If you have Dell stock in your portfolio this week, your 401(k) is probably a little bit happier and healthier. The computer maker is to pony up some cash dividends, funded in part through aggressive cost cutting and a continuing expansion into enterprise IT and away from over-reliance on consumers. Dell hosted its Wall Street …
The correct strategy
Shut it down and give shareholders their money back.
The point is profits
FY2011 $61B revenues, $3.5B operating income. Operating margin: less than six percent overall. Not broken out by business unit. Consumer and business Windows PCs must be really doing wonders for Dell's profitability. They must be really excited about the release of Windows 8.
Suggestions for Dell to make savings
1. Reduce the amount of pointless run-around customers have to do. If I as an enterprise want to order replacement parts for computers, I should be able to contact my account manager to do so, not have to call a 'parts line' and pay by credit card!?! Why are parts not just orderable as normal?
2. When sending out items such as batteries, send them in a single box, not 10 individual boxes, and therefore 10 courier charges.
3. When you've sent out the wrong items, come and get them back rather than sending out replacements and telling your customer to dispose of the wrong ones at their leisure. Sure, its only £750 with of batteries, but if its a regular thing? It soon adds up.
4. Sort out your pricing. I shouldn't get better prices from your website than I do from my account manager, making me not want to buy from you.
Dull re-inventing itself - again
Ever few years Dull has to re-invent itself just to survive for a few more years. They could cut a lot of costs if they didn't have a seven figure yearly donut bill from Krispy Kreme - for Mr. Dull.