1. 1. Income
Statement
2. Balance Sheet
3. Ratio Analysis
4. Space
Matrix's
E15
5. BCG Matrix's
6. Internal
External
Dell Strategy
Matrix's IFE
7. External Formulation Analytical
Factors
evaluation
Matrix's
Frame Work And
8. CPM
9. Grand Strategy Financial Statement
10. QSPM
End Show
Analysis
5-1

2. Introduction of Dell
Dell, Inc. is an American
1. Income
Statement multinational information
2. Balance Sheet technology corporation based in 1
3. Ratio Analysis
4. Space
Dell Way, Round, Texas, United
Matrix's States, that develops, sells and
5. BCG Matrix's
6. Internal
supports computers and related
External products and services. Bearing the
Matrix's IFE
7. External
name of its founder, Michael Dell,
Factors the company is one of the largest
evaluation
Matrix's technological corporations in the
8. CPM world, employing more than
9. Grand Strategy
10. QSPM
103,300 people worldwide. Dell is
listed at number 41 in the Fortune
End Show
500 list.
5-2

3. Vision and Mission
• Vision Statement:
1. Income • "Dell is committed to being a good neighbor in the
Statement
communities we call home. We must continue to grow
2. Balance Sheet
3. Ratio Analysis
responsibly – protecting our natural resources and
4. Space
practicing sustainability in all its forms – and improve
Matrix's the communities where we live and work through our
5. BCG Matrix's financial and volunteer efforts."
6. Internal
External • MISSION STATEMENT:
Matrix's IFE
• Dell's mission is to be the most successful Computer Company in the world
7. External at delivering the best customer experience in markets we serve. In doing so,
Factors Dell will meet customer expectations of.
evaluation • Highest quality
Matrix's • Leading technology
8. CPM • Competitive pricing
9. Grand Strategy • Individual and company accountability
10. QSPM • Best-in-class service and support
• Flexible customization capability
End Show • Superior corporate citizenship
• Financial stability
5-3

4. DELL INC.
Income Statement
S tatement of Operations
1. Income
Statement (in mil lions)
2. Balance Sheet Annual Results
3. Ratio Analysis FY09 FY10 FY11
4. Space Incom e Statement:
Matrix's
Net revenue $61,101 $52,902 $61,494
5. BCG Matrix's
6. Internal Cost of revenue 50,144 43,641 50,098
External Gross margi n 10,957 9,261 11,396
Matrix's IFE
S G&A 7,102 6,465 7,302
7. External
Factors R&D 665 624 661
evaluation T otal operating expenses 7,767 7,089 7,963
Matrix's
Operati ng incom e 3,190 2,172 3,433
8. CPM
9. Grand StrategyInves tm ent and other i ncome, net 134 (148) (83)
10. QSPM Incom e before taxes 3,324 2,024 3,350
Incom e tax provision 846 591 715
End Show Net inc ome 2,478 1,433 2,635
5-4

5. DELL INC.
Balance Sheet
Statement of Financial Position
(in millions)
1. Income Annual Results
Statement FY09 FY10 FY11
Assets:
2. Balance Sheet Cash & cash equivalents $8,352 $10,635 $13,913
3. Ratio Analysis Short-term investments 740 373 452
Accounts receivable, net 4,731 5,837 6,493
4. Space Financing receivables, net 1,712 2,706 3,643
Matrix's Inventories, net 867 1,051 1,301
Other 3,749 3,643 3,219
5. BCG Matrix's Total current assets 20,151 24,245 29,021
6. Internal PP&E, net 2,277 2,181 1,953
External Investments 454 781 704
Long-term financing receivable, net 500 332 799
Matrix's IFE Other non-current assets 3,118 6,113 6,122
7. External Total assets: 26,500 33,652 38,599
Factors Liabilities & Stockholders Equity:
Short-term borrowings 113 663 851
evaluation
Accounts payable 8,309 11,373 11,293
Matrix's Accrued and other 3,736 3,884 4,181
8. CPM Short-term deferred services revenue 2,701 3,040 3,158
Total current liabilities 14,859 18,960 19,483
9. Grand StrategyLong-term debt 1,898 3,417 5,146
10. QSPM Long-term deferred services revenue 3,000 3,029 3,518
Other non-current liabilities 2,472 2,605 2,686
Total liabilities: 22,229 28,011 30,833
End Show Stockholder's equity: 4,271 5,641 7,766
Total liabilities & equity: 26,500 33,652 38,599
5-5

