Identify the aspects of high involvement management contained in the “Soul of Dell” vision statement.
Introduction
Formerly referred to as Dell computer corporation, Dell Company is a global company considered to be a giant in the production, designing, development and manufacturing of printers, servers, personal computers and other fundamental products. Since the inception of Dell Company in the market, it has pushed for better services that ascertain its transformation and responsibility. The company is one of the leading in Pc’s production with high-quality and at a competitive price. With an experience of three decades functionality of the company in the worldwide market, a tremendous rise in its market value and revenue has been witnessed. Among the profound steps made by the Dell company in the 21st century include the growth of its 1000 dollars start capital and its inception of the “Dell soul” vision statement. However, “soul of Dell” was a step by the company to enable self-reflection, accountability and customer satisfaction.
- Identify the aspects of high involvement management contained in the “Soul of Dell” vision statement.
Essentially, the “soul of Dell” statement objective was to realign with an already established relationship, a sense of purpose and motivations in the company as conceptualized by Kevin Rollins. With time, the demand for personal computers decreased compared to the need for tablets and mobile phones, between the year 2001 and 2002. Given the decrease in Pc’s demand, Dell’s stock share fell to 17 dollars per share from 56 dollars, and this period saw a good number of workers go for greener pastures elsewhere. This gave Kevin Rollins and Michael Dell time to embark on the realignment of strategic approaches to the company’s motivation and diversification of the stakeholders who were on the company in a bid to restore normalization (Gallien, 2016). Dell’s leadership formulated frameworks in an effort to realize the mission through;
Direct relationship: The “Soul of Dell” culture aligned aspect with the company’s vision statement of its commitment to give the customers superior experience considerably at a higher value. In a bid to offer the best services to the customers, the staff is considered to be the front liners in interaction with the suppliers and customers, therein working in active team groups will offer a superior experience to endure strategic manufacturing and selling strategy with the direct relationship to customers and suppliers.
The winning culture: the ultimate goal set in the vision statement for Dell was to realize the high levels of interaction and engagements in all local and global markets. The culture of winning objected for industrial growth and responsiveness sense in different operations of the organization. The management had initiatives in place to encourage groups and individuals to uphold the winning culture.
Global corporate citizenship: Among the factors that the Dell company prioritized through the “soul of Dell” concerning diversification were legal provisions and common market characteristics. The organization reiterated on the essentiality of a better global reputation that integrated various international aspects operations within the company.
Customer satisfaction: also, the company prioritized the efforts in a bid to offer quality products and timely services to the customers. Additionally, measures were put in place to ensure customers were served with respect, responsiveness and diligence. Among the involvements of the customers included the continued production of commodities, timely reaction to orders and provision of pocket-friendly items that meet customer preferences.
The Dell team: In an attempt to destabilize the entity, the management provided initiatives to support the units within the company and other existing synergies. Further, the management outlines the need for improving and fostering learning within the employees and teams of the organization. Considerably, Dell confirmed the efforts to uphold integration of top-level experts among the already existing teams.
- Describe how Dell’s approach to global manufacturing reflects an awareness of cultural diversity issues
In terms of cultural globalization, Dell Company portrays a better example as a corporation that integrates the team member ability in handling different decisions. The decision differentiating Dell and the other organizations in the manufacturing and production strategies and approach (Griffin et al., 2016). Instead of setting up a base to manufacture its sources, dell encourages outsourcing of products such as accessories, chips and other components. However, the fact that Dell depends on outsiders for essential computer components has led to critics from its competitors who think the organization is not giving its best in terms of creativity.
Undaunted with the critics from competitors, Dell continually spearheads their contracts with different suppliers and manufactures such that openness and integrity were upheld. Considerably, the company still disclosed its manufacturing schedules to suppliers who ensured a timely supply of computer accessories and other components. The idea to outsource some of its products always helps the organization realize some new inventories as possible and helps in cutting the costs of brokers in the global business.
The organization’s idea of outsourcing accessories enhanced the ability to save on the timely construction of manufacturing buildings and the construction costs. With a comparison to the competitors utilizing the funds in building manufacturing base, Dell used collected revenues that could be used in the construction of a manufacturing base to produce commodities of reasonable products of low prices. Substantially, the engagement between the organization and the different supplier enhanced an excellent relationship and a better business culture.
