The management decision problem Dell faces as it looks to keep up and expand on its leadership

position in the personal computer market is fulfilling their clients. Management decision problem
is about activity situated issue of what the decision producer needs to do. In various climate and
various problems, Dell kept on executing various systems to principle and fabricate its leadership
position in the computer market. 
(a) Saturation of PC in American: 
In the Dell case, Sales inside the United States were about 53% of combined net income in
monetary 2008. Dell needs to search for bearing or answers for displace deals in the PC-satured
U.S. market. 
(b) Keen Competition: 
Aside from endeavoring to raise exclusive frameworks of what HP and IBM frequently did, Dell
utilized ease and straightforwardly deals model. 
(c) Partnership globally 
Dell created constantly a PartnerDirect – a worldwide program that can bring existing accomplice
activities client one umbrella. 
(d) Retail Strategy: 
To fulfill clients' necessities and needs, Dell began offering select items in retail stories among a
few nations in Americas as well as in Europe and Asia during the financial 2008. This permitted
Dell to stretch out the plan of action to arrive at clients. 
(e) Diversity of Products: 
Dell has accepted the marketing open door to fabricate level screen TVs after all the brand value
Dell has developed, it kept on utilizing freshest innovation to broaden significantly further. 
(f) Development of New Product Line: 
At the point when DELL recognized printing items delivered about 70% of HP's working benefit and
is the greatest edges, DELL began to make the new printing product offering to execute
infiltration. Prior to entering the market, Dell led a study to explore and understand the client
conduct, connection on any of distinguished utilization factors and the fundamental segment
parts of the arrangement of the clients.

DELL has a different business model than its competitors, which can be identified as “direct
model”. In this model DELL sells its PC s directly to customers without using a retail channel.
Therefore it creates a direct relationship with each individual customer which they have
segmented into groups to make it easier to approach. Mainly there are three customer segments
which can be illustrated as large organizations, small and medium businesses, and personal
consumers.
The other aspect that makes DELLs supply chain unique is the Build-to-order strategy. According
to this once the order is placed by the customer, all the configuration details are sent to the
manufacturing floor and then the assembly of the PC begins. Once the computer is built and all
the software’s are downloaded it will be shipped to the customer by using 3PL.
Because of these aspects DELL has the competitive advantage over others because of several
reasons. The level of inventory costs is really low since the case of faster responses to demand
changes. It is also visible that customer pays for an order before DELL pays its suppliers for the
products components.
Better integration of planning and execution has become one of the dominant themes in supply
chain. DELL has given a special place for the supply chain integration as described previously. The
heart of Dell's success is its integrated supply chain, which has enabled rapid product design,
fabrication, and assembly, as well as direct shipment to customers. Inventories have been
dramatically reduced through extensive sharing of information, a prudent choice given the risk of
technological obsolescence and reductions in the cost of materials that can exceed 50 percent.
Even with reduced inventories, Dell's strategic use of information has made possible a dramatic
reduction in the elapsed time from order to delivery, giving Dell a significant competitive
advantage.
Accordingly those integration strategies described previously are there in DELL. As a whole in the
virtual integration strategy of them these characteristics are involved in.
 Use of rapid seamless communication
 A clear definition of what DELL does best
 Selection of partners who are best in their respective fields
 Use of a minimum number of suppliers
 Using internet as a strategy to eliminate boundaries between companies and promote effective
integration
 Less emphasis on guarding intellectual assets and more emphasis on using assets rapidly before
they become out of order

