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Dell: Organizational culture and business model

Dell Inc.

I been employed by with Dell personal computers for the past ten years. Their products and service has been great in the task environment. I have an designated Dell consultant that is my central point of contact. I am able to get prices and costs over the telephone or thru email. The charges I have received from Dell is preferable to other computer distributors. So I have decided to do my newspaper on Dell Computer Corporation

Background

Michael Dell created the business enterprise in 1984 out of his dormitory as students. He belief that my providing computers directly to customers, you can understand their needs much better and meet their need. In 1985, the business produced the first computer of its design the "Turbo PC". The business modified its name to "Dell Computer Corporation" in 1988 and commenced expanding internationally.

"There were clearly no classes on learning how to get started on and operate a business in my high school, so I clearly had too much to learn. And find out I did, mainly by experimenting and making a bunch of mistakes. One of the first things I discovered, though, was that there was a marriage between screwing up and learning: The more mistakes I made, the faster I learned.

I attempted to encircle myself with smart advisors, and I attempted not to make the same problem double. . . . Since we were growing so quickly, everything was constantly changing. We'd say, "What's the ultimate way to do this?" and produce a remedy. The resulting process would work for some time, then it could go wrong and we'd have to modify it and try something else. . . . The whole lot was one big test.

From the start, we tended to come at things in a very practical way. I was always requesting, "What's the most efficient way to accomplish this?" Therefore, we taken out the probability for bureaucracy before it ever cropped up, which provided opportunities for learning as well.

Constantly questioning regular thinking became part in our company mentality. And our explosive development helped to foster a great sense of camaraderie and a real "can-do" attitude among our employees.

We challenged ourselves constantly, to develop more or to provide better service to our customers; and each time we set a fresh goal, we'd make it. Then we would stop for a moment, give one another a few high fives, and get started on tackling the next goal. 5. " Michael Dell (1998).

The Company was rebranded as Dell Inc, after it began selling television sets, handhelds, digital audio players, and computer printer. Dell is a high direct sales company on the globe, plus more than 100, 000 employees be employed by Dell across 34 countries worldwide.

Organizational Culture

Dell is a global company operating in 34 counties, plus more than 100, 000 employees improve Dell. It is structured along geographic range into the Americas, Asia and Japan, and Europe, Midsection East, Africa. Each of the regions has its own regional headquarters and its own assembly plant and supply network.

Dell's business activities are planned in each region around different customer segments, although, each region has different managing method, but generally includes: romantic relationship customers, home and small company and open public sector customers, such as government authorities and colleges.

Customer: They are able to commit romance, providing the best products and services based on standard-based technology, and outperforming the competition with value and superior customers' experience.

The Dell Team: they believe that their continued success lies in teamwork and the opportunity each team member has to learn, develop and expand. They are still committed to expanding, retaining and appealing to the best workers.

Direct marriage: they believe that the direct romance with customers, partners, suppliers and one another, and functioning without inefficient hierarchy and bureaucracy, which will make them, do best than other rivals.

Global Citizenship: They are committed to understanding and respecting the regulations, values and civilizations wherever they certainly their business; profitably growing in all markets and contributing positively in every community.

The Dell business model seems simple in its notion, but in fact is very complex when it comes to its execution.

First, they did not use providers or storefronts to market the merchandise. They use direct web sales or stations to market Dell computer for customers. Customers can order on the web when they need to get the computer.

Second, when building made to order computer systems Dell needed to have parts and components in stock to build a variety of user specific configurations with little lead time.

Third, because of load order quickly, Dell has excellent production and logistics functions backed by information system that allow it to swap information for inventory. On the one side, Dell Company can use their particularly deal route gain more profit and market talk about. On the other hand, this business model can give customer maximum satisfaction via least distribution route costs.

In effect, Dell has already established to set-up similar but particular functions in each one of the major regions, and to future customize its marketing and service functions for specific countries. The procedure of globalization has designed Dell's own framework, and leads Dell run to the most significant computer company on earth.

SWOT Analysis

Strengths: price for performance, customization, service and support, latest technology, superior shareholder value, unique information from the relationship with the customer, strong track record of moving at the right time; inventory move fast; ratio of accounts receivable is high. Dell has a significant power in market talk about and product cost. Consumers cannot buy computers, or any other form of technology, fast enough to maintain with the developments. Dell offers these products at a much lower price than its opponents and allows consumers to be able to have the hottest products when they hit the market. This is an enormous benefit over their opponents. The folks who purchase the technology are getting younger and more youthful and the only way to take benefit of the growing customer platform is to own products at a lower price.

Weaknesses: The major weakness of Dell is the quality of the products and customer care. Like a consumer I do understand that you get what you purchase. When buying a $200 desktop from dell rather than a $2, 000 desktop from Apple, I realize that the quality of the two will differ. Ways to level the taking part in field would be to have top notch customer service to help the customers when something does go wrong. This is not the situation with Dell. They may have chosen to outsource their customer support to international countries in order to spend less. It has only frustrated the faithful Dell customers and made buying a Dell less attractive.

Opportunities: the Internet offers special probable in broadening internationally; e-service; the immediate model offers unique opportunities to build different kinds of romance with suppliers and customers; opportunity from the alliance between Dell and American Online. The global overall economy is a huge opportunity for Dell's low cost strategy is a perfect fit for growing economies round the world. As countries like India and China are more profitable, their people will have significantly more throw-away income. Dell will offer them affordable computers that they will have the ability to use to be even more beneficial. Nowadays, if you are not a worldwide company, you aren't a significant player in the industry

Threats: The global market is a huge chance for Dell's low priced strategy is a perfect fit for growing economies round the world. As countries like India and China are more fruitful, their people will have more throw-away income. Dell may offer them affordable computer systems that they can have the ability to use to be even more productive. Nowadays, if you aren't a worldwide company, you aren't a significant player in the industry

Conclusion

In realization, Dell Inc. is very successful in the global markets as a result of their direct sell business model. Dell lags its rivals in quality and global position. If Dell could increase both of these areas, they would be the very best reseller. In addition, it shows that they have got placed themselves to be one of if not the very best computer retailer on earth. The competitive good thing about being the reduced cost company has given Dell enough of the market to allow them to continue functions and move into the new markets. They are able to produce different computer to provide the different level of customers, Additionally, they continue steadily to develop new computer and improve their organizational culture, business environment and retailing business model, to be able to increase their customer platform.

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