Dell Corporation 1. Introduction A . Company History In 1983, Michael Dell, an 18-year-old freshman at the University of Texas at Austin, Spent his evenings and weekends pre-formatting hard disks for IBM-compatible PC upgrades. A year later, he dropped out of college to continue with his rapidly expanding business, which had grown from zero to $6 million in 1985, simply by upgrading IBM compatibles for local businesses. In 1985, Dell shifted its focus to assembling it own brand of computers which led to a dramatic growth of the business, with $70 million in sales at the end of 1985.
By the year 1990 sales had grown to more than $500 million and Dell was able to supply a number of Fortune 500 Companies. The company now had a broad product line of desktop and portable computers with Intel processors and had earned a strong reputation for quality products and service. Throughout the company’s history, a big part of Dell’s success was due to its unique and distinctive “Dell Direct Model. ” This model took efficiency to new heights by eliminating the intermediaries between maker and user of PC’s and lowered costs by eliminating inventory with the help of an efficient supply-chain management system and internet sales.
Today, as the world’s largest PC manufacturer, Dell Computer Corporation offers a great variety of computing products directly to customers, with build-to-order systems and Comprehensive services that fulfill the needs of its customers. Dell’s customers range from Major corporations to individuals all over the world. Efficient cash management has enabled Dell to have both extremely high inventory returns and a “negative cash conversion cycle. ” This cash flow system permits Dell to pass on cost savings to customers in the form of lower prices for the best technology available.
These competitive advantages have helped the company achieve a solid cash position with outstanding liquidity B.. In search of a company culture The culture at Dell had always been driven by a continuous program to drive down costs And improve the “customer experience. ” Facts were more important and more highly valued than emotions and personal feelings. As the company grew and succeeded, the company culture that pushed the drive to be number one and to make a personal fortune was based solely on economic terms.
But in the year 2000, Dell’s margins in the hardware business began to decline due to a slowing demand for PC’s and a price war with competitors. Investors were disappointed, layoffs were frequent, and employees began to wonder why they worked in a high-tech industry, and why they worked for Dell. Kevin Rollins was aware that all great companies have great cultures. They have a Purpose and a leadership model. Aware of an urgent need to define his company’s culture, he Looked for inspiration, reading books on Franklin, Jefferson, Monroe, and Washington.
He soon discovered that what the founding fathers of the United States believed in went well beyond logic. They were passionate, very idealistic, and had a vision that exceeded their personal gain and involved the risk of losing their lives. Mr. Rollins found this remarkable, and it caused him to think about the country’s soul and its leaders. He believed this was an “interesting paradigm for a company to examine, as opposed to simply adopting the business paradigm. ” With this foundation, he began to develop what became known as The Soul of Dell. C. . Key Players Michael Dell is the founder and CEO of Dell Computers.
During the past 18 years, he Has grown the company’s sales from $6 Million to $33. 7 Billion and opened sales offices Worldwide, employing more than 38,000 people around the world. In 1992, Michael Dell Became the youngest CEO of a company to be ranked as a Fortune 500 firm. He has been Honored in numerous occasions for his vision and leadership. One of the main goals for his Company is to double company profits by 2005 Kevin Rollins became Dell’s President and Chief Operating Officer in March of 2001. Before then, he was president of Dell Americas. He managed all company operations in the United States, Canada, Mexico, and Latin America.
During Mr. Rollins’ tenure at Dell, the Company has gone through a dramatic growth process increasing revenues from $5 Billion to $31 billion in just five years. Before joining the company, he functioned as vice president and Managing partner of Bain & Company Management Consultants, where he specialized in Corporate strategy and the management of high-tech companies. With his development of The Soul of Dell, he would like people to refer to Dell as a place where respect, integrity, honesty, and forthrightness are valued. Elizabeth Allen is currently the vice president of Corporate Communications at Dell.
Her Responsibilities include the direction and global management of Dell’s corporate communications functions, including media relations, employee communication, and liaison with brand and product advertising divisions. Allen has spent more 20 years of her career in corporate communications. Before joining Dell, she was vice president of corporate communications at Staples Inc. , where she expanded investor, government, community and media relations. Previously, she worked for Raytheon Company and Loral Corporation as vice president of corporate communications in each.
