VIETNAM NATIONAL UNIVERCITY HCMC

INTERNATIONAL UNIVERSITY

REPORT ON
DELL VIETNAM

Subject: Principles of Management

Lecturer: Phuoc Van Hanh
Group 9:
1. Vu Thi Hong Nhung – BABAWE18247
2. Nguyen Thuy Thien Thu – BABAWE18285
3. Truong Pham Khac Vinh – BABAWE18354
4. Nguyen Nhat Minh – BABAWE18328
5. Nguyen Thi Thanh Lan – BABAWE18346
Report on Dell Vietnam Group 9

OUTLINE
I. INTRODUCE THE ORGANIZATION ........................................................ 2

1. What is Dell’s mission? ...................................................................... 3

2. What are Dell’s products or services? .............................................. 5

3. What are Dell’s customers and competitors? ................................. 6

II. DESCRIBE HOW THE ORGANIZATION IS ORGANIZED ..................... 7

1. What is the structure of organization (organizational chart)? ........ 11

2. Describe the decision-making process ............................................ 12

III. WHAT IS THE LEADERSHIP STYLE? .................................................. 13

1. Describe the motivational environment. ........................................... 13

2. Assess the effectiveness of the organizational communications .. 15

IV. COMMENT ON THE PROCESS FOR CONTROL ................................. 17

1. What is the type of control? ............................................................... 17

2. Describe the financial controls .......................................................... 21

V. DESCRIBE ANY NEW MANAGERIAL PRACTICES .............................. 24

1. Training employees and policies………………………………………….24

2. Marketing strategy……………………………………………………………25

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Report on Dell Vietnam Group 9

I. INTRODUCE THE ORGANIZATION

 History of Dell Company

Dell is an American worldwide PC development association in Texas, U.S which

makes, sells, fixes PCs and related things and associations. The name “Dell” came
from its originator, Michael Dell, the affiliation is a champion amongst the best
mechanical associations on the earth, utilizing in excess of 145,000 individuals.

Dell sells (PCs), servers, information stockpiling gadgets, arrange switches,

programming, PC peripherals, HDTVs, cameras, printers, MP3 players, and
hardware worked by different makers. The organization is outstanding for its
advancements in production network the board and electronic trade, especially its
immediate deals model and its "work to-request" or "arrange to arrange" way to deal
with assembling - conveying singular PCs designed to client specifications. Dell was
an unadulterated equipment seller for a lot of its reality, yet with the procurement in
2009 of Perot Systems, Dell entered the market for IT administrations. The
organization has since made extra acquisitions away and organizing frameworks,
with the point of growing their portfolio from offering PCs just to conveying total
answers for big business customers.

Dell follows its starting points to 1984, when Michael Dell made Dell Computer
Corporation, which at the time worked together as PC's Limited, while an understudy
of the University of Texas at Austin. The organization earned more than $73 million
in its first year of activity.

The organization dropped the PC's Limited name in 1987 to progress toward
becoming Dell Computer Corporation and started extending universally. In June
1988, Dell's market capitalization developed from $30 million to $80 million.

In 2003, the organization was rebranded as essentially "Dell Inc." to perceive the
organization's development past computers.

In 2015, Dell obtained the venture innovation firm EMC Corporation; following the
finishing of the buy, Dell and EMC moved toward becoming divisions of Dell
Technologies.

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 Dell in Vietnam

Before arriving to Vietnam, Dell was considered as a well-known brand of

technology. On June 17th 2008, Dell brought its subsidiary to Vietnam as Dell
Incorporated located in ASIA-PACIFIC region by the form of Representative Office.

Address: No 1402A, Floor 14, Indochina Plaza Hanoi Office Tower, 241 Xuan
Thuy, Dich Vong Hau Ward, Cau Giay District, Hanoi, Vietnam.

It has 4 main social networks:

 Facebook (https://www.facebook.com/dellvietnam/)
 Official website (http://dellstore.vn/)
 Instagram (https://www.instagram.com/dell/)
 Youtube (https://www.youtube.com/user/DellVlog)

 Reasons for growing business of customer items in Vietnam:

 Thriving market

Vietnam is currently Dell's largest sales market in the Asia-Pacific region,

including Korea. Each quarter, DELL sells an average of 40,000 - 60,000 products,
including desktops and laptops. (2016)

 Young population

The number of young population in Vietnam is higher than in other countries in

the Asia-Pacific region, who prefer to use high-tech, fashionable and creative
products at affordable prices. In another word, they are Dell’s target customers.

