Question: Consider Dells recent financial troubles. a. What are the implications of the companys tactics when revenue falls 63 percent but sales fall only 23 percent?

Consider Dell’s recent financial troubles.

a. What are the implications of the company’s tactics when revenue falls 63 percent but sales fall only 23 percent?

b. Intel sells CPUs and memory, and its sales have stabilized. Dell and HP make computers, and their sales continue to decline. Assume the sales of other PC manufacturers are similar to those for Dell and HP. What do you conclude?

c. Go to http://news.cnet.com/8301-1001_3-10357598-

92.html. Summarize what you believe the Perot purchase means about Dell’s future direction. Is this a smart move for Dell? Why or why not?

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