Answer To: hi i have 2 assignments i need to submit for MBA. i need your assistantance. they should be not more...
Robert answered on Dec 20 2021
Strategic Management – Dell
Introduction:
Innovation and technological changes across the globe has changed the phase of the
technological industry as well as the companies operating in the other sectors. The companies
have a strong focus on globalization, with globalization the companies have been able to operate
in the global market as well as catering to the mass market across the globe. With the help of
globalization the companies has been able to innovate and produce goods at lower cost as the
companies focuses on manufacturing the goods at the comparative lower prices. By operating in
the global market the companies are able to attain competitive edge as the companies have a
strong focus on capturing the un-tapped market. The companies are having a strong focus on
adopting different strategic options which has helped the companies to attain competitive edge in
the market.
Overview of Dell:
Dell was founded by Michael Dell in his University of Texas–Austin dorm room in 1984 based
on a simple business model which focuses on eliminating the retailers from its sales and
distribution channel and selling its products directly to its target market, with a focus on this the
division is able to follow low cost strategy.Dell has three major manufacturing facilities in the
United State (Austin, Texas; Nashville, Tennessee; Winston-Salem, North Carolina) and
facilities in Brazil, China, Malaysia, and Ireland which focuses on manufacturing the products of
Dell . Dell employs 65,200 people worldwide. In this paper we will focus on the consumer
division of the division. The consumer division focuses on providing the total technology
experience to its target market. There are different services that are rendered to the consumers.
The direct business model includes no retailers and starts and ends with the customer: a customer
orders online or via phone a computer system according to his preferred configuration, Dell
manufacturers this computer system, and Dell ships directly to the customer. Dell has been able
to keep manufacturing costs lower than competitors‟ costs because it not only saves money by
shipping directly to customers, but it also only builds to order, so raw material inventory is low.
The direct model also reduces the time from customer order to receipt of the system. Moreover,
the direct model provides a single point of accountability so Dell can more easily design its
customer service model in order to provide the necessary resources to satisfy its customers.
Organization structure to incorporate low cost strategy:
Dell‟s business strategy revolves around the customers. It focuses on delivering best possible
services and products to its consumers, so that the consumers can have highest perceived value.
It focuses on serving its customers directly so as to gain customer intimacy and customer value
proposition. It focuses on direct customer model which focuses on operational excellence,
product leadership, customer leadership and customer value proportion. But the main focus of
Dell is on Consumer intimacy.
The company focuses on providing its customers superior value, customized and technological
driven products. It also focuses on providing its customers superior support and services. Thus,
the main focus of Dell‟s Business strategy is providing value to the customers and building
customer intimacy. Dell focuses on providing customers superb value technology with a focus on
high quality, relevant technology and customized system. The company focuses on delivering
best customer experience to its target consumers.
Dell has a strong focus on decentralization, with which Dell delegates authority to control the
value chain activities to the managers which gives them the time to perform different
entrepreneurial task. The organization structure of Dell is „functional structure‟ in which every
manager has to focus on performing the particular function so as to create maximum value
associated to it. With a strong focus on the functional structure the company is able to have a
strong focus on its value chain with which it is able to offer products at low cost. With this
structure the company‟s managers are able to focus on controlling costs and helping the company
to focus on low cost strategy. The company later focus on divisional structure which helped the
company to concentrate of different customers and their needs.
The company has customers all over the globe. Dell directly sells to all its customers, regardless
of a home-PC to world‟s largest corporations. The direct relationship with individual customer
creates a great source of competitive advantage for Dell. This creates a valuable information
about the end customers, and thus Dell knows who are the end users of their product, what they
have purchased from the company, what are their future preferences, a fact that allows the
company to stay closer to their customers by offering add-on products and services.
Dell has changed to a three-division structure instead of six; the company now only has divisions
in the product, service, and customer departments. The disconnection of the departments was
preventing Dell from effectively serving the customer and producing innovative product. The
reorganizing of Dell will allow the employee‟s to communicate better between departments and
management. This will allow the company to be more responsive to change and focus on
excellent service, quality products, and the customer. Dell displays an effective and efficient
organization due to the organizational structure, management, functions, and design. Dell
consists of different committees such as audit, compensation, finance, governance, and antitrust
compliance. Dell has a board of directors as well as an executive team.
The company selects suppliers that show experience, expertise and ability to deliver value. The
performance of suppliers is regularly evaluated against the pre-set parameters. A quarterly
meeting is held between the company and its suppliers to discuss the quarterly performance and
future expectations. The performance of each supplier is evaluated by comparing a scorecard
consisting of quality, cost, and reliability with that of their competitor. The company‟s suppliers
are also provided with the support and training to improve their processes.
Organizational culture:
Organization culture fosters an organization to achieve its business goals and objectives. The
organizational culture can foster ethics as well unethical issues. Like Enron‟s leadership and
organizational culture was unethical whereas 3M and apple fosters innovative organizational
culture so as to improve its efficiency. Organizational culture of an organization helps in
fostering the behavior of the employees and the future of the organization. Organizational culture
helps in team building within the organization. As through the organizational culture helps in
fostering creativity, innovation, sharing of values. Organizational culture has become highly
focused to innovation, through technological development and advancement the organizational
culture helps in fostering change in the organization which helps in adopting total quality
management.
Organizational culture is one of the most important aspect of the organization which helps in
fostering development and change in the organization. It is the base of the organization which
highly affects the behavior of the employees in the organization. The organizational culture can
build positive behavior in an employee as well as negative behavior. It can be said that the
growth of the organization highly depends on the organizational culture.
Creating a friendly and fun environment helps the employee to innovate. Companies like Apple
and Google focuses on building a strong organizational culture which helps in increasing the
efficiency of the employees. With the fun environment and culture the organizations are able to
increase the efficiency of the employees.
Dell works on innovation and technology. The organization culture of Dell is based on
innovation. There are seven stages on which the innovation environment on which Dell works.
The organization culture of Dell is friendly and healthy to work in. It gives space to its
employee, and courage them to innovate. Every department focuses on the outcome. The firm...