Mr. Amit Midha, Executive Director of item section for purchasers, little and medium
undertakings in Asia - Pacific and Japan, said that is the factor have the effect of
Dell. Vietnam has a moderately youthful populace contrasted with different nations in
the Asia-Pacific area. This group of onlookers wants to utilize innovative, elegant and
inventive items at sensible costs. These are the fundamental components Dell has
painstakingly examined to incorporate in the Group's item improvement procedure.

 Stable GDP

As per Business Monitor International, Vietnam's data innovation advertise from

2011-2015 has a yearly development rate of about 12%, expected to contact US $
3.3 billion out of 2015. Also, main job here is an audit of Dell's whole activities,

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offering the most proper techniques, exploiting openings and capability of the market
and bringing Vietnam into Dell's main 15-20 market gathering.

1. What is Dell Vietnam’s mission?

As a Representative Office, Dell Vietnam has the same mission with other Dell
company over the world. Dell’s mission is to be the most successful computer
company in the world at delivering the best customer experience in markets they
serve. In doing so, Dell will meet customers expectations of:

 Highest quality

 Leading technology

 Competitive pricing

 Individual and company accountability

 Best-in-class service and support

 Flexible customization capability

 Superior corporate citizenship

 Financial stability

Dell's Marketing Strategy in Vietnam is globalization. It realizes that getting

closer to customers is essential to implement marketing strategies as well as building
customer bases. Beginning by setting up Internet for booking and ordering
operations, Dell Vietnam was able to implement its marketing strategies for new
audiences. However, Dell Vietnam made a difference in its marketing tactics in that
they set up a direct sales system. This is why the company has established sales
offices and manufacturing stores across North America, Europe, Asia and South
America. In this way, they can easily assess the needs of local customers about the
desired services. Unlike other industry leaders like HP, Compaq, Dell does not think
that overcoming competitors is a way of eliminating competition but through
collaboration. Instead, the company’s prides itself on using its partnership and
association for integrated marketing for its brand.

Dell has targeted customers who had budgeted needs but wanted a
predetermined set of product models. The company also selected high-end
individual customers, repeat purchasers with a preference for latest technology.

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Effective operations need powerful technical capabilities, knowledge of customers,

and the ability to response their unique customer knowledge and customer
relationships, all of that helped create a set of barriers to entry that others company
could not overcome. Dell Vietnam differentiated itself developing a set of intranet
sites dedicated to customers extremely efficiently. Each Web site was highly tailored
to the customer’s specific situations. Dell Vietnam has worked with each customer to
designate a specific set of product configurations that will work best in the customer
network. At the same time, Dell Vietnam used its direct links with both business and
personal customers to immediately considered customer needs and to identify new
generations of products and services.

2. What are Dell Vietnam’s products and services?

Past: They sold only two products which are personal computer and laptop. The
first products to Vietnam include Laptop Inspiron 1420/1525, desktop Inspiron 530
and 530s, and Laptop XPS M 1330.

Today: It provides more various products. It currently has two main businesses:
Device and other services such as storage, networking, services and solutions.

a. Devices

- Hardware

 Notebook: Laptop and Tablet

 Monitor: PC and Desktop
 Accessories: projectors, remote console and mouse, battery, speakers,
keyed lock.

- Software

 Business Applications
 Reference and learning
 Security applications
 Creativity applications
 Finance and bookkeeping

b. Other services

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Data Storage

Core Client Data Cloud Client-

Protection Computing

Server
Service Digital
Workstation Client Data Transformation
Storage Security
Net Working
Data
IT
Converged/ Transformation
Service Hyper-
Converged
Infrastructure
Protection

3. What are Dell’s customers and competitors:

a. Customer
 Small and medium size business
 Enterprise
 Education
 Aviation
 Distributor: Currently, Dell goes to the private client base through 4 official
distributors including Digiworld Corporation, Vien Son, FPT and PSD.
 Retailor: Vien Thong A, FPT Store, The Gioi Di Dong and etc.
 Government block
 Telecommunication block

In order to have a strong relationship with customers, the company also tracks
the order, delivery, and customer feedback processes about its products and
services. The company does not focus on every customer but clearly identifies
specific customers, classifies customers as large corporations and individual
customers thereby offering different ways and models of sales.

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For large customers, the company is in direct contact, over the phone, the
Internet is also with individual customers and small businesses, which mainly serve
by phone and Internet. Even, the company sends its staff to work at the customer
base.

b. Competitor

Asus, HP, Lenovo, Apple, Acer, etc are really strong competitors that Dell has to
face with.

In 2017 and 2018, the growth rate of selling dell products from 15% to 16%, the
growth rate is nearly equal to the strong competitors like Apple, HP and Lenovo. This
shows the strong potential of Dell in the future.

