Case SLP: Macro: Introduction to Macro-Economics: The Big Picture - Essay Example

Module SLP assignment case of Dell Inc. Information Technology Company Introduction Dell Inc. InformationTechnology Company The company becomes an important area of assessment because it is one of the world largest information technology companies that deals with designing and distribution of computers (Friedlob & Plewa, 2006). The company was established in 1984 with its headquarters in Texas (Nihat, 2006). Dell Inc Company is now a holding firm with subsidiaries in various parts of the world (Nihat, 2006).

The company provides a wide rage of products and services for its customers all over the world (Friedlob & Plewa, 2006). Among the products offered by this company include; products for networking purposes such us, smart phones, personal desktop computers, work stations, tablets, note books among many other products (Nihat, 2006). The company provides a wide rage of services such as; installation services, transaction, support services to name just but a few (Friedlob & Plewa, 2006). The company contributes significantly to economic growth through production and distribution of high quality products and services used in various organizations (Friedlob & Plewa, 2006).

Additionally, the company creates employment opportunities in the economy, which in turn promote economic growth (Nihat, 2006). Over the years, the company has been portraying a positive growth in the stock market as compared to other firms which are in the same industry (Friedlob & Plewa, 2006). How the two big ideas referred in the power point presentation apply to Dell Inc Company The first idea involves a tradeoff on choices that we make. Whereby, to get something one must give out something.

This idea applies in Dell Company in the sense that, the company incur production and distribution cost in manufacturing its products. The company in turn makes profits from sales of its products and services (Rose & Miller, 2008). Another idea involves voluntary exchange that makes buyers and sellers better off, whereby, market is an efficient way to organize that exchange (Hall & Lieberman, 2010). This idea applies in Dell Company in the sense that the forces of demand and supply make both Dell Company and its customers to trade efficiently and effectively (Hall & Lieberman, 2010).

The idea that market does not always work efficiently without government intervention may also be applied in this company. The idea may be applied by focusing on the role of government in ensuring goods and services produced by Dell Company meet the established quality standards (Rose & Miller, 2008). This may help in ensuring that Dell Company produces high quality products that meet the established quality standards (Rose & Miller, 2008). Assessment of the overall financial health of Dell Inc Company The company has been reporting a tremendous growth since 1984 when it was established (Nihat, 2006).

According to second quarter financial report for the year 2013, the generally accepted accounting principle earning per share was reported on 8th 0ctober 2012 to be 0.42 dollars (Yahoo finance, 2013). While on the other hand, the non-generally accepted accounting principle earnings per share was 0.50 dollars (Yahoo finance, 2013). This is one of the good signs of company growth because there was an insignificant fluctuation in earning per share which further means stability in earnings per share (Yahoo finance, 2013).

Additionally, the company reported a six percent growth in enterprise and service revenues for each year which translate to 4.9 billion dollars (Yahoo finance, 2013). The company further announced a financial year (2013) second quarter revenues on 8th October 2012 of 14.5 billion dollars and a generally accepted accounting principle operating income of 901 million dollars (Yahoo finance, 2013). In above connection, 0.42 earnings per share were also reported. The entire announcement was consistent with the company goals and objectives (Yahoo finance, 2013).

The above financial assessment indicates that the company has been undergoing through a tremendous growth through realization of its goals and objectives (Hall & Lieberman, 2010). Conclusion It can be scrutinized that Dell Company was selected for this assessment because it is one of the world largest information technology companies that helped to show how the big economic ideas may be applied. The company has significant impact in the economy through its products and services used for networking purposes by both individuals and corporate.

Conclusively, it can be scrutinized that the company is in a good state of health based on its overall financial, sales and profitability analysis as discussed herein. References Friedlob, G. T., & Plewa, F. J. (2006). Financial and business statements. Hauppauge, N.Y: Barron's. Hall, R. E., & Lieberman, M. (2010). Economics: Principles & applications. Mason, OH: South-Western Cengage Learning. Nihat, C. (2006).Dell Business Case study. Bellevue: Grin Verlag. Rose, N. S., & Miller, P. (2008).

Governing the present: Administering economic, social and personal life. Cambridge: Polity. Yahoo finance, (2013).Dell Reports Second Quarter Financial Results: Retrieved :< http://finance.yahoo.com/q/pr?s=dell>; on 26th October 2012.