Dell’s Performance Measurements and Control Systems

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Performance measurement and control are very important for any organization either government or business to measure the success of the organization and it is one of the most difficult parts of strategic management (Wheelen & Hunger, 2012). According to Crosson & Needles (2014), Performance measures are “quantitative tools that gauge an organization’s performance in relation to a specific goal or an expected outcome” (p 302). Many studies have suggested that organizations need to use both financial and nonfinancial performance measures to assess their strategies and operations (Milost, 2013). The financial performance measures might include net earnings, return on investment (ROI), net income as a percentage of sales, the costs of poor quality as a percentage of sales and earnings per share (EPS) (Milost, 2013; Wheelen & Hunger, 2012). The nonfinancial performance measures might include number of customer complaints, customer satisfaction, job satisfaction, management control system (Milost, 2013), economic value added (EVA), market value added (MVA) and a balanced scorecard (Wheelen & Hunger, 2012). It is suggested that organizations use multiple performance measures of 20% of the factors that determine 80% of meaningful and reliable results (Wheelen & Hunger, 2012).

Dell’s Performance Measurement
Dell was started on a simple concept of made to order machines and delivered directly to customers without distributers or retailor stores. Due to strong competition in Computer business and “Rising sales coupled with rapidly falling net income caused Michael Dell to rethink his retirement and resume his role as CEO in January 2007” (case study, p 9-2). “Dell has made more than 10 acquisitions, cut about 10,000 jobs, and...

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... & Samuels, J. A. (2012). An Examination of the Effect of Positive and Negative Performance on the Relative Weighting of Strategically and Non-Strategically Linked Balanced Scorecard Measures. Behavioral Research in Accounting. Vol. 24 Issue 2, p133-151. 19p. 1 Diagram, 1 Chart. DOI: 10.2308/bria-50114. , Database: Business Source Premier.
Milost, F. (2013). Information Power of Non-Financial Performance Measures. International Journal of Business Management & Economic Research. Vol. 4 Issue 6, p823-828. 6p., Database: Business Source Premier.
Preimesberger, C. (2011). The world According To Dell: From Hardware to Software and Now to the Cloud. (cover story). eWeek. Vol. 28 Issue 15, p18-23. 5p. , Database: Academic Search Premier
Wheelen, T. L. & Hunger, J. D. (2012). Strategic management and business policy: Toward global sustainability (13th Ed.). Prentice Hall.

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