business administration 2

Business Administration: Dell Company

Introduction

Dell Company is an American-based multinational computer technology Company specializing in the manufacture of high tech gadgets, laptop, and PCs. The Company was established by Michael Dell in 1984 and has its headquarters in the Round Rock region of Texas (Form 10-K, 2016). Dell is one of the corporations that continue to be affected by the aspect of globalization and changes in technology. Nonetheless, Dell has continuously demonstrated its resilience in embracing modern computing technology in its offering. Such adaptations have been vital for the Company in responding to the changing needs of its different stakeholders and to survive the ever-changing tech market. Therefore, this assignment will apply the concept of industrial organization model and resource-based view model in evaluating Dell earnings and how it can achieve the above average return. Also, the thesis will perform an analysis of globalization and technology with respect to Dell. The subsequent section of the paper will discuss stakeholders’ contributions to the organization, and how the mission and vision statement for Dell pronounces its success.

Globalization and Technology

Kay (2014) defines globalization as the interaction pattern and the integration of people or even business across the globe owing to improvement in trade activities and investment opportunities mainly influence by the prevalent use of technology. The aspect of globalization and continuous reliance on technology in commerce has been a momentous boost for Dell Company in growing its revenue and profits. Currently, the firm is experiencing a boom in sales across Europe, Asia, and Africa (Form 10-K, 2016). Furthermore, globalization and revolutions in technology have been pivotal in growing the concept of ‘trading beyond borders,’ by eliminating trade barriers and currency restrictions experienced in the past. The introduction of the internet was the hallmark of the idea of globalization. It was the invention of the internet that demanded developments and upgrades in technology that transformed the mode of global communication and business interactions (Kay, 2014). Hence, businesses such as Dell were able to reach out to large masses of potential customers, a large pool of talented employees, and suppliers of its brand offerings around the globe.

Industrial Organization Model and the Resource-Based View Model

According to Peteraf (2015), the industrial organization model primarily analyzes the strategies of an enterprise, its policies, and competitiveness in the industry. The model aims at understanding the technique of operation for the business, its value to the economic welfare of a country, as well as its contribution to the industrial policies. Therefore, I/O is an economic model important for strategic assessment for an enterprise. Relatively, Peteraf (2015) defines the resource-based view (RBV) model as focusing on organization internal resources to highlight their strength and weaknesses. and build on a firm competitiveness. The two models are ideal for firms to grow their competitive advantages and device better strategies for realizing profitability in the market. Therefore, for Dell to grow its profits beyond the average returns it should focus on its strength and weaknesses. For instance, it should use its strong financial base and brand reputation to expand in the market, e.g., through acquisition and mergers and corporate buyouts. The Company currently pursue a merger with VMware and has also acquired over ten other companies including EMC Corporation in 2016, Perot Systems in 2009, Alienware in 2006, and Security Software in 2012, and Force 10 in 2011. Therefore, the resource-based view is ideal for Dell to grow its revenue beyond and above average return as it reflects on the internal strength and weaknesses of the firm. Also, the RBV model is somewhat superior and positively impacts Dell's production process (Peteraf, 2015; Form 10-K, 2016).

Mission and Vision Statement

Dell in its mission and vision structure inscribe that it is dedicated to making the optimum/ best use of its macro and micro environmental resources to manufacture grade A products and services capable of achieving the definitive consumer experience (Form 10-K, 2016). Also, the goal of Dell is to deliver sustainable technological and computing solutions to all its customers with an aim of achieving mutual growth, as well as delivering value to its markets. Likewise, the enterprise aims at manufacturing efficient computers capable of supporting the needs of the visually impaired in the society, as well as the needs of the environment, people’s social needs, economic needs, and corporates needs. Such efforts Dell seek to achieve through the inclusion of ethical conduct in its code of practice.

Dell mission, vision, and goals have continued to earn it significant popularity and brand reputation in the society. The firm has overtime demonstrated its resilience in standing by its brand value earning it admiration alongside other brands in the global market. The firm continues to innovate in a manner that corresponds to its diverse user needs. Dell treats all its customers as equal and seeks to uplift the spirit of the society, as well as restore hope to the marginalized segments of the global markets. As such, Dell continues to focus on green supply chain strategies of retailing of its computers to meet its specific client needs. The strategy is effective for the firm to determine its consumer needs, as well as reducing overheads and wastages. Such corporate values have by far enhanced Dell’s reputation in the market with an estimated brand value of 42 billion dollars to confirm its dominance in the global tech market (Form 10-K, 2016).

Stakeholders Contribution

The three types of shareholders for Dell Company consist of the capital market shareholders, the organizational shareholders, and the product market shareholders (Form 10-K, 2016). These groups of shareholders impact the firm’s operation in several ways. For example, the capital market shareholders comprising of the Company suppliers and creditors are usually interested in the ability of the firm to make payment when they fall due. Therefore, Dell management can deploy different mix strategies to ensure that the business accumulates enough revenue to pay off the creditors and suppliers while meeting the firm’s cash flow demands. Such abilities to satisfy creditors’ obligations are convincing enough for stakeholders to continue investing in the firm (Dell Inc., 2018). Likewise, the product market shareholders consisting of the surrounding communities and customers are usually concerned with the CSR of an organization. The ability of a firm to engage in sustainable CSR strategies is important in growing its brand loyalty. Therefore, Dell should invest in sustainable communication strategy to the market, along with improving the quality of its brand offerings to grow in the market. Finally, the Organizational stakeholders comprising of the firm's employees and the executive board are interested in the firm’s globalization success. Therefore, they should strive to deliver quality consistently to the market to expand the scope of the firm and to compete in the mainstream tech markets (Dell Inc., 2018; Form 10-K, 2016).

Conclusion

The concept of strategic management and strategic competitiveness has a significant impact on enterprises. In the case of Dell Company, the deployment of strategic management practice is increasingly growing it into a market challenger to other dominant participants such as HP, Mac, Samsung, and Lenovo. The enterprise mission, vision, and goal orientations, as well as the stakeholder’s involvement, have been a significant source of Dell success story (Form 10-K, 2016). The enterprise has been able to build on its internal strength and weaknesses through establishing practical solutions to realize increases market share and growth in the tech production market. By putting into practice what the management teaches, Dell Company has been able to integrate its practices and achieve a significant milestone in being regarded as the new face of quality computer manufacturers around the globe (Kay, 2014).

References

Dell Inc. (2018, February 16). Corporate Social Responsibility | Dell. Retrieved April 12, 2018, from http://www.bing.com/cr?IG=CD6FD944857E4929BD3CBBF392ECA42D&CID=1638A330652B67801173A89E648466D4&rd=1&h=N9nDGlsCsFPNKAS9jfWlQ6eHuQ6qvWOyVQyEJMvqIWQ&v=1&r=http%3a%2f%2fwww.dell.com%2flearn%2fus%2fen%2fuscorp1%2fcr%3fc%3dus%26l%3den%26s%3dcorp&p=DevEx,5068.1\

Form 10-K. (2016, September 11). UNITED STATES SECURITIES AND EXCHANGE COMMISSION. Retrieved April 12, 2018, from https://www.sec.gov/Archives/edgar/data/1571996/000157199617000004/delltechnologiesfy1710k.htm

Kay, R. (2014). The Impact of Globalization and Technology. In Managing Creativity in Science and Hi-Tech (pp. 155-163). Springer, Berlin, Heidelberg.

Peteraf, M. A. (2015). The cornerstones of competitive advantage: A resource‐based view. Strategic management journal, 14(3), 179-191.