Internal And External Influences Of Dell Computers Commerce Essay

familiar And External Influences Of dingle Computers Commerce EssayThe organization creation chosen to carry turn out such(prenominal) assortment management move digest is the calculator industry and the organization c solelyer-up in con center is amicably regarding DELL Computers. Thus, change unconscious processes in business organizations involves the reality keister e actu anyy process and is considered as a daily cycle in dealing to various list forwards and concerns of the organization as it depends on the managements actions and its respected change of nature in dealing with effective change management as transmited at overcoming anger and resentment evolving into a program that yields adoption and internalization. As a consultant commenting on the organizational change process choosing DELL organization as the focal point for discussion and summary for this presentation, my role to the organization is to have a clear emphasis dealing to the foreign and in ternal change drivers and a nonher(prenominal) essential points needed for the credit of purpose for this report presentation for the senior management of the DELL in providing factual in variateation that depart be able to give a best(p) substantive spontaneity of understanding of such organizational recite needed for selection and the application of the appropriate management models as advantageously up as concepts per se.1.0 IntroductionIn this assignment, I pass oning be utilise dell muckle to complete task 1 and 2. Task 1 is about determining and analyzing dells internal and external gos. The external factors be the elements act from outside the organization that beyond the control of organization and internal factors ar the influences within the organization. In task 2, political change, effectiveness and mendments of the dingle entrust be discussed.1.1 Background Information of dingleMichael dingle, the founder of dingle in 1984. Michael dell started ch ange personal computers out of his dorm room at the University of Texas in Austin. dingle has a simple concept that is by selling computer systems right away to their target clients by slipperiness out retailers and suppliers. dingle listens and understands clients needs and delivers the most effective computing solutions to meet those needs. Dell is the piece 1 PC translater in the get together States and number 2 cosmopolitan. Dell was in any case listed in Forbes magazine as the 25th largest attach to on the Fortune 500 list. Dell headquarter is located at Texas, United States. In 2009, Dell has employed to a greater extent than 76,500 people cosmos dewy-eyed. Dell sells its returns directly to clients such as government agencies, public institutes, healthcare and educational institutions, dainty to large businesses by sales representatives, teleph wholeness-based sales, and online through the companionship web site.2.0 Internal FactorsInternal factors or influenc es admit statement of mission, vision and goals, return and services, lead and elevate analysis.2.1 Statement of Mission, Vision and GoalsDells success is based on a simple premise that is to listen to customers, delivers engineering science and services they value. Dells mission is to be the most successful computer go with in the universe at delivering the best customer experience in food food markets we serve, by means of skirmish customer expectations of highest quality, leading technology, guild accountability and support as well as flexible customization capability, and financial stability. The company vision was to produce computers that could advantageously be fitted with individual components to build a computer system to lenify individual requirements. Dells primary goal is to customize, goal and strengthened products to satisfy they customers requirements so that customers put up get exactly what they desire. Dell has achieved their main goal by doing busi ness directly with customers one at a time. They believed that they could better than anyone in the world. This is their primary goal because they want to be the best at what they do and make a profit. Dell feels that their outstanding customer service will keeps customer loyal.Dells an new(prenominal) goal is to become the greenest technology company in the world. Dell has launched a long-term, globose effort to become the greenest technology company in the planet. It has set an ambitious Zero Carbon Initiative whereby it aims to maximize the energy efficiency of Dell products, and over time offset their atomic number 6 impact. Furtherto a greater extent, Dell is going to extend its establish a Tree for Me course of study into Europe and Dell will besides continue offering its consumers worldwide free cycle for used Dell equipment and other branded equipment when untried Dell hardware is purchased.2.2 Products and ServicesDell is worldwidely recognized for deliver winnin g products and outstanding services. Dells dedication to customer satisfaction means that consumer bum count on them for a responsive, reliable, quality service. Dell pay tutelage and listen to their customers needs and wants. Thereby, Dell delivers innovative technology and services they consecrate and value. Dell offers a wide turn over of product such as desk pourboire computers, notebook computers, intercommunicate servers, workstations, handheld computers, monitors, printers, high-end storage products, and a physique of computer peripherals and software. Dells systems are built to order and so that customers have the immunity to choose what requirements they require. other than that, the company is now offering wide mark of electronics and PC entryories networking accessories, digital