However, despite the notable achievements concerning the revenues collected from the outsourcing of products, the approach encountered challenges at a global level. As a matter of fact, the organization was required to change its practices and strategies when it navigated different foreign markets. A good example is when the organization reached the China market, having dependency on outsourced products gave the urge for change to manufacturing strategies. Also, in the same country, the organization hid to the societal call to supply orders in regards to paper orders apart from its standard online order delivery of computer accessories and other components.
- Explain the importance of Globalization in Dell’s growth strategy
Ideally, globalization of business operations exposes an organizations to more challenges regardless of its previous achievements (Bashir & Verma, 2017). The problems are well explained with links to cost barriers and social stratification difficulties. Globalization of Dell Company has enabled it to reach over 170 countries across the world, given that each of the states has encompasses a Dell representative team that analysis markets patterns and upholds the company’s business operations. Globalization of the organization play’s the following vital roles;
Access to widened markets: an organizational objective to gain new customer base comes with the advantage of the company showcasing its products and services. This promoted business profits by gaining access to new customers and subscribers. Moreover, it allows the company to encounter specific societal deficiency.
Services and product diversification: globalization provides for diversification of manufacturing process and products. For instance, Dell diversified by changing from an organization that produced PC’s only to accompany that now deals with various products such as servers, televisions and printers. This is in response to different market problems and innovations.
Competitive advantage: Any globalized company expects tough competition from others concerning the services and the products (Lakshimi, 2018). Organizations in bid to respond to competition from companies tend to embrace diversification of its services and products to get more shares in the market. Dell Company serves no exception to this, as it claims market shares from different countries hence its growth.
- Outline challenges that may arise due to globalization to a firm that dedicated to direct sales? Support your answer with examples from Dell’s history.
Despite playing a vital role in uplifting business, there are challenges and shortcomings to entities owned by the companies mainly to direct sales caused by globalization. Operationally, Dell aimed at direct sells to clients. However, needs to navigate broader markets led to the organization facing a number of challenges in different regions. Among the obstacles includes;
Challenges with the staff: with the diversification and globalization of an organization, the employment of the right staff provides a vast market challenge. Considering the case of Dell Company, it faced a problem in staff recruitment when navigating different countries markets such as Brazil, African countries and China where the understanding of the market was expected to be crucial.
Change in products ordering strategy: Dell Corporation encountered challenges with the multiple systems used for ordering in different countries (Lakshmi, 2018). As early discussed Chinese were not used to online ordering of products, and the company had to change to paper orders that were quite slow.
Increase in the number of brokers: corporations that always prefer direct sales to customers object at getting rid of brokers and other intermediaries in the market. This is because they lead to the rises in prices of commodities, hence the company is incurring the cost of the competition. Additionally, intermediaries play an extensive role in reducing efficiency and the waving rates in businesses. In China, Dell witnessed a lot of challenges with the brokers given it was a challenge accessing the internet, and they were the only options for bids.
- Analyze the strategic importance of leadership at Dell
Dell organization under the leadership of Michael and Rollins provides a unit leadership that aligns with the visions and missions of the entity (Griffin et al., 2016). Their style of leadership presents a vital role in spearheading for the following virtues;
Essential entrepreneurial spirit: Entrepreneurial skills among the staff and members of the organization such as strength, risk analysis and performance focused operations are encouraged and upheld by Dell’s leadership. Most importantly they encourage the staff to innovate and uphold the winning culture.
Team work policy: The leadership of Dell Company uphold a unison operation system that deals with a non-hierarchical structure. This enhances, participation of every member in interactions, accommodation and innovations of ideas. This fosters efficient performance.
Corporation with positive culture: the culture characterized with winning and better performance is well integrated in Dell’s leadership structure led by Dell and Kevin. Through this, the management help to focus in addressing changes in the organization and determining different relationships and interactions within the company.
Better strategies to resolve conflicts: the organization has the best strategy that puts the concerns of employees ahead, this is upheld through regular meeting and other relevant authorial channels. Highlighting challenges in the organization increases chances of getting rid of poor relationship among members and other thing that might deter the peace of the organization.
