year of operations 1985 Turbo PC, first computer introduced by the company. Turbo PC was advertised in computer magazines and sold directly to customers 993 Dell joins the ranks of top-five computer system makers worldwide 1996 Dell pioneers Internet sales with earnings approx 1 million dollars per day just seven months after launch of www. dell. com 1998 The company changed its name to Dell Computer Corporation 1999 Dell introduces E-support tool to provide online technical support 2000 Online sales continue to grow to $5 0 million per day 2001 Dell achieves No. 1 ranking on global market share 2003 Dell launches Dell Recycling initiative 2004 Inventory turnover rate in Dell was at 107 times a year, compared to 8. 5 times at HP and 17. times in IBM. 2005 â€Å"America’s Most Admired Company† – Fortune Magazine 2005, 2006 Dell faced several problems, and lost its position as the largest selling PC manufacturer to HP 2007 Dell announced that it planned to move most of its global supply chain and manufacturing operations to Singapore, which would function as the company’s ‘shared headquarters 2007 Michael Cannon assumes responsibility as the Head of Global Operations Organization 2007 Michael Dell (Michael) returned as CEO on January 31, 2007 2007 Retail partnerships with Wal-Mart, Staples, Gome, Bic Camera and Carphone Warehouse 2007 Dell launches the Direct2Dell corporate blog and other idea forums to listen and engage customers 6. Dell – Business Segment Information Dell conducts operations worldwide. Dell is managed in three geographic regions: †¢ †¢ †¢ Americas Europe, Middle East, and Africa (EMEA) Asia Pacific-Japan (APJ). Major Business Segment Based in Americas Round Rock, Texas EMEA Bracknell, England APJ Singapore Covers Business – sales to corporate, government, healthcare, education, and small and medium business customers U. S. Consumer – sales primarily to individual consumers and selected retail partners Covers Europe, the Middle East, and Africa. Covers the Asian countries of the Pacific Rim as well as Australia, New Zealand, and India 7. Dell’s Evolving Supply Chain Strategy Dell’s past performance has been the result of its direct customer model. Dell’s success is attributed to a constant focus on delivering directly to its customers, related technology and services at the best value. Dell’s operations involve highly efficient manufacturing and logistics to lower the cost of technology. 7. 1. Typical Working of Dell’s Supply Chain Dell Supply Chain works as follows: 1. Customer places an order, either by phone or through the Internet on its website . Dell processes the order in 2-3 days by evaluating financial feasibility (credit checking) and technical feasibility (technical con? guration) 3. Dell processes the order to one of its manufacturing locations 4. These plants can put together, test, and package the product in about eight hours 5. Dell typically plans to ship a ll orders no later than ? ve days after receipt 7. 2. Five key strategies in Dell’s successful Direct Model Five key strategies in Dell’s successful Direct Model †¢ †¢ †¢ †¢ †¢ Rapid time to volume Built to order products Elimination of reseller markups Superior customer service and support Low inventory and capital investment 7. 3. A supply chain with old technology is of little value The direct model involves bypassing retailers and selling personal computer systems directly to customers. This helps avoid the delays and costs of an additional stage (holding inventory) in the supply chain. Typically, each technology component loses about 0. 5 to 2 percent in a rapidly changing environment. A supply chain with old technology is of little value. Dell maintained very little inventory and concentrated on pacing its products through its supply chain. This also meant that there was no question of selling old products at a discount. 8. Restructuring at Dell Dell failed to meet its quarterly financial forecasts. Consequently, Dell lost its market leadership to Hewlett-Packard Co. (HP). In order to settle a few accounting issues, the company decided to restate its financial results for the last four years. Michael Dell had to take the CEO’s responsibility again, replacing Kevin Rollins. Michael Dell felt the importance of increasing the capacity, via the direct model, to manufacture close to its customer and fully integrate its supply chain into one global organization. To do so Dell had to innovate and adapt its supply chain model to help drive differentiated product design, manufacturing and distribution models. He began a series of restructuring exercises. 8. 1. New Distribution Channels – Direct Model and Retail Strategy While part of the restructuring involved cutting 8,000 jobs, or 10. 0% of its workforce, the biggest surprise was the move of Dell to complement its ‘direct sales model’ with sale of PCs through retailer channels as well. To reach even more customers globally, Dell launched new distribution channels to reach commercial customers and individual consumers around the world. This meant moving from a model of direct sales to making its goods available in stores across the world. This move allowed Dell to reach customers that it could not reach directly previously. From June 2007, it started placing its products in the shelves of Wal-Mart and Sam’s Club stores. In December 2007, Dell also announced that its Dell laptops and desktop computers will be sold through Tesco stores in Britain and Ireland as well as the high-growth eastern European markets of Poland, Czech Republic, and Slovakia. In U. S. Asia and Europe, Dell added Best Buy, WalMart, Staples, China’s Gome Stores, Japan’s Bic Camera, France’s Carrefour and British phone retailer, Carphone Warehouse to sell its products at nearly 10,000 retail outlets worldwide. In December 2007, Dell also chose WPP, the world’s second-largest marketing, media and communications conglomerate after Omnicom, to create a new agency that will handle $4. 