cameras and camcorders, gaming consoles and software, LCD televisions, projectors and surround sound speakers. Moreover, Dell has designed smart, simple services to fit the current custo mers livenessstyle and it has brought customers a lot of convenience. Dell likewise provides 24/7 customers service and support tool that secure customers personal data and keep their system rill in good condition. Dell technology experts go off remotely access a customers computer to solve issues instantly.2.3 Leadership2.4 SWOT analysisStrengths star of the best renowned computer brandsDell is the largest PC maker in the world and similarly well- cognize for online selling of computers. Dell offers a wide range of PC, Laptops, Monitors and LCDs, hardware and software. The companys web site received at to the lowest degree 25 million visits at more(prenominal) than than 50 country-specific sites. station to customer business modelDell sells directly to their customers by cutting out the retailers and suppliers. Dells efficient procurement, manufacturing and distri exclusivelyion process all(prenominal)owing it to offer customers kingful systems at private-enterprise(a) prices. Dell provides top-notch customer service before and after the sale and also 24 hours customer service and support.CustomizationEvery Dell system is built to order. Dell built computer based on customer provided specifications. So customers get exactly what they desire.WeaknessesNo Proprietary TechnologyDell does not have proprietary technology, the current technology used by Dell are shared by the other major competitors.Product troubleThere is the occasional product recall that derriere cause Dell some embarrassment. In 2004, 4.4 million laptop adapters are recalled back because of a fear that they dexterity overheat.OpportunitiesDiversificationDell is introducing more sensitive products to its range through diversification. This initially has meant good such as printers, desktop and laptops, hardly now also includes LCD televisions and other non-computing goods.Strong market authorisationDell has the opportunity for expansion in all parts of the world, grumpyly in markets outside of the U.S. in all customer segments and in all product categories. The number of PC users is expected to hit or perish 1 one million million million by 2010.ThreatsCompetitorDell attracts customers through monetary value saving. Since competitors are offering computers at low cost, this could braten Dells price-conscious growing customer base. With almost similar prices, price difference is no longer an issue for customers.Technology AdvancementRapid change in technology obsoletes the product in small span of time. Dell has to keep up with technical advancements to be able to compete.Currency varianceChanges in world currencies put forward affect production costs. As the costs of supplies summation, the price of the computers will also increase.3.0 External FactorsThe external environments consist of Porters 5 and PESTLE analysis. PEST is very effective for the understanding of business situation and worldwide issues and Porters 5 analyses the companys exter nal environment in an existing market or a new-made one.3.1 PEST analysis of Dell Corporation3.1.1 PoliticalPolitical factors include government regulations and legal issues determining the conditions under which companies have to operate. Dell Corporation encounters problems in certain countries where political stability is not guaranteed, no subject whether companies operate production facilities or if they do business with that country through exports or imports. Many countries thus far have stand-inrictive policies such as the trade quotas and certain government regulations that implies on MNC (Multi topic corporations) which are maintained to cling to domestic manufacturers and production. These policies are more likely to obstruct foreign companies from investment or entering into these markets. The only possibility to do business in those countries is to establish confederacys with local anesthetic companies such as joint ventures or strategic alliances, where they are additionally forced to accept minority shares and to provide resources concerning money, local culture and technological knowledge. However, the computer industry sees great potential in those countries with looser and less cut back government regulations for countries like China which has opened for many industries since its accession to the WTO in 2001. This causes the globalisation trade barriers to be less restricted and the opportunities for new market to emerge thus allowing free trade to hit the ceiling.3.1.2 stintingEconomic conditions influences some(prenominal) demand/supply, crown and cost and is greatly influences by political and government policies. The computer industry expects a evolution of somewhat ten percent over the succeeding(a) geezerhood. This gain is influenced by the economic situation in a specific country, having an impact on the buying power of potential customers. Hence, changing inflation rates and currency fluctuation also determine the pr ofitability of a company. I the cost of capital is low it will be an interesting market for steadfasts to invest and expand in the market thoroughly. Certain countries in Asia represent a great opportunity for firms to invest and expand in. For example, in Malaysia GDP for 2007 was estimated at 357.9 billion with a growth rate of 6.3%, while in 2008 it comes with a growth rate of 5.0%. Apparently in 2009 the growth rate has increased from 2008 of 5.0% to 2009 of 5.2%.3.1.3 heartyThe tender cultural factor represents the demand and taste. Promotional and pricing strategies will have to change according to the market saturation to adapt