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STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

The word strategy comes from a Greek word strateos means general thing. In business
the term strategy is used to describe how an organization is going to achieve its overall
objectives. Mostly it is concerned with decided alternatives are to be adopted for
accomplishment of overall objectives of the organization. Strategy is a plan of action or policy
designed to achieve major or overall aims.
Mission statement describes what the organization is now, what it wants to become and
how you are going to achieve it. Vision statement states what do we want to be.
Strategic Management is a process involving number of stages from strategy formulation
of strategy is not enough it has to implement properly as well as evaluated to implement properly
as well as evaluated to review the performance.
Direct Business Model is the foundation for Dells business. Dell maintains a consistent
focus on offering the best value and customer. Dell is a trusted technology innovator with a
diversified, comprehensive IT portfolio. Dell is a global company committed to its customers and
employees. In January 2009, Dell announced that they will withdraw all manufacturing from
Limerick and move it to its new plant in the Polish city of Lodz by January 2010. Raised their
cost-reduction target to $4 billion. Dell also announced that it aimed to become a "one
percent company," giving away 1 % of pretax profits to education and digital inclusion projects
mainly in emerging markets, by February 2010.
Mission statement of Dell Company is To provide customers with superb value, high
quality, relevant technology, systems, superior service and support and products and services that
are easy to purchase and use.
Vision statement of Dell Company is The direct relationship continues throughout the
customer experience
Dell Company thinking that strategic provides the foundation of the strategic
management. By providing an insight into the forces behind the intense competition, by

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


developing a sustaining competitive advantage based on organization core competency. It can be
broadly divided into three phases:

Phase 1: Strategic Formulation


Phase 2: Strategic Implementation
Phase 3 : Strategic Evaluation And Control
The first step adopted by Dell Corporation was to frame the mission and objectives for
the organization. After setting the mission and objectives the next step is to analyses the internal
environment. The management conducts the analyses of the external environment and also
conducts gap analyses. Then they frame alternative strategies and accomplish the objectives of
the firm.
Once the strategies are formulated by the Dell company the next stage is strategic
implementation. The stages are Formulation of plans, programs and projects, Project
implementation,

Procedural

implementation,

Resources and allocation,

Structural

implementation, Functional implementation, Behavioral implementation.


In next phase the manager tries to assume that the strategic choice is properly
implemented and is meeting the objective of the organization.
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.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

PURPOSE OF THE STUDY:The basic purpose behind the study was to get detailed knowledge about the
Strategic Management of Dell Company. The study was basically aimed to
know more about the Introduction, History, Key towards strategic planning,
Strategic Formulation, Strategic Implementation and Strategic Evaluation And
Control of Dell Company.

OBJECTIVES OF THE STUDY: To study about Strategic Management of Dell Company.


To study about process of Dell Company.
To study about Key towards strategic planning Dell Company.
To study about Tools of strategy evaluation.
To study about challenges and importance of strategic management.
To study about the various stages of strategic management.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

RESEARCH METHODOLOGY:-

P r im a r y
SWOT Analysis of Dell Computer

Strengths
Dell's Direct Model approach of enables the company to offer direct relationships with customers
such as corporate and institutional customers. Their strategic method also provides other forms
of products and services such as internet and telephone purchasing, customized computer

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


systems; phone and online technical support and next-day, on-site product service. This extensive
range of products and services is definitely one of Dells strengths.
Dell Computer's award-winning customer service, industry-leading growth and consistently
strong financial performance differentiate the company from competitors for the following
reasons:
Price for Performance Dell boasts a very efficient procurement, manufacturing and distribution
process allowing it to offer customers powerful systems at competitive prices.
Customization - Each Dell system is built in order to meet each customers specifications.
Reliability, Service and Support Dells direct customer allows it to provide top-notch customer
service before and after the sale.
Latest Technology Dell is able to introduce the latest relevant technology compared to
companies using the indirect distribution channels. Dell turns over inventory for an average of
every six days, keeping inventory costs low.
The company's application of the Internet to other parts of the business --including procurement,
customer support and relationship management -- is growing at a rate of 30 percent. The
company's Web site received at least 25 million visits at more than 50 country-specific sites.

