... Course Title Professor’s Name 14 March 2008 Dell Corporation Introduction Dell Corporation is one of the leading computer companies in the world operating on the global scale since 1990s. Dell relies on innovative technologies and new solutions which help the company to reach global consumers and market high quality products in different categories. International expansion helps Dell to obtain strong market position and sustain strong growth. A current strategy of Dell includes the determination of the basic long-term goals concerns the conceptualization of coherent and attainable strategic objectives. Key Components of the Business Environment of Dell High-technology market is marked by increasing capital markets activity over the past 5 years. It is estimated that average annual returns are anticipated to exceed 13 percent over the next 10 years, with investment alternatives performing at single digit growth rates (approximately 7 percent to 9 percent). This approach is based on Dell superior understanding of the problem solved by the product, the benefits it offers and issues it addresses. Dell is a leader in IT industry with S$ 57.095 billion revenue a year. Customers and technology are the primary driving factors in this arena (Dell Corporation Home Page 2008). Customers want products that satisfy their needs or improve their productivity. In 2 order to respond to external environment, Dell looks for ways to deliver these benefits at a lower cost...
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...and the provision of information technology services. Dell is in the business of manufacturing computers and servers. Its competitors are Hewlett Packard/Compaq, IBM, Apple and Gateway. The new trend in the computer industry is to become a virtual corporation and Dell is leading the way. According to Dedrick and Kraemer (2006), “Dell is aiming to combine the cost advantages of horizontal specialization with close coordination of vertical integration.” In the early 1990’s, Dell shifted gears and tried to distribute its products through retail outlets, later realizing how unprofitable this approach was. It decided to focus on improving customer service and support by allowing customers to place and custom configure orders directly. This resulted in a unique strategy, synonymous with Dell, customization. Nearly one out of five standards-based computer systems sold in the world today is a Dell. Dell has one simple concept: to sell computer systems directly to customers. Dell’s customers are global wide and range from individuals, small businesses, large businesses, and institutional organizations, such as schools and hospitals. The mission statement for Dell is “to be the most successful computer company in the world at delivering the best customer experience.” Since Dell is a global wide company, its “direct approach is relevant across product lines, regions and customer segments.” (http://www.dell.com) IMPLEMENTATION OF A CRM-SCM STRATEGY Customer relationship management...
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...their customers organization part of which is responsible for the activity.Every organizations operating functions, because each organization to produce certain types of services and products, however, not all types of organizations will be called operation functions, through the name. Competition from a rival company does not prevent the development of DELL Why Dell company can created Dell superior competitive advantage in a very short time? Implementation of effective management strategies is the company to success and the key to improve competitiveness.Develop a effective strategy, successful companies have gained faster development and achieved a better competitive advantage and market share. 1:Corporate to gain a competitive advantage, influence the development and implementation of corporate strategic management objectives causal analysis. Competition in the market, if the same way with the competitors management clearly does not produce a competitive advantage,so the business through the investigation and analysis, profiling internal and external complex factors, and then determine the correct strategy. DELL production system refers to the appropriate amount of production and inventory management mode of the Toyota company, and in accordance with the customer's order to produce ,a...
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...gaining grounds in the auto market worldwide by producing high quality vehicles with extended life time. In 1999 Ford acquired the Swedish company Volvo to establish a foot hold in Europe and launched a campaign called "Ford 2000"to reengineer the company infrastructure and IT strategy that aimed at reducing their vehicle centers to 5 worldwide and requiring information technology to be the driving force and the link between the various company divisions. In doing so, Ford was trying to build a model similar to the one adopted by Dell computers to improve supply chain and delivery times. Dell launched the "direct business model" or "virtual integration" where Dell contracted with reliable suppliers to produce and assemble hardware and software for its computers and note books and tried to sell its products directly to organizations and individuals through the internet by cancelling the role of the retailers or intermediaries. I recommend the implementation of this model at Ford in the long run. There are few similarities between the car and the computer businesses but lots of differences Also Ford has to focus first on improving the quality of its vehicles to compete with Japanese manufacturers and adjust its corporate culture to make it responsive to change and more dynamic. Immediate Issue: Terri Takai, Ford Director of Supply...
