BAC Assignment 2

Assignment 1

Week 3 Assignment 1

Introduction

Dell, a US-based global public corporation engages in designing, creating and marketing a variety of user computing devices such as desktop PCs, tablets and notebooks. It is also involved in customizing products and support services to the clients. The effect of technological support and globalization will be discussed in this paper. This paper will also discuss how the resource-based model and the industrial organization model are applied in Dell in the determination of potential benefits. This paper will also analyze the role of Dell`s mission, vision, and stakeholder in the determination of the success of this corporation.

Globalization

As a result of globalization, Dell has faced very stiff competition in retaining and attracting customers in a good way which has convinced it to change the strategies of its business. It has expanded its operations globally as a way of reducing competition. It has started to supply its products throughout the globe and as a result of global operations; it has also been faced by a different cultural, social, political, economic and legal environment that has convinced it to change its business structure and policy. Considering the business environment, Dell has revised the policies of its business. Globalization at the same time has given Dell an opportunity of making itself present in other markets (Noe et al., 2006). As a result, it has attained a valuable share in the market in emerging economies like China and India. This global era has resulted in changes in the consumer buying behavior in this industry. As a result, Dell has required a competent and effective support system and as a way of responding to this change, Dell has altered its strategy by creating several retail stores around the globe.

Technology

Changes in technology such as online selling, the e-commerce emergence and other internet equipment have provided immense opportunities as well as changing the business model of Dell. It has resulted in the development of Internet-based supply chain models which has enabled it to make direct sales. Dell utilized and integrated this technological change in co-coordinating suppliers and making build-to-order. Technological change has also resulted in the modification of Dell`s communication techniques which is used in interacting with suppliers, employees, and clients. Dell has largely used the internet in responding to the impact of technological changes. In this way, technological changes have greatly impacted the strategies and operations of Dell`s business accordingly.

Industrial-Based Model

The industrial based model gives an explanation that the firm`s strategic choice is greatly affected by the external environment. This model analyzes the competitive environment and the general industry that influence the strategic operations and choices of business accordingly. The general environment`s analysis involves the investigation of the economic, socio-culture, demographic, political and legal factors that would be important in the provision of knowledge to Dell regarding changes that would lead to the creation of opportunities and which would threaten its operations (Hitt & Ireland, 2008).

Through the analysis of the computing device industry`s environment, Dell will be able to create awareness regarding new entrants, rivalry level, substitute products and the bargaining force of suppliers and buyers. Competitor analysis will help Dell in the examination of strategies, objectives, capabilities, and assumptions of its known competitors such as Samsung IBM and Apple. Knowledge about opportunities and threats will be provided through this investigation which will be beneficial in taking and developing informed strategies and decisions accordingly. Therefore, this model will give an effective floor to Dell for limiting threats and tapping opportunities efficiently in comparison of competitors that will assist in earning above-average returns.

Resource-Based Model

The resource-based model gives an explanation of the internal surrounding of a business and to create awareness of their capabilities and resources. This way, Dell will be made able to know its strengths and weaknesses while at the same time proceeding with investigations of the core competencies. This knowledge will assist Dell in framing strategies that enable it in supporting its strengths and in limiting its weaknesses. This strategy formulation will provide an effective floor to Dell in the determination of competitive advantage that would assist in earning above-average returns.

Furthermore, this Resource-based model explains the means through which Dell can dynamically manage capabilities and resources to get above-average returns within computing device industry. Therefore, this model assists Dell in the determination of opportunities, strengths, and weaknesses and in the development of informed strategies that can assist in achieving high returns in less effort (Rosser & Rosser, 2004)

Vision

The Dell`s vision: “Our vision is not only to provide the best client experience in our industry but also to be among the best in any business”. This vision provides the direction that is needed in selecting the best and relevant strategies. To be ranked highly in this industry, Dell comes up with the culture of continuous improvement that assists it in building competent and diverse workforce throughout the world. This workforce enables the Dell Company to provide a unique experience to clients that assist it in making a global presence and in increasing sales. In addition, Dell`s vision contributes to the maintenance of utmost integrate values that assist it in the development of leaders and bringing personal accountability (Buckman, 2004). Through this, maximum opportunities are explored from the e-commerce knowledge in comparison to other corporations that assist Dell in grabbing big market share in the industry.

Mission

The Dell`s mission: “Our mission is to be the most successful IT systems company in the world by delivering the best customer experience in all markets we serve” This mission inspires Dell in the maximization of quality and minimization of the cost of products and services that it provides in several markets. The supply chain management strategy for Dell assists the company in the articulation of its vision and mission statements. This enables Dell to provide the highest quality in fair price with leading technology. In addition, this Dell`s mission assists the company in the integration of its operations with client expectations that enable the company in the expansion of its market globally.

Through this, Dell is enabled to meet the needs of global clients and to globally expand its operations assisting it to become the most successful company in the world. Dell`s mission enables it to build a personal accountability culture that makes Dell provide the best-customized services to its clients. Through this, customer experience is also improved; sales and profitability that contribute to success worldwide also increase.

Stakeholders

Dell`s stakeholders are divided into three main categories: capital market stakeholder, product market stakeholder and organizational stakeholder. Under the capital market stakeholder, banks, creditors and other major suppliers provide funds to Dell in support of its new business ventures and expect good returns from them. Since Dell gives adequate returns to them, they are persuaded to invest more money. As a result, Dell is able to get adequate funds to finance its new ventures (Baumann, 2010).

The product market shareholder group includes suppliers, host communities, unions and primary consumers that influence Dell performance. Dell`s consumers require reliable products and Dell makes sure that through its efficient supply chain, the expectations of this group are reached. The competent relationship between Dell and its suppliers as a result of technology is used by the firm in the development and delivery of customized products in time and in fair prices (Christopher & Towill, 2000). Under the organizational stakeholder group, both the manager`s and the employee`s effort assist Dell in making its supply chain more efficient in the provision of quality products at low costs.

References

Noe, R., Hollenbeck, J., Gerhart, B., & Wright, P. (2006). Human Resources Management: Gaining a Competitive Advantage, Tenth Global Edition. McGraw-Hill Education.

Baumann, C. (2010). Analysis of the Website www.dell.com: Corporate Web Communication

Buckman, R. H. (2004). Building a Knowledge-Driven Organization.

Christopher, M. & Towill, D. R. (2000). Supply chain migration from lean and functional to agile and customized, Supply Chain Management: An International Journal, 5(4), 206-213. Dell (2013). Annual Report.

Rosser, J.B. & Rosser, M. V. (2004). Comparative Economics in a Transforming World Economy (2nd ed)

Hitt, M. A & Ireland, R. D. (2008). Competing for Advantage