6. Ratios Analysis
DELL INC.
Selected Financial Data & Ratios
(in millions, except per share data and ratios)
1. Income (Unaudited)
Statement
Yearly results for liquidity, Profi tability, S ol vency, and A ctivity Rati os
2. Balance Sheet FY09 FY10 FY11
3. Ratio AnalysisLiqui dit y:
Net working capi tal ratio 5292 5285 9538
4. Space Current rati o 1.356 1.278 1.489
Matrix's Quick ratio 1.30 1.22 1.42
Cash Ratio 0.611 0.58 0.737
5. BCG Matrix's
A ctivity Rat ios:
6. Internal A ccount Recei vable Turnover Ratio 12.91 10.01 19.55
External # of Days Account Receivabl e outstanding 28.27 36.46 18.67
Matrix's IFE F ixed Ass ets turnov er ratio 26.83 24.25 31.48
Inventory t urnover ratio 57.83 45.50 42.60
7. External
A verage # of days inventory out standing 6.31 8.02 5.56
Factors Operati ng Cycle 64.14 53.53 51.16
evaluation T otal A ssets turnover Ratio 2.305 1.57 1.59
Matrix's P rofitabil ity:
8. CPM Return on Investm ent 0.28% 0.12% 0.17%
Gross m argin 17.93% 17.50% 18.53%
9. Grand Strategy
Operati ng margin 5.44% 3.82% 5.44%
10. QSPM Return on Assets 3.83% 2.11% 2.84%
Net profit margin 4.05% 2.70% 4.28%
S olvency Ration:
End Show Debt Ratio 0.838 0.832 0.798
Debt to equity ratio 5.2 4.96 3.97
5-6

7. Common Size Analysis
Vertical Analysis
1. Income FY09 FY10 FY11
Statement
Income Statement:
2. Balance Sheet
3. Ratio AnalysisNet revenue $61,101 100% $52,902 100 $61,494 100
4. Space Cost of revenue 50,144 82 43,641 82 50,098 81.46811
Matrix's
5. BCG Matrix's Gross margin 10,957 18 9,261 18 11,396 18.53189
6. Internal SG&A 7,102 12 6,465 12 7,302 11.87433
External
Matrix's IFE R&D 665 1 624 1 661 1.074902
7. External
Total operating expenses 7,767 13 7,089 13 7,963 12.94923
Factors
evaluation Operating income 3,190 5 2,172 4 3,433 5.582658
Matrix's
8. CPM Investment and other income, net 134 0 -148 0 -83 -0.13497
9. Grand Strategy
Income before taxes 3,324 5 2,024 4 3,350 5.447686
10. QSPM
Income tax provision 846 1 591 1 715 1.162715
End Show
Net income 2,478 4 1,433 3 2,635 4.284971
5-7

8. Horizontal Analysis Balance sheetDell Incorporation Horizontal Analysis of Balance sheet
FY09 FY10 FY11
Assets:
Cash & cash equivalents $8,352 $100 $10,635 27.33 $13,913 30.82
1. Income Short-term investments 740 100 373 -49.59 452 21.17
Statement Accounts receivable, net 4,731 100 5,837 23.37 6,493 11.23
2. Balance Sheet Financing receivables, net 1,712 100 2,706 58.06 3,643 34.62
Inventories, net 867 100 1,051 21.22 1,301 23.78
3. Ratio Analysis Other 3,749 100 3,643 -2.83 3,219 -11.63
4. Space Total current assets 20,151 100 24,245 20.31 29,021 19.96
Matrix's PP&E, net 2,277 100 2,181 -4.21 1,953 -10.45
5. BCG Matrix's Investments 454 100 781 72.02 704 -9.85
Long-term financing receivable, net 500 100 332 -33.6 799 140.66
6. Internal
Other non-current assets 3,118 100 6,113 96.05 6,122 0.147
External
Total assets: 26,500 100 33,652 26.98 38,599 14.7
Matrix's IFE
Liabilities & Stockholders Equity:
7. External Short-term borrowings 113 100 663 486.72 851 28.35
Factors Accounts payable 8,309 100 11,373 36.87 11,293 -0.703
evaluation Accrued and other 3,736 100 3,884 3.96 4,181 7.64
Matrix's Short-term deferred services revenue 2,701 100 3,040 12.55 3,158 3.88
8. CPM Total current liabilities 14,859 100 18,960 27.59 19,483 2.75
Long-term debt 1,898 100 3,417 80.03 5,146 50.59
9. Grand Strategy
Long-term deferred services revenue 3,000 100 3,029 0.96 3,518 16.14
10. QSPM Other non-current liabilities 2,472 100 2,605 5.38 2,686 3.109
Total liabilities: 22,229 100 28,011 26.01 30,833 10.07
End Show Stockholder's equity: 4,271 100 5,641 32.08 7,766 37.67
Total liabilities & equity: 26,500 100 33,652 26.98 38,599 14.7
5-8

