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Dell Business Information Strategy

XECUTIVE SUMMARY

The business information strategy helps a business in identifying ways and means of writing information over the firm and across all the departments of the organization. This statement highlights the business enterprise information strategy at Dell, a favorite computer manufacturing company. The industry has been led by the major players like IBM, Compaq, Intel, Lenovo, Horsepower, Apple, Microsoft, Dell, Sony, Samsung, LG, etc. The very best two manufacturers of pcs aside from Dell are Apple and Microsoft plus they cause a stiff competition to Dell and the marketplace is led by the very best two to three manufacturers.

After comparing the financial performance of Dell, IBM and Apple Inc, it can be said that the level of businesses of Dell is a lot lower as compared to Apple Inc and IBM. Some of the recommendations made to the companies in the processing industry are as follows

Focus on quality of products, implementing innovative manufacturing procedures, improved customer support, competitive pricing, improved supply chain, etc. The technique for Dell would be to adopt an impressive manufacturing process in doing so helping it to remain competitive by attracting a big change and by developing technologically advanced products.

This technical change will impact on virtually all the aspects of Dell's business, like management, information needs, business locations, staffing requirements, staff training, etc.

INTRODUCTION

The strategy in a business organization plays an integral role, be it a company strategy, marketing strategy, HR Strategy, or business information strategy. The business enterprise needs information whatsoever levels and the success of the business can be immediately attributed to the level of information that can be seen by the employees of any business. A company should strive hard to provide information to the employees, as chances are to increase the performance of the business all together. The business information strategy helps a company in identifying methods of posting information across the group and across all the departments of the business. This article highlights the business information strategy at Dell, a well known computer manufacturing company.

INDUSTRY SECTOR ANALYSIS

Computer manufacturing market sectors differs somewhat from other developing industries in the way of production and largely workers make up a relatively very small proportion of the workforce. Computer creation industry is considered as most progressive industry. While using moving trend, enhancing technology and upsurge in know-how, this industry creates its own identity and drives a lot of the industry's development. This industry is also considered as a location for technological as well as innovative advancements. This is the only processing industry which requires maximum amount of designers, technicians, and a great many other technical assistants who can take the research and development work further. In addition to creation, it also requires promotion of products made by the different segments of the industry that requires more eligible marketing as well as sales executives or staff. U. S companies in this industry make as well as assemble the components manufactured in international countries, in order to take benefit of lower cost of production and regulatory and beneficial environments.

Most of the electric products include different intermediate components that are needed to be purchased from various manufacturers. So these businesses that produce intermediaries and goods largely locate themselves near by to industry so that the companies can get their intermediate products in very less time in order to lower down their inventory costs. Most the computer production companies in this industry are incredibly large and most are relatively small.

The computer manufacturing industry in addition has had its talk about of influences of the recent financial meltdown. The computer developing industry was also going through a transformational turmoil. The sales of the major players have lowered considerable and the gains have also declined. In fact, some of the manufacturers have incurred deficits from their operations during the problems. Moreover, the industry has been very competitive in the recent past with more plus more medium level manufacturers stepping into the global market segments. The reduced cost computers manufactured by the Indian and Chinese manufacturers have increased the level of competition on the market. There have been various influences using the pc manufacturing industry during the last few years roughly. The affects were because of the increase in the amount of computer manufacturers, use of latest technologies, rapid decrease in the cost of manufacturing due mainly to the outsourcing of components manufacturing ton countries like India and China. Overall, it could be said that there are various challenges experienced by the computer processing industry which is likely that the future is going to more challenging for the manufacturers, as they contend hard to be able to catch the attention of and wthhold the market show.

Market Leaders

The Computer production industry has experienced an increase in the amount of computer manufacturers during the last five years roughly. However the industry at large has been led by the major players like IBM, Compaq, Intel, Lenovo, HP, Apple, Microsoft, Dell, Sony, Samsung, LG, etc. The most notable two manufacturers of pcs apart from Dell are Apple and Microsoft and they present a stiff competition to Dell and the marketplace is led by the most notable two to three manufacturers. Regardless of the most notable manufacturers holding bigger shares in the market, the market is widely open for all the other manufacturers. So, the available market helps it be all more very important to the manufacturers to adopt effective strategies in order to accomplish competitive advantages and preserve the competitive advantage with a view to raise the sales revenues, revenue, market share, and to increase the wealth on the traders.