- Explain how the leadership theories discussed in your e-book apply to Dell?
According to e-book, several theories of leadership relate to different organizations directly and indirectly. This theories play a crucial role in the relationship between the top management and the rest of the staff. The theoretical ideas in the applying of Dell include;
The theory of contingency: the theory ascertain that the success of a business or company cannot be contributed by a single function but rather the attribute of multiple dimensional approaches. In the case of Dell, different dimensions are relied upon such as experts, suppliers and analyst for essential decision making.
Transactional theory: the main idea of the theory is the interaction between the leaders and the staff to realize a mutual benefit. It is aimed at bringing harmony and benefits to both groups. For instance, Dell Company promotes transactional theory by rewarding top achievers in the organization. Also, sense of ownership bestowed on employees by the leadership accelerates success.
The trait theory: The theory bases its argument on leaders who possess the character to influence the operations of the organization both negatively and positively (Schyns & Riggio, 2016). The Dell’s management portrayed characters in the trait theory between the year 2001 and 2002, when the shares of the company reduced significantly due to reduced demand of personal computers. They come to the rescue of the company through thorough analysis of the situation and opting for better options.
The behavioural theory: The theory primarily bases its argument on the way leaders should behave so as change is achieved in the organization. It further states the assertion that the other employees are motivated to behave according behaviour of the top management. Dell’s behaviour that calls for performance by the management has motivated the other staff to emulate in delivery their mandate on daily basis.
- Illustrate how Dell meetings and communication procedures would resolve conflicts within the organization.
Dell organization has a well laid out strategy to deal with conflict and officiate its communication from the leadership ranks to the employees. This helps in addressing burning issues and maintain an operable efficiency in workplace (Aziz et al., 2020). The best communication strategies addresses several conflict claims including the following;
Addressing stereotypical conflicts: Stereotypical conflicts within the dell company incurs both social and physical differences that might result to internal conflict among employees. This might range from gender to racial discrimination. Having better strategies in place are essential in curbing such problems and reducing its effect to the company.
Addressing external factor leading to conflict: this are conflicts that are caused by factors outside workplace such as health and family issues that affect workplace performance. This might cause conflict within an organization as an individual might fail to produce the expected results. The strategy used by dell in addressing this problem is through effective communication that is made possible through the company’s regular meetings.
Addressing conflict from structural failures: this are failures that are caused by the feeling of low level employees to be considered in decision making that brings the exclusion feeling. Negative perceptions are build when employees and stakeholders are not part of vital decision making. Inception of proper mechanism for communication address such issues efficiently by conveying vital information about projects and other details to all stakeholders.
Addressing job interest conflicts: an organization harbours different employees who have different motives. Some will always go for occupation that are satisfying to themselves and self- benefiting and this might arise a lot of conflict for such greedy acts. Regular meetings and communication by dell are aimed at alleviating such issues though a proper communication regarding the remuneration and the system for rewarding.
- Analyze the strategic importance of Dell’s non-hierarchical structure
Dell profound success is attributed to the fact that they had a non-hierarchical bureaucratic leadership structure (Bashir & Verma, 2017). Such a framework used by Dell plays an important role in;
Compulsory access to fast-hand communication sources: In Dell’s organization structure information is directly communicated from the top company’s leadership to all other employees. This facilitates the transfer of vital information while engaging stakeholder sand other employees.
Conflicts resolution is on time: The leadership structure in Dell enhances timely resolution of conflict. Moreover, it is simple for employees to present whatever obstacle they encounter while executing their role sand responsibilities. Such structure similar to dell facilitates timely handling of claims and concerns.
Easy and fast decision making. The structure enables direct engagement between the management and employees in the company’s activities. This enables easy access to vital information by each one in the organization. Thus the easy and timely access to conversations and inquiries promotes the overall visions and missions of an organization.
Better communication: The structure of Dell Company ensures the management to parade their intentions and interest direct without jeopardy of information (Bashir & Verma, 2017). This because the organization as a whole can engage in developmental issues that focus on improving the organization.