Allen has the responsibility of diffusing The Soul of Dell both inside the company and externally. 2. Current situation A. Vision statement 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 customers 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. So Dell needs full customer satisfaction. In order to become the most successful computer company, they need the newest technology and loyal customers. B.
Mission Statement Dell’s mission is to be the most successful Computer Company in the world at 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 citizenship •Financial stability 1- Customer The customer of dell according to the mission statement is the whole world because their aim is to be the most successful computer company in the world 2- Market
Due to the point that Dell wants to be the most successful computer company in the world it is automatically understood that their market is the whole world 3- Concern for profitability and growth Due to aiming to conquer the whole world their will always be a place for growth which leads to more profitability 4- Concern for employees The mission statement does not talk at all about the employees I think this is the only flaw in the mission statement but if a company has such big goals the employees must be very qualified especially in this filed. The filed of computers because it is very competitive market with the other competitors. . Philosophy: From day one, Dell has built his company up on the premise that what the customer says goes. When he first started Dell Computer at the age of 19 in his University of Texas dorm room, Dell says his concept was simple: buy parts, assemble them, and sell the finished products directly to customers. He effectively eliminated big distributors and was able to reduce the end price he could charge. “You tell us what you want – how fast you want the programs to operate, how much memory, how expandable – and we will build it for you and ship it out, usually within three days,” he says. And if ever you have a question or a problem about your system, you call us direct. We take direct responsibility for the complete satisfaction of each and every customer. ” After his company had been in business for three years, Dell created the industry’s first on-site-service program. If there was a problem with your computer, you didn’t have to return to the store to have it looked at. You simply called Dell and a serviceman would come to your house and fix it. “That was a pretty important plus because we didn’t have any stores,” Dell jokingly recalls.
Dell claims that his company operates on a relatively simple concept: “The most important thing is to satisfy our customers,” he says. “The second most important is to be profitable. If we don’t do the first one well, the second one won’t happen. ” Thus, the focus of his company remains on concrete issues, such as improving delivery time, cutting operating costs and maintaining customer service. Dell believes in the importance of adding value “beyond the box”, looking at the customer’s total experience. To this end, he often aligns his company with complementary partners for increased efficiency.
Today, Dell builds computers only in response to orders that the company has actually received from users, either by phone or the Internet. Users are able to dictate the company’s supply, relieving Dell of the risk that comes along with trying to predict market demand in the extremely unpredictable computer industry. Because Dell customizes its products, the company is also able to provide unmatched levels of customer service. For instance, on October 27, 1997, after the Asian economic crisis overwhelmed Nasdaq’s online trading site, Nasdaq called Dell, which proceeded to build eight custom-made PowerEdge servers in just 36 hours.
Three days later, they were up and running for Nasdaq. By prioritizing his customers, Dell was rewarded with their business and loyalty. http://www. evancarmichael. com/Famous-Entrepreneurs/646/Lesson-2-Develop-a-CustomerFocused-Philosophy. html 6. Concern for public image The point that “Dell’s mission is to be the most successful Computer Company in the world” means only one thing and that is the public image for the company must be very good not only domestically but also internationally. 7. Production services
The way how dell operates is actually a very smart way to cut of cost and inventory accounting wise leading to more profit for the company also the quote “Best-in-class service and support” convinces you that any service this company does can only be the best. 8. Technology Technology plays a very important role for dell simply because of the nature of the business. The computer filed is all about technology and service that is what gives any company the edge of survival in this filed so technology must be very high. “Leading technology”, http://www. samples-help. org. uk/mission-statements/dell-mission-statement. htm http://retailindustry. bout. com/od/topusretailcompanies/p/dellincprofile. htm C. Values statement Extending Our Global Success Leadership. Performance. A commitment to expansion. These are the principles that have secured our success in the marketplace and enhanced our ability to anticipate and address the industry’s needs. Our unique position as a technology leader ensures that you’ll always be challenged in your work and supported in reaching your most ambitious goals. [pic][pic][pic][pic] Showing results 1-2 of 2 1. Collaboration. Ambition. A commitment to unique solutions. When you work at Dell, you embody these principles every day. 2.
