Essay Strategy

Topics: Personal computer, Cloud computing, Strategy Pages: 5 (1323 words) Published: March 6, 2014
Fundamentals of Management

Company: DELL

What do your news items tell you about the strategy of your allocated organisation?

1. Introduction

Dell tries to place itself in the market as a strategic leader by planning and changing its strategies based on its goals and current situation. For an organisation to remain competitive in the market, it is essential to identify and set an appropriate strategy. Planning is an important step towards identifying and setting the strategy which is most suitable for the company. Dell strives to remain competitive in the highly volatile PC market by planning and setting strategies according to the changing market. According to Waddell, et al., (2011, p.308) “planning is a process that managers use to identify and select appropriate goals and courses of action for an organisation.” With the help of planning, managers of an organisation can formulate different strategies at various levels of management based on their goals. This essay will discuss about determining the organisation goals, the corporate level strategy, business level strategy and emergent strategy adopted by dell and briefly analyse how it affects the organisation.

2. Determining Organisation Goals

The first step before an organisation can set appropriate strategies is to determine its goals to achieve. In order to establish the goals of the organisation, managers must be able to define the business by identifying the customers and their needs (Waddell, et al., 2011, p. 312). Dell, being in the personal computer industry, currently aims at being a global technology leader by providing end to end customer solutions for their products and having a “customer centric approach”. (Dell, 2013)

3. Corporate-Level Strategy

According to Waddell, et al., (2011 p.313) corporate-level strategy involves maximising the long run ability of an organisation to create value by setting an action plan to control its growth and development. Dell follows two types of corporate level strategies – Diversification strategy and International Expansion.

3.1. Diversification Strategy

Dell has always been identified as a pioneer in the personal computer segment and a leading PC manufacturer, but now with the decline in PC sales due to the changing trend i.e. with more people using tablet computers and smartphones rather than a desktop or laptop, Dell plans to diversify away from the PC market. Michael Dell, the founder and chief executive of Dell Inc plans to take the company private by going in for a $US 24.40 billion deal and thereby adopt this diversification strategy (Gupta, 2013). In an interview with Reuters, Brian Gladden, Dell chief financial officer, mentioned that privatisation will help the company follow its strategy to diversify from the pc market and will not be restricted by the pressures of public ownership (Gupta, 2013). In my opinion, Dell needs to diversify, since the usage of laptops and computers are now slowly fading away due to the increase in use and advancement of smartphones and tablets; and currently Dell has not yet entered into the smartphone segment. Even if Dell becomes a private company, it may be able to focus more on its strategy to branch out from the pc market, but it will be at the cost of having limited funds for not only research and development but also for other departments such as marketing since more investment will be required as the company will no more have public funding. In addition to this, confidence among the public about the company and the brand can also come down since its affairs will be unknown.

3.2. International Expansion

Dell follows a global strategy in international expansion. In the PC market, Dell’s marketing approach and its products sold are the same regardless of the country it is bought from except the language may be altered based on the country it is sold in. This way lot money can be saved as there is no need for investing more funds into new...

References: The Australian, 2013. Michael Dell to be 'aggressive ' if buyout succeeds.
[Accessed 31 August 2013] http://www.theaustralian.com.au/australian-it/michael-dell-to-be-aggressive-if-buyout-succeeds/story-e6frgakx-1226611355349
Dell, 2013. Dell Inc. [Accessed 29 August 2013] http://configure.us.dell.com/dellstore/config.aspx?oc=bwcwrzp1&model_id=precision-r5500&c=us&l=en&s=bsd&cs=04
Enderle, R., 2013. Why Dell Has a Subtle, Secret Strategic Advantage.
[Accessed 24 August 2013] http://www.cio.com/article/734268/Why_Dell_Has_a_Subtle_Secret_Strategic_Advantage
Gupta, P., 2013. Reuters.
[Accessed 31 August 2013] http://www.reuters.com/article/2013/02/05/us-dell-buyout-cfo-idUSBRE9140VR20130205.
Kovar, J. F., 2013. Dell 's Cloud Strategy: Supply Tech To The Channel And Let Partners Build Clouds.
[Accessed 24 August 2013] http://www.crn.com/news/cloud/240157053/dells-cloud-strategy-supply-tech-to-the-channel-and-let-partners-build-clouds.htm
Waddell, D., Jones, G. R. & George, J. M., 2011. Contemporary Management. 2nd ed. North Ryde, NSW: McGraw-Hill Australia.
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