...uStrategy Implementation at Dell Dell was one of the fastest-growing companies of the 1990s, and its stock price increased at the rate of 100% per year, delighting its stockholders. Achieving this high return has been a constant challenge for Michael Dell. One of his biggest battles has been to manage and change Dell’s organizational structure, control systems, and culture as his company grows. Michael Dell was 19 in 1984, when he took $1,000 and spent it on the computer parts he assembled into PCs that he sold over the phone. Increasing demand for his PCs meant that within a few weeks, he needed to hire people to help him. Soon he found himself supervising three employees who worked together around a 6-foot table to assemble computers while two more employees took orders over the phone. By 1993, Dell employed 4,500 workers and was hiring more than 100 new workers each week to keep pace with the demand for the computers. When Dell found himself working 18-hour days managing the company, he realized that he could not lead it single-handedly. The company’s growth had to be managed, and he knew that he had to recruit and hire strategic managers who had experience in managing different functional areas, such as marketing, finance, and manufacturing. He recruited executives from IBM and Compaq. With their help, he created a functional structure, one in which employees were grouped by their common skills or tasks they performed, such as sales or manufacturing, to organize...
Words: 957 - Pages: 4
...Dell Computer is at the forefront of the computer industry, with the company serving multiple sectors of the market, including households, businesses, educational facilities, and even governmental agencies. The company started small under Michael Dell, who was 19 years old in 1984 when the company began. Dell initially had $1,000 to use on computers parts that he assembled into PCs and sold over the phone. However, the demand for PCs continued to rise, and Dell had to begin to expand the company. It moved to a five-employee staff working around a table assembling computers while taking orders, and eventually, by 1993, Dell had 4,500 workers and had to hire additional employees each week to keep up with the continually rising demand for PCs. Dell quickly realized that he could not manage the company by himself, so he recruited strategic managers who could assist him in the company’s various areas such as manufacturing, finance, and marketing. This move to a functional structure involved grouping employees by their skills in order to better organize the value chain. The company’s structure also became taller with a more structured hierarchy that would allow Dell and his managers to keep necessary control over the business. As Dell Computer grew in size and revenue, it developed a lean organizational culture, with the employees working together to cut costs as much as possible while continuing to serve its customers with the best customer service possible. Dell Computer became...
Words: 1987 - Pages: 8
... 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...
Words: 4059 - Pages: 17
...Crafting And Executive Strategy Assignment 1 Case Study # 6 Dell Inc. In 2008 : Can it overtake Hewlett – Packard as the worldwide leaders in personal computers ? Submitted to : Prof. James Farmer Submitted By : Roshni Patel Student Number : 300686000 Question 1: Dell inc. Began with a ‘winning strategy’. At this time (2012), this strategy is not used to the extent that it was once was and the company is now not the company that it was once. Did Dell’s strategy fails, did the company fail to effectively execute the strategy or did the environment changes around Dell? Evaluate the possibilities. Answer: Dell is a global company that delivers products and services in more than 190 countries and company had given employment to over 4000 employees. The company deals in enterprise computing products, monitors, printers, software and peripherals with a focus on fully integrated improved environmental performance into business. The company had gone through many ups and downs from its inception in 1984 and has to face many challenges and competitors to stay ahead in the market. Dell founded the company with simple vision and business concept that the personal computers could be built and sold directly to consumers which would eliminate the additional cost of intermediaries between the company and consumer and thus reducing the overall cost of the PCs making it cheaper than other PCs in the market. The other advantage was that it reduces the costs and risk associated with...
Words: 1053 - Pages: 5
...Marketing Plan For Health Care Monitoring Tool At Dell Services Amber Littleton MM522- Marketing Management 1. Executive Summary Dell Services offers a web tool for hospitals with Electronic Medical Records that enables them the client to view real time statistic of the interfaces flowing into the EMR and various reporting tools that allows access to the database in a GUI format. Although many Healthcare IT consulting companies have recently tried to implement a Host monitoring service, none have cornered the market with their technology the way Dell Services has with their unique application. Because the Monitoring tool is such a marketable product right now, the Dell Services team needs to find ways to boost performance and improve the users experience without increasing costs. The best opportunity for Dell Services to do these things and to maintain and grow the product marketability is to do a complete revamp of the web application framework and present the newly vamped application to existing and potential clients. According to Spetz 2009, having an Electronic medical record (EMR) systems offers substantial opportunities to organize and manage clinical data in ways that can potentially improve preventive health care, the management of chronic illness, and the financial health of the Hospital. The benefits are faster chart coding, which means faster payment for services to savings in personnel, transcription and paper costs; and efficiency...
