Dell 2009 Annual Report Download - page 5

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Table of Contents
PART I
All percentage amounts and ratios were calculated using the underlying data in thousands. Unless otherwise noted, all references to
time periods refer to our fiscal years. Our fiscal year is the 52 or 53 week period ending on the Friday nearest January 31.
Unless the context indicates otherwise, references in this report to "we," "us," "our" and "Dell" mean Dell Inc. and our
consolidated subsidiaries.
ITEM 1 — BUSINESS
General
Dell delivers innovative technology and services which customers trust and value. As a leading technology company, we offer a broad
range of product categories, including mobility products, desktop PCs, software and peripherals, servers and networking, and storage.
Our services include a broad range of configurable IT and business related services, including infrastructure technology, consulting and
applications, and business process services.
Our company is a Delaware corporation and was founded in 1984 by Michael Dell on a simple concept: by selling computer systems
directly to customers, we can best understand their needs and efficiently provide the most effective computing solutions to meet those
needs. Over time we have expanded our business model to include a broader portfolio of products and services, and we have also added
new distribution channels, such as retail, system integrators, value-added resellers, and distributors, which allow us to reach even more
end-users around the world. To optimize our global supply chain to best serve our global customer base, we have transitioned a portion of
our production capabilities to contract manufacturers.
Our global corporate headquarters are located in Round Rock, Texas. Dell Inc. is a holding company that conducts its business worldwide
through its subsidiaries. When we refer to our company and its business in this report, we are referring to the business and activities of
our consolidated subsidiaries. We operate principally in one industry, and we manage our business in four global customer oriented
operating segments that we identify as Large Enterprise, Public, Small and Medium Business, and Consumer.
We are committed to managing and operating our business in a responsible and sustainable manner around the globe. This includes our
commitment to environmental responsibility in all areas of our business. See "Government Regulation and Sustainability" below for
additional information. This also includes our focus on maintaining a strong control environment, high ethical standards, and financial
reporting integrity. See "Part II — Item 9A — Controls and Procedures" for a discussion of our internal control over financial reporting.
Business Strategy
Dell built its reputation as a leading technology provider through listening to customers and developing solutions that meet customer
needs. We are focused on providing long-term value creation through the delivery of customized solutions that make technology more
efficient, more accessible, and easier to use.
We are focused on improving our core business, shifting our portfolio to higher-margin and recurring revenue streams over time, and
maintaining a balance of liquidity, profitability, and growth. We consistently focus on generating strong cash flow returns, allowing us to
expand our capabilities and acquire new ones. We seek to grow revenue over the long term while improving operating income and cash
flow growth. We have three primary components to our strategy:
• Improve Core Business. Dell seeks to profitably grow the desktop and mobility business and enhance the online buying
experience for our customers. We have improved our competitiveness through cost savings initiatives, which are focused on
improving design, supply-chain, logistics and operating expenses to adjust to the changing dynamics of the industry. We are
also committed to simplifying our product offerings to eliminate complexity that does not generate customer value. We will
continue to focus on product leadership by developing next generation capabilities. Additionally, we will continue to deepen
our skill
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