1. Dell’s strategy is to provide products and services to the consumers and eliminate the middleman. Dell’s business strategy combines its direct customer model with a highly efficient manufacturing and supply chain management organization and an emphasis on standards-based technologies. The company relies on a combination of customer intimacy, operational excellence, and product leadership customer value proposition, but the main focus is customer intimacy driven. According to sec “A" direct customer relationship, also referred to as Dell’s direct business model, eliminates wholesale and retail dealers that add unnecessary time and cost or diminish Dell’s understanding of customer expectations. As a result, Dell is able to offer customers superior value by avoiding expenditures associated with the retail channel such as higher inventory carrying costs, obsolescence associated with technology products, and retail mark-ups and Dell believes the direct business model is the most effective model for providing solutions that address customer needs.
2. failure on the part of Dell to effectively manage a product transition will directly affect the demand for Dell’s products and the profitability of Dell’s operation this means that Dell has to keep up with technological advances and changes. With Dell being a technological provider to consumers, they must have the latest and greatest to keep up with competitors. To minimize the risk, Dell focuses on maintaining liquidity, profitability and growth of the business, it works on highly efficient manufacturing and supply chain management organization. It focuses on technology and expanding its capabilities as well as expand its geographic reach so as to maximize stockholders value.
3. Sarbanes-Oxley focuses on internal control of the organization which
focuses on financial reporting. The company follows the rules that are set by Committee of