VIETNAM COMPUTER’S VIETNAM COMPUTER’S

MARKET 2017 MARKET 2018

HP

6% LENOVO
20% 24% 21%
25% DELL

APPLE
7% 19% 20%
ASUS
6% 16%
15% ACER
7% 7%
7% OTHERS

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II. DESCRIBE HOW THE ORGANIZATION IS ORGANIZED

1. What is the structure of organization (organizational chart)?

BU: BUSINESS UNIT

Organizational Chart of Dell Vietnam

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Organizational Structure is the hierarchical framework within which an

organizational allocates rights and duties, and arranges its line of authority. By
establishing a hierarchical structure with a clear chain of command, Dell
Organization chart shows relationship among people, divides the company’s work
and determines the manner and extent to which roles, power, and responsibilities
are delegated, controlled, and coordinated, and how information flows between
levels of management.

Dell Vietnam’s organizational structure is a decentralized, broad-span control,

flat and matrix structure. The company encourages different departments and
functional components to support each specific department in order to contribute
ideas to enhance the strength of the representative office in Vietnam. Country
Manager is the highest position who oversees Dell’s affiliate in Vietnam. Country
Manager mainly is responsible for client facing, profit, revenue, cash and quality
targets. Besides, they would be representative for company to work with authority.
Below country manager, the hierarchical structure provides defines the various
functions including 4 main Business Unit: Consumer and Small Medium Sized
Business, Support and Admin, Commercial and Back Office, each business unit has
its team leaders who will direct and keep track lower-positioned workers to report to
Country manager.

In business unit of Consumer and Small Medium sized business, there are 6
departments in this field which are Sales, Products, Marketing, Admin/Support,
Distributor and Retailer. Each field is in charged by a director or a manager.

 Sales department will be divided to control based on regions such as Ho

Chi Minh, Hanoi and Da Nang. Each region is in charge by a Director who
will manage a remote team focusing on the areas of national orientation
expanding domestically and internationally with other unit:

 Hanoi Sales Director (North Vietnam)

 Ho Chi Minh Sales Director (South Vietnam)

 Da Nang Sales Director (Middle Vietnam)

 Production department has the same structure as Sales one. There also
is a Director who is responsible for specific product (for example: laptop,

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PC, etc.). The director will ensure the quantity and quality of the products,
interact with the market through meetings with customers, partners, and
industry sources to evangelize and position Dell relative to competitors.

 Marketing department promotes the business and drives sales of products

or services. It not only provides the necessary research to identify target
customers and other audiences, but also plays role in advertising
products. It is split into small sectors including the Media Director, Retail
Director, Small Business Marketing Senior Director.

 Admin or Support section has Inside Sales Account manager, Service

manager, Admin manager and Back Office manager.

 Inside Sales Account Manager: develop and maintain lasting

relationships, build great rapport and use flawless communication
skills to sell products to customers by phone, web and email.

 Service Manager: manage and oversee seamless service delivery

processes, makes sure disputes and technical issues are resolved
and provide excellent communication to the customer around every
activity – from the tactical to the strategic.

 Admin Manager

 Back Office manager: manage and inventory products

 Dell has 4 main Distributor: FPT, FSD, DGW and Vien Son and several
Retailers along our country, here are some common Stores: Phong Vu,
Vien Thong A, TGDD or FPT Retail. Both Distributors and Retailers are
managed under each Director.

 Business Unit of Commercial is accountable for communicating and

working with Government Block as well as Global Account under the
leadership of each director.

 Commercial channel manager:

 Government Block Director: work with education block and bank

block.

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 Global Account Director: Leads the business relationship between

Dell and external partner organization on a global basis; Identifies
and influences customer key decision makers.

 Back Office Unit including Process and Logistic which take care of the
ordering process – from initial order through to invoicing – and of
transportation planning.

 Support department consists of Admin, Legal, Support and Service

required for successful completion of a process, program, or project. The
director of each field provides advisory and operational support services
to all customers as well as to company manufacturing.

a. Advantages of Dell’s decentralized, broad-span control, flat and matrix

structure in Vietnam:

 Be flexible to balance the objectives of reducing cost and enhancing

products.

 Enhance the effectiveness of information networks (link between the

supply chain and the customer) by improving workflow and employees
communication in order to identify and resolve the workplace issue.

 Focus on specific customer and region so that can give better customer
services, increased customer responsiveness and satisfy customer needs

 Improve the decision making of the organization

 Simplify reporting relationship

 Vietnamese people can understand the trend in Vietnam market.

b. Disadvantages of Dell’s decentralized, broad-span control, flat and matrix

structure in Vietnam:

 Potential for conflict and create task confusion.

 A loss of focus may be cause if the organization has larger goals.

 As a form of a Representative Office, Dell Vietnam is limited the

empowerment, most important contract are signed by the country
manager or other executive from Dell Technologies US. As a result, it may

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take longer to communicate and to update the newest model and

technology.