- Assess how Dell’s culture is reflected in its organizational structure
Its organizational culture is primarily focused on better performance and provision of the best working conditions to the company. Therein, the organization culture is embedded with the Dell’s cultures basing on the urge to embrace team performance. The top leadership in the company is vital in enhancing collaboration in order to incur efficiency in organizational activities (Dell’Era, 2010). In addition, synergies and relationships are encouraged significantly to enhance better utilization of information and knowledge.
Considerably, Dell is sensitive to employee’s needs: Dell’s management plays a vital role in collaborating between the existing diversity so as to achieve their goal of efficiency in operations and satisfactory jobs. However, it should be noted that several current variations are essential in conflict alleviation.
Additionally, promotion of external relationship is a way dell reflected on the organizational culture. The top leadership endeavoured to collaborate with different stakeholders in a bid to make effective decisions (Dell’Era, 2010). Dell depends on advertiser, suppliers and analyst to make decisions on vital data and information on business environments. The inclusion of stakeholders is meant to uphold a culture of an informed decision making.
Adoption of a non-hierarchical structure is another way Dell reflects on its structure of organization. The dell management is accessible by everyone including the low-level workers, this is due to the fact that dell uses a non-bureaucratic organizational structure that demands orderly procedures to reach the top management.
Lastly, is the promotion of a positive attitude among employees. The Dell leadership considers a number of factors to boost mind-set, motivations and attitudes of employees. The initiatives to uphold this is communicating visions and missions, rewarding performance and increasing contact with employees. All this are crucial in boosting culture performance.
- Evaluate how dell has managed change
In the global sector, all aspects are subject to change including the prices, market and provisions (Voigt et al., 2017). On basis of change in the Company, Dell has observed that change comes with new innovations and opportunities in addressing all the limiting factors in the market. Some of the aspects that Dell has seen modification in include;
Change in strategic sales method: given that the country utilized online and internet order processing method in most of its transactions (Mburu, 2018), the method proved to be inappropriate in Chinese market. This led to the adoption of paper order sell strategy in the market.
Change in the objective, mission and vision of the company. Dell as an organization responded to changes that come with time regarding the needs and motivational requirement of the company production capacities. This led to adoption statement “soul of dell” vision statement. This is objected at addressing both strategic and structural challenges withholding the success of the company.
EMC acquisition. A massive deal between the Dell Company and EMC was struck, this saw an agreement for massive supply of data storage worth 67 billion dollars. Dell struck the deal with EMC as a strategy to the challenges of data storage accessories shortages. This even responded to the critics from competitors for Dell to have their own creative manufacturing base.
Finally, the privatization of 2013. The chairman Dell Company Mr Michael Dell informed the public on move to make the company a private one. This was a move to re-strategize its practices. This was a move to ensure the company was globally competitive.
Conclusion
Dell Corporation is a strategic business that embraced change and diversity to globally meet the preference of its customers. This is proved by the extent to which it stretch in incorporate a vision statement the “soul of Dell” that collectively considers the need of the company, employees and customers. Moreover, the company success is attributed to different factors that upheld performance such as collaborations, non-hierarchical structure and better communication strategies. However, it has encountered both success and turbulent since its inception in the year 1983 on its way to success.
References
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Bashir, M., & Verma, R. (2017). Why business model innovation is the new competitive advantage. IUP Journal of Business Strategy, 14(1), 7.
Dell’Era, C. (2010). Art for business: Creating competitive advantage through cultural projects. Industry and Innovation, 17(1), 71-89.
Gallien, J. (2016). How Dell reformed its supply chain technology to reduce risk. The Business & Management Collection
Griffin, J., Gleasure, R., O’Reilly, P., & Hayes, J. (2016). Socializing Technology: Digital Transformation and Global Business Services at Dell EMC. Cutter Business Technology Journal, 29(8/9), 46-51.
Lakshmi, S. (2018). Make To Order Strategy at Dell Corporation: A Case Study. To nurture thought leaders and practitioners through innovative education. 21.
Mburu, D. G. (2018). Mergers and Acquisition Effects to Competitive Advantage within Information Technology Companies: A Case Study of Dell EMC Central, East Africa (Doctoral dissertation, United States International University-Africa).