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Dell’s Main Analytical Models
Systems and Human Relation
Through the system analytical model, Dell can perfectly and timely integrate classical and human relation tactics. The social-technical systems ensure that the organization managed its external business market base strategically. The brilliant performance of Dell Company proved that the social-technical system is a perfect mechanism for managing its external aspects. It is vital to take note of the fact that technological upgrades influence the personal computer industrial space. The time factor gives manufacturers time to come up with specific gears such as microprocessors and storage components. The performance hardware upgrade usually comes with a multifaceted software hence driving demand for the up-to-date hardware. This implies that the time aspects play a role in two major ways- outdated personal computer gradually loses 10% monetary value per month and secondly, the latest product can gain a competitive edge due to the rising demand (Kraemer et al., 2000, p6). This way, Dell minimizes inventory and creates up-to-date items to induce demand, make a profit, and enlarge market share while retaining an edge over the competitors. These two aspects largely determine Dell Company's ability to manage inventory and launch modern-day personal computers. One way to go about this is standardization and modular nature of personal computers. Personal computers are produced from standardized apparatuses, via usual architectural interfaces influenced mainly by Intel and other giant technology companies. Personal computer manufacturers sometimes subcontract most of their inventions and purchase components from other well-to-do manufacturer networks and module part suppliers. Outsourcing streamlines Dell's ability to manufacture and launch new products in the market. Thus Dell’s system analytical model pools direct sales with productions tailored to fit the needs of its consumer base. This model is straightforward in terms of its theoretical element, however quite intricate in terms of its application. Even though other personal computer companies depend on resellers, retailers, and other mechanisms to take the marketing and sales burden, Dell reaches out to the client directly without the need for a third party. Hence, Dell fulfills each order based on consumer needs, a procedure that exerts pressure on its workforce, suppliers, logistics frameworks, and technological systems.
On the other hand, the human relations analytical model helps Dell meet client needs through the production of personal computers fitted with specified features. The build- to- order procedure ensures that dell meets all the client demands and create a cohesive workforce among its workers. This is seen through direct sales. Dell's direct sale design operates on two principles- direct client relations and items and services aimed at discrete client sections. Direct sales imply that Dell has to reach out to possible consumers either via sales or advertisements and supplementary promotion strategies (Lee, 2006, p3). Dells makes its sales via resellers and integrators particularly in market zones located outside the USA. Additionally, Dell's usage of direct method supposedly gives the company an estimated 6% price benefit in comparison to indirect sellers. Moreover, direct client relations give Dell an upper hand in terms of providing it with consumer information hence making it easy to note the demand and consider the needs of the consumers. A company that uses resellers usually cannot pinpoint the final client hence this makes it hard for them to incorporate the needs of the clients into their product. This is the underlying reason a direct approach is beneficial to Dell Company as through this mechanism one can define consumer trends early enough for a proper response. In simpler terms, a direct approach helps Dell form a relationship with its consumer base.
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Main Organizational Challenges
A gradual slowdown in the purchase of information technology equipment which in turn affected Dell Company’s shares. The personal computer’s shares experienced a 10% decline due to fewer purchases. Furthermore, the company's assets weakened due to a universal decline in end-user demand within the first financial quarter. The USA based company claimed in its reports that a decline in IT expenditure affected its international branches where the outcome was the same. The declining sales forced the giant technology company to cut down its costs in order to boost its profit margins (Allison, and Nuttall, 2006, np). Cutting down costs would result in a $3 billion yearly cut. Consequently, the company reduced its workforce to 8500 from 8900. These alterations came with the internal restructuring of its business models so that it could compete favorably with its rivals. Besides saving costs meant investing in proper organizational frameworks and assets. For instance, Dell’s rival beat Wall Street’s approximations within the last financial quarter. In other words, Dell experienced pressure as it had to go beyond its direct-sales business framework which had been a key problem solver in the past years and this move led to selling computers in multiple retail stores. Despite this move, the company was forced to sell some of its manufacturing sites in order to offset some of its pending bills.
Apart from cost-saving measures and combining direct and indirect business model, Dell merged with another technology firm known as EMC. The merger means that the company would take up a $45billion debt. This exposes Dell to high-interest rates as per the federal terms. The ability to integrate two different companies and generating incentives is a challenging affair for the company. In case the interest rates go up the company will find it finds it hard to stay afloat due to the outstanding debt arrears (Dell, 2020, np). Another challenge is leveraging assets. Dell keeps on acquiring other companies in an attempt to retain its relevance and increase their market share. Also, the acquisitions and mergers make it hard to push the sales up and regain a higher market position. Even though Dell is intense on balancing its commercial performance with obligatory activities, it may fail to achieve its objectives if does not accurately rethink its strategies.
Implications of Line Managers and Supervisors While Creating a Corporate Culture
The corporate culture idea affects Dell’s primary business performance. Nevertheless, an impactful leader is instrumental in kicking off an indirect business culture. The line manager ensures that the Dell way philosophy is embedded in every company's actions. Throughout Dell’s journey, the company had a head start in terms of understanding its mission and workforce behavior (Dell'Era, and Verganti, 2010, p123). One of Dell's most outstanding qualities is the ability to adapt to a dynamic competitive surrounding in a quick, lean entrepreneurship manner. This later led to high performance in an ever-changing business surrounding. Thus, Dell developed its corporate culture through its work ethic and reputation. Additionally, the managerial accessibility made it possible for the company's workforce to believe that their ideas were valuable and welcomed in the company. Junior workers are free to communicate with anyone.