Weaknesses
Dells biggest weakness is attracting the college student segment of the market. Dells sales
revenue from educational institutions such as colleges only accounts for a measly 5% of the total.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Dells focus on the corporate and government institutional customers somehow affected its
ability to form relationships with educational institutions. Since many students purchase their
PCs through their schools, Dell is obviously not popular among the college market yet.
For home users, Dells direct method and customization approach posed problems. For one,
customers cannot go to retailers because Dell does not use distribution channels. Customers just
cant buy Dell as simply as other brands because each product is custom-built according to their
specifications and this might take days to finish.

Opportunities
Personal computers are becoming a necessity now more than ever. Customers are getting more
and more educated about computers. Second-time buyers would most likely avail of Dells
custom-built computers because as their knowledge grows, so do their need to experiment or use
some additional computer features.
Demand for laptops is also growing. As a matter of fact, demand for laptop has overtaken the
demand for desktops. This is another opportunity for Dell to grow in other segments.
The internet also provides Dell with greater opportunities since all they have to do now is to visit
Dells website to place their order or to get information. Since Dell does not have retail stores,
the online stores would surely make up for its absence. It is also more convenient for customers
to shop online than to actually drive and do purchase at a physical store.

Threats

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


In a volatile market such as personal computers, threats abound. Computers change in a constant
sometime daily basis. New software, new hardware and computer accessories are introduced at a
lightning speed. It is essential for Dell therefore to be always on the lookout for new things or
introduce new computer systems.
The threat to become outmoded is a pulsating reality in a computer business. Not only that,
companies must produce products that are high in quality but low in price. This is one challenge
that Dell contends with.
One of the biggest external threats to Dell is that price difference among brands is getting
smaller. Dells Direct Model attracts customers because it saves cost. Since other companies are
able to offer computers at low costs, this could threaten Dells price-conscious growing customer
base. With almost identical prices, price difference is no longer an issue for a customer. They
might choose other brands instead of waiting for Dells customized computers.
The growth rate of the computer industry is also slowing down. Today, Dell has the biggest share
of the market. If the demand slows down, the competition will become stiffer in the process. Dell
has to work doubly hard to differentiate itself from its substitutes to be able to continue holding a
significant market share.
Technological advancement is a double-edge sword. It is an opportunity but at the same time a
threat. Low-cost leadership strategy is no longer an issue to computer companies therefore it is
important for computer companies to stand out from the rest.
Technology dictates that the most up-to-date and fastest products are always the most popular.
Dell has to always keep up with technological advancements to be able to compete.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

SECONDARY
LIMITATIONS: Find very difficult to collect information on strategic management process of
particular firm.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

CHAPTER 1: STRATEGIC MANAGEMENT


1.1 INTRODUCTION TO STRATEGY
Meaning:The word strategy comes from a Greek word strateos

means

general thing. In business the term strategy is used to describe

how

an organization is going to achieve its overall objectives. Mostly

it

concerned with decided alternatives are to be adopted for


accomplishment of overall objectives of the organization.

Definition:Strategy is a plan of action or policy designed to achieve major or overall aims

is

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Strategy is a unified, comprehensive and integrated plan that relates strategic advantages of the
business to the challenges of the environment. It is designed to ensure that basic objective of the
organization are achieved through proper execution.

1.2 mission, vision and objectives


Mission:A every organization has to defined the basic reason for its existence in terms of
mission statement. It is the statement which states the basic purpose of the
organizational philosophy means the value, beliefs and the guidelines
under which the organization would conduct its business.
Mission statement describes what the organization is now, what it wants to become and
how you are going to achieve it. It is the first indicator of how an organization look at its
stakeholders. All strategic decisions flow from corporate mission statement. Typically mission
statement defines the business of the organization, states the vision and also specifies important
organizational values.

Vision:Some business prepare only the mission statement


but some develop mission as well as vision statement.
Experts say that there are difference between mission and
vision statements.

Some experts and authors are of the

opinion that mission statement states what is our business


(present or current position).

On the other had vision

statement states what do we want to be (future status or position). Many organisation frame
mission as well as vision statement saying that there are difference in them.

