Read the Dell case and answer the questions to theright.

Dell Computer Corporation is a case study in entrepreneurship.Michael Dell, who as a teenager analyzed newspaper buying patternsto customize his subscription sales for the Houston Post targetingnewly married and people who had moved earned enough to buy a BMWprior to enrolling at the University of Texas in 1983. By 1984 hisdorm room business of selling handmade computers was bringing in$80,000 a month. Dell incorporated Dell Computer Corporation inApril 1984, dropped out of college, and launched a company that isnow an international leader in technology sales. Dell focused oncustomer service and direct sales. In 1990 Dell was the top ratedcompany in the first J.D. Power & Associates ranking ofpersonal computer manufacturers. In 1992 Dell instituted itsProfessional Services Capabilities Unit. It coordinated theinternational services of Dell's global programs. In 1993 Dellinitiated a program that allowed customers to select the level ofservice they received when buying a computer.

Initially direct sales were handled by phone. The direct salesmodel allowed Dell to build computers when they were ordered,allowing inventory costs to be kept at a minimum, compared tocompetitors who build thousands of computers in differentconfigurations for sales in stores or by catalogues. In 1996 Dellstarted selling computers on the World Wide Web. The direct salesmodel migrated easily to the Internet, including automation of notonly customer services but also supply chain management. Over thenext 10 years inventory control of components through the supplychain of subcontractors and products was cut from a week to fewerthan 24 hours. Dell incorporated transportation and logisticsmanagement of its international manufacturing to include all formsof transportation for efficiency, creating an integrated physicaldistribution concept. The customer, when making an order, choosesthe final physical distribution based upon how quickly they wantdelivery of their computer. Empowering the buyer with the decisionsof the computer components, delivery, and service increasedcustomer satisfaction. Dell's decision to utilize "Green"technologies to become a carbon neutral company increased customersatisfaction with companies and individuals concerned with theenvironment. In 2009 nine of its European and American facilitieswere powered by renewable energy, including 100 percent of its 2.1million square-foot global headquarters at Round Rock, Texas.

What factor has allowed Dell tocut costs and still remain competitive in the rapidly changingtechnology industry?

Customer service

Physical distribution

Supply chain management

Inventory control

In 2009 Dell announced itpowers nine of its facilities in the United States and Europe with100 percent renewable energy. In addition to environmentalresponsibility, this business decision contributes to:

Customer satisfaction

Distribution centermanagement

Piggybank services

Total inventorycost

Dell's transportation andlogistics system is an example of:

Physical distributioncenter

Piggybank services

Environmental decisions

Supply chain management

Answer rating: 100% (QA)

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