Analyzing Dell’s Supply Chain Management System Dell’s supply chain strategy is legendary.
Essentially, if you want to build a successful SCM system your best bet is to model your SCM
system after Dell’s. In a team, research Dell’s supply chain management strategy on the
Web and create a report discussing any new SCM updates and strategies the company is
currently using that were not discussed in this text. Be sure to include a graphical
presentation of Dell’s current supply chain model.
While researching Dell's supply chain management strategies on the web, I discovered new SCM
updates and other strategies the company uses to improve its operations.
Dell ranks second in hardware design, manufacturing and distribution; Powered by HP. The reason
for their success is, it has a direct relationship with customers, it has a low cost and but the best
guarantee, it is built so that, it has customs systems and high quality and technology. The idea
of ??a chain management system is one of the most important systems for a commercial PC
because Dell devices average $ 20 billion a year. A 0.1% improvement in SCM has a larger effect
than a 10% improvement in the manufacturing process, and technological breakthroughs result in
shorter product life cycles. Competitors are not limited to Dell because, unlike competitors, 90% of
Dell's devices are ordered online using Dell's integrated supplier site and business and business
strategy. Dell factories have 7 hours of inventory for most items and others in total around 10
days. Dell also has fifteen suppliers that supply around 85% of all equipment.
Another update included with Dell is the radio frequency identification equipment. This technology
has a reader, receiver and dodk and transponder.

In August 2010, Michael Dell, Dell Inc.’s CEO and chairman of the board, was reelected to Dell’s
board of directors by Dell’s shareholders. However, not all of the shareholders were happy with
Mr. Dell’s reappointment. Specifically, two labor groups that own shares of Dell stock wanted Mr.
Dell removed from the board because of a Securities and Exchange Commission (SEC) action and
settlement involving the company and Mr. Dell. The SEC complaint alleged various accounting
manipulations that called into question Dell’s reported financial success from 2002 to 2006. In July
2010, Dell, Inc.

a.
The corporate governance principles that seem to have been missing at Company D are that the
company was not transparent to the proprietors and creditors who have given the Board the
directly to control. The appointment procedure was lacking transparency. Despite the way that
Dell was dealing with indictments, he is again nominated to be a piece of the Board of Directors.
Certain barriers must be set down at the recommendation arrange as it were.
b.
It is given that the idea of the actions undertaken by Company D and Mr. MD are somehow
arbitrary to pay such amount of fines without due reasoning. Thus, the external auditors may
doubt the effectiveness of corporate governance. Moreover, inclusion with the SEC charges further
deepens the abyss. This indicates some irregularity that is noticed by the pinnacle institution too.
c.
The external auditors are in a superior position to work when the review committee and board
keep the compliances up to the date. In such cases, the auditor is in a position to fill in as an
independent gathering with these governance parties and guarantees reliable financial reporting.
While there are instances when the auditor will arrive at the conclusion that the governance is
poor and the danger of deceitful financial reporting is high. The possibility of hazard mitigation is
low consequently the auditor is at a higher hazard inferable from awful corporate governance and
the auditor may survey the customer as un-auditable.
d.
Company D's board ought not to have an independent seat because the SEC has a complaint
alleging various accounting manipulations.
e.
The CEO is required to affirm the annual reports and different reports. Therefore, Mr. MD could
possibly be removed depending on the realities of the case. The unexplained manner in which the
penalties were paid by Mr. MD and Company D signals the presence of ambiguity. Otherwise, they
could have contested against the SEC allegations. There was no compelling reason to surrender
and that too without adequate reasons.

1) Exposure management strategy involves four steps:

i. Forecasting the degree of exposure in each major currency in which the MNC operates.
ii. Developing a reporting system to monitor exposure and exchange rate movements to assist in
protecting the MNC from risk.
iii. Assigning responsibility for hedging exposure and determining whether to centralize or decentralize
exposure management.
iv. Selecting appropriate hedging tools including diversification of the MNCs operations, a balance
sheet hedge, and exposure netting.

Dell's Exposure Management Strategy in Brazil:

-> Dell employs the use of purchased option and forward contracts. This is used as a hedge in order to
protect the company against transactions that are whereby denominated in currencies other than the
United States Dollar. Specifically, Dell uses forward contracts to protect monetary assets and limit
liabilities.