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Dell’s Technological Sophisticated Methods for Collecting Soft Data for Both Its Performance and Consumers
Dell's departments form a relationship with its consumers which then enables it to track down transactions and detect any other issues. Through the direct2dell platform, Dell can interact with consumer reaction and also gauge its consumer strategies based on the consumer’s feedback. Websites such as Direc2dell and Tell Dell are accessible twenty-four hours a day and inform on decision making and strategic management. Additionally, these online platforms are managed to meet consumer services. The development via distribution and maintenance has enabled Dell’s consumers to access service delivery in the company’s various client systems. Dell’s client services are designed to solve impending challenges that a consumer may encounters while interacting with Dell's personal computers or other material. Once consumer land on Dell's consumer service platform, he or she can subscribe before launching any complaints (Gamble, Thompson, and Peteraf, 2010, p141). This standard procedure facilitates the acquisition of soft information and then provides the consumer with efficient sales services. Apart from the online platform client services, Dell offers on-site services where a vendor may help a client deal with both hardware and software challenges. Only accredited service delivery personnel are posted to a consumer whenever a challenge arises. Field services pertain to procedural analysis and repairing broken parts of the computer. In terms of departmentalization of the information system, the standardization of client platforms helps in the management of client information. As part of this mechanism, the consumer manager ensures that consumer interactions are cost-saving and shape the company's brand image which in the long term pushes up sales.
Dell divides its clients into relationships, dealings, and public intercontinental consumers. Dell's consumer differentiation assists it to react to consumer demands and alterations, come up with new consumer sections, and advance profitable sections. Consumer relationships can bring in a 1million profit yearly. This indicates the need to fully develop this consumer section. The top fifty companies worldwide have been able to cultivate client relationships account for 70% of Dell’s sales and this reflects on filling in the gap by considering consumers who bring in larger profit margins. Dell directs its resources on such clients hence providing made-to-order services to retain higher profit margins. More so, field sales agents are posted in consumer locations thus enabling the delivery of dedicated services to consumer relationships. Each sales agent only deals with a specified number of people. The sale agent is supposed to understand the information system surrounding and service requirements of a particular location where he is posted in. on the other hand, transactional consumers bring in an estimated 30% of the profit margins in most large reputable organizations (Dissanayake, 2012, p26). Several sale agents serve a certain number of transactional consumers. Sale agents assist transactional clients to pick a suitable system to meet their specific needs. Subsidiaries and other outsourced contracts assist in the management of international consumers. Agreements with international clients are facilitated by local business policies and governmental institutions. A more inclusive perspective is required due to direct purchases from producers. Additionally, the framework has to match that of an international approach. An international market can only be catered to via exclusive subsidiaries and contracts tailored to fit the needs of a specified consumer. This makes it more flexible and attainable.
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Postmodernism as A Way of Comprehending the Fundamentals of Diversity
One of the most notable ways of comprehending the transformative but subtle alterations impacts of technology is through the human way of thinking (Grinnell, and Muise, 2010, np). This way, anyone can take note of the change that has taken place over the years and try to find a solution. Some scholars attribute postmodernism to human rationality and independence i.e. people think and act autonomously. This concept seems to be innate and quite understandable to most people. Hence this drives diversity in various human sectors. postmodernism construct is only applicable and relevant to knowledge and rationality especially in scientific matters as the direction to human liberty and fulfillment emerges from a particular order of things. Over the years, this concept has built up to explain the underlying human behavior as instrumental in the growth and diversification of human society (Kanjariya, 2010, p10). Furthermore, postmodernism is heavily impacted by societal and cultural characteristics which are closely associated with capitalism. From a critical angle is the symbolism and continuity of progress and shaping social identities (Evans, 2013, p102). Postmodernism made it's through geography when experts began mentioning spatial science as a vital aspect which influences and its impact grows in terms of evaluation and influence of diversity and accommodation of eth worlds as a global village. The current society can access tons of information which in turn influences behaviorism and target audience hence ensuring that people are carefully evaluated in terms of background and choices made. Advancement in technology, the acceptance, and learning of various cultures led to culture acquisition and specialization to different professions hence enabling the emergence of a solid postmodernism surrounding.
References
Allison, K. and Nuttall, C., 2006. ‘Dell Shares Tumble after Warning over Sales’, FT on-line, 21 July
Dell, 2020. Dell Direct-sales and code of conduct https://www.dell.com/en-us/shop/dell-laptops/sc/laptops
Dell'Era, C. and Verganti, R., 2010. Collaborative strategies in design-intensive industries: knowledge diversity and innovation. Long range planning, 43(1), pp.123-141.
Dissanayake, D.M.N.S.W., 2012. Integrated communications, integrated marketing communications and corporate reputation: Evidences from DELL Computer Corporations. Researchers World, 3(3), p.26.
Evans, S.C., Potdar, Y.K., Dell'Anno, M.J., Markham, T.S., Klingbeil, A.E., Boring, R. and Barnett, B.G., General Electric Co, 2013. System, method, and computer software code for detecting a computer network intrusion in an infrastructure element of a high value target. U.S. Patent 8,621,629.
Gamble, J., Thompson, A.A. and Peteraf, M., 2010. Essentials of strategic management. McGraw-Hill Publishing.
Grinnell, J. and Muise, C., 2010. Dell computers: competing toward decline?. Journal of Business Case Studies (JBCS), 6(3).
Kanjariya, V., 2010 Dell Company.
Kraemer, K.L., Dedrick, J. and Yamashiro, S., 2000. Refining and extending the business model with information technology: Dell Computer Corporation. The Information Society, 16(1), pp.5-21.
Lee, L., 2006. Dell: Facing up to past mistakes. Business Week, 3989, pp.1-4.