Commitment to Diversity Collaboration. Empowerment. Opportunity. These are the tenets of Dell’s strong commitment to diversity. http://content. dell. com/us/en/corp/careers-our-values. aspx D. Dell policies 1. Dell Global Environmental Policy 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. http://content. dell. com/us/en/corp/d/corporate~corp-comm~en/Documents~dell-global-environmental-policy. df. aspx 2. Global social media policy Scope This Global Policy on Social Media (Policy) is a Corporate Compliance Policy and applies to all Dell employees, employees of any Dell subsidiary, assigned workers, as well as to third parties performing services on Dell’s behalf (hereinafter collectively referred to as “You”). For employees, compliance with this Policy is an expectation of employment (subject to local legal requirements). For assigned workers and third parties, compliance with this Policy is a condition of access to Dell facilities and resources, and of being permitted to perform services for
Dell. Definitions for capitalized terms used in this Policy may be found at the end of the Policy. Purpose Dell recognizes that Social Media tools such as blogs, micro-blogs, online forums, content-sharing Websites and other digital channels established for online interaction and connection are increasingly used to: promote Dell to colleagues, customers, the media and other Dell stakeholders; and/or share personal opinions and participate in online dialogue as individuals.
The purpose of this Policy is to establish standards and expectations regarding any Dell-related use of Social Media. Dell’s commitment to being direct, supports open communications, provided such communications adhere to this Policy. Policy Statement You must adhere to the following when engaging in Social Media: • Appropriate Use of Information Technology Resources. Dell’s Information Technology (IT) resources are company property dedicated to achieving Dell’s business objectives. Inappropriate use is not acceptable.
This includes, but is not limited to, using Dell IT assets to post offensive material on content-sharing websites, publish defamatory remarks about colleagues or customers on web forums or blogs, and leaking Confidential Information. • Speaking On Behalf of Dell. Blogging and other online dialogue are far-reaching forms of communication; distribution is meant for a vast public audience. Information purported to be published by Dell contained within blogs and other Websites could have a negative impact to Dell and our stakeholders, with potential legal implications.
Unless You have successfully completed Dell’s Social Media training courses and have been certified to speak on behalf of the company using Social Media, You shall never claim to be speaking on behalf of Dell or expressing an official company position in such communications. • Ethical Conduct. You shall not conduct activities that are illegal or contrary to Dell’s Code of Conduct, Privacy Statement Regarding Customer and Online User Information, or other Dell policies. Always respect the dignity and privacy of colleagues, customers, other Dell stakeholders and Dell competitors.
Harassing, intimidating, offensive, abusive, threatening, menacing or hostile content communicated through blogs and other online communications is prohibited. Data related to others, including, but not limited to, personal details and pictures, shall only be posted with that party’s consent. • Transparency of Origin. You shall disclose Your connection to Dell in all communications with customers, the media or other Dell stakeholders when speaking on behalf of Dell (if authorized to do so) or discussing or recommending Dell or its products or services (even when doing so in Your personal capacity).
You must also provide Your Dell contact information upon request. Unless you are certified to speak on behalf of Dell, You should make it clear that the opinions are Yours alone and do not necessarily reflect Dell’s views or positions. • Accurate Information. Never knowingly communicate information that is untrue or deceptive. Communications shall be based on current, accurate, complete and relevant data. Dell will take all reasonable steps to assure the validity of information communicated using any channel but it is Your responsibility to assure accuracy in the first instance.
Anecdotes and opinions shall be identified as such. • Protection of Confidential Information. You shall protect Confidential Information as such information represents one of Dell’s most important assets. It is never appropriate to share, post, publish or otherwise disclose Confidential Information unless You are explicitly authorized to do so. You must respect securities and financial disclosure laws, and must not post or otherwise comment in any capacity on Confidential Information that may be considered financial information (such as earnings, future business performance, business plans or prospects). Accountability. You will be held accountable for the information You share in online activities. Be careful what You share, publish, post or otherwise disclose. You are personally responsible for what You share and should remember that anything You post may be public for an indefinite period of time (even if You attempt to modify or delete). Try to ensure Your online communications reflect Dell’s brand attributes of openness, responsiveness, integrity and optimism. Procedures and Training Dell has adopted training materials to assist You in complying with this Policy.