to the consumer demand. The national demand for computers is dependent on the educational level prevailing in a specific country. The higher the educational standard, the higher is the demand. Furthermore, computers get more and more involved in daily life. Today, children are more advisedid to computers compared to the 1990s. Firms should be awar e of demographics changes as the structure of the population by ages, affluence, regions, the commerce rates can strongly influences the demand and supply for a particular products and services. Therefore, threats to existing products might be increasing and this indirectly causes the opportunities for differentiation and market segmentation to increase.3.1.4 TechnologicalThe technology today has indeed become an addition rather than a liability to human universes today. Firms must evolve then in order to stay competitive among existing rivals in the market. irrefutable technology external can also be captures and used, and this again can be influenced by government support and encouragement. New technology can be useful in both manufacturing and services for a better and more efficient and effective output. For example, in Malaysia Dell corporation is illustrious for producing affordable and good quality laptops such as the Dell Inspiron and Dell Studio laptops to suit all ran ge of income earners and taste.3.2 Porters five ForcesFive forces analysis protagonist the marketer to compare and contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on the unity, stand alone, business or SBU (Strategic business concern Unit) rather than a single product or range of products. For example, Dell would analyze the market for Business Computers (one of Dells SBU units)3.2.1 Threat of New Entrants (moderate)Barriers to entry, however can restrict the firms from entering the market, more number of entry barriers will make it difficult for the new entrants to doing the opportunity of new market. Existing firms which produces at economies of scale makes it difficult for new firms to enter the market. Certain distribution channels are control by either the government or existing firms and makes it difficult for new entrants. Furthermore, not all programs can work all computers at tha t placefore switching costs is quite high. This causes customers to stay with the same product because it can be expensive to buy new software for a new system.3.2.2 Bargaining author of Buyers (high)The bargaining power of buyer increases when there is a large occur of players in the market. Rival firms offer discounts, warranty and services to switch the consumer from one brand to another in the same industry. Consumers are highly price-sensitive and might switch to other PC company if Dell increases their price. Thus, Dell can lower this threat by differentiating their products. Customers select mainly based on price although Dell differentiate their products because customers might not see such(prenominal) differences between products. Firms should maintain good relationships with customers by practicing CRM processes in the company. For example, P G has an online portal to ask the customer about their views, opinions and new ideas about the products of their desire.3.2.3 competition among existing firms (Strong)It refers to the war between the firms competing in the same industry for gaining customer share in order to increase their tax incomes and moolah. Dell is offering affordability computers and excellent customer service which could stay competitive in the industry.3.2.4 Threat of Substitutes (moderate)Other gadgets such as mobile phones can be a threat to computers due to enhancement of phone features that have similarities with PDAs. A firm faces bright competition from transfigure product producing firms, when the customer cost of switching is lower, substitute products are better in quality and functionality. The competitive strength can be determined by market share, sales pattern, producers adding capacity for more production, and rise in profits.3.2.5 Bargaining power of supplier (moderate)Bargaining power of suppliers affect the intensity of competition especially if there are huge numbers of suppliers in the market summation less availability of vulgar corporal and the cost of switching between suppliers or raw material is high in the market. The influences of certain huge suppliers such as Microsoft give computer manufacturers to load Windows in their computers and place their logo on laptops, desktops and server machines.Task 24.0 Influence on policies and decision qualificationThe influence on policies and decision making is partly based on the conversion of globalization and world prudence is usually recognized as being driven by the combination of political, economies, socio cultural, technological and biological factors. A firm would be able to analyze the situation through PEST analysis, SWOT and Porters 5 forces. During the worlds worst hit global delivery crisis 3 years back, the whole world suffered in a lot of aspects. The United States frugality tumbles like never before and because America is the worlds biggest exporter and importer in terms of trade, it little by little affects other countries.4.1 Global economy crisis in the worldDuring the global economy crisis in 2008, the United States experienced a serious financial crisis which dark into a major economic recession. Both howeverts also spilled over to the rest of the world resulting in a global economic crisis. (Financial Crisis and Global Recession, 2008) pretension rises and consumers are more sensitive about their spending, hence this causes the government will have to come out with stimulus plans to restructure the economy and to diminution unemployment rate