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...based on Dell's model, or just stay as Ford is currently doing. Some are arguing that virtual integration is not feasible for Ford because of Ford’s business is totally different from Dell and business complexity makes Ford no way to go that road. However, others believe the Dell’s model will succeed in Ford as well because of new information technology and similar business principle will make it work in Ford. Ford should implement the virtual integration model even Ford is much more complex then Dell, but Ford can not simply copy Dell’s model because the vehicles are not like a computer that you can order online and delivery by a carrier. They need to create a plan based on Dell model but focus on Ford’s business and conditions. Teri Takai should be the key person and work together with IT, Purchaser s, Sales and accounting department to start the program: to reduce inventory by building strategic supplier relationship . the ordering system should change form old model ( PO to suppliers, products go to Ford warehouse and then to distribution centers, dealers then customers ) to the new model ( orders to suppliers then products to distribution channel ) that is heavily relying on information sharing and communication. A VP and IT, sales, purchasing accounting should be involved to find strategic suppliers, good information systems further to make suppliers and customers their in house partners. Even a good plan still needs to be monitored and adjusted so the team should sit...
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...performance. First, the main elements of strategy implementation—structure, control systems, and culture—are analyzed in detail, focusing on the way they work together to create an organizing framework. Then the chapter turns to the topic of using structure, control, and culture at the functional level to build distinctive competencies. After that, the chapter addresses the challenges of implementing the generic business strategies of cost leadership or differentiation in a single industry. The final section covers restructuring and reengineering, two strategies that single-business firms can use to improve corporate performance. The next chapter takes up where this one leaves off and examines strategy implementation across industries and across countries—that is, implementing corporate and global strategy in firms that compete in more than one industry. Teaching Objectives 1. Introduce the main elements of strategy implementation—structure, control systems, and culture—and their relationships to each other. 2. Demonstrate how structure, control, and culture can build distinctive competencies at the functional level. 3. Describe the use of structure, control, and culture in implementing a single-business firm’s generic business strategy. 4. Discuss the use of restructuring and reengineering in improving the performance of a single-business firm. Opening Case: Strategy Implementation at Dell Computer Dell Computer grew rapidly from its founding as one-person...
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...of the new supply chain strategy of Virtual Integration and strategies from companies like Dell. Although there are several key differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modification of the virtual integration system currently used by Dell could be applied to Ford’s dependent supplier base, distribution system, dealerships and divisions. Special care will need to be taken to address the unique dependency of our custom Tier 1 supplier. The management of lower tier suppliers of general or generic components would be more effectively suited by the standard procedures used by Dell. If we at Ford could find a solution to the obstacles of virtual integration, it could make our supply chain run smoothly with less bottlenecking, inventory, and better overall performance. Managers could overcome the complex and error-prone manual process of forecasting and procuring parts which would result in reduced OTD lessen costs and enhance customer satisfaction. ISSUE IDENTIFICATION Senior Executives have asked how Ford should use the emerging information technologies and ideas from new high-tech industries to change the way we interact with Suppliers. We must find ways to improve the Supply Chain management and to increase shareholder value and Supply Chain responsiveness. Specifically we are looking at how Dell manages their Supply Chain and incorporates the virtual integration strategy. A decision is...
