The original name of the company was PC's Unlimited. The corporation was started with a simple premise as Its basic foundation: so that personal computers could be built and sold directly to customers and by doing this, Dell could address their specific needs and provide the best computing solutions that meet those needs (Caution, 2009).Dell Computer Corporation relies on its Direct Method to manufacture and sell its reduces to the consumers.
This strategic model enables Dell to directly interact with customers providing them with fast production and distribution. The Direct Method provides two distinct advantages (Caution, 2009): 1) Reducing marketing and sales cost by eliminating markups of distributors and retailers. 2) Bullying to order reduced inventory costs and risks of retaining inventories. Dell Computer Corporation believes it has the most efficient strategic management business model.Strategic management is the process by which a firm manages the formulation and implementation of its strategy (Carpenter ; Sanders, 2009). Dell Computer Corp.
. Strategy was built around a number of core elements: build-to-order manufacturing, partnerships with suppliers, Just-in-time components Inventories, direct sales to customers, award-winning customer service and technical support, and pioneering use of the Internet and e-commerce technology (Dell, 2012). Management believed that a strong first-mover advantage accrued to the company from its lead over rivals in making e-commerce a centerpiece in its strategy (Dell, 2012).This study will research Dell Computer Corp.
. Business strategy with focus on Sino and mission, goals and objectives, strategy, strategic analysis, and strategic leadership. Dell believes It has the most efficient business model over other organizations and this research will provide an understanding of the business model. The company's strategy will be properly researched by considering each of Dell Computers core elements to interpret if they are truly a best in class strategic management organization.Dell Mission Statement Dell Computer Corporation's mission is to be the most successful computer company In the world delivering the best customer experience In markets we serve. In doing so, Dell will meet customer expectations of: Highest quality Leading technology * Competitive pricing * Individual and company accountability * Best-in-class service and support * Flexible customization capability * Superior corporate excellently Dell's aim is to create loyal customers by providing superior experience at a great value.
They are committed to direct relationships, providing best products with standard based technology outperforming the competition with value and a superior customer experience (Dell, 2012). It's the way we do business. It's the way we interact with the community. It's the way we interpret the world around us-- our customer's needs, the future of technology, and the global business climate. Whatever changes the future may bring our vision Dell Vision will be our guiding force (Dell, 2012).SOOT Analysis of Dell Computer Corporation Strengths: * One of the largest computer manufacturers * Deal directly with customer * Brand recognition * Diverse products * Design PC to customer specification Weaknesses: * Amount of supplies from many different suppliers * Inventory * Quality concerns * Business relations Opportunities: Diversification * New products * Low cost to consumers * Internet market * Strengthening global market * Expand to educational markets Threats: * Competition from other PC manufacturers * Competition and retailers * Fluctuation in foreign currencies * Trade barriers in other countries * New products from competitors Strategy Formulation and Implementation Dell has employed as many as 96,000 people worldwide.
As of January 2011, Dell employed 39,500 people in the Americas region, with manufacturing facilities in Austin, TX; Nashville, TN; Winston-Salem, NC; and Loader do Soul, Brazil. Dell employed 32,100 people in the Asia-pacific region with manufacturing facilities in Malaysia, India, and China. Dell also has manufacturing facilities in Europe. Recently, the company closed facilities in Ireland and moved all manufacturing in the years to maintain sales and customer satisfaction. One particular sales method was through e-commerce.This method allows consumers to visit a website and decide exactly what type of PC they are looking for.
The customer can build to exact specifications and receive delivery quickly. In 2007, while using this method of consumer sales, the organization sold $1 million per day. This number continues to climb throughout the years as Dell continues to stay on top of innovation. Organizational innovation is the adoption of an idea or behavior that is new to the organization's industry, market or general environment (Daft, 2010).
Dell has grown and prospered by partnering and maintaining alliances with many large organizations. The alliances help deliver key innovations in hardware, software, licensing, services and support too variety of customers.Dell acquired Alien ware in 2006 and Pert Systems in 2009. Dell currently has alliances with the following organizations (Dell, 2012): * Microsoft Oracle * Red Hat Linux * Novel * Citric * People Soft * SAP * Ovenware Corporate Environment Dell is committed to providing an environment that values and develops individual talents, respects the needs of its people and applies collective strengths toward the complete satisfaction of our customers and stakeholders (Dell, 2011). Organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization (Daft, 2010).Dell aspires to be a company in which environmental excellence is a priority in everything we do.
Our goal is to fully integrate environmental stewardship into the business of providing quality products, best-in-class services and the best customer experience at the best value (Dell, 2011). Strategic Leadership Strategic management is the process by which a firm manages the formulation and implementation of its strategy (Carpenter & Sanders, 2009). Strategic leadership is responsible for (1) making substantive implementation lever and resource allocation decisions and (2) developing support for the strategy from key stakeholders (Carpenter & Sanders, 2009).Dell is committed to providing an environment that values and develops individual talents, respects the needs of its people and applies collective strengths toward the complete satisfaction of our customers and stakeholders (Dell, 2012). Organizational environment is defined as all elements that exist outside the boundary of the organization and have the potential to affect all or part of the organization (Daft, 2010). In 2008, Dell organized the company globally around three major customer segments - Large Enterprise, Public Sector and Small and Medium Business.
Dell while strengthening execution and synergies (Dell, 2008). Competitive Advantage Dell is faced with a volatile market which is constantly changing.Dell must continue to develop, acquire, and adapt new ideas and technology to remain a profitable organization. One method that Dell could use is open innovation, which means extending the search for and centralization of new products beyond the boundaries of the organization and even beyond the boundaries of the industry (Daft, 2010). Dell has maintained a well-balanced organization operating in more than 80 countries.