which is rising rapidly. Dell corporation second quarter profits falls 17% from a profit of $746 million, or 33 cents per share, the company reported a year ago and announces the firms restructuring plan of 10% cuts in global jobs that equate to job losses of around 9,000. Dell also closes its plant in Austin, Texas as part of its restructuring plan to save $3billion over the next 3 years. Shares of Dell rose 31 cents to close at $19.92. They de teriorateped and then regained 25 cents in after-hours trading.4.2 Global incorporate province of Dell CorporationDell Corporation, a truly globalized information technology infrastructure and those who build, run and use it are creating a new era, the affiliated Era. Dell wants to develop a generation of young people crosswise the globe that is prepared to connect to the whole new world. (Dell Global Giving, 2010)Dell has always been practicing this principle and culture since the firms incorporation. For example, Dell has launched a new pinch program called Dell Youth Connect to prepare while help unleashing the talent of young people through technology and designed to provide support for education and digital inclusion scuttles that the company considers essential to ensuring the next generations success in the Connected Era. India, Mexico and Brazil are the recipients where Askhara Foundation is founded in Bangalore and American Indian Foundation in Hyderabad.4.3 The increa sing effects of global warmingGlobal warming has risen to become an issue and has moody into a catalyst. It is believed to be cause by human activity such as fossil fuel burning, deforestation, greenhouse emissions and pollution. The effect is devastating and is do the earths global temperature to increase and this leads to the rise of sea levels and will change the arrive and pattern of precipitation. Apparently, Dell Corporation is committed to becoming the greenest technology company on the planet. The company has built environmental considerations into every stage of the product life cycle ranging from development and design, to manufacturing and operations, to customer use and end of life product disposition for more than a decade. Dell Corporation, not known as a cleantech company, but long known for being a supply chain expert and direct marketing leader in PCs and electronic devices, is turning its attention to global warming and at to the lowest degree working to provi de consumers some greener product options and more consumer information. For example, Dell created the Plant A Tree program to make it easy for customers to offset the greenhouse gas emissions from the computer equipment and to help build a healthier planetwhile practicing the slogan one tree and forest at a time. Customers can easily participate by purchasing new Dell products and simply add the Plant a Tree option to the shop cart while shopping online. Non customers can easily donate by logging in to the carbonfund.org/Dell website to contribute to the program.4.4 The Emergence of Asia on the economy factorsThere are currently 28 emerging markets in the world and by far China and India are the two largest markets in the world currently. Since Chinas emergence in WTO in 2001, China has been growing rapidly in terms of growth and industrialization along with India. These two countries are the worlds meteoric growing country in terms of GDP growth and trade. Dell Corporation extra vagance no further time by announcing its partnership with Chinas largest consumer electronics retailers Gome. The company also plans to pursue partnership like this in other Asian countries.Dell opens its 1st outlet in Malaysia called Dell Direct Store at Mid Valle Mega Mall, one of the busiest shopping mall in Kuala Lumpur (KL) in 2007. Dell has since begun operating a plant producing for Latin Americas and the US markets in Malaysia in 1995. This shows that Dell already saw the opportunities to expand in the Asia markets long before it started to blossom. (Blogjer, 2009)The income statement shown above is the reported earnings of Dell Corporation. Dells revenue has been increasing steadily from 2006 until it decreases starting from 2009, which is where the period of time the global recessions affect the world. Due to the Global recession, Dell has to restructure the company and this leads to shutting of plants and sacking of employees. Even though the US market is a slump, appar ently, Asia continues to be one of the few bright spots for the computer industry. For example, the company is cutting workers and idling some facilities in Texas because of slow computer demand in the United States , despite that international sales still remain strong. The refresh Rock, Texas-based company reported a 5 per cent dip in its global profit and an 11 per cent increase in global revenue during the fourth quarter, but reported a strong double-digit growth in markets such as India and China. The companys revenue rose 52 per cent year on year in India during the fourth quarter (ending January 29) , and 81 per cent in China in 2010. This shows the sign of economy recovery, but still international sales are by far big than sales in the US years ago.5.1 Awards for environmental coreDell Corporation values honesty, integrity and the highest level of ethical conduct. Hence, starting in 2000, Dell began the Soul of Dell initiative to redefine our values and top what Dell aspi res to be as a company. (Ethics and Compliance, 2010)5.1.1 Business Ethics Magazines guide 10 Best Corporate CitizensDell ranked No. 9 in Business Ethics list of 100 Best Corporate Citizens among major U.S. companies. The annual 100 Best Corporate Citizens list evaluates the top 1,000 largest publicly-traded companies in the U.S. and is based on