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...Analysis of Dell Computer and its use of Information Systems in CUT THROAT PC Industry Simon T. Lau Table of Contents Analysis Paper Objective Section I : Industry Analysis : The Personal Computer Industry A. Personal Computer (PC) Industry Profile B. Porter Competitive Model for PC Industry Structure Analysis C. Business Strategy Model and Representative Business Strategies D. Globalization of the Industry E. Importance of the Information Technology to the Industry Section II : Company Perspective : Dell Computer in the PC Industry A. Business Leaders and Company Profile B. Competitive Strategy Statement C. Dell Computer Financial and Market Performance D. Significance of Information Systems at Dell Computer E. Strengths and Weaknesses of Dell Computer Section III : Structured Analysis of Information Systems at Dell Computer A. Strategic Option Generator B. Roles, Roles and Relationships C. Redefine and/or Define D. Significance of Telecommunications E. Success Factor Profile Section IV : Final Analysis – The Success of Dell Computer in the PC Industry A. Success of Business Strategy and Information Systems Use to Day B. Is Dell Computer effectively positioned themselves for the Future? Bibliography Three Outstanding Articles Analysis Paper Objective The objective of this paper is to analyze Dell Computer Corporation (Dell) business...
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...Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Case Analysis: Dell Corporation By: Ijaz Qureshi & John Muffich For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004 © Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA 1 Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Executive Summary: Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting...
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...Strategic Management Process Paper Kenneth Worley MGT/498 February 19, 2014 Patty Murphy Strategic Management Process Paper Having a set of rules, is not the only way to approach management. There is a process to follow. There is a philosophical/strategic thought to it. Management of a business must implement this process. Best way to process it is when everyone in upper management understands the strategy and goal of the business. Goal-setting- is one of the process patterns to illuminate the vision of a business. Also identifying some facets like short, long term objectives and knowing how to accomplish those objectives. Customizing the tasks to the staff for them succeed toward the goals set. Making sure the goals are realistic and detailed, and relate to the vision verbally and written to staff and shareholders of the business. Analysis is very important process, accomplishing your vision is for you to gathering all the relevant data and information. Analyzing what the business need on a sustainable entity, identifying initiatives and strategic direction of your vision and the growth of business. Analyzing external and internal problems which may affect the goals and objectives, which plays to the weakness and strengths of the businesses. Strategy Formulation- is after the completion of the information analysis. Identifying areas might need external resources and identify resources currently the business has to accomplish goals and objectives. To start formulating...
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...Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Case Analysis: Dell Corporation By: Ijaz Qureshi & John Muffich For: Dr. Admassu Bezabah B7405 Business Policy Seminar Summer II: 2004 © Ijaz and John, Argosy Business School, Argosy University, San Francisco, California, USA 1 Dell Corporation, Strategic Case Analysis prepared by Ijaz Qureshi and John Mufich, Argosy University Business School, San Francisco, California, USA. Executive Summary: Dell computer was founded by Michael Dell at age of twenty one in his dorm at the University of Texas, Austin. Dell’s strategy is to build computer so that it can be order by the consumers. It’s build to order strategy has made Dell the most successful company in the information technology field. Dell sells its machines and other equipments directly to customers so it has eliminated the middleman. Dell has high margin because of direct sale strategy and customers get excellent state of the art machines at low cost compare to Dell’s competitors. Michael Dell’s visionary leadership has made Dell the second most successful PC maker in the industry. (IBM is the leader). Dell’s ability to adapt to changing circumstances is its great strength. One week after the September 11th 2001 attack, Dell reported selling 24,000 servers and desktops. Dell established mobile technology park in Washington D.C. and New York by converting...
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...EXECUTIVE SUMMARY Dell was losing its chief advantages – direct marketing and power over suppliers. In 2005, the percentage of PC sale via the phone and Internet fell in US as the sale through US retails stores rose – a channel in which Dell was absent. And by 2006, Dell’s growth in PC sales had slowed to about 5% a year. So that Dell should adjust to its changing environment. So that, the aim of this report are analyzing the internal and external factors, which can affect to Dell’s business, defining the problems and assess Dell’s performance based on it standards and recommending Dell should take corrective actions in order to improve its poor quality of products and services to gain more the competitive advantages than it has now to increase profit, and create a new image about Dell in customer’s minds. 2. INTRODUCTION Dell, Inc. was established in 1984 by Michael Dell at age of 19 while he was a student of University of Texas. He started to earn stake of money from buying back personal computers from the excess inventory of local retailers, then added more features such as memory and disk drivers, then sold out. In 1985, he began manufacturing his own computers and marketed them through ads in computer trade publication. After that, the company kept growing up to be the world’s leading direct marketer of personal computers and one of the top five PC vendors in the world. In 1996, Dell offered its PCs via the Internet at dell.com. By 2001, Dell was at the first...
