Businesses have to compete against other organizations and an effective way to analyze a business financial status is by completing a business analysis. Investors have to review reports to determine the company’s financial health. Business analysis consists of gathering financial data, trend analysis, business strategies, and market research. Essential to gather the financial data to compare when reviewing competitors such as income statements, balance sheets, and cash flow. Dell’s business analysis consists of financials, focus areas, and benchmarking that will be compare against competitors Hewlett Packard and Apple.
Dell focuses on the following major customer segments: large enterprise, public sector, and consumer. Dell places more emphasis on corporate, small business, government, education, health care, SMB market, and individual consumers. Dell has two different divisions marketing and sales in each of its geographic regions. Dell will continue its simplicity program to help Enterprise customers remove “unnecessary cost and complexity” in IT operations and architecture (“About Dell”, 2012).
Dell is expects to continue relying heavily on contract support personnel and third party providers as a way of keeping costs down and providing service in remote locations. Dell breaks its worldwide operations out by three geographic regions: The Americas, Africa (EMEA), Asia Pacific-Japan, Middle East, and Europe. Dell is focuses on “BRIC” countries as a way to drive “significant growth” over the next few years (“About Dell”, 2012). Dell’s services revenue increased 10% between FY09 and FY12 to $9. 7 billion.
• Americas Commercial: 14% revenue growth. APJ Commercial: 6% revenue growth. • EMEA Commercial: 1% revenue decline. • Deferred service revenue balance: 7% revenue growth. Competitive Landscape [pic] The income statement is composes of three financial statements in a business. The income statement has two parts: non-operating and operating sections. The operating margins are very important to investors and analysts because of the disclosure of revenues and expenses.
Dell and Hewlett Packard are comparable for their operating margins ranging from Dell 5. 5% to Hewlett Packard 7. 48%. Apple was at an astounding 35. 62%. Dell’s revenue of $14. 48B in comparison to Apple’s $148. 81B is in a different league. The balance sheet is very important as it reports the financial position of the company at a certain time. The company’s assets and liabilities lists to provide a balance. Dell’s total assets as of 2012 were $44,533,000, Hewlett Packard $129,517,000 and Apple $116,371,000. Dell’s total current liabilities are $35,616,000, Hewlett Packard $90,892,000, and Apple $39,756,000.
Dell’s assets in comparison to the liabilities are causing concern as there is only a differential of $8, 9170. 00. However, by reviewing the balance sheet Dell’s financial position indicates that the company is maintaining place in market. After reviewing the cash flow sheet it becomes very clear that Dell is in more financial trouble than Hewlett Packard and Apple. Dell’s total change in cash and cash equivalents is $5,527,000, Hewlett Packard $12,639,000, and Apple $37,529,000. Dell’s total cash equivalent would not be enough to cover the company’s liabilities.
Under the cash flow statement the consumer will determine the cash flow coming in and out of the business. If Dell was consistently producing more cash than it is using, the business can intensify its dividend, reduce debt or securing stock. Management can use this information to find ways of liquidating some of their assets into cash or cash equivalents. Financial intuitions and creditors want to see a little more cash on hand or put into short-term investments. Short- term investments are easier to invest in than inventory as it is more difficult to liquidate.
Dell and Hewlett Packard are very comparable financially they are stable but could decline in the near future. They are currently restructuring, downsizing, and outsource as a way to cut and control costs. One other way to help improve margins is Dell and Hewlett Packard will have to trim staff in low-wage countries. Hewlett Packard is the number one technology company in the world, but with Apple’s financials they are not far behind. Dell has some technological advances to gain competitiveness in the marketplace, such as the end-user computing, data center, and e-mail archiving solutions.
The technology for the 21st century is cloud commuting so Dell is constructing cloud data center delivering Hyperscale proficiency. Dell Global Solution Center will include these next generation services and solutions. Dell is implementing teams to help businesses construct, architect, corroborate, and build the proficient organization. Dell will create affordable solutions for data management, data center, and desktop virtualization. Hewlett Packard is number one technology company in the world and holding strong. Hewlett Packard has made an emphasis in pod-cloud-computing containers.
This year Hewlett Packard will be producing the pods at a rate of 20 a month. The cost of each pod is around $25 million apiece that could mean $6 billion a year in revenue (“Hewlett Packard”, 2012). Hewlett Packard remains strong in the market for personal computers, printers, servers, storage, software, and networking. Hewlett Packard wants to invest more in research and development for mobile technology. Hewlett Packard has struggled with tablets so they are looking to make personal computers turn into a tablet and mobile phones.
Apple over the years remained strong in hardware and software that has given them the leading edge. Apple has invested millions of dollars in research and development of the new latest and greatest products. Apple’s products are elegant and better designed. Currently, Apple stands out in marketing by understanding what makes people excited and executing that vision. Apple has done an amazing job in strategic analysis, high production volume, and access to working capital (“Apple”, 2012). Business is about developing, producing, marketing, disturbing services, and products to consumers.
Today, as a result of technological advances businesses in small towns in rural areas can be competing with companies all around the world. Globalization has made this possible. Businesses benefit from globalization by having access to cheaper products, materials, and services. The goal of globalization is to expand business operations, communications, technological advances, and build stronger economies. Conducting a benchmark analysis will help to determine how Dell stands out in the marketplace. Dell’s best practices are plan and implement quickly so Dell can establish best practices with delivery to their consumers.
Dell operational processes and procedures are focuses in accuracy, integrity, and clarity. Dell has a wide range of services, solutions, systems, printers, software, and accessories. Hewlett Packard best practices include admiration for individuals and passion for customers. They strive for accomplishment, contribution, teamwork, promptness, and responsiveness. Hewlett Packard operational processes, procedures, and company objectives include their best practices. They focus on consumer loyalty, revenue, advancement, supremacy, and commitment to employees.
Products and services range from computers, servers, blades, printers, imaging, software, networking, accessories, and services (“Hewlett Packard”, 2012). Apple takes the philosophy not to look at its competition for best practices, but more to fine-tune and address its deficiencies than to define its path forward. Apple operational processes and procedures drive by capital, innovation, and expanding technology for the future. Products and services include Mac computers, laptops, iPods, apple TV, iPads, and iPhones.