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Strategies & Market Trends : Tang's school of business management for serious investors

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To: Arthur Tang who wrote (7)	5/23/2001 7:37:21 AM
From: Arthur Tang	Read Replies (1) of 57

Growth without financial planning? Is it possible? Dell has a strategy where they market and provide quick delivery. The purchasing decision has always been based on price, quality and delivery. So, Dell has a definite advantage in their marketing strategy. Dell achieves 7 day delivery target. Dell, then, uses the GM(Genral Motors) strategy of same day vendor delivery schedule for same day shipments out. Since the received inventory is assembled and shipped out; the accounts receivable is equal to accounts payable(plus all other expenses) plus profit. All this is recorded on the same day. Dell achieves financial planning by using vendor credit. Growth can be unlimited without hindrance until vendors run out of capacity. Dell thus manages cash management rather than based on accrued accounting(risky, if reports are late or not accurate). It is the ultimate professional managers' delight, counting cash and planning to reinvest for more growth. Now Dell is cutting cost to achieve better efficiency. But that is another story on quality control(machine replaces manual labor) and efficiency(time and motion) study.

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