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...superior performance. First, the main elements of strategy implementation—structure, control systems, and culture—are analyzed in detail, focusing on the way they work together to create an organizing framework. Then the chapter turns to the topic of using structure, control, and culture at the functional level to build distinctive competencies. After that, the chapter addresses the challenges of implementing the generic business strategies of cost leadership or differentiation in a single industry. The final section covers restructuring and reengineering, two strategies that single-business firms can use to improve corporate performance. The next chapter takes up where this one leaves off and examines strategy implementation across industries and across countries—that is, implementing corporate and global strategy in firms that compete in more than one industry. TEACHING OBJECTIVES 1. Introduce the main elements of strategy implementation—structure, control systems, and culture—and their relationships to each other. 2. Demonstrate how structure, control, and culture can build distinctive competencies at the functional level. 3. Describe the use of structure, control, and culture in implementing a single-business firm’s generic business strategy. 4. Discuss the use of restructuring and reengineering in improving the performance of a single-business firm. OPENING CASE: STRATEGY IMPLEMENTATION AT DELL COMPUTER Dell Computer grew rapidly from its founding as one-person, dorm-room...
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...Ford Motor Company Table of Contents Executive Summary 3 Introduction 4 Issue Identification 5 - 7 Environment and Root Cause Analysis 8 - 9 Alternatives and Options 10-11 Recommendations 12 Implementation 13-14 Monitor and Control 15 Conclusion 16 Ford Motor Company Executive Summary As director of Supply Chain Systems, Teri Takai recommends implementing virtual integration strategies from companies like Dell to portions of Ford’s supply chain strategy. Although there are several key differences between the companies, the restructuring plans of Ford 2000 have set a viable foundation to implement Dell’s virtual integration strategy in inventory management, customer service and support and suppliers’ management. The redesign of the process must include design not only of the supply chain but also of fulfillment, forecasting, purchasing, and a variety of other functions that historically been considered independently within the Ford hierarchy. Teri believes that implementing virtual integration by building on Ford’s key initiatives and projects including Ford Production Systems (FPS), Order to Delivery (OTD) and Ford Retail Network (FRN) that are currently underway will make their supply chain run more smoothly with less bottlenecking, reduced inventory, and better overall...
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...Recommendations and Implementation Page 10 Monitor and Control Page 11 1|Page Session 9, Ford Case Study by Christine Godby Executive Summary As Director of Supply Chain Systems, I have reviewed the analysis by my esteemed colleagues of our current supply chain and our recently implemented strategies to date. We have made significant changes to our supply chain through Ford 2000 and we should be proud of our achievements! Our use of information technology (IT) has enabled us to work together as a global team, even though we are on different continents. We have successfully reduced our supplier network which and work as a team with our current suppliers as well as enjoy cost savings and a more reliable supplier network. Our development of the Ford Production System (FPS) has resulted in a leaner more responsive and efficient manufacturing operation and our Order to Delivery (OTD) initiative has reduced our order to delivery time from 45-65 days to just 15 days! This being said, the global market is extremely competitive and I believe is challenging us in ways we have not seen before. With emerging technology and the ability to reach global audiences through the internet, our entire supply chain platform has changed. We need to find a way to work together and embrace this technology in ways that will be cognisant of shareholder value and customer responsiveness. We have analyzed the DELL virtual integration method and the successes DELL has seen using...
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