The competition in the industry has been very stiff and thus it made the computer manufacturers to increase their product line and also to adopt innovative developing processes to come up with latest and ground breaking products. The computer creation industry or market leaders have also implemented innovative strategies to stay competitive and increase the market share, thereby leading to the organizational success. The important point to remember here's that Dell is also one of the marketplace leaders in the computer developing industry and it also poses stiff competition to the other rivals on the market.

Comparative Performance of Competitors

The comparative performance of some of the major computer manufacturing industry leaders offers us an insight into the level of competition that is accessible among the top competitors as well as the position of Dell in the overall computer making industry.

The revenues of Dell for the year 2009 were $61. 101 Billion and its operating income was $3. 190 Billion, whereas its Net Income was $2. 478 billion. The Net income, Working Income as well as the income have all shown an increase when compared with the entire year 2008, which ultimately shows that there has been an improvement in the performance of Dell over the last one year roughly.

The revenues of IBM for the entire year 2009 were $95. 757 Billion and its own operating income was $17. 012 Billion, whereas its NET GAIN was $13. 425 billion. The Net income, Working Income have increased and the revenues have shown a decrease as compared to the year 2008, which ultimately shows that there's been an improvement in the performance of Dell during the last one year or so with respect to the profitability, but they have lost some part of its market share, as compared to its performance during the year 2008.

The income of Apple Inc for the year 2009 were $42. 91 Billion and its operating income was $11. 74 Billion, whereas its NET GAIN was $8. 24 billion. THE WEB income, Operating Income as well as the revenues have all shown a rise when compared with the entire year 2008, which shows that there has been a noticable difference in the performance of Apple Inc, during the last one year or so.

 

Revenues ($ bn)

Operating Income ($ bn)

Net Income ($ bn)

Dell

61. 1

3. 19

2. 48

Apple Inc

42. 91

11. 74

8. 24

IBM

95. 76

17. 01

13. 4

The above table shows the financial performance of Dell, Apple Inc and IBM.

The above graph shows the financial performance of Dell, Apple Inc and IBM.

After assessing the financial performance of Dell, IBM and Apple Inc, it could be said that the level of procedures of Dell is much lower when compared with Apple Inc and IBM. So, it shows that Dell must adopt progressive strategies in its businesses in any way levels to be able to contend with its opponents. The positive that goes with Dell is the fact it has been improving its performance and the speed of growth is much better than a few of the other industry leaders.

Current Technology used in the Computer Manufacturing Industry

In the past, the pcs used to be so big, a great deal larger than the refrigerators, but now-a- days and nights, the computers are no more than a PDA, which can fit into a hand of humans. So, it has been possible mainly due to the advanced technology and continuous breakthroughs of technology that has been used in the computer processing industry. The most recent technology has reduced the size of the computers, devices, etc, without comprising on the quality, in reality with better quality and sturdiness for the clients. These computer production companies have their own research and development departments, in order to constantly look for new ways of manufacturing the computer systems.

The technology performs a key role in the success of any product and personal computers are no different. The better technology helps the manufacturers in processing latest computer systems. The technology utilized by the personal computers has been so much helpful for people. The technology used in computer making has been helpful in other business as well. These latest technologies made it possible to work with computer in almost all the areas of human being life.

Future Technology that can be used in the Computer Creation Industry

The future of the technology and the developments in the technology looks to become more effective, as there is a lot of scope for improvement and progress in the technology. The near future technology makes it possible to produce much smaller pcs with better features, and better performance, when compared with the performance of the computer systems manufactured today. Using the progress in technology, almost anything is possible. Things that look impossible today are becoming possible and possible tomorrow. So, with the advanced technology anything is possible.

