Organizing at Dell Computers Thanks to significant changes in the personal computer marketplace, the performance of Dell has been on the downward spiral. Most notably, Dell has been known to keep off from the negotiating table even at a time when its rivals were rejuvenating their operations through mergers and acquisitions. However, since Michal Dell made a...
Organizing at Dell Computers Thanks to significant changes in the personal computer marketplace, the performance of Dell has been on the downward spiral. Most notably, Dell has been known to keep off from the negotiating table even at a time when its rivals were rejuvenating their operations through mergers and acquisitions. However, since Michal Dell made a comeback, there has been a change of strategy at Dell with the chief executive promising far reaching changes to take the company back to where it was just five years ago.
It can however be noted that for an organization like Dell to make significant strategic changes, some adjustments have to be undertaken in the organizational structure as well. In this text, discuss the primary initiatives adopted by Dell to turn around the PC Company. In so doing, I will also give a personal opinion on whether Michael Dell stands much chance in restoring the lost glory of the firm.
Turning Dell Computers Around: Initiatives Implemented by Dell Apart from spearheading changes in the prevailing culture of the management at Dell Computers, Dell has also overhauled the management team by bringing in executives from global players like Motorola and General Electric. One notable addition Dell's executive team is Garriques who had been instrumental in the Razr phone development. Garriques was head hunted by Dell to enhance customer focus by styling up the designs of consumer PCs.
When it comes to the change in culture amongst the firm's management, the move is founded on the need to change the mentality of executives so as to ensure they are not conditioned to be risk averse. It can also be noted that Dell has gone ahead to embrace a more decentralized approach to decision making. This can be gleaned from relative discretion executives have in making important decisions.
According to Montana and Charnov (2006), decentralization facilitates decision making as there is no existing need to make consultations with those in the higher levels. It therefore means that with delegation of authority to lower levels, Dell's flexibility in enhanced given the highly dynamic marketplace it operates in. For instance, managers of divisions have the absolute discretion of determining how the targets (financial) of their divisions are met. Further, Dell is keen to ensure that the company's customer focus is enhanced.
This can clearly be demonstrated by the creation of a consumer design unit headed by a former heavy-hitter at Nike, Ed Boyd. This move could be successful in sending a clear message to all the employees of Dell to the effect that the current priority remains customer focus.
An example that goes a long way to highlight Dell's resolve to ensure that PCs manufactured by the company are tailored to match the specific needs of the consumer is the adoption of the plan that allowed consumers to pay an additional fee for the inclusion of special designs on notebooks. Dell is also keen on netting more customers through the use of retail stores as the new selling points.
To further enhance its path to recovery, Edwards (2009) notes that the company has undertaken to diversify its operations to include a wide array of services, software and other products. This can be demonstrated by the move by the firm to start manufacturing smart phones. Here, the company could end up enhancing its bottom line. According to Griffin (2007), diversification allows companies to tests their abilities in several businesses.
Discussion: Why it is Possible for Dell to turn around the Computer Firm One critical indicator of Dell's resolve to turn around the company is the effort he is putting into it. Apart from calling company executives late at night, Dell's restructuring efforts are revolutionary. Indeed, to underscore his determination to better the performance of Dell Computers, the CEO according to Edwards (2009) asks all those still harboring doubts about the Company's ability to turn around to simply "sit back and watch." In my opinion,.
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