Business Recipes for Success

Slumping Profits of Dell Explained

I am hardly surprised to find this article about Dell's poor profit performance under Techonology news. The analyst attributed the profitability's decline to the shift from INTEL processor to AMD.

A marketing analyst would look at the customer service efficiency that turns off customers from buying the products.

A finance analyst would blame the increase in operating expenses brought about by the
additional manpower hired.

An accountant would view this from the financial statements components and the treatments of revenue recognition and expenses in their reports of profit and loss.

Here is the excerpt of the story.



Technology
By Arik Hesseldahl

Dell Disappoints Once More
The PC maker says it will use more AMD chips, but that did little to make up for disclosures of slumping profits and a regulatory probe

Say this much for Dell: It delivered on at least some expectations when it reported earnings Aug. 17. For starters, the computer maker said second-quarter profit tumbled to $502 million, or 22 cents a share, in keeping with an earlier warning that analysts' average projections were too optimistic.

Then there was the disclosure that Dell (DELL ) would expand its relationship with chip maker Advanced Micro Devices (AMD). Dell had already begun using AMD chips for servers, the computers that run Web sites and corporate networks. It was long rumored that Dell would also use AMD chips in other computers. Dell confirmed the scuttlebutt, saying it would use AMD chips in desktop PCs.

Read the entire story here.

business,financial statements ,balance sheet ,statement

posted by cathy at 4:26 AM 0 comments

The Obesity Treatment Industry

It seems that as each people get heavier, the obesity treatment industry is a good field of investment aside from organic-foods company. This is according to the article of Daniel Gross entitled Explaining America's Protein Glut.


As new products or product ideas become a rage among people who need to stay away
from fatty foods or fat creating foods, a new business opportunity crops out as there
are also businesses that join the sunset industries.

The popular Atkins diet drove millions of investors to stocks of meat processing companies at the expense of pastamakers and carbohydrates producing machines.

He observed that this shift to protein created a chicken boom.

However, he noted that because of global trends, the demand is shifting
to corn and grain.

obesity,Atkin's Diet,protein,liposuction,cathcath

posted by cathy at 6:50 AM 0 comments

COMPLAINTS AGAINST DELL

For the past two months, I was mad at Dell. One for delivering a laptop that was not
according to the specifications ordered. Two, for failing to pick up the returned goods several times, robbing the person requested to handle the return with precious hours due to waiting.

In China, they do not take this sitting down. They sue. Read this article from
Businessweek.

Mad As Hell In China's Blogosphere
Opinionated Netizens are unleashing a flood of complaints against corporations

Zhang Min was mighty peeved. In June he bought a $1,000 notebook PC from Dell Inc. (DELL ), but when the machine showed up at his Shanghai apartment, it wasn't exactly what he had ordered. Instead of the Intel (INTC ) Core Duo T2300 processor he had expected, the computer had a T2300E, which lacks ``virtualization technology,'' a feature that allows the computer to run more than one operating system at a time. Dell says it's of little use to laptop users, but Zhang says he wanted it anyway.

A few years ago the 30-year-old Zhang might not have gotten very far with his gripe. But 53 million Chinese are denizens of online forums, making it easy to find folks with equivalent complaints. Zhang turned up dozens who had gotten T2300E processors instead of the T2300 -- as well as a lawyer who was ready to sue Dell. So Zhang has lodged the first of what could be a flood of lawsuits against the PC maker. The computer ``is missing a function,'' Zhang says. ``There are a lot of people with similar problems.''

Chalk one up for the power of the Chinese Internet. While criticizing the government online is still taboo, there are few constraints on airing grievances about corporate behavior. In thousands of Internet forums, the mainland's millions freely point out poor customer service, misleading ad campaigns, shoddy safety standards, and much more. Americans ``think the Internet in China is controlled and censored,'' says Sam Flemming, chief executive of CIC Data, a Shanghai research firm that tracks Chinese online forums and blogs. But when it comes to commenting on business, ``Chinese people are vocal and active.''

And when they raise their virtual voices in unison, they get the attention of both homegrown companies and multinationals operating in China. Online critics blasted Volkswagen after the automaker launched an advertising campaign that appeared to poke fun at public transportation. Last year General Mills Inc.'s (GIS ) Häagen-Dazs brand suffered a blow when bloggers circulated rumors that the company's ice cream was made in an unsanitary factory in the southern city of Shenzhen. Häagen-Dazs doesn't even have a plant in the city, but that didn't prevent the faulty information from spreading through the Chinese blogosphere. ``Companies can get really screwed if they don't'' pay attention to bloggers and online forums, says Shaun Rein, founder of Shanghai-based China Market Research Group.

bloggers plan,advertisement ,computer,billboard,
complaint,demand gap

posted by cathy at 11:42 PM 0 comments