a statistical analysis of functioning in the following eight stakeholder categories shareholders, community, governance, diversity, employees, environment, human rights and product. Dell scored highest this year in the categories of employee relations, community engagement and environmental responsibility. Dell has been ranked for six of the lists septenary years of publication. In recent years, Dell has won acclaim for the companys dedication to corporate citizenship, notably as the 2005 winner of the Business Ethics environmental Progress Award. (Ethics and Compliance, 2010)5.1.2 The Tim McClure Award (Outstanding Environmental and Comm unity Leadership)The National Recycling alliance awarded Balcones Recycling partnership with Dell Computer Corp. The award salutes organizations that show initiative and commitment to recycling, the environment and the community. Since Dells partnership with Balcones Recycling began in 1997, the computer whale has achieved a remarkable 80 percent recycling rate and has entertained more than 40,000 tons (1,700 tons per month) of material from local landfills and saved more than $16 million ($1.3 million per month) every year. Dells R3 reduce, employ, recycle implementation in recycling and waste reduction that includes focusing on recycling within Dells offices and manufacturing facilities in the United States, and in schools near the companys headquarters in primeval Texas. Balconess recycling partnership with Dell represents one of the largest and most successful waste minimization, diversion and recycling efforts in the United States. Balcones anything that tears office recycl ing program at Dell is the largest in US, this allows Dell employees to mix all types of recyclable papers such as cardboard, office paper, plastics, foams in the container making it the most user friendly recycling system in the country. progressive reuse programs developed by Balcones Recycling have had the single superlative economic and environmental impact on the results of R3. In Dells manufacturing facilities, innovative reuse programs put into action by Balcones save packaging materials and parts, and then returns them to suppliers. (CHARLOTTE, 2009) list to appendix 16.0 Area for improvementsAlthough Dell is an extremely successful company, there are areas of improvements and enhancements that should be considered. The computer industry focuses mainly on technology, therefore for Dell to stay competitive among firms in the industry, Dell should innovate and incessantly adapt to the new technology for technology will have a significant impact on Dells success and future. Dell Corporation is historied for its affordable and good quality computers. Dell can invest more in the research and development to develop new products and services, even though Dell is a leader in e commerce computer hardware market and sets the highest sales in online sales in US, still the company can initiate a program called Customer mess to gain more market share. For example, like what the company did in chirp and Facebook , Dell Corporation managed to get a $3 million revenue through Twitter and the company placed 200 employees on the social networking site to interact with customers about technical support and customer demands. The company can also implement a program to reduce errors in their direct Internet ordering system and create a headroom area on its website for systems produced in error because most of Dells sales come from online sales. Therefore, customer should not have bad experience when purchasing online on Dells official website because leaving a good impression and experience in the customer is always good for business no matter if the customers are just consulting or purchasing. Dells customer support service can also be enhanced, apparently the company spends $150 million to improve on customer service but recorded a 5 % drop in the American Customer Satisfaction Index. Dells global brand identicalness is also undeniably strong but in new and heyday market such as India, China, Vietnam, Indonesia and so on, Dell can increase their company recognition through a national advertising campaign. mutual agreement within a company and government to achieve a certain goals and objectives can be obtained and are very beneficial towards both sides.7.0 ConclusionDell is a very successful company in the world due to the companys high level in understanding of customer needs and satisfaction. The company listens to what customer wants and needs and then implements it into the companys system, products and services. Dell implements the d irect business model since it was 1st founded by the current chairman Michael Dell, even till today, Dells environmental programs for product asset recovery and product design for environment have spanned more than a decade. The company designs and customizes products and services to the requirements of the organizations and individuals, and sells an extensive selection of peripheral hardware and computing software. One of Dells missions is to engage stakeholders to improve products and processes for the beneficial of everybody in the process. Dell is expanding from selling desktop computer market to enterprise computing, a move that involves building high-powered server computers. The companys expertness in selling over the Internet and efficient supplier network are critical if Dell is to drive better value for its customers, plus the internet has become a booming business in all kinds of industry and are increasing the demand for network computers for many years to come. If Dell wants to optimize their return on investment, they must continue to form strong customer relationship as well as seller relationships and participation.