Dell’s Social Media and Communities (SMaC) Team will deliver role-appropriate training. Asking Questions You are encouraged to ask any questions You may have about this Policy. To learn more about how to use Social Media in accordance with this Policy, contact Dell’s SMaC Team at [email protected] com. You may also ask Your leader or Human Resources representative, or contact the Global Ethics and Compliance Office at [email protected] com, or the Legal Department. Reporting and Investigation It is very important that You immediately report any suspicious behavior regarding Dell employees or Dell third parties.
To report known or suspected violations of this Policy, contact your leader or another member of management, your Human Resources representative, an Ethics and Compliance team member, or call the Ethics Helpline, a confidential toll-free, third party-operated telephone service, You may also submit a report using the Ethicsline, a confidential Web-based online reporting vehicle. Reports made using the telephone Helpline or the Web-based Ethicsline may be made anonymously where permitted by local law. Anyone reporting a suspected or actual violation of this Policy is protected from retaliation under Dell’s Code of Conduct.
All good faith allegations of violations of this Policy will be fully and confidentially investigated pursuant to Dell’s Global Policy on Raising and Investigating Potential Ethics and Compliance Violations. You are required to cooperate with all investigations of alleged Policy violations. Discipline and Other Consequences Employees who violate this Policy will be subject to appropriate disciplinary action or other remedial measures up to and including termination of employment if warranted under the circumstances and permissible under applicable law.
Assigned workers and third parties who violate this Policy are subject to being denied access to Dell facilities, personnel and assets, and permission to perform services on Dell’s behalf. Waivers The provisions of this policy cannot be waived. Dell management does not have the authority to approve waivers to this Policy. Revision and Revocation This Policy is not a contract between Dell and any employee, assigned worker, or third party. This Policy may be revised or revoked by Dell at any time, without advance notice or cause. Local Policies and Procedures
Dell operates in many countries and it is Dell’s intention to comply with all applicable legal requirements. Accordingly, if a provision of this Policy conflicts with applicable local legal requirements, Dell will follow the local legal requirement (provided the local requirement does not conflict with U. S. law). In addition, Dell may adopt regional or country-specific policies on this subject to accommodate local conditions or legal requirements, and will inform employees in the applicable region or country of the terms of any such policy. Definitions
Confidential Information — Important or valuable business information that is not available to the public. It includes trade secrets and other intellectual property that has been developed, licensed or acquired by Dell. It can also include information of customers, business partners or others that has been disclosed to Dell under obligations of confidentiality. Examples include unannounced financial information, strategic business plans, unannounced product or services and solutions offerings, planned or contemplated mergers or acquisitions, lawsuits and other legal proceedings, roduct design and technical knowledge, customer and team member personal information. Social Media — Web-based technologies used to broadcast messages and participate in dialogues. Examples of Social Media software applications on the Internet include social networking applications such as Facebook; video-sharing applications such as YouTube; micro-blogging applications such as Twitter; collaboration applications such as Wikipedia; and Dell’s official corporate blog, Direct2Dell. Examples of Social Media applications used within Dell are Dell’s internal blog, One Dell Way, and Dell’s internal networking tool, Chatter.
Global Policy on Social Media Effective Date: August 5, 2010 http://content. dell. com/us/en/corp/d/corp-comm/social-media-policy. aspx 3. Privacy and Data Security At Dell, your right to privacy and data security is a primary concern. That’s why, when you visit dell. com, we help you maintain control over your personal data on the Internet. Below are the guidelines we use for protecting the information you provide us during a visit to our Internet sites (www. dell. com/ap) or when you use our online support offerings such as support. ap. dell. com.
Other Dell and Dell Co-branded sites may operate under their own privacy and security policies. 3. External scanning A. PEST ANALYSIS PEST analysis is very important that an organization considers its environment before beginning the marketing process. In fact, environmental analysis should be continuous and feed all aspects of planning. The organization’s marketing environment is made up from: PEST analysis stands for “Political, Economic, Social, and Technological analysis” and describes a framework of macro environmental factors used in environmental scanning.