->Because of the tariff-free provisions of Mercosur and the close proximity of Dell’s manufacturing
facilities in the south of Brazil, Dell is well positioned to service all of Mercosur with its Brazilian
manufacturing operations
->Dell’s revenues in Brazil are denominated in reals, and most of its operating costs are also
denominated in reals

Operational Hedging Strategies:Overview

Operational hedging is designed to mitigate long-term currency risk by providing companies flexibility in
their supply chains, financial position, distribution patterns and market-facing activities so they can
make swift adjustments to where they manufacture, source, and sell. It involves decisions regarding the
location of production facilities and capacity, sourcing of inputs, choice of logistics network, product
design and offerings, choice of markets and how opportunities in those markets are pursued. The
objective is to manage the sensitivities in cost and revenue, so as to offset the exchange rate risks
while managing the competitive positions. Operational hedging strategies can be crafted by assessing
the likelihood of various risks and the magnitude of their impact on cost and revenue elements across
the supply chain, for various exchange rates and pertaining to different periods. Operational hedges
can be unique to a given situation or company and can be established in a variety of creative ways.

Strategies That Can be Used By Dell:

->Relocating manufacturing and strategic supply bases to final markets:

They can build international production systems that are less vulnerable to exchange rate risks by
investing in local production and local procurement.

-> Optimizing sourcing and supply chain networks to limit weak dollar risk:

They can create flexibility in their sourcing, production and logistics networks that enables optimal
decision-making in the face of exchange rate fluctuations. Such flexibility will allow them to delay
decisions until demand dynamics are better known
and to concentrate production and sourcing in a location that limits exchange rate risk at any given
time.

->Redirecting sales and marketing investments towards stronger currency markets:

They can build a capacity into their financial systems to identify and leverage currency dynamics that
yield region based margin variations. They can further build flexibility into their sales and marketing
channels to divert resources into stronger currency
markets and thereby achieve better sales.

->Pursuing exports through product development to enhance global appeal:

They can develop universal product platforms which give them the flexibility to customize products on
short notice and tailor them to regional taste in markets with high demand. They can then concentrate
their product supply and marketing initiatives towards stronger currency markets as exchange rates
fluctuate.

->Increasing productivity in off-shored and outsourced operations:

Thy can invest in improving productivity through operational improvement programs in their offshore
operations to offset the rising cost from exchange rate
appreciation.

If they face long-term exchange risks should prepare themselves well

ahead of time. They can do this by:
1) Identifying and assessing all types of risk exposures,
including operational and strategic, that a company faces
as a result of long-term exchange rate shifts;
2) Implementing operational hedging strategically to mitigate
risks and leverage opportunities.
a. The corporate governance principles that appear to have been missing at Company D are
that the company was not transparent to the owners and creditors who have given the Board the
right to control. The appointment procedure was lacking transparency. Despite of the fact that Dell
was facing charges, he is again nominated to be a part of the Board of Directors. Certain barriers
must be laid down at the recommendation stage only.
b. It is given that the nature of the actions undertaken by Company D and Mr. MD are
somehow arbitrary to pay such amount of fines without due reasoning. Hence, the external
auditors may doubt on the effectiveness of corporate governance. Moreover involvement with the
SEC charges further deepens the chasm. This indicates some irregularity that is noticed by the
apex institution as well.
c. The external auditors are in a better position to work when the audit committee and board
keep the compliances up to the date. In such cases, the auditor is in a position to work as an
independent party with these governance parties and ensures reliable financial reporting.
Whereas, there are instances when the auditor shall come to the conclusion that the governance
is poor and the risk of fraudulent financial reporting is high. The possibility of risk mitigation is low
hence the auditor is at a higher risk owing to bad corporate governance and the auditor may
assess the client as un- auditable.
d. Company D’s board should not have an independent chair because the SEC has a
complaint alleging various accounting manipulations.
e. The CEO is required to certify the annual reports and other reports. Therefore, Mr. MD may
or may not be removed depending on the facts of the case. The unexplained manner in which the
penalties were paid by Mr. MD and company D signals the presence of ambiguity. Otherwise, they
could have contested against the SEC allegations. There was no need to surrender and that too
without adequate reasons.