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0 Introduction

Dell is a company full of legend, its founders Michael Del who with $1000 created
Dell Company when he was 19 years old. In 1992, Dell with his company became the
youngest CEO of the TOP 500 enterprises in the world (Farfan, 2016). The success of
Dell mainly because they have a better business model, the business model is the
famous Dell Model, adopt establish direct contacts with customers" business
philosophy of innovation, in accordance with the requirements of customers to
produce computers and direct shipping to customers, so that they can most effectively
to understand the needs of customers, and to react quickly. Dell cut out the retail
middleman that can effectively reduce the cost, compression time, understand
customers and timely response. Adhere to the direct selling, abandon the inventory,
and the alliance with customers that is golden three principles of Dell, low cost, high
efficiency and good service is Dell's evaluation criteria, the business model invented
by Dell that enterprises around the world want to imitate, with this magic strategic
management accounting techniques, Dell grew up to be the world's leading IT
products and services global supplier in the past more than 30 years. This paper will
discuss the strategic management accounting techniques of the Dell that including:
strategic cost, strategic pricing, customer value and evaluate the performance of Dell.

2.0 Strategic cost management

Strategic cost management refers to use cost management techniques to improve the
corporate strategic position and reduce costs. Specifically, strategic cost management
is process of all-round monitoring for investment project, research and design,
production and sales link. In strategic angle aims at analysing the influencing factors
of cost, thereby further find ways to reduce costs, the goal is to build corporate long
-term competitive advantage (Dubois, 2003).

Dell fully use the Internet to promote their direct selling model, with a good online
marketing development mode, it become top sales computer company in the world,
Direct selling has obvious advantages, it is free of intermediate transfer of various
links, without middlemen, greatly reduce the unnecessary costs, and finally, these
costs will be reflected in the product price. At the same time, because the cost of

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network communication is very low, so the overall marketing cost is low, and this
cause the products of Dell have more price advantage. In another hand, Dell computer
products adopt mass customization, Dell produce more than 4 million personal
computers annually, each one is according to the customers specific requirements to
homebuilt. For example Dell Provides service to Ford, Dell designs different
configuration for the different departments employees of Ford, When by Ford Intranet
receives the order, Dell will quickly know which type of staff whose order ,and they
need to what kind of computer, Dell will assemble appropriate hardware, Even the
appropriate software installed, some of which include Ford s proprietary password
that is saved in Dell, Dell's logistics service software is very comprehensive and
advanced , Therefore, it is able to develop mass customization services at a lower cost.

2.2 Strategic Pricing

The second is strategic pricing. The strategy pricing is one of the Dell company
important contents of strategic management accounting. Strategy pricing is through a
series of coordinated behaviors on the price to achieve a common goal, the main for
make the interests of the price of the product is available, and the customer is
acceptable, in line with market demand. Changes in market supply and demand, the
Dell should adjust the price according to the overall strategy, the Dell company
through the pricing strategy, improve the competitive advantage of enterprises, and
improve the Dell brand advantage. First Dell company choose the comprehensive
through the market survey, it can make the Dell more understand the different demand
for products of different consumer groups, then the Dell company do the market
segmentation, and contact the customers directly (Maris G.2011). Then according to
customer requirements manufacturing computer, so it made the Dell products more
effectively meet customer demand, and it also reduce the company's inventory, made
the cost reduce and information instead of inventory, accelerate the speed of capital
turnover. And consider other competitors, after the final price of the product, the
strategy pricing can achieve the price advantage. This strategy reduces the middlemen,
and bring customers competitors cannot be achieved at a low price. Strategy pricing
for dell's strategic choice and decision-making of accounting management bring a
large number of advantage.

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2.3 Deliver Customer Value

Customers are the greatest wealth of enterprises. If enterprises do not practice closely
with customers, the customer value will have no meaning. The relative competitive
position of the enterprise can be reflected from the final result of the competition of
the enterprise (Berger and Nasr, 1998). All of Dell Technologies activities are around
the core concept of "Customer Foremost". For example, every employee of Dell is
printed engraved the company's mission statement in the work card, "To be the most
successful IT systems company in the world by delivering the best customer
experience in all markets we serve." (Jurevicius, O., 2013) All the business activities
are all around the core concept of "Customer Foremost", the original driving force of
creating customer value is the enterprise strategy of DELL, it has become the DELL
Inc. to improve the overall competitive advantage of the strength fountainhead.