Within Dell’s Organizational Sales and Support divisions, the structure is quite
typical of the technology sector – each division has a senior manager, who oversees
the work of the division with a group of team leaders, who each have responsibility
for a group of employees.

In summary, the organizational chart of each department is separated in

different ways depending on each one’s features and function. The particular chart
has country manager being the highest level of management - top management,
who is responsible for the whole company in Vietnam, then next one is director or
manager of each department- middle management; the final one is advisor and
supply - first-line and supervisory management and the lower management have to
report directly to the upward management.

The operation of the representative office is representative of the legitimate

rights and interests of the enterprise under the authorization and protection of those
rights and interests.

Representative offices are created with the following functions:

 Perform the function of a liaison office.

 Conducting research activities, providing information, supporting businesses

to access new markets and partners.

In addition, representative offices may not conduct other profitable business

activities. Representative offices do not have the right to personally sign their own
contracts. Enterprise in US bears all financial obligations arising from the operations
of representative offices, so the accounting of representative offices is dependent on
the enterprise.

The form of representative office provinces create dependent units with only the
function of supporting enterprise to approach customers and partners who do not
perform business functions, and for service industries not directly performed at the
address of the unit such as tourism, construction, consultancy, etc.

It should be noted when conducting transactions with representative offices in

contract signing. The contract signed with the representative office Dell is on behalf

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of the business, so when discussing and signing a contract with Dell Vietnam, the
counterparty should ask the Dell Vietnam to present the appropriate power of
attorney.

2. Describe the decision-making process:

All of the management functions require decision making. Decision making is

choosing among two or more alternatives. There are six steps involved in decision
making process:

The six Ds:

1. Define the situation

2. Describe and collect needed information

3. Develop alternatives

4. Decide which alternative is best

5. Do what is indicated

6. Determine whether the decision was a good one, and follow up

In some circumstances, there are not too much information for decision-making
process, the company have to make the decision on the spot.

On the other hand, Dell representative office in Vietnam can only function as an
authorized representative of the business, which means that Dell Vietnam only has
the function of trading and marketing. The purpose of Dell Vietnam is simply
understood as a place to promote the products of the business, a place to answer
and advise customers in Vietnam and parent company will submit license fee
declaration, pay license tax, and declare tax for representative office.

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III. WHAT IS THE LEADERSHIP STYLE

Dell’s leadership style is transformational leadership due to their strong ability

and desire to break up laws and to completely change situation. They are also
capable of creating something new and beneficial, useful for them and others.

1. Describe the motivational environment:

Motivation- internal or external - to make a employee raises the enthusiasm to

follow a specific course of action. There are many different theories of motivation that
Dell Vietnam uses to apply the best according to the situation, due to Dell's desire to
learn and adopt new knowledge:

 Theory of Justice
 Attribution theory
 Incentives theory (Psychology)
 Maslow’s hierarchy of needs
 Theory Frederick Herzberg two factor
 Model to work in organizations, and emotional
 Organizational culture and behavior
 Expectancy Theory

Dell Technologies is one of the world most famous companies. Dell in

Vietnam has set a number of rules to promote their employees motivation so that
they can perform well. The CEO of the company believes that employees can
perform well in workplace if they work like an owner of the company.

“To motivate an employee to think like an owner, you have to give them metric
she can embrace,” says Michael Dell, CEO of Dell Computer Corporation.

Also, at Dell Vietnam, every worker’s incentives & compensation are tied to
the health of the business. Managers usually explained specifically how the
employees can contribute the company and do things right the first time. Among
other incentives, Dell Vietnam gives every employee a week as day off at Christmas
and 10 paid days a year for personal demands. This is called “The Soul of Dell”. Dell
Vietnam pays incentive to their employees and also emphasizes the emotional
aspect to keep them motivated. Dell Vietnam also continues to evaluate their
employees. Manager continues to inform their employees of any changes in the

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company or any international aid made by the company. This is exactly the same
theory provided by Herzberg.

Dell Vietnam managers are guaranteed to balance between satisfaction and

dissatisfaction. Procedures and company policies may cause inconsistency. To
alleviate this dissatisfaction, they believe that the best approach is to raise
employees' awareness and encourage them to participate in creating company
policies. In this way, employees can recognize change and feel confident and results
and the result will be better performance.

Dell Vietnam’s method to keep motivation:

 Learning is essential, not for showing off. With such a fast-paced business
operation, it is not necessary to strive to achieve behind the market today.
Today's leaders are students who are passionate about learning.
 Turn failure into a lesson of success. There is no risk, but there is no
benefit in keeping the status
 Inform the organization's goals to everyone, concentrate on organization
for customers, not the rank, and encourage employees to do the same.
 Think all employees as owners, even in fact they are not. Once they
possess what they do, they will begin to focus more on the overall big
goals. Feeling proud of the power of personal investment will do wonders
to create a greater sense of responsibility at works.

