Dell's Business Strategy and Performance Quiz

What was Dell's average return on invested capital (ROIC) between 1998 and 2006?

• 48.3%

• 35.2%

• 50.1%

• 42.7%

What strategy did Dell use to maintain a competitive advantage in the personal computer industry?

• Increasing retail partnerships

• Cutting out wholesalers and retailers

• Expanding physical stores

• Reducing online sales

How did Dell manage its supply chain to minimize costs?

• By increasing inventory levels

• By using the Internet for real-time information

• By outsourcing production

• By reducing the number of suppliers

What was the impact of Dell's ability to customize orders on its sales in 2004?

• Sales decreased to $30 billion

• Sales increased to $55.9 billion

• Sales remained constant at $40 billion

• Sales dropped to $25 billion

What was the average inventory turnover for Dell in mid-2006 compared to Hewlett-Packard?

• 30 days

• 41 days

• 50 days

• 60 days

What percentage of revenues do component costs account for in the computer industry?

• 50%

• 60%

• 75%

• 80%

Which company had reduced their cost structure to become more competitive with Dell by 2005?

• Apple

• Gateway

• Acer

• Hewlett-Packard

What was Dell's stock price in mid-2006 after losing market value?

• $22

• $30

• $35

• $42

What was the expected decline in Dell's profitability by ROIC from 2006 to 2009?

• From 70% to 40%

• From 60% to 30%

• From 50% to 20%

• From 80% to 50%