Objectives:-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Objectives are the end which the organization intends to achieve through its existence and
operations. Organizational objectives vary from organization

to

organization. Generally objectives and goals are considered

to

be same but there are slight difference between them.


The objectives are broad aims where as goals are more

specific in nature. In other

words when objectives are divided in to sub objectives they are called as goals. Ex, The
objectives they are called as goals but the goal may be to increase market share but the goal may
be to increase a market share of a brand by 10% during the current year.

1.3 introduction to strategic management

Meaning:Strategic Management is a process involving number


of stages from strategy formulation of strategy is not enough
it has to implemented properly as well as evaluated to
implemented properly as well as evaluated to review the
performance.

Definitions:Strategic management can be defined as:1. Strategic Management is a continous process of formulating, implementing and
evaluating the strategies that are framed to enable the organization to achieve its
objectives.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


2. Strategic management is a stream of decisions and action that lead to development of
effective strategies to help, achieve, corporate objectives. It is the way in which strategist
determines the objectives and take strategic decisions.
3. Strategic Management focuses on integrating various functions like production, finance,
marketing to achieve organizational objectives.

1.4 CHARACTERISTICS/FEATURES OF STRATEGIC


MANAGEMENT

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Fe a t u r e s O f
S t r a t e g ic
M anagem ent

M u lt ip le
d e c is io n
M a k in g

U n iv e rs a l
A p p lic a b ilit
y

S yste m
a t ic
P ro c e s s

R e la t e s to
th e
E n v ir o n m e n t

Long
te r m
P la n n in
g
To p
M anagem
ent
Fu n c t io n

Fo c u s
on
o b je c t iv
es

1) Systematic Process:- Strategic management is a systematic process of framing,


implementing and evaluating. This process is to be followed in all areas of the business.
2) Relates to the Environment :- Strategies are framed after taking in to consideration
the internal and external environment of the business. It is to be considered not only
while framing but also while implementing the strategies. Strategies may be modified
according to the changes in the environment.
3) Focus on objectives: The main focus of strategic management is to achieve
organizational objectives. The whole process is carried on for achievement of these
objective only.
4) Top Management Function :- Decision regarding strategic management are taken
by top management only. Lower level management may be given a chance to give their
opinions but the final decision is taken by top management only.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


5) Long term Planning :- Strategic Management is concerned with long term planning.
It aims at achievement of long term objectives. Therefore short term objectives are
automatically taken care of.
6) Universal Applicability :- Strategic management is applicable to all types of
business. This is because all organizations need to frame and implement strategies for
their survival and growth.
7) Multiple decision Making:- The process of strategic management involves taking a
number of decisions like
i)
Study of internal and external environment
ii)
Setting of objectives
iii)
Formulation of strategies
iv)
Organization and allocation of resources
v)
Implementation of strategies
vi)
Strategy evaluation and control

1.5 IMPORTANCE OF STRATEGIC MANAGEMENT


A well-formulated strategy can bring various benefits to the organization in present as well as in
future.
1. Strategic management takes into account the future and anticipates for it.
2. A strategy is made on rational and logical manner, thus its efficiency and its success are
ensured.
3. Strategic management reduces frustration because it has been planned in such a way that
it follows a procedure.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


4. It brings growth in the organization because it seeks opportunities.
5. With strategic management organizations can avoid helter & skelter and they can work
directionally.
6. Strategic management also adds to the reputation of the organization because of
consistency that results from organizations success.
7. Often companies draw to a close because of lack of proper strategy to run it. With
strategic management companies can foresee the events in future and thats why they can
remain stable in the market.
8. Strategic management looks at the threats present in the external environment and thus
companies can either work to get rid of them or else neutralizes the threats in such a way
that they become an opportunity for their success.
9. Strategic management focuses on proactive approach which enables organization to grasp
every opportunity that is available in the market.

1.6

challenges to strategic management


Through the general introduction, we know that strategic management includes three
aspects which are strategic planning, strategic implementation and control of the 20 strategy
in an organization. Almost all the modern organizations have tried strategic management to
make sure that they can reach the expected level of performance. However, there are still
many challenges for strategic management in the modern business society.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

1. Orientation for globalization:Now nearly every business organizations begin to get globalised, step in to global
operations with the multi-national corporations or use other foreign business operations
methods. Because of the globalization of operations of in business world there are many new
orientations coming out, such as international human resource management (IHRM) and
international finance. The process of companys strategic management has to be renovated
all the time to deal with these new orientations.