The technology is surely heading to play a key role in the computer making industry. If one company adopts a latest technology then the other opponents must take up it or come up with something impressive on their own, otherwise, they will lag behind and might not exactly have the ability to compete on the market. So, the ongoing changes in the technology keep the computer manufacturers on the toes, to make quick decisions and take up effective and ground breaking strategies to produce high quality computer systems, mostly a minimal costs. (Buzzel, 1987).

Recommendations for the firms in the Computer Developing Industry based on the Sector Examination to stay competitive in the industry

Innovative Developing Processes

The companies in the computer manufacturing industry must stay competitive and they can achieve this, by adopting ground breaking manufacturing procedures. The old and outdated manufacturing processes are not going to help the firms in staying competitive. With a view to attain competitive advantage, almost all of the firms are adopting progressive strategies. The competitive benefit once achieved must be sustained to be able to stay competitive. The competitive advantages can be achieved and sustained by adopting innovative manufacturing processes. (Parker, 1989).

Focus on the Quality

The companies should look to increase the quality of the merchandise at all times. The low quality products will never be helpful in staying competitive for long. In order to attractive on the market and also stay competitive, your computer manufacturer needs to focus on the grade of the products whatever the internal issues. A low quality product will survive for long on the market. (Swan, et. al, 1976).

Improved Customer Support

The customer care and after sales service by the firms can be helpful in keeping yourself competitive. In the event the questions of the clients are not solved properly, then it is likely that the customer will be attracted by other companies with better customer support. So, in order to stay competitive, the companies should look to improve their customer support service. (Gale, 1992).

Competitive Pricing

Gone will be the times, when the manufacturers were the price makers, now-a-days, in truth, the customers are the price makers. In other words, the clients look for the prices from various manufacturers and finally purchase a product from the manufacturer with inexpensive price, so in case a manufacturers costing is not competitive, then the manufacturer won't stay competitive. So, the companies should price their products competitively. (Gale, 1992).

Improved Supply chain for Quick Delivery

The supply string often helps a corporation in keeping yourself competitive in virtually all the industries and the computer manufacturing industry is no exclusion. The effective source string ensures quick and efficient delivery of products to the customers, whereas, an ineffective supply string is the main reason behind the failure of any business to stay competitive. Thus, an improved supply string can help an organization stay competitive in the market. (Parker, 1989).

BACKGROUND OF DELL

The company preferred is Dell and it handles the manufacturing of computers and its own components, and it comes under the computer making industry. Computer processing companies are largely considered as electronic digital developing companies and these businesses produces products like personal computers, its peripherals, gadgets related to communications, and many more products just like these products. The products can be used at many places like office buildings, schools, industries, schools, as well as homes. These products are also used for military as well as federal establishments. Furthermore to all this different computer peripherals or different components are designed in into many industry products.

Dell has been a well known company of Personal computers, mainly Desktops, Notebook computers, Notebooks, and PDA. Dell has emerged as one of the most significant manufacturers of pcs. Dell competes with the industry market leaders and with the best in the industry. Dell grew as a computer processing company in the year 1980's and 1990's, and it also became the largest computer producer at one point of energy. Dell's key business was to market Desktops, Laptop computers and Servers, etc. Dell also offers some other electronics products, which it acquires from its suppliers surrounding the world and sell them under the brand of Dell. The operations of Dell have increased significantly during the last few years and also have been contending with the best in the business.

CURRENT SITUATION ANALYSIS

The current situation examination of Dell helps us to analyze the situation as well as the various factors that affect the procedures of Dell. Following are the the different parts of situation evaluation.

Customers

Dell serves an array of customers ranging from individuals, small business to large multinational companies. Dell also provides computers and other devices to the government organizations in a variety of countries. Its customers are multiply all across the earth, making it a truly global company. The global customers of Dell also highlights the existence of Dell, which all over the world. So, it is satisfying a large foundation of customers and therefore there is lot of scope for increasing the customer basic of Dell

Costs

The costs of any company play a key role in the success and success of any business. Higher costs lead to low income or deficits in some cases, so it is definitely easier to reduce the price of manufacturing as well as the other indirect costs. Dell produces most of the items on its own and it also acquires a few of the merchandise from suppliers throughout the world, with a view to lessen costs. This helps it in charges its products competitively, in that way helping it to remain competitive on the market.