Words: 4529 - Pages: 19
...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 (CRM) is...
Words: 2596 - Pages: 11
...became one of the top three car manufacturers in North America. Sales reached 150 billion $ in 1996 with a total of 370,000 work force worldwide. The company stayed innovative and progressive in its strategy and business model. In the 1970's, the car market became more competitive with the Japanese manufacturers like Toyota and Honda 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...
Words: 1672 - Pages: 7
...contain systems and processes of maintaining the appropriate level of stock in a warehouse. It is important not only maintaining the inventory accuracy and level but also required to achieve customer satisfaction level and minimize the inventory carrying cost will not be easy task. Our main objective is to highlight to everyone, how Dell, one of the leading IT technologies company, improves its inventory. Slide 3. Focus (ALZAM) We’ll be focusing on Dell’s Historical background, follow by problem arises, key strategies solution and lastly the implementation to improve inventory. Now, I’ll pass on to ( ) for Dell Historical Timeline Slide 4. Historical timeline of Dell ( ) Under this overview of Dell Historical timeline, I’ll start off with Michael Dell, he had found "PC's [sic] Limited" in 1984 with just $1000 capital. A year later in 1985, this company produce it very first own design computer and name its “ Turbo PC”. In 1987, it set up it first on-site-service program. Follow by a year later, “PC Limited” was renamed to “Dell computer corporation” in 1988. 2 yrs down the road at 1990, Dell met a little small obstacle which cost its company to drop 64% in profit. Make him no choice but to refocus on the direct to consumer sale model in 1991. By 1992, the company was listed by Fortune Magazine to be one of the world 500 largest company. In order to pay more attention to mail order orgins, by 1994,...
Words: 1083 - Pages: 5
...Supply Chain Strategy The Importance of Aligning Your Strategies UPS Supply Chain SolutionsSM Copyright © 2005 United Parcel Service of America, Inc. All Rights Reserved. No part of this publication may be reproduced without the prior written permission of UPS Supply Chain Solutions. Our Insight. A UPS Supply Chain Solutions White Paper Introduction Chances are you’ve heard the term supply chain strategy. Used informally, it is often confused with supply chain management, where supply chain operations are controlled to reduce costs. There’s some truth to this definition, but supply chain strategy really is broader; it defines how the supply chain should operate in order to compete. Supply chain strategy is an iterative process that evaluates the costbenefit trade-offs of operational components. A well executed supply chain strategy results in value creation for the organization. Business strategy involves leveraging the core competencies of the organization to achieve a defined high-level goal or objective. It also includes the analytic and decision-making process surrounding what to offer (e.g., products and services), when to offer (timing, business cycles, etc), and where to offer (e.g., markets and segments) as a competitive plan. While the business strategy constitutes the overall direction that an organization wishes to go, the supply chain strategy constitutes the actual operations of that organization and the extended supply chain to...
Words: 2774 - Pages: 12
...DELL INC. IN 2009 1. What generic competitive strategy did Dell follow, which made Dell the leading supplier in the global PC industry in 2003-04? What were the key elements in the strategy? (4 pts) A: Dell pursues the cost leadership strategy and differentiation strategy. Dell has driven costs out of company’s supply chain and kept inventory to a minimum. At that time, the low cost per PC in Dell and the high profit per PC form a poignant contrast. Dell has delivered the customer’s a series of unique and innovative combination of services at that time which not only set itself apart from other competitor but also perfectly matches the level of expectation at a cost that also assures an adequate level of profitability. 2. How well did the key elements fit together for Dell to gain competitive advantages over its competitors? What were the competitive advantages? Sustainable? (4 pts) A: During these years, the key elements fit very well for Dell. The first advantage gained is efficiency of order based on its Direct Model. The second advantage gained is a solid supply chain and lower inventory based on its low-cost strategy. However, I don’t think this will be sustainable because its strategies are easy to copy by other competitors. Moreover, Dell has not paid enough attention to technology innovation for a long time. 3. What caused Dell to lose its No.1 spot in PC industry in 2007? Internal factors and external factors? Anything to do with its strategy and implementation...