5 billion in accounts over the next three years. Dell hoped that creating the agency would increase the time and money spent focusing on marketing and customers rather than pitching for the next project 9. Integrating the Supply Chain Earlier, Dell’s manufacturing, supply chain and procurement activities functioned separately. Procurement functioned as a standalone unit, the regional business executives were in-charge of manufacturing, and supply chain was a part of the worldwide operations of the company. All Dell’s factories had been managed regionally, and procurement functioned as a separate division. Michael aimed to integrate its supply chain and achieve higher efficiency and quality through Global Operations Organization (GOO). GOO is Dell’s center for integrating its global manufacturing, procurement How to cite Dell Jit, Essay examples

The Capital Asset Pricing Model Market Equities

Question: Describe about The Capital Asset Pricing Model Market Equities? Answer: Debts Securities Interest Rates are one of the most important things in the world of finance and are determined on the basis of various factors collectively. The interest rates in the markets help in the valuation of the various financial assets in a country and thus reduce the ambiguity in the valuation concepts. The market rates of interest are collectively controlled by various factors that change with the situation to determine the market interest rates of a particular economy. Some of the important determinants of the interest rates can be discussed here under as below: Nominal Interest Rates- The nominal interest rates on the different securities are quite different from each other and thus the interest rates differ in the normal circumstances. The quoted interest rates of a treasury bill would be different from the corporate bonds due to the difference in assumptions of the market on both these securities. Real Risk Free Rate- These rate also affects the interest rates on the securities as this the inflated protected rates. This rate is measured without the inflation effect and thus calculates the value at which the risk free securities are traded. Inflation Rate in the economy- The inflation rates prevailing in an economy are being calculated over the life of the security and is assumed on an average basis over the life of the bonds so it is calculated at different rates for the different securities. This does not imply that the current inflation rates would be considered for the purpose of the market interest rates as the life of the securities are used to find the market interest rates of the stock or security. The inflation rates are higher in an economy where there are sudden changes in the fiscal policy affect the market interest as well. Default Risk Premium- This is the premium charged for the counter party default risk that if the person fails to pay the principal and interest of the security then the same might be covered by this component of the interest rates. The default risk premium generally is higher in the case where there both the parties are not recognized under any law so the risk will be strong in that case otherwise the risk would be low and the market interest rates would go down as the default premium would be less. This risk premium had a good impact on the market interest rates and addresses the issues of the determination of the rates. Liquidity premium- This the premium charged if the securities are not easily convertible into cash and therefore the lender charges such interest as an compensation against the low liquidity of the assets. The more the asset is liquid then it will be less interest rate as the investors can convert into cash. The premiums are high on those securities where the assets have a longer duration due which the liquidity of these assets all and there is a stronger effect on the interest rates. This premium is low for the securities issued by the larger companies and high for the securities issued by the small firms. Lastly one of the factors is the Maturity Risk Premium which is the premium for fall in the market value of the security at the time of redemption of the same. This is generally lower for the sort term instruments and higher for the long term instruments of the company. 