Train normal employee into social employee, then each employee can
become an ambassador for the brand. No matter what department they work, they
are always proud of their company's products, they will share with everyone so that
every business customer can become a supporter of the business. .

Herzberg's second element is Motivation. This is a stimulating factor for

employees to do good work. Dell Vietnam has a significant incentive and promotion
process to create a motivational environment for its employees. And the result is a
healthy and productive environment in the company.

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2. Assess the effectiveness of the organizational communications:

a. Relationship in Dell Vietnam

Dell Vietnam’s overall efficiency affected by structural design and by individuals

filling various positions in the structure. Manager recognizes the existence of
informal organizations arising from the interaction of people working in the
organization.

b. Line relationships

In line relationship, empowerment flow vertically through structure, for example

from directors to managers, department leaders, supervisors and other employees.
In Dell, there is a direct relationship between superiors and subordinates, which each
subordinate responsible only to one person. Line relationships are associated with
functional division or division of work and organizational control. Line manager has
authority and responsibility for all issues and activities in their own department.

c. Staff relationships:

At Dell, staff relationships arise from the appointment of personal assistants to

senior staff members. People in the position of staff do not have direct rights under
their own rights but only act as their superiors and only perform 'representation'
authority. Usually there is no direct relationship between personal assistant and
other employees unless they are authorized and responsible for certain activities. In
fact, personal assistants often have some influence on other employees, especially
those in the same departments or groups. This may be due in part to the close
relationship between personal assistants and superior, and partly depends on the
assistant's knowledge and experience, and the strength of the assistant's own
personality.

d. Functional relationships:

Functional relationships apply to the relationship between people in specialist or

advisory positions, and line managers and their subordinates. In Dell, specialists
provide a common service on all parts of the organization, but do not have direct
authority over service users. For example, the HR manager has no authority over
employees in other departments - this is the responsibility of the line manager. But
because the position and role of the HR manager will be punished by senior
managers, other employees may accept the advice given.

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e. Lateral relationships

Lateral relationships exist between people in different departments or sections,

especially individuals on the same position. These lateral relationships are
necessary to maintain effective coordination and organizational performance. Lateral
relationships can be officially appointed but in reality, they depend on employee’s
cooperation and informal relationships.

 Advantages:

 Dell has a dedicated team selected based on the value of their work
and the tasks they are responsible for.

 Dell has a project made for the recruitment of professionals. Allowing

more opportunities for success.

 There is a balance between time, cost and performance in the Dell,

because they are easily set up hierarchy

 The Project Manager at Dell is fully responsible for ensuring that the
project is completed on time and within the budget. Therefore,
additional problems that do not arise, and less likely external factors
affect the project.

 There is a greater chance of success for the company because a lot of

ideas about the different forces working on the project, and therefore
the pressure on energy and problem solving becomes stronger.

 Defects:
 There can be many confusion and conflicts if there is ambiguity about
factors such as sharing resources of groups or groups, working in two or
more at Dell.
 Because the key performance in Dell is that this has a lot of power,
decision-making independence and the development of team members or
even a project manager, there may be delays in the completion of the
project.

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IV. COMMENT ON THE PROCESS FOR CONTROL

1. What is the type of control?
a. Internal control

Internal control plays a crucial role in any business. To help the company fulfill its
obligations as well as become more successful, it is essential to implement controls
in order to safeguard its assets, workers and continual existence.

Internal control is known as a process which is influenced by plan managers and

other personnel. In addition, those are responsible for governance and designed to
reasonably assure that they will achieve objectives in the reliability of financial
reporting which have set before. This process includes plan’s policies, procedures,
organizational structure and insurance. Some general features of a satisfactory
internal control plan in financial reporting are as follows:

 Policies and procedures that ensure proper duties segregation to

decrease the number of deliberate fraud.

 Personnel has qualify and capacity to perform their responsibilities and

assigned tasks.

 Right actions are proposed for personnel to follow in performing their

duties and functions.

 A system which provides for appropriate authorization and record of

procedures for financial transactions.

Effective internal control lessens the problem of asset loss and contributes to
make sure about complete and accurate plan information, reliable financial
statements, and conducted plan’s operations in according to the germane laws and
regulations. To make internal control effective, managers and staffs have to
assurance that their plan is accomplishing financial reporting goal.

b. Internal control over financial reporting

Internal control in financial report of Dell Vietnam consists of policies and

procedures related to the maintenance of records that reflect the transactions and
arrangements of the company’s assets accurately and fairly in reasonable detail.

