Srategic Management In The Workplace Research Assignment

Strategic Management in Dell
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Dell is an American company, one of the largest computer manufacturers in the country. It is based in Texas. The company’s responsibilities involve developing, selling, repairing and supporting computers, related products, and services. It is one of the most successful business companies around the globe. Just like any other company, Dell is affected by both external and internal environment. External environment involves factors that influence the operation of a company from without. External factors affecting Dell are technological, economic, legal, social and political factors.
Politically, Dell has been hit by the political stability of the countries it's operating or considering to work in. The poor political relationship between India and Pakistan has negatively affected the import and export market of Dell. Expansion of Dell's business into different countries across the globe has been made impossible since some countries experience frequent terrorist attacks, such as Afghanistan. Some have strong anti-American sentiments, such as Pakistan. These create uncertainty that Dell would not risk. However, Dell has enjoyed America's stability which has significantly contributed to its success (Adamkasi, 2015).
Several economic factors have influenced Dell. For instance, the policies made by successive American governments, to attract investments have lowered interest rates. This has worked for Dell as it has improved its borrowing rate and attracting more business. However, some countries experience high or unstable inflation rates. This has negated Dell’s market as the demand in these countries is low (Adamkasi, 2015).
Sociological factors affecting Dell's sole market affect Dell directly. Dell's market is based in the U.S, Europe and Asia-Pacific (India and China). There has been a rapid increase in the purchasing power in the Third-world countries. This has grown Dell's market. However, Dell has faced stiff competition from other leading companies like IBM in this market. Technologically, Dell faces stiff competition from its main competitors who are solely investing in innovation and research.
Just like any other company, Dell has been subjected to rules and regulations in which it has to adhere to. Since Dell is operating in several countries, it has an obligation of adhering to the accounting conventions of these countries. For example, in the U.S, It has to follow the GAAP accounting laws. There are also laws regarding ethical business practices for instance UK Bribery Act (UKBA), which must be followed. These and other laws have had an impact on Dell’s expansion and operation in several countries.
Internal environment consists of factors affecting Dell that arise from within. These include the mission, vision and goals statement, leadership, its structure and products and services. Structurally, Dell operates on the concept of 3-M model. Dell is a multidivisional company. It has different operating divisions. Each division represents a separate operational centre. The corporate utilization of Dell sums up finance, marketing, human resource, manufacturing and sharing of R&D. The organizational structure of Dell encourages the workforce to contribute their innovative ideas.
Dell's mission is to be the most successful company in the world by providing the best customer experience in the markets they operate in. This is to be met by meeting customer needs by offering high-quality products, being financially stable, being held accountable (company accountability), being leaders in technology among others. The company's vision was to accommodate individual requirements by producing computers that can be fitted with individual components easily to make a computer system. Dell's primary goal is to build, customize and design products that will meet the exact needs of the customers. It has achieved this by doing business with the customers
Regarding products and services, Dell has aimed at providing the best quality and services. It offers a broad range of goods ranging from desktops, workstations, notebook computers, printers among others. Dell operates in such a way that the customers can choose what they want.
Michael Dell, the CEO, believes that each employee or leader is accountable for his or her actions. Specialization of duties has simplified operations and management of all the company's branches. All managers and members of staff are allowed to contribute and communicate their ideas. These ideas are used by the top management to make decisions. This has created a good relationship between managers and employees thus improving their performance.
Human capital entails the labor force. It is the use of workers' marketable skills as a form of capital. It also entails the knowledge and characteristics that a worker has contributed to their productivity. Human capital is useful in the production and marketing process to increase the company's profits (Gary, 1975). Dell has employees from 34 countries worldwide. Michael Dell as the CEO of Dell has believed in improving the human capital by treating the workforce as partners. These have yielded visible positive result as the productivity of the employees has increased thus improving the company's profits.
Social capital is the available resources that are used in the production of a company. They include financial capital, business opportunities, emotional support, trust, cooperation, ideas, power, and influence among others. Dell has combined and incorporated these factors maximize the profits.
To compete effectively in the global market, Dell has employed certain strategies to work with. These strategies are at different levels: functional, business, social and corporate levels. At a corporate level, Dell has positioned itself to operate in the various countries and has come up with various ways of managing these branches. These have been affected by positioning different managers at different branches and letting them communicate their ideas that are eventually used in decision making. This is also done to target new markets especially in the third world countries whose purchasing power has been on the rise.
At the functional level, to expand its products categories such that it can provide its products at lower costs, it used its capabilities in ensuring low-cost manufacturing, direct sales and managing its chain supply effectively. These consequently were to widen and expand its market thus increasing the sales. Dell also strategized to perform well at the social level. This was done or enhanced in several ways which includ...