2. Dell Inc. Merely Tough on Suppliers or a Bully?

1. Identify at least two other companies that mange their suppliers in a manner similar to Dell computers. do these companies have anything in common with Dell?

- I think the Procter & Gamble and Splash companies that manage their suppliers in similar to Dell because they are also selling products directly to the customers.

2. Can you Identify any disadvantages for dell in taking the approach to managing suppliers?

- The disadvantages:

•         Need to hold the inventory at each step in value chain.
•         Have to pay supplier first before getting paid from customers.
•         Caught with short supplies of hot products- lost sales.
•         Stuck with excess inventories of slow selling products.

3. Do you think that this approach  to managing suppliers is unethical, or is it acceptable and ethical? explain your reasoning.

- For me, yes it’s an ethical because the Dell Company only wants to serve the customers in the simple ways. Despite Dell’s emphasis on direct sales, most of these re sellers were systems integrator. It was standard for Dell not to allow returns on orders from re sellers or to provide price protection in the event of subsequent declines in market prices. From time to time, Dell offered its re sellers incentive promotions at up to a 20 percent discount from its advertised prices on end-of-life models.

4. Would you recommend any changes to the way Dell manages suppliers? Defend your position.

- I recommend for any changes is that the company will be understand more their suppliers, dealers and customers for the best result. And improve more in any aspect of their company.