Staffing Orgs DELL
Dell's mission is to be the most successful computer company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of:
· Highest quality
· Leading technology
· Competitive pricing
· Individual and company accountability
· Best-in-class service and support
· Flexible customization capability
· Superior corporate citizenship
· Financial stability
-Dell Mission Statement
Company background
Dell’s vision of excellence through quality, innovation, pricing, accountability, service and support, customization, corporate citizenship and financial stability is clear. This mission statement is clear and easy to understand. Producing quality work that leads to the achievement of these lofty goals becomes much more complicated than writing a simple mission statement. One thing is clear, the core capabilities of any business stem from the employees that comprise it.
With over 36,000 employees, Dell is a member of the rapidly changing and expanding computer technology industry. This industry had achieved enormous growth in the last decade. Dell’s stock rose 29,000 percent in the 1990’s and as of the second quarter in 1999; Dell was tied for first place in the market. Dell faces stiff competition from technology giants such as IBM, Hewlett Packard, and Compaq. With such robust expansion in the technology industry and the economy, it is becoming increasing difficult for companies such as Dell, who experienced a 56 percent growth in workforce in 1999, to fill positions with quality applicants. Dell is currently seeking applicants for positions in sales, corporate finance, engineering, manufacturing, and most especially, information technology. Dell currently hires approximately 2000 employees a quarter. With such rapid growth and expansion the temptation surfaces to simply fill a position with a body. “Unless you have a good process in place, you run the risk of not always hiring the best people. There can be a tendency to say ‘We need people so badly, a fresh body is better than no body,’” as summed up by Steve Price, vice president of human resources for Dell’s Public and Americas International Group. To avoid this scenario, Dell has created a web-based Organizational Human Resource Planning (OHRP) process. These processes help a business unit focus on and anticipate growth and staffing needs. In addition the OHRP process allows managers to do their own succession planning, identify key jobs, and formulate competency planning and employee development. The OHRP process also tries to pick out qualities new employees will need by analyzing the skills and qualities of current top performers.
Success started at a young age for Michael Dell, he was only 12 years old when his first product catalog called “Dell’s Stamps” advertised in the local trade journal. He learned early in life to develop a direct relationship with the customer which later would provide the key to his success (Krames, p. 58). Andy Grove had teamed up with Bob Noyce, and Gordon Moore in 1968 after discovering they could create chips with massive memory. Grove used a metaphor to describe his foundation of success – a three-legged stool; execution and strategy (Krames, p. 137). When one leg is off, it throws off the whole system. Dell’s major accomplishment came when he planned and sold personal computers out of his dormitory room which lead to the creation of Dell Computers Corporation. At the age of 27, Dell was the Top CEO of a Fortune 500 company. He had clear ideas about how-to-do business.
Dell’s main strength lies in their perfection of the Direct Model, which boasts a production process that lasts only a day and a half so the company is able to serve customers quickly and has the capacity to withstand very large orders. Dell built held no finished goods inventory on hand, which helps to reduce idle assets and risk. The company maintained excellent relations and communication with suppliers who were able to adhere to Dell’s just-in-time inventory management and allowed suppliers to send shipments direct to customers, reducing inefficiency. Dell encouraged suppliers to locate their facilities in close proximity to assembly operations. Additionally, Dell had very high customer service and support satisfaction and maintained some of the best performance metrics in the industry. Finally, their main source of revenue came from businesses and large government institutions and no single customer represented more than 2% of their sales, which lowers their risk of buyer power.
Dell inc. is mostly known for personal computers, storage devices and computer peripherals. The company is highly innovative and has been known for its excellent direct-sales and build-to-order model that have contributed highly to the growth and profitability of the company. Dell is known for best organizational practices and organizational culture. It promotes a positive culture that encourages team spirit and good relationship between all the stakeholders. Technology industry or sector is among the toughest industries which demand much effort, innovation and effective marketing and promotional strategy in order to compete favorably.