9. SPACE MATRIX
1. Income
Statement
2. Balance Sheet
3. Ratio Analysis
4. Space
Matrix's
5. BCG Matrix's
6. Internal
External
Matrix's IFE
7. External
Factors
evaluation
Matrix's
8. CPM
9. Grand Strategy
10. QSPM
End Show
5-9

10. Boston consulting group or BCG matrix
1. Income
Statement
2. Balance Sheet Relative market Share
3. Ratio Analysis
4. Space
Matrix's
5. BCG Matrix's
6. Internal
External
Matrix's IFE
7. External Asia
Factors
evaluation Region Revenues Profit Percentage of Growth rate Relative e
Revenue Market Share
Matrix's
8. CPM
Americas $32,940M $2,978M 66.94% 21% 75%
9. Grand Strategy
Europe $10,787M $818M 21.922% 61% 20%
10. QSPM
Asia-Pacific $5,478M $458M 11.133% 29% 10%
End Show Total $49,205M $4,254M 100% 100% 95%
5-10

11. SPACE MATRIX CONT.
FS
Conservative 6 Aggressive
1. Income 5
Statement
2. Balance Sheet
4
3. Ratio Analysis 3
4. Space 2
Matrix's
1
5. BCG Matrix's
6. Internal CA -6 -5 -4 -3 -2 -1 1 2 3 4 5 6 IS
External -1
Matrix's IFE
-2
7. External
Factors -3
evaluation -4
Matrix's
8. CPM -5
9. Grand Strategy Defensive -6 Competitive
10. QSPM ES
End Show
5-11

12. THE INTERNAL-EXTERNAL (IE) MATRIX
The IFE Total Weighted Score
The EFE Total Weighted
Strong Average Weak
1. Income
3.0 to 4.0 2.0 to 2.99 1.0 to 1.99
Statement
2. Balance Sheet High I II III
3. Ratio Analysis 3.0 to 3.99
4. Space Americas
Matrix's
Score
5. BCG Matrix's Europe
6. Internal
External
Matrix's IFE Medium IV V VI
7. External 2.0 to 2.99
Factors
evaluation
Matrix's
Dell
8. CPM
Low VII VIII IX
9. Grand Strategy
10. QSPM 1.0 to 1.99
Asia-Pacific
End Show Hold and Maintain
5-12

13. THE INTERNAL-EXTERNAL (IE)
MATRIX CONT.
1. Income
Statement
Region Revenues Profit Percentage of IFE Score
2. Balance Sheet
Revenue
3. Ratio Analysis
4. Space
Matrix's Americ $32,940M $2,978M 66.94% 3.5
5. BCG Matrix's as
6. Internal
External
Matrix's IFE Europe $10,787M $818M 21.922% 2.8
7. External
Factors Asia- $5,478M $458M 11.133% 1.2
evaluation Pacific
Matrix's
8. CPM
9. Grand Strategy Total $49,205M $4,254M 100%
10. QSPM
End Show
5-13