Competitors

Some of the rivals of Dell are popular companies about the world. The competition of Dell include Microsoft, IBM, Apple Inc, HCL, Horsepower, Sony, LG, Samsung, etc. These opponents are popular companies with an array of products and a broad platform of customers, which also helps them to mark their occurrence all around the globe. Your competition is very stiff in the computer developing industry, with the presence of the popular global brands.

STRATEGY FOR DELL

The strategy for Dell would be to adopt an progressive manufacturing process therefore helping it to stay competitive by bringing in a big change and by developing technologically advanced products.

Change Required

Dell must bring in regards to a major change in how big is its desktops and laptop computers. Dell can produce sleek laptops like Apple, Inc, and therefore can contend with Apple Inc. It could also give Dell an edge over its competitors. Moreover, it gives Dell an opportunity to increase its market talk about by serving a new basic of customers with its sleek products. This can be achieved only by adopting a technology like Apple Inc, or even a much better technology than Apple Inc.

Impact on Management

This change is likely to impact the management at Dell. The impact of the scientific change would require dell to effect a result of a change in the way the management at Dell operates. There could be a need to include a fresh of level of management or even to remove an existing level of management positions based on the requirements. With a change in the organisation based on the framework or the scientific changes, the management also needs to change, as per the requirements. So, it could be said that the change in the products to be produced, is likely to bring in regards to a change in general management. Thus, it could be said that there is an impact of the change on the management.

Impact on Business Location

Dell might need to begin its manufacturing devices to manufacture smooth products, if not it can use the existing developing facilities to create such products. With a change in the computer developing technology, Dell must expand its functions by starting developing units in home based business locations. Dell might need to change it business from location to another considering its impact on the operations. A lot of the production companies are starting their making systems in countries like India and China, so Dell might consider India and China, as a proposed location to begin its manufacturing systems to manufacture modern laptops, and small measured desktops.

Impact on Information needs of management

The management needs an improved information system, so as to provide an exact and up to date information at all levels, as so when required, (Malhotra, 2008). The info needs of the management at Dell are also more likely to change, with an alteration in the technology and functions of Dell. So, depending after the info needs, the information system also needs to be upgraded, so that it provides required information to the management by any means levels, which could ultimately assist in accomplishment of the objectives of Dell.

Impact on Staffing Plan

As discussed previously, Dell may need to hire additional people to manage its new operations of manufacturing sleek laptops. The staffing plan is also more likely to change with a proposed change in the technology. Some employees might need to be transferred from one position to another, and some others might be needed to be hired, depending upon requirement. The suggested scientific change at Dell is also likely to impact the staffing plan at Dell; therefore, a new staffing plan needs to be developed, considering its procedures.

Impact on Training

Dell also needs to provide adequate training and education to its employees with a view to update their skills and improve the productivity and efficiency. The training and development of employee should get highest top priority, as the highly developed employees improve the production and performance of the organisation all together. With a technical change, there will effect on working out provided at Dell. There will tend to be new training programs, to match the needs of the home based business development i. e. making use of the proposed technical change.

CONCLUSION

Finally, it can be concluded by stating that the business information strategy plays an integral role in the success of an organization. It also plays an important role, when an organization intends to bring about any change in its procedures, because, a major change can be done only with the free move of information. Dell can make sleek notebook computers, by bringing about a scientific change in addition to a change in its creation process. The influences of such a change is seen on the current management, business locations, information needs of management, staffing, training, etc.

The strategic degree of management must adopt innovative ways of achieve the aims of Dell. The proper management performs an important role in the success of any organisation, so the key insurance policy changes or advancements take place at the tactical level of management. The tactical level of management needs to follow the procedures developed by proper level. Finally, the functional level is accountable for implementing the procedures and achieving the ultimate objectives.

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