Dell has managed the environment and cultural difference very ell since becoming a global organization. Price differences among other computer companies can create havoc with market prices. Dell must continue to work on methods to reduce waste, inventory, facilities, supplies, environmental impacts and logistics.Dell has proven successful with lowering costs and has recently delivered record results for fiscal year 2011.
Dell's expanding strength as an enterprise solutions provider and continued strong execution during the fiscal fourth quarter drove record results and one of the company's most successful financial quarters ever (Dell, 2012). Revenue for the quarter was $15. 7 billion and totaled $61. 5 billion for the fiscal year.
Dell has created a record profit in a time when the economy is operating poorly. Dell's Direct Method has provided great advantages to the organization. Consumers are able to purchase exactly what they are searching for and receive the product in a timely manner.This is the reason the company is around today and continues to make a profit.
Strategy Dell management believes it has the industry most efficient business model. The company's strategy was built around a number of core elements: build-to-order manufacturing, partnerships with suppliers, Just-in-time components inventories, and pioneering use of the Internet and e-commerce technology (Thompson & Strickland, 2000). A central element of Dell Computer's strategy is to evaluate the various makers of each component, pick the best one or two as suppliers, and partner with them for as long as they remain leaders in their specialty (Thompson ; Strickland, 2000).Dell's strategy from the beginning was to partner with as few outside vendors as possible and to stay with them as long as they maintained their leadership in technology, performance, and quality. Dell's partnership with a supplier was long term and because it committed to purchase a specified percentage of its requirements from that supplier, Dell was assured of getting the volume of components it needed on a timely basis even when overall market demand for a particular component temporarily exceeded the overall market supply (Thompson ; Strickland, 2000).
Dell's partnerships with key suppliers made it feasible to have some of their engineers assigned to Dell's product design teams and for them to be treated as part of Dell.When new products were launched, suppliers' engineers ere stationed in Dell's plant, and if early buyers called with a problem related to design, further assembly and shipments were halted while the supplier's engineers and Dell personnel corrected the flaw on the spot (Thompson & Strickland, Just-in Time Inventory Dell's Just-in-time inventory emphasis yielded major cost advantages and shortened the time it took for Dell to get new generations of its computer models into the marketplace (Thompson; Strickland, 2000). Computer parts and components change so quickly that any given item in inventory was obsolete in a matter of months. Dell understood early on that having a couple of months of component inventories meant getting caught in the transition from one generation of components to the next.Intel regularly cut the prices on its older chips when it introduced newer chips, and it introduced new chip generations about every three months (Thompson ; Strickland, 2000).
Collaboration with suppliers was close enough to allow Dell to operate with only a few days of inventory for some components and a few hours of inventory for others. Dell supplied data on inventories and replenishment needs to its suppliers at least nice a day-?hourly in the case of components being delivered several times daily from nearby sources (Dell, 2012). Dell's partnership with Sony monitors supplied with the Dell name already imprinted were of dependably high quality and were shipped directly to the customer.Dell arranged for its shippers to pick up computers at its Austin plant, then pick up the accompanying monitors at the Sony plant in Mexico, match up the customer's computer order with the customer's monitor order, and deliver both to the customer simultaneously (Thompson & Strickland, 2000). Challenges The personal computer market is beginning to lose momentum in large part because many consumers are opting for high-powered mobile devices, such as tablets, instead of desktops (Kodak, 2012).
Two years ago, Dell began selling a phone/ tablet hybrid called Streak, which ran on Google's Android operating system. The device failed to gain much traction with consumers, and Dell all but discontinued the product by 2011.Dell is expected to take another shot at the tablet market this fall, as it attempts to capitalize on much greater consumer awareness of tablets and the ore mature status of both the Android operating system and Microsoft's new Windows software, which was designed primarily for mobile devices (Kodak, 2012). Dell revenues were $14.
5 billion for the fiscal quarter 2012, a decline of 8 percent from a year ago, and the company struggled with declining share in low-end PC's and with intense price competition from Asian manufacturers (Koala, 2012). Dell expects revenues to slide 2-5% sequentially in the current quarter to $14 billion and below consensus estimates of $1 5 billion. Dell expects IFFY (ends January 2013) PEPS of at least $1. 70, which is 12% below $1.
1 consensus and may be the high-water mark for guidance.Dell is working through a major restructuring to shift focus to commerce and the data center and away from commodity PC's towards hand held computers. Dell's products for businesses have more price protection, generate higher margins and face fewer competitors than consumer products (Koala, 2012). Dell's commerce business, Large Enterprise, Public and Small Business, represents about $12 billion or 82% of the company revenues and declined by only 3 percent year on year in the Despite the current challenges faced by Dell Computer Corporation, Dell has made any innovation changes throughout the years to maintain sales and customer satisfaction.
Dell must continue this approach and deal with the technology and customer changes.As new technologies are implemented, Dell will need to find ways to develop the new technology. The company's strategy was built around a number of core elements: build-to- order manufacturing, partnerships with suppliers, Just-in-time components inventories, direct sales to customers, award-winning customer service and technical support, and pioneering use of the Internet and e-commerce technology (Thompson ; Strickland, 2000). This strategy has worked well for many years, and allowed the organization to prosper in good and bad economic times.
Dell has maintained partnership with companies that continue to perform well. This allows Dell and the partners to supply customers with excellent products while saving money and resources.Dell has grown and prospered by partnering and maintaining alliances with many large organizations. The alliances help deliver key innovations in hardware, software, licensing, services and support to a variety of customers. Profitable organization. Dell has maintained a well-balanced organization operating n more than 80 countries.
Dell has managed the environment and cultural difference very well since becoming a global organization.