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Management’s Annual Report on Internal Control over Financial Reporting

Management, under the supervision of the Chief Executive Officer and the Chief
Financial Officer, is accountable for establishing and continuing sufficient internal
financial reporting control. That kind of internal control is a process structured to offer
sound assertion concerning the dependability of financial reporting and the financial
statements’ preparation for external issues in relation to general accounting
principles. Furthermore, it consists of those policies and procedures which:

 Refer to the maintenance of records reflecting in reasonable detail the

transactions and arrangements of the company’s assets.

 Reasonably guarantee that transactions are essentially recorded to

prepare financial statements relating to general accounting principles.

 Make sure that receipts and expenditures are made only under
appropriate agreement of management and the board of directors.

 Provide assurance concerning avoidance or timely realization of illegal

acquisition, usage or disposition of assets which may crucially affect the
financial reporting.

Furthermore, the Board of Directors expects that each manager as well as each
member of the highest management perform ethical actions all times and observe
the rules expressed in Dell’s Code of Conduct; there is no exception for a director or
executive officer who does not permit Code of Conduct without the approval of the
Board. The company authority is responsible for guiding and overseeing the conduct
of Dell’s subsidiary in Vietnam and encourages stockholders invest in the firm.
Moreover, they also have responsibility for management planning, strategic and
operational planning, financial reporting and governance, compliance and risk
management.

The management is under control and overseen by the board; its main
responsibility is to perform subsidiary’s business as well as dealings in an effective
and ethical manner relating to principles and direction established by the highest
level of manager. Management is liable for organizing management which consists
of selecting, evaluating, monitoring and approving the quality of personnel and their
working performance. The directors also held in charge of using an organizational
structure which is suitable for affiliate’s operations and Vietnamese culture. Besides,

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it also includes strategic and operational planning, objectives and performance

standards that should be achieved in the working process.

c. Changes in internal control over financial report

Internal control over financial reporting of Dell Vietnam during the first quarter in
2019 slightly changed, which have materially affected the controlling system. During
that time, they had supplied new system that was revenue recognition and
associated controls to make a contribution to implement the new accounting
guidance. Because of the importance of these changes, they are going on reviewing
and refine the processes as well as internal controls over revenue recognition as
they have appropriate.

Limitations on the Effectiveness of Controlling System of Dell Vietnam are

constructed to provide reasonable, not completely, assurance respecting the
reliability and honesty of financial reporting. There is no expectation of management
that all errors and fraud in processes and procedures in internal control over financial
reporting can be prevented or detected. There is no doubt that in a control system,
even though it is well operated, it still cannot ensure that all the objectives of the
system will be met. These inherent inadequacies include the following:

 Assessments in decision-making can have faults and control as well as

process breakdowns can appear because of basic errors or mistakes.

 Internal control can be circumvented by individuals who work alone or

have collusion with others to ignore the managers.

 Controlling system is based on assumptions about the possibility of future

events; therefore, there is no assurance supposed that it will succeed in
achieving goals under all upcoming conditions.

 Over time, controls may be insufficient since there are many changes in
all situations or decline in the level of compliance with policies and
procedure.

 The structure of a control system show that resources are restricted and t
he benefits of controls in relation to their costs.

 The incompletion in risk prevention system makes Dell subsidiary in

Vietnam have problem in recognizing risks and evaluating them.

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Establishment of this system is considered as a key factor of internal

control and it plays an important role in any enterprises.

Although representative office of Dell Vietnam has strong operation

strength, it still faces some risks because of disorganized and incomplete
risk control system.

 Internal monitoring is not enough and the internal audit institution structure
is not reasonable.

Taking everything into consideration, for the inherent limitations in any control
systems, there is no evaluation being able to provide absolutely beneficial assurance
to all controlling issues.

2. Describe the financial controls:

According to annual report of Dell, its strategy, in which products are sold directly
to customers, has adopted over the last five years. However, its affiliate in Vietnam
still tends to deliver goods to users through distributors and retailers channels. This
process increases some costs like commissions paid to retailers and reduces
revenue. Furthermore, Dell representative office began to put more products in retail
stores in Vietnam to directly compete with its opponent such as HP, Apple, Samsung
and so on. This approach creates good percentage in sale revenue of retailers and
distributors; hence, it decreases the capability to maximize net income of the firm.

a. Liquidity

- Current Ratio and Acid Test Ratio

The average current Ratio of Dell’s subsidiary in Vietnam was 1.19, and its quick
ratio was 1.14, which indicates that the firm has enough property to handle all its
short term liabilities. In addition, it makes the affiliate in Vietnam become a financially
safer and stronger business.