It is also referred to as the STEP, STEEP or PESTLE analysis (Political, Economic, Socio-cultural, Technological, Legal, and Ethical). It is a part of the external analysis when doing market research and gives a certain overview of the different macro environmental factors that the company has to take into consideration. Political factors include areas such as tax policy, employment laws, environmental regulations, trade restrictions and tariffs and political stability. The economic factors are the economic growth, interest rates, exchange rates and inflation rate.
Social factors often look at the cultural aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. The technological factors also include ecological and environmental aspects and can determine the barriers to entry, minimum efficient production level and influence outsourcing decisions. It looks at elements such as R&D activity, automation, technology incentives and the rate of technological change. The internal environment e. g. staff (or internal customers), office technology, wages and finance, etc.
The microenvironment e. g. our external customers, agents and distributors, suppliers, our competitors, etc. The macro-environment e. g. Political (and legal) forces, Economic forces, Socio cultural forces, and Technological forces. These are known as PEST factors. Political Factors The political arena has a huge influence upon the regulation of businesses, and the spending power of consumers and other businesses. You must consider issues such as: .How stable is the political environment? For example what is happening because of 25 of January revolution? Will government policy influence laws that regulate or tax your business? .What is the government’s position on marketing ethics? And this is not clear in Egypt those days What is the government’s policy on the economy? Does the government have a view on culture and religion? Is the government involved in trading agreements such as EU, NAFTA, ASEAN, or others? Economic Factors Marketers need to consider the state of a trading economy in the short and long-terms. This is especially true when planning for international marketing. You need to look at: . Interest rates 2. The level of inflation Employment level per capital Sociocultural Factors The social and cultural influences on business vary from country to country. It is very important that such factors are considered. Factors include: l. What is the dominant religion? 2. What are attitudes to foreign products and services? 3. Does language impact upon the diffusion of products onto markets? 4. How much time do consumers have for leisure? 5. What are the roles of men and women within society? 6. How long are the population living?
Are the older generations wealthy? 7. Do the population have a strong/weak opinion on green issues? Technological Factors Technology is vital for competitive advantage, and is a major driver of globalization. Consider the following points: 1. Does technology allow for products and services to be made more cheaply and to a better standard of quality? 2. Do the technologies offer consumers and businesses more innovative products and services such as Internet banking, new generation mobile telephones, etc? 3. How is distribution changed by new technologies e. g. ooks via the Internet, flight tickets, auctions, etc? 4. Does technology offer companies a new way to communicate with consumers e. g. banners, Customer Relationship Management (CRM), etc? http://www. nishanw. org/Corporate%20Strategy%20lession%202%20tools. doc B. Porter’s model 1. New entrants:- From the point of view of Dell this is considered a low risk simply because to enter a market like this you need a lot of capital, to start up and to get the latest technology. Seconded of all there are a lot of established companies in this field so entering it would be nearly impossible. ttp://www. photopla. net/wwp0503/entry. php 2. Rivalry:- Rivalry will always exist in such a market because there are lot of establish competitors such as HP, Sony, Toshiba. And many more. www. csus. edu/indiv/h/… /ComputerIndustryAnalysis8-06. ppt – 3. Threat of substitute products:- In the computer filed you would think there are no substitute products. It matters on exactly what the customer wants if the customer wants a computer just to serf the internet there are substitute products. Like the high tech mobiles and I-Pad.
However if the consumer uses a computer to play games or other things computer a pretty much the only product you can buy to do these stuff therefor the computer becomes a nessatiy . In the case of dell laptops are not considered a substitute products compared to the normal Personal computer. Due to that dell is one of the main players in the computer market and are aiming to be the best in all computers as to oppose of Gamma or Philips for example. http://www. vodafone. co. uk/personal/index. htm 4. Bargaining power of buyers:-
The consumer or buyer in this case has a lot of power therefore any company that wants to serve has to play by one rule an that rule is. To produce a product at the lowest cost possible selling that same product at the highest cost possible. The highest cost possible is the selling price your competitors sell there product. Consider if you will that the cost the competitor sells his product that to be your ceiling of a price there for you will always find that competitors all there prices are very close if not even the same.