14. EXTERNAL FACTOR EVALUATION (EFE)
Key External Factors
MATRIX Weight Rating Weighted Score
Opportunities
Demand for personal computers continues to grow. 0.100 3 0.300
1. Income Many customers switching from desktops to notebooks 0.050 4 0.200
Statement Microsoft desires to partner with Dell. 0.100 4 0.400
2. Balance SheetConsumer electronics is a profitable business. 0.050 2 0.100
3. Ratio Analysis
Higher consumer spending in the US. 0.025 2 0.050
4. Space Incorporated managed and professional services. 0.025 2 0.050
Matrix's
5. BCG Matrix's Global enterprise systems. 0.050 3 0.150
Training and certification program. 0.025 2 0.050
6. Internal Financial services offered. 0.025 3 0.075
External Growth in the color printer market. 0.025 2 0.050
Threats
Matrix's IFE Alliance in the PC industry 0.050 3 0.150
7. External Higher oil prices could crimp consumers’ spending. 0.050 3 0.150
Factors
evaluation Commercial demand fails to accelerate. 0.025 2 0.050
Matrix's Competitors are strong. 0.150 3 0.450
Slow growth in the PC market. 0.100 2 0.200
8. CPM Component price fluctuation 0.025 4 0.100
9. Grand Strategy for computing power has decreased.
Price 0.025 3 0.075
10. QSPM
Computer market has broadened. 0.050 3 0.150
Currency fluctuations in the international markets. 0.050 2 0.100
End Show
TOTAL 1.00 2.85
5-14

15. Competitive Profile Matrix's
Apple HP
Dell
Critical Weight Rating Weighte Rating Weighted Rating Weighted
1. Income
Success d Score Score Score
Statement
Factors
2. Balance Sheet
Market Share 0.10 2 0.20 3 0.30 4 0.40
3. Ratio Analysis
Price 0.10 2 0.20 3 0.30 4 0.40
4. Space
Financial 0.15 3 0.45 4 0.60 3 0.45
Matrix's
5. BCG Matrix's Position 0.15 4 0.60 3 0.45 3 0.45
Product Quality 0.15 4 0.60 2 0.30 3 0.45
6. Internal
External Consumer 0.04 4 0.16 2 0.08 3 0.12
Matrix's IFE Loyalty 0.06 4 0.24 3 0.18 3 0.18
7. External Advertising 0.06 2 0.12 2 0.12 3 0.18
Factors Management 0.14 4 0.56 2 0.28 2 0.28
evaluation Global 0.05 3 0.15 2 0.10 3 0.15
Matrix's
Expansion
8. CPM
Total 1.00 3.02 2.71 3.06
9. Grand Strategy
10. QSPM
End Show
5-15

16. GRAND STRATEGY MATRIX
1. Income
Statement
2. Balance Sheet
3. Ratio Analysis
4. Space
Matrix's
5. BCG Matrix's
6. Internal
External
Matrix's IFE
7. External
Factors
evaluation
Matrix's
8. CPM
9. Grand Strategy
10. QSPM
End Show
5-16

17. QSPM
Strategic Alternatives
Key Internal Factors Weight Build another Expand marketing efforts
manufacturing plant in in Asia and Europe
1. Income
the US.
Statement
2. Balance Sheet Strengths AS TAS AS TAS
3. Ratio Analysis Built-to-order personal computers sold directly to customers. 0.100 --- --- --- ---
4. Space
Direct sales via mail, phone orders, and the Internet. 0.050 --- --- --- ---
Matrix's
5. BCG Matrix's Built-to-order personal computers eliminate markups of 0.025 --- --- --- ---
6. Internal resellers.
External Built-to-order personal computers greatly reduce the costs
Matrix's IFE and risks associated with carrying large stocks of parts, 0.050 --- --- --- ---
components, and finished goods.
7. External
Factors
Dell is the current PC industry leader. 0.100 3.0 0.300 2.0 0.200
evaluation
Matrix's Dell has regional and manufacturing plants globally. 0.050 1.0 0.050 4.0 0.200
8. CPM
9. Grand StrategyDell is a well-known brand name. 0.050 4.0 0.200 3.0 0.150
10. QSPM Dell’s direct-to-consumer strategy has given the company a
substantial cost and profit margin over its rivals. 0.050 --- --- --- ---
End Show
5-17

18. QSPM strengths and weakness (cont.)
Dell has a good relationship with the company’s large
corporate and government customers and continues to focus 0.025 1.0 0.025 2.0 0.050
on these sales and service relationships.
1. Income
Statement
2. Balance SheetDell holds 29.1% of the total market for personal computer
sales in the Americas, putting Dell ahead of its competitors. 0.050 3.0 0.150 2.0 0.100
3. Ratio Analysis
4. Space Dell’s built-to-order manufacturing process results in rapid 0.050 --- --- --- ---
Matrix's inventory turnover and reduced inventory levels.
5. BCG Matrix's
To ensure defect free products, testing is performed by Dell
6. Internal along the process and on the final computer product. 0.050 --- --- --- ---
External
Matrix's IFE Dell has a wide range of customers including large
corporations, government agencies, healthcare, educational 0.050 4.0 0.200 3.0 0.150
7. External
institutes, small business, and individuals.
Factors
evaluation
Dell is ranked # 1 by Technology Business because of its Intel-
Matrix's based server satisfaction for 27 of the past 29 quarters. 0.050 --- --- --- ---
8. CPM
9. Grand Strategy divides its sales and marketing force among the various
Dell
customer groups in order to meet each group’s specific 0.025 --- --- --- ---
10. QSPM needs.
Dell advertises its products on the Internet, TV, and by mailing 0.025 --- --- --- ---
a broad range of marketing publications.
End Show
5-18