2. Emerging e-commerce and internet culture:With the increasing expansion of internet and the technology, some companies have
turned attention to e-commerce where they conduct business with electronic means such as
online purchasing, online selling and online advertising. Strategic management process of the
business should succeed to change e-commerce motivation into the business process.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

3. Cut throat competition:When the globalization, e-commerce and many other changes emerged in the
business society, business has become hyper competitive. If you are not using proper
competitive strategy, the organization cannot survive any longer. The process of strategic
management can help to generate competitive intelligence, foresee the next moves of rivals
and build the competitive strategy to defeat competitors in the tough battle.

4. Diversification:With increased uncertainty and the rapid changes in business environment, the
business risk has grown up substantially. Companies now engage in diversified operations
must diversify the business risk where they focus on more than one business area or industry
rather than specializing in one area. The strategic management should be capable of
identifying diversification of business opportunities and manage them well.

5. Active pressure group:Under the modern society, there are active pressure groups operating such as
environmental activism and consumer protectionism. Therefore strategic management must
identify these external pressure groups and understand their concerns.

6. Motive for Corporate Social Responsibility (CSR) and ethics:Also, the modern business organizations have to possess corporate social
responsibility and ethics to attain their corporate reputation so that it can be more competitive
in the environment. Strategic management should do researches for possible corporate social
responsibility activities and implement those to be in step with expectations of the society.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

CHAPTER 2: ELEMENTS/PROCESS OF STRATEGIC


MANAGEMENT

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

S tra te g y S tra te g y S tra te g y


fo r m u la t io n im p le m e n t e v a lu a t io n
fr a m in g a t io n a n d c o n t r o l
The process of strategic management can be divided in to three stages
1) Strategy formulation framing
2) Strategy implementation
3) Strategy evaluation and control

I) STAGE 1: STRATEGY FORMULATION OR FRAMING


Strategy formulation is also referred to as strategic planning. It involves following steps.

1. Framing mission and objectives:The first step in strategy formulation is to decide mission and objectives of the
organization.

Mission states the basic purpose and management philosophy.

The

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


objectives are short term goals which the organization wants the achieve through its
strategies.
2. Analysis of Internal environment:The internal environment includes physical, financial and human resources,.
Before framing the strategies analysis of these resources has to made to know strength
and weakness of the organization.
3. Analysis of external environment:External environment includes demand, government policies, competition,
availability of technology, suppliers, lenders, etc. Analysis of external environment is to
be made to know opportunities and threats.
4. Framing of alternative strategies:After making SWOT analysis management frames strategic alternatives. Every
alternative will have some advantages and some disadvantages. Out of these alternatives
one or some alternatives may be selected.
5. Choice of the strategy:Organization cannot implement all alternative strategies. It should select the best
alternative out of several alternatives.

The organization may undergo cost benefits

analysis.

II) STAGE 2: STRATEGY IMPLEMENTATION


Once strategies are formulated the next important step is to implement them properly. This
stage generally involves following elements

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Formulation of Plan s and
Programs

Behavioural
Implementation

Procedural
implementation

Functional
Implementation

Resource
Allocation

Structural
Implementation

1) Formulation of Plans and Programs:After framing strategies small plans are prepared for its implementation. A plan
for carrying out the required activities as to be prepared most importantly the time
schedule has to be decided.
2) Procedural implementation:The organization must be aware about regulatory framework applicable to it. The
regulatory elements that may be applicable are
i)
Obtaining licenses
ii)
Capital issue guidelines
iii)
FEMA regulation
iv)
Foreign collaboration Regulation
v)
Regulation relating to import of technology
3) Resource Allocation:Resource allocation deals with arrangement and allotment of financial, physical
and human resources to various activities. The resources have to be allocated depending
on importance of activities in which department or division.
4) Structural Implementation :-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Organization structure is the frame work through which the organization operates.
IT involves delegation of authority and work among employees.