Dell’s representative office in Vietnam is strongly good at selecting payments from

customers on receivable accounts. It just takes 32.04 days on average which was
longer than the normal business collection period of 30 days; thus, Dell Vietnam was
supposed more successful in collecting from its customers than other competitors
like HP. Then, as a result, it is able to decrease the liability for its risky receivable
accounts. Also, the shorter collection period allows Dell’s subsidiary in Vietnam to

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pay for its inventory and not need to reveal it to higher amounts of short-term debt by
increasing working capital funding.

b. Capital Structure and Solvency

- Debts to Equity Ratios

The representative office had total debt to equity in five year averagely 5.23,
showing that it had more debt financing than equity financing; in a word, the number
of its creditors is greater than that of its shareholders. Its long-term equity debt was
averaged 0.29. While a lot of people think that debt from creditors is worse due to
the amount of interest that is paid on the borrowed principle, the positive aspect
here is that once the creditor is repaid, they are gone and off the payroll. While
equity financing comprises more stockholders holding parts of the firm, which
diminishes the dividend payout per stockholder as well as reduce earnings per
share. In an attempt to keep earnings per share at an increased level, Dells
approach to being more heavily financed through debt than equity can be.

c. Return on Investment

- Return on Assets and Return on Common Equity

An important ratio of financial control is the return on assets ratio which shows its
ability in measurement of earnings from its property. The subsidiary of Dell in
Vietnam has return on assets in five years was averaged 13.06%, which exposes a
more effective use of its property and higher earnings in sale of products per firm
asset. The loyalty of customers is shown by the company strong return on assets.
Another significant profitability ratio is the return on common equity which evaluates
the success in earnings from capital investments via common shareholders. Dell
Vietnam equity return was 81.46% on average, which displays that it may have
attraction to potential investors because it is able to effectively manage and use
funds created by equity of shareholders.

d. Operating Performance

- Profit Margin Ratios

The average gross profit margin of Dell Vietnam reached the number of 17.77%,
which means Dell has a large portion of computer market in Vietnam. The
representative office also figured that it had low operating as well as pretax profit

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margin because of higher sale, general and executive expenses. Moreover, it partly
depends on new retail and distribution relationship. As expected, it is clearly that Dell
Vietnam has lower net income than its competitors; hence, to influence its sales
positively, Dell’s subsidiary management should propose strategy that penetrates
more strongly into large market share. Finally, in order to increase its net income,
they should address operating expense component to have more cost savings
measures to raise operation income.

e. Asset Utilization

- Cash Turnover
Cash turnover is used to measure how efficient a company uses its cash to build
sales revenue by many companies. Dell Vietnam was averagely 5.60 for this ratio,
which showed that it do not generate revenue efficiently from its cash and cash
equivalents.

- Inventory Turnover
Inventory turnover measures how fast firms change inventories into sales
revenue. On average, Dell Vietnam had a slow inventory turnover. Increase in
inventory of Dell’s affiliate in Vietnam to total assets is directly influenced by its
turnover ratio, which together with decrease in sales growth in the last five years
were the reason of their very high inventory turnover rate.

- Total Assets Turnover

Total asset is taken use of measuring how effectively a business applies total
assets to generate revenue. Normally, Dell Vietnam has ability to get more profit
from its assets double than that of others, which reflects that it had a better record of
sales creation for total assets held.

Summary of financial controlling

The financial statistics show that Dell is a strong competitor in Vietnam industry.
Working in an industry that has large number of potential customers by offering the
latest and the most modern products, it is necessary that Dell increase amount of
research and develop engineering. Besides, it liquidity and return on investment
ratios are strong; however, they need to have an improvement in their operating
performance. Instead of selling cheap products, Dell Vietnam should focus on

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offering the newest technology and high quality goods to not only satisfy customers’
demand but also compete with its competitors.

V. DESCRIBE ANY NEW MANAGERIAL PRACTICES

In this information below show new managerial practices refers to some ways
of working and innovations that managers could apply to enhance effectively in the
work systems. To specific, managerial practices usually includes Nouveau
technology utilization, employee empowerment, training staff, introducing
programme to boost quality. Dell or Dell DMC is following a matrix-style organization.
Thus, as a part of huge organization, Dell Vietnam is also followed this style. The
decision-making will be flowed from highest to lowest level of management. It has a
representation and a lot of supervisors to manage company’s mission.

In the world, almost 27000 in the U.S, and nearly 13000 in other nations Dell
Technology Company develops, designs, markets, manufacture, services and
supports a large number of technology systems, retail systems. In general, Dell
technology is divided many small corporative and representative and managed
depend on top manager.