Words: 509 - Pages: 3
...Table of Contents Executive Summary 3 Issue Identification 4 Environment and Root Cause Analysis 5 Alternatives or Options 7 Recommendations 10 Implementation 12 Monitor and Control 14 Conclusion 15 Executive Summary As director of Supply Chain Systems, I have decided to implement some of the key components of the new supply chain strategy of Virtual Integration from the companies like Dell Computer Corporation. Though there are several differences between the companies, Dell’s virtual integration strategy can be applied to Ford’s supply chain operation. A modified Virtual Integration System can be applied to Ford’s dependent supplied base, distribution system and dealerships. Special care needs to be taken to address the issue of unique dependency of our Tier 1 suppliers. The management of Tier 2 and Tier 3 suppliers would be more suited by the standard procedures used by Dell. If we could find a solution to all the obstacles of virtual integration at Ford, it could make our supply chain run smoothly with the best inventory solutions and overall performance. Managers will be able to overcome the complex and faulty manual process of forecasting and procuring parts which result in reduced OTD, thus decreasing the costs and enhancing customer satisfaction. Issues Identification • Inaccurate forecasting • Supply chain based on outsourcing dependent on large supplier network • Ineffective communication in supplier network • Long Cycle Times • Dealer...
Words: 1901 - Pages: 8
...Weaknesses and External Environment 1 V. Business Level Strategy 1 VI. Analyze Implementations 1 VII. Recommendations 1 I. Company’s History and Growth Through the years Dell went from producing PC’s to software, hardware, workstations, electronics, printers, tablets, mobile devices networking, storage devices, servers, security products and other electronic devices and information technology systems but it all started with just building computer systems. Dell doesn’t just sell products to personal consumers, Dell also targets government, healthcare, education and small and large corporations. Michael Dell founded Dell Company; hence the name of the company derived from his family name but the company wasn’t known as Dell back in 1984 when it was founded. In 1984 the company was known as PC’s Limited which designs, manufactures and sells technologies that has a dedicated founder who left his university to commit his time and effort for the company. What separated Dell from other firms in the industry in 1985 is their unmatched service for their customers in their first PC, “Turbo PC” (Dell 2012). Dell provided a “risk-free returns and next-day-at-home product assistance” (Dell 2012). From that Dell continued to grow by providing what was back then the PC with the fastest performance and opening branches internationally. One of the significant time and moment in Dell’s growth is in 1988. Dell was able to do their public offering which upped their capital...
Words: 3958 - Pages: 16
...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...
Words: 899 - Pages: 4
...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...
Words: 13153 - Pages: 53
...Ford Motor Company: Supply Chain Strategy Attn: Jac Nasser, CEO Dear Mr. Nasser Please find attached the report as requested Yours Truly, Teri Takai Ford Motor Company: Supply Chain Strategy ------------------------------------------------- Case Study Response Executive Summary As Director of Supply Chain Systems and decision maker on if we should proceed with the Virtual Integration Model I have carefully analysed all aspects of this model to see if it could work within Ford and the Automobile industry. We have a rich history of success and working through difficult challenges and I have no doubt that we will do so again with the right decision on this model. The Automobile industry is a complex one with many suppliers, parts, dealerships, competitors and all this is now happening in a global market. This complexity makes efficiencies difficult to implement and drives up the costs our supply chain. Many efficiencies would require the cooperation of both internal and external parties and would require significant investment. Ford’s main problem with their current system is the inefficient usage of their huge data base, the complex network of suppliers, the presence of many independent distributors who are making forecasting difficult and the lack of direct communication with customers. Through my review I have come to the conclusion that the full implementation of the Dell Model would not work; the way customers buy cars and computers in this day and...
Words: 3143 - Pages: 13