Dell Computer Company is known for its meteoric rise to industry dominance based on founder Michael Dell’s ability to transition a part-time business of building and upgrading personal computers into a multi-billion dollar enterprise (O’Rourke, 2010). Dell’s business model was producing low cost, high quality PC’s that were built-to-order called “Dell Direct”. The strategy of shipping direct to customers eliminated the need for middlemen and gave Dell a competitive advantage (O’Rourke, 2010). Company growth surged in the 1990’s with over 38,000 employees and a global platform. Dell and Chief Operating Officer, Kevin Rollins, created a fast-past, win-at-all-cost, highly competitive organizational culture whereby compensation and promotions were based on exceptional performance (O’Rourke, 2010). Finally, in 2000, Elizabeth Allen joined the company as vice president of corporate communications.
Ten years back, where the majority of business transactions were conducted offline. Today, the trend of most of companies is to deal with its consumers through internet and not just using PCs, the customers are using different types of platforms such as mobile phones, tablets and other small mobile devices. Just imagine that all computer manufacturers are in along marathon has no end point, guess who is running alone in the front? Answers would be different but sure Dell is one of them. Its success came from a strategy which is missing with most of its competitors. Dell has effectively relied on its online selling strategy more than offline selling strategy. Actually, the core of Dell’s strengths is on its website which is the platform of most deals and services and also selling computers directly from company to customers. These deals and services are shown in the following:
Dell believes in getting feedback from customers and suppliers so as to bring information from the outside world of Dell. By doing this, Dell could stay competitive with other alternative brands. Michael Dell once said he would roam around, outside Dell to observe, analyse and hear how the people in the outside world thinks about their brand as well as the others. He would crash the chatrroms and listen to their conversation about their deliberation on their purchasing behavior. Therefore, he believes by doing this it gives Dell a great opportunity to improve the company.
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars. It does not believe in intermediary, retailers for the business practices. Undeniably, this gives them an edge to serve customer well. Nevertheless, it understood the importance of retailers and start offering products on the premises of retailers, such as Wal-Mart, Sam’s Club and so on. Next, Dell administration is certain of the exclusive business of PCs. As time goes on, however, observing the
Global companies play an important role in the business environment, because they connect their business together around the world. A good example of a global company is Dell Inc., an American computer-hardware company, headquartered in Austin Texas, which develops, manufactures, sells and supports a wide range of personal computers, servers, data storage devices, network switches, personal digital assistants (PDAs), software, computer peripherals, and more. They design, build and customize products and services to satisfy a range of customer requirements: from the server, storage and Premier Services needs of the largest global corporations, to those of consumers at home. According to the Fortune 500 2006 list, Dell ranks as the 25th-largest company in the United States by revenue.
Why has Dell been so successful despite the low average profitability in the PC industry?
Dell computers had the reputation for being reliable and affordable, depending on the models, but what really set it apart was the just-in-time ordering system Michael Dell built. It steered buyers to an online site that let them customize PC to their preferenc...
According to Michael Cannon, Dell's President of Global Operations, the key differentiators that have made Dell so effective for nearly two decades are its made to order direct sales model and its innovative supply chain (SCN, 2008).
We understand the importance of our missions and the trust our customers place in us. With this in mind, we strive to excel in every aspect of our business and approach every challenge with a determination to succeed.
Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired. First, they are left without internet access. Second, the time it reaches Austin, Texas, have it repaired, and shipped back can take days. The company opportunities were the Dell U.K. that open business in 1987 and in that country it was a lot of companies selling cheap computers. Dell Inc. strides on loyalty among customers and employees, and that could only be derived from having the highest level of service and performing products. Segmentation within the company enables them to measure the efficiency of the business in terms of assets use. Dell Inc. evaluates their return on invested capital in each segment, compare it with other segments, and target what the performance of each should be.
After all, of this success Dell ran into an issue that most businesses run into. They ran out of new ideas for keep growth levels place like before. This was due to competitors figuring out their system and perfecting it for themselves. Other issue was that Dell’s customers were mainly business customers. Other companies were selling to both business and regular
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.