Only if there is a huge difference in quality. 5. Bargaining power of suppliers. As for suppliers bargaining power this is a very high risk for any company because a supplier may rise prices or less the quality of the product. There for it is a must for every company to have an excellent relation with its supplier. Relative power or other stakeholders Governments play a big role on any company with law and Terries and so on there for it might not be that easy to enter a new market. C. Strategic groups
In the case of dell or in general the computer industry you will find that there are a lot of players in the market such as Sony, HP, Compaq, all of these companies just mentioned all work under the IBM Bracket as to oppose of apple which uses Macintosh a completely different operation system. This is more used by advanced users such as engineers and musicians. So from by point of view if we were to compare price of the final product and quality you will find Apple in the top right while dell and all the others will be under apple also on the right because dell always thrive on the highest quality product. pic] D. Strategic types Dell is a reactor company because in this filed of computers all of them work as a reactor company simply because all what dell does is that is manufactures and assembles the computer the only thing that changes in this field is the technology and power of the computer example for the companies that create that technology is Intel and AMD E. Issue priority Matrix Impact on organization
High Medium Low | | | | | |Medium priority | |Increasing Turn over |high | | |High priority |rate | | | | | | | |Low priority |Financial crisis |High priority |Medium | | | |Medium priority | | |Swine flu |Low priority | |low | Probability of occurrence The issue priority matrix is a matrix that helps you measure the priority of external factors and its effect on the organization. the financial crisis have a medium level of occurrence, while it have a medium priority, while the swine flu has a low level of occurrence with a low priority, the rate of turn over rate has a high priority with a high rate of occurrence. F. Industry success matrix In the industry we have decided to place all the direct competitors in our bubble according to the Strategic groups. Picking only 3 companies for convenience Key factors |weight |Dell |score |sony |score | |1 | Increased internet |. 20 |3 |. 6 |Increases dell profit | | |access in Egypt | | | |by reaching more | | | | | | |customers | |2 |Outsourcing |. 05 |4 |. |Improve the quality of | | | | | | |services offered by | | | | | | |dell | |3 |Ecommerce |. 10 |4 |. 4 |Increasing profits | | | | | | |through usage of dell | | | | | | |direct model | |4 |Maintaining Low Price |. 05 |2 |. 1 |Questionable as it’s an| | Leadership | | | |old strategy used for | | | | | | |companies in growth | | | | | | |stage | |THREATS | |THREATS | | | | |1 |I. T. Advancement |. 0 |4 |. 8 |Well positioned | |2 |Price Wars |. 10 |3 |. 3 |Questionable | |3 |Strong Brands in The |. 10 |3 |. 3 |Dell brand name is also| | |Market (IBM) | | | |a strong ones | |4 |HP / Compaq Merger | . 20 |4 |. |Well positioned | |Total |1. 00 |3. 5 | | | | The 3. 50 WEIGHTED SCORE in Dell’s EFE Matrix is above average and represents that Dell is responding in an excellent way to its opportunities and threats in the I. T industry. In other words we can conclude that Dell’s strategies efficiently and effectively take advantage of its opportunities and take serious steps to minimize the potential threats. http://www. ijazconsulting. com/uploads/Dell-Strategic_Case-Analysis_by_Ijaz_and_Muffich. pdf 4. Internal scanning A. Organizational structure
Dell Corporation’s organizational structure is a functional, decentralized structure. The company encourages different departments and functional components to contribute ideas to enhance the strength of the organization. The hierarchical structure provides defines the various functions provided by Dell Corporation, including Business Development, Education, and Global. A decentralized structure provides more learning availability for all members of the enterprise, as decisions come from various levels; in contrast, the centralized structure has more of the decision-making coming from the upper levels of the enterprise, such as the CEO and Vice Presidents.
In the divisional organization, every division has its own groups to support that specific division (such as purchasing units and human resources units). [pic] 2. Culture: |D