Since the customer value is based on the customer perception, value assessment starts
from the customer, and the customer value assessment usually includes service level
and customer satisfaction. In order to carry out and implement the "customer service"
core strategy, Dell Inc. has established a customer information database, which
including all customer information. Customers only need to tell the computer serial
number to service engineers who will be able to accurately identify the customer
purchase of all computer configuration and the procurement information, and provide
solutions. According to the units of production mode by Dell, which the structure of
the product and the production process that are adjusted according to the demand of
the customers and achieve customer satisfaction. The products of Dell are made in
accordance with customer demand for customized, which from receipt of order to the
finished car that only need an average of 36 hours (Hofftnan,2004). The advanced
logistics and supply chain management services in the close coordination of
manufacturing software and sales at the same time also ensure low cost. The advanced
production mode to maximize meet customer personalized demand, which brings
increasing customer satisfaction and loyalty. (J. Goldshy. T, E. GrifTis, S. & S. Roath,
A., 2006)

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3.0 Comment about the organizations performance

Strategic management accounting for the Dell company, it can offer more than
financial information. Strategic management accounting is a kind of strategic
management accounting information system, it is accounting personnel for the
enterprise itself , and the external market and competitors' information, this strategic
will help enterprise management strategic planning and improve the competition
advantage (Jamaliah 2012). Strategic management accounting analysis different on
the industry value chain for the Dell's own competitive advantage and competition
advantage, then improve the company's competitive position. Enterprise performance
by the external environment and internal conditions and the market competition effect.
Dell's company use of strategic management accounting, performance evaluation to
meet the information needs of a company manager. First it can help the Dell company
make the right decisions, such as the process of making the strategic target, the Dell
company development plan, cost control, etc., it can create high profit space for dell.
Second the strategy management accounting can establish an effective link between
dell's competitive layer channel, through internal processing, control and feedback of
information resources, it can make Dell products pricing according to the market,
consumer, such as changes in time to adjust, and in order to increase the effectiveness
of decision making. on the product price compared to its competitors have certain
competitive advantage. The third it will integrate the dell's competitive advantage
(viki, 2011). Use of strategic management accounting, effectively reduced the
production cost of Dell, compression time, understand customers demand, then
establish high efficient supply chain. And it also reduces inventory surplus
phenomenon. Dell through the strategic management accounting, on the one hand to
ensure the lower cost. The advanced mode of production, on the other hand made the
maximum limit satisfy the customer personalized requirements, and improve the
customer satisfaction and loyalty. High efficiency, low cost, and good services,
improve the Dell Companys management, and also improve the company's in the
long-term competitive advantage.

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4.0 Conclusion

Strategic management accounting is designed to help manage the overall objectives of

the enterprise and the sustainable competitive advantage. The main problem to be
solved is how to adapt to the change of internal and external environment, through the
integration of internal and external resources to achieve a better overall effect (Hayes
et al., 2005). From a manufacturer's perspective, Dell Inc. is undoubtedly one of the
most outstanding enterprises in the personal computer(PC) industry, but with the
digital products continuously enriched and the function of PC stretching that
consumer to services have become increasingly demanding. PC manufacturers must
also comply with the requirements of customers to make the corresponding change
according to the company's own situation that seeks share a place in the rapidly
changing market. Dell's magic weapon is not a technical advantage. Dell's principles
to build its unique strategic management competitive advantage.

(1557 words)

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Listing Of Reference

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Profile. [online] The Balance. Available at: https://www.thebalance.com/dell-
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Dubois, A. (2003). Strategic cost management across boundaries of firms. Industrial

Marketing Management, 32(5), pp.365-374.

Berger, Paul D., and Nada I. Nasr. (1998) Customer Lifetime Value: Marketing
Models and Applications. Journal of Interactive Marketing, 12 (1), 17-30.

Hoffman. William (2004), "Dell Gets Domestic," Traffic WorW online edition, URL:
www.traffic world.com/news/log/1129O4a.asp

Hayes, R., Pisano, G., Upton, D. and Wheelwright, S. (2005) Operations, Strategy and
Technology: Pursuing the Competitive Edge, New York: John Wiley.

Maris G. 2011 January Explaining Dell's Success from a Strategic Management

Perspective, [online] Available at: https://www.cb.cityu.edu.hk/mgt/document/Applied
%20Articles/Applied%20Articles/Martinsons%20-%20Dell.pdf

Jamaliah 2012, March Adoption, Benefits and Challenges of Strategic Management

Accounting Practices: Evidence from emerging market [online] Available at:
http://ari.uitm.edu.my/main/images/APMAJ/VOL8-2/8-2.pdf

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Viki ,April 2011 Benefit of Strategic Management Accounting for Organization,
[online] Available at:

https://www.allfreepapers.com/Business/Benefit-of-Strategic-Manaagement-
Accounting-for-Organization/4576.html

J. Goldshy. T, E. GrifTis, S. & S. Roath, A., 2006 Modeling Lean, Agile, And
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http://staffweb.wilkes.edu/jennifer.edmonds/MBA_513/leagile.pdf

Jurevicius, O., 2013Mission statement of Dell [online] Available at:

https://www.strategicmanagementinsight.com/mission-statements/dell-mission-
statement.html