Case Analysis Dell Computer Corporation Term Paper

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¶ … Dell's strategic management. It uses no source except for the case. Michael Dell right from the beginning has been more of an entrepreneur then at technological guru. Although he had not taken active part in strategic decision making, he nevertheless realizes its importance. For this purpose he had brought leaders like Walker and Meyerson to aid him. As a leader he was dynamic in the sense that he easily takes into account of how the company could run with help of shared leadership. He also believes in cooperative work. Hence, in leadership, he has performed very well but as far as strategic management is concerned, Dell depended on other's skills more then his own.

Dells' strategy consist of the following elements:

embrace new ideas

Profit and loss management for each unit of business.

Value creation

Growth through informal enabling management like development of capabilities

Recruit talents

Strategy should be based on combination of resources and planning

Shared top power...

...

The company focuses on employee development through shared power and successes. This encourages the internal customer to participate in decision making. To ensure that the company work according to plan, Dell ensured expert skills like Meyerson and Walker.
Further, analysis of the company also reveal that the company focuses on serving the external customer through value chain management, a technique important for today's organization to gain an edge over other companies.

When Dell realized that the PC industry is becoming too crowded with powers in the hands of Compaq, IBM and Hewlett Packard, it decided to use the merger tactic to diffuse competitor. In a buyout of Compaq, Dell gains market share that was divided. Now with Compaq's technology it has been able to gain a significant share in competitive pricing to lead the group. However, it is…

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6. In the last five years Dell has been careful in keeping its shareholders happy with a growth rate from 34% to 64% in 2000. This shows that the company concentrates on increasing profitability along with its innovative strategies.

7. Dell's strategy has all the characteristics that a global leader should have. It has potential to expand because it does not hesitate in adopting an idea or innovation; it is careful in its financial elements; it is also careful in internal management; it demonstrate strong leadership quality at the management level as well as at the market level. Despite the economic downturn due to Asian financial crises it has been able to maintain a steady growth rate. In my opinion this characteristics will enable it to grow into a global leader.

8. If I were given the choice to buy the stock of this company, I would buy it.


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