It is needed to

implement the strategies properly.


5) Functional Implementation:It deals with implementation of plans and policies of different functions of
business. The top management may communicate the strategy to the functional heads.
The functional heads may in turn, frame, plans and policies for their function. Ex,
Marketing manger, finance manager, HR manager may frame their own plans consistent
with overall plans of the organization.
6) Behavioural Implementation:IT deals with the issues like leadership, corporate culture, social responsibilities
taken up by the organization. Culture in the organization does have direct impact on its
functioning.

III)

STAGE 3 : STRATEGY EVALUATION AND CONTROL


Strategies have to be evaluated as well as certain control mechanism have to be in placed to

ensure achievement of set objectives. IT generally involves following procedure

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

1) Setting and Implementing strategy:Strategy has to be framed and implemented for achievement of organizational
goals and objectives. Such implemented strategy has to be evaluated to check the
performance.
2) Measuring the Performance:The actual performance of implemented strategy should be measured. IT may be
measured in terms oif quantity, rupee, quality, cost or timing for such measurement the
employees may be asked to submit various reports periodically.
3) Comparision of Actual Performance with the standards :The actual performance of the strategy should be compared with set standards.
This helps to find out deviation if any.
4) Calculation of Deviation:After the comparison deviation from set standards can be calculated. If actual
performance is at par or better than the standard it is not a major concern. But if it is less
than the standard the reasons for the same as well as degree of deviations should be
calculated.
5) Taking corrective actions :-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


If actual performance is less than the standard corrective actions have to be taken
for overcoming the deviations/ Such action is needed to avoid mistakes in future and
improve the performance.

CHAPTER 3: TOOLS OF STRATEGY EVALUTION


In the process of strategy evaluation actual performance of the business has to be measured
there are various tools or techniques for such measurement

I) FINANCIAL TOLL OR FINANCIAL EVALUATION :Financial evaluation is considered to be the best way to strategy evaluation. This is
mainly because it can be expressed in the form of rupee or volume i.e. quantity. In other

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


words financial evaluation cab be quantified easily.

While doing financial evaluation

following techniques can be used

1) Financial Ratio:
a) Return on investment/Return on Capital Employed :This ratio measures the firms ability to earn operating profits as a return on capital
employed or total asset.
Return employed=

NPBIT x 100
C.E/Total assets
This ratio is very important for prospective investors.

b) Earning Per Share :This ratio indicates earnings of on one equity share. It show the profitability of
the company available to equity shareholder
Earning per share= Profit Available to Equity Shareholder
Number of equity share
Profit available to equity shareholder is arrived at after deducting preference
dividend from net profit after tax.

This means dividend is paid to preference

shareholder first and then to equity shareholder. This ratio is also useful for existing
and prospective investors.

c) Price Earning Ratio :This ratio compares market price oof the share with the EPS. Market price
increases if EPS more.
PE ratio = Market price per share
EPS
Higher ratio indicates that the share is in demand and investors are ready to pay more
price for it.
2) Budgets:
Budget is an estimate of activities to be undertaken during decided period of time.
It can be for one year or half year or even for a quarter. There are different types of
budget that are prepared by an organisation. They can be classified in to two categories.
a. Revenue Budget
b. Capital Budget
a) Revenue Budget:-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Budget prepared for operating or day to day activities are called as revenue
budgets. They are generally prepared for less than one year. Most common revenue
budgets are cash budgets, sales budget, production budget, purchase budget,
advertising budget.The most important revenue budget is cash budget.

In cash

budget, the requirement of cash during a particular period is calculated. All incomes
and expenses in cash during that period are considered while preparing cash budget.
It also indicates net cash position of the business at the beginning and at the end of
the period.
b) Captital Budgets:Budgets preprared for long term activities are called as capital budgets. This
activities give benefit for more than one one year. They include purchase of new fixed
assets, replacement of old assets with new one, expansion, modernization etc. the
techniques like pay back period, net presen value, profitability index, Internal rate of
return are used for capital investment proposal.