1. Training employees and policies

Regarding managerial practices of Dell in Vietnam, the process of hide

employees is valid. It is a place where suitable for students to internships, co-op
positions, full-time employment, rotation, and development programs. With a good
background and talent projects could help students accumulate knowledge and
experience. There was many field aspects for them such as engineering, finance,
human resources, IT, marketing, operations, sales, services so that they can choose
the most suitable for themselves. Additionally, the factors attract seniors or
undergraduates to apply job are worked in a professional environment and have a
high chance to promote in the career path, trained from basic to advance both
necessary skills and specialized knowledge in the process of before and after getting
jobs to ensure that well-educated business segment managers provide
contemporary advices to customers. The course of training is annual extended from
3-6 months depend on level, for example, for sales trained from 3-5 days, for office
trained from 1-3 months. About the basic needs of human are provided sufficiently

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with starting salary, subvention, commission, bonus, pension, overtime pay,

seniority, severance, travel and picnic. In addition, they are supported other welfare
regimes including rewarding on holidays, excellent employees in year, present on
their birthday paid leave, annual leave, compassionate leave, paternity leave,
maternity leave, sick leave, medical insurance, social insurance. This is some
policies for new employees and the value which is high or low depends on level and
experience they have before. Employees required to performance professional tasks
given and pay their personal income tax.

Dell Vietnam fully support the individual needs to employees from lower-order
need (physiological needs, safety needs and social needs) to higher-order need
(esteem needs, self-actualization needs). For example, being received rewards,
bonus or compliment when they finished tasks with excellent result, which is aimed
to encourage employees work more productivity for another tasks. Another example,
employees would write some innovations and send them to managers. Probably, the
prize is likely to a tour holiday or extra wages. The other benefits, there will have
some discount or preferential price for employees whenever they buy anything
related to Dell technology. Following acquired needs theory by David McClelland, the
representative of Dell allows employees and managers to take pleasure need for
achievement, which means that people have a right to making decision to do task
and have a responsibility for outcomes and feedback them, need for power including
the need for personal power and need for social power - means that people have
power to control others and take responsibility for them. For instance, when the Dell
company has a complex project, there is going to occurring conflict ideal among
employees. In that time, it is significant for manager to comply with option that brings
most efficient. In general, the policies of Dell in Vietnam for employees are pretty
good.

2. Marketing strategy

About the working of Dell, not only direct selling through retailers and
distributors but also using a lot of modes to showcase their products such as
television, books, internet, e-commerce, articles. For instance, in Vietnam 2018, at
the time of preparation for the new school year, a campaign has been launched with
the name “Back to school” bearing the belief that student education will be more
attractive and interesting when combined with potentials and technology. Dell wants

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to develop awareness with both youth and parents in Vietnam through social
networks where they use the benefits of technology in learning and working. The
campaign outcomes have been successful with over 110 million impressions (90%
positive reconsideration) and more than 100,000 teenagers have visited Dell’s
Tumblr site. Furthermore, Dell Vietnam usually organizes many events aimed to
broadcast its products. For example, Dell establish a series of outdoor activities
named “A Day With Dell” on 17th November 2018, in events people are able to
experience with new products of Dell, heard workshop for technology, fight games
and presented XPS 15 2 in 1, innovated Inspiron 5000, and also display gaming of
series such as Dell Gaming G7, Alienware screen and the keyboard, mouse carried
the logo “alien”. Besides that, Dell Vietnam organized series of charity activities for
the community 2018 in order to take positive benefits and build up a long-term
development public. Some highlight activities offer gifts to the homeless, support
teachers to apply technology gadgets in teaching, help students quick access
information easily, build libraries, help children in high land by sponsoring clothes,
warm clothes, and activities to aid the visually impaired utilize technology in daily
studying, working. The newest events “Computex 2019”, Dell launches Alienware
laptop m15 and m17 (2019) with sci-fi design, more typing keyboard, more Intel Core
i9-9980HK and RTX2080 graphics card. With these events, Dell Vietnam not only
demonstrates the social responsibility of the brand to the community but also
promote products to public. This is some strategies to advertise Dell’s products in
Vietnam.

About sales promotion, one of Dell’s marketing successful is to start

promoting its products through retailers such as Best Buy, Staples, and Carrefour.
The benefits for customers buying Dell’s products are get free gifts like Belkin,
mouse, USB. This is one of the important eliminators that helps Dell’s brand become
the top of mind of customers. Besides, Dell also has special offers such as interest-
free instalments within 6 months and 12 months for many products. Every month, the
company will publish discount codes for some products and product sets on the
official website to promote the decision of purchasing from customers. The finance is
also a factor in management that bring high rival to other opponents such as Apple,
IBM. Thanks to the JIT and direct sales and marketing systems, Dell has reduced

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costs such as pay for intermediary distributors. Hence, the total of price is 12% lower
than the average.

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