19. QSPM strengths and weakness (cont.)
Weaknesses
1. Income Dell has only two manufacturing plants and one 0.025 4.0 0.050 2.0 0.050
Statement regional office in the United States.
2. Balance Sheet
Dell computers cannot be purchased in retail 0.025 --- --- --- ---
3. Ratio Analysis stores.
4. Space
Dell has over 40 locations globally yet Dell is not
Matrix's
the #1 supplier in Asia Pacific, European, Middle 0.050 1.0 0.050 4.0 0.200
5. BCG Matrix's East, or African segments.
6. Internal
External Dell rebrands printers purchased from Lexmark, 0.025 --- --- --- ---
Matrix's IFE which is a major production cost for Dell.
7. External
Factors
evaluation
Matrix's Dell is too reliant on foreign suppliers, because of
8. CPM this a disruption of fuel supply could make the 0.050 3.0 0.150 1.0 0.050
price of shipping go up.
9. Grand Strategy
10. QSPM Dell is so large now that it might not be able to 0.025 1.0 0.025 2.0 0.050
grow at the same pace.
End Show
SUBTOTAL 1.00 1.20 1.20
5-19

20. QSPM strengths and weakness (cont.)
Key External Factors Build another Expand marketing
Weight manufacturing efforts in Asia and
1. Income plant in the US. Europe
Statement
2. Balance Sheet
3. Ratio Analysis
4. Space Opportunities AS TAS AS TAS
Matrix's Demand for personal computers continues to grow. 0.100 2.0 0.200 4.0 0.400
5. BCG Matrix's
6. Internal
External Many consumers switching from desktops to 0.050 --- --- --- ---
Matrix's IFE notebooks.
7. External
Factors Microsoft desires to partner with Dell. 0.100 --- --- --- ---
evaluation
Matrix's Consumer electronics is a profitable business. 0.050 3.00 0.150 1.0 0.050
8. CPM
9. Grand Strategy
Higher consumer spending in the US. 0.025 3.00 0.075 1.0 0.025
10. QSPM
Incorporated managed and professional services. 0.025 --- --- --- ---
End Show
5-20

21. QSPM strengths and weakness (cont.)
Global enterprise systems. 0.050 2.0 0.100 4.0 0.200
Training and certification program. 0.025 --- --- --- ---
1. Income Financial services offered. 0.025 --- --- --- ---
Statement Growth in the color printer market. 0.025 --- --- --- ---
2. Balance Sheet Threats
Alliance in the PC industry 0.050 2.0 0.100 4.0 0.200
3. Ratio Analysis
Higher oil prices. 0.050 --- --- --- ---
4. Space
Commercial demand fails to accelerate. 0.025 --- --- --- ---
Matrix's
Competitors are strong. 0.150 2.0 0.300 3.0 0.450
5. BCG Matrix's
Slow growth in the PC market. 0.100 --- --- --- ---
6. Internal
Component price fluctuation 0.025 --- --- --- ---
External
Price for computing power has decreased. 0.025 --- --- --- ---
Matrix's IFE
Computer market has broadened. 0.050 --- --- --- ---
7. External
Currency fluctuations in the international markets. 0.050 1.0 0.050 3.0 0.150
Factors
evaluation
Matrix's SUBTOTAL 1.00 0.98 1.48
8. CPM SUM TOTAL ATTRACTIVENESS SCORE 2.18 2.68
9. Grand Strategy
Add two new manufacturing plants in the United States has the
10. QSPM
attractive score of 2.18 in comparison of the expending the business
into Europe and Asia which has total attractive score of 2.68.
End Show
Expand into Europe and Asia building new manufacturing plants and
5-21 retail stores is therefore that the company should introduce