II) GAP ANALYSIS:GAP analysis is a business toll enabling a company to compare actual performance
with the potential performance. The goal of gap analysis is to identify the gap between
optimum allocation of resources and current level of allocation. The gap analysis involves
determining documenting and approving the variances between business requirements and
current capabilities. The comparison between expected performance and the current
performance is called as gap analysis. It is a formal study of what the business is doing
currently and where it wants to go in future.

III)

COST BENEFIT ANALYSIS:It calculate cost of the project as well as benefits arising out of it. The process
involves calculation of direct as well as indirect expected costs along with total expected
benefits. The two are compared with each other to choose the best or most profitable
option. This formal process is referred to as cost benefit analysis. The process involves
monetary calculation of initial and ongoing expenses verses expected returns.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


During cost benefit analysis monetary values may be assigned even to non
monetary factors like risk. It is mainly used to access the value of money of very large
projects private sector organizations make more use of this technique. The practice of
cost benefit analysis differs from country to country and even from sector to sector.

IV)

RESPONSIBILITY CENTER:It is a new accounting concept called as responsibility accounting for large
diversified organizations. It is impossible to manage centrally. Therefore the activities
are decentralized or separated into manageable part. This part or segments are called as
responsibility centers. These centre are1)
2)
3)
4)

Revenue Centre : A segment that mainly generate cost but no revenue.


Cost centre: A segment that generates cost but no revenue.
Profit centre: A segment that generates both revenue and cost.
Investment centre: A segment which takes care as acquisition and utilization of
assets.
This approach allows to assign the responsibility to sector manager that control

activities under that centre.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

CHAPTER 4: STRATEGIC MANAGEMENT OF DELL


4.1 INTRODUCTION
Founded in 1984 by Michael Dell. No.1 PC provider in the
No.2worldwide. Based in Round Rock, Texas. Employs more

U.S. and
than

82,700 people worldwide. Grew during the 1980s and 1990s to


become a brand. Direct Business Model is the foundation
for Dells business. Dell maintains a consistent focus on
offering the best value and customer. Dell is a trusted
technology innovator with a diversified, comprehensive IT
portfolio. Dell is a global company committed to its customers and
employees.

4.2 HISTORY
In 1996, Dell began selling computers via its web site. Introduced the 316LT, the
companys first notebook computer in 1989. Joined the top-five computer system makers

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


worldwide in 1993. Earning appr. $1 million per day 7 months after the launch of dell.com in
1996 Introduced E-Support, an online tool to provide technical support to customers1999. 1999,
Dell overtook Compaq to become the largest seller of personal computers in the US. 2007, Dell
set a goal of becoming the greenest technology company on
Earth for the long term. The company launched a zerocarbon initiative. For the first time, Dell achieves No. 1
ranking in global market share in 2001. 2003, name was
changed to "Dell Inc." 2006, Dell purchased the
computer hardware manufacturer Alienware. January
2007, started a turnaround plan that promises to yield $3
billion in annual savings over the next three years.

Recent Developments:
In January 2009, Dell announced that they will withdraw all manufacturing from
Limerick and move it to its new plant in the Polish city of Lodz by January 2010. Raised their
cost-reduction target to $4 billion. Dell also announced that it aimed to become a "one
percent company," giving away 1 % of pretax profits to education and digital inclusion projects
mainly in emerging markets, by February 2010.
Product line.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

4.3 KEY TOWARDS STRATEGIC PLANNING


VISION STATEMENT:-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Through

effective

and

strategic

community

partnership, dell supports educational services programs that


address the critical and most basic technology access needs of
its neighbours in Dell communities prerequisite to success in
digital world.
Dell provides a classic example of how the principles

of

strategic management have been used to translate an innovative vision into a successful and
sustainable enterprise. Their vision statement basically tells the way they do their business. They
want to be successful in the digital world for this they rely on latest technology. Dell provides
quality products to cater the needs of the people. In intend to build good relationship with their
customers and suppliers.

MISSION STATEMENT:To provide customers with superb value, high quality, relevant
technology,

systems, superior service and support and

products and services that are easy to purchase and use.

VALUES:Their first priority is to be a successful business and that means


investing for growth and balancing short term and long
term.

OBJECTIVES:-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Following are the objectives of Dell Corporation
1