2. In the world of finance yield is the term that is mostly used for the return on the assets at various interest rates for the time period of the asset. The yield curve generally shows the time period of the asset and the return that it will be giving. The interest rates that are being earned on the assets are being compared to the yield of a security. For example in case of a bond the term used is YTM that means yield to maturity which refers to the time period during which the asset would mature and what would be the return it will provide to the investor. It can be regarded as the hidden return in the outflows and the inflows of the asset. This curve in short shows the relation between the return and the time period of the assets. The yield curve can be generally of three types with regards to the shape of the same. The three types of yield curve are as follows Normal Yield Curve- This curve shows that the short term yields on the asset are lower than the long term yields and as the time increases the rate of yield goes up in such kind of assets so the investors should wait for a return in such type of assets and this is also known as positive yield curve with a higher return in the long term. This curve moves upward with the passage of time as below Second variant of the curve is the inverted shaped curve which shows that the returns will be higher at the early period of security for the short period and this forms an inverted curve as the returns are higher at the downside and lower when the assets are held for a longer period of time. This curve is inverted shaped and is presented below. The third and the final yield curve is in the form of Flat shape and is called the Flat Shaped Yield curve. In this the yield on the securities are the same irrespective of the time period for which the securities are being held by the investors. There is no difference in the long term and short term yields of the bonds as the time passes but the yield is same, This type of curve is horizontal in shape as shown below. 3 Debt Securities are mostly issued by those enterprises that dont want to dilute the share of their equity holdings and also raise funds in order to finance the projects of the firm. The debt securities are majorly the financial instrument that serves as a debt to the enterprise. The types of Debt Security can be classified as Term Loans, Leases, Debentures and Bonds. Term Loans is a monetary loan that is being paid at regular payments over a particular period of time. These loans are being given on individual basis and for a particular purpose which is well defined and used for the extension of business very commonly. There are some criteria for which loans are being given to the various enterprises. These term loans are given to the small sized firms and often to the large sized firms too with different conditions. Leases are also under the debt security under which the lesser leases the right of the property to be used by the other person for a definite period of time by the paying on annual rates as the debt charges for the leased asset. This also facilitates the lease to expand the business with ease and also the assets are being utilized in a proper manner. The various types of tractions that take place are operating lease for a short period of the life of the asset, Financial Lease, Sale and Lease back and Leveraged Lease. Debentures are also debt security which is issued as a loan instrument and the funds are collected as a debt from these debenture holders. These are issued in the physical form as well as dematerialized form. The types of debentures are Convertible and Non Convertible debentures, secured and non secured debentures, redeemable and irredeemable debentures also. Lastly one of the common debt security are the bonds which are traded on behalf of the government as well as by the private players also and are traded in different forms across the globe. The various classes of binds that are commonly used in the debt market as follows. On the basis of maturity they can be classified as callable bond, puttable bond and convertible bonds as well. On the basis of payment it can be classified as amortizing bond and bond with sinking fund provision. And on the basis of the coupon it can be classified as Zero coupon bonds and floating rate bonds. Valuation Of The Corporate Bond FV of the Bond $ 100,000.00 Maturity 10 years Coupon 6% Coupon per semi annually $ 3,000.00 Timeline Showing the Cash Flows 3000 3000 3000 3000 3000 3000 3000 3000 3000 $ 3,000.00 Semis 1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 3000 3000 3000 3000 3000 3000 3000 3000 3000 $ 103,000.00 Semis 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th Valuation Of the Bond Semis Inflows PV @ 4% 1 3000 2884.6 2 3000 2773.7 3 3000 2667.0 4 3000 2564.4 5 3000 2465.8 6 3000 2370.9 7 3000 2279.8 8 3000 2192.1 9 3000 2107.8 10 3000 2026.7 11 3000 1948.7 12 3000 1873.8 13 3000 1801.7 14 3000 1732.4 15 3000 1665.8 16 3000 1601.7 17 3000 1540.1 18 3000 1480.9 19 3000 1423.9 20 103000 47007.9 Value of Bond $ 86,410 Price Movements At time = 2 years 5 3000 2884.6 6 3000 2773.7 7 3000 2667.0 8 3000 2564.4 9 3000 2465.8 10 3000 2370.9 11 3000 2279.8 12 3000 2192.1 13 3000 2107.8 14 3000 2026.7 15 3000 1948.7 16 3000 1873.8 17 3000 1801.7 18 3000 1732.4 19 3000 1665.8 20 103000 54992.5 Value of Bond $ 88,348 At time = 4 years 9 3000 2884.6 10 3000 2773.7 11 3000 2667.0 12 3000 2564.4 13 3000 2465.8 14 3000 2370.9 15 3000 2279.8 16 3000 2192.1 17 3000 2107.8 18 3000 2026.7 19 3000 1948.7 20 103000 64333.5 Value of Bond $ 90,615 At time = 6 years 13 3000 2884.6 14 3000 2773.7 15 3000 2667.0 16 3000 2564.4 17 3000 2465.8 18 3000 2370.9 19 3000 2279.8 20 103000 75261.1 Value of Bond $ 93,267 At time = 8years 17 3000 2884.6 18 3000 2773.7 19 3000 2667.0 20 103000 88044.8 Value of Bond $ 96,370 So it could be said that the with the increase in time the value of the bond is rising as the coupons are decreasing so the investors would like to pay less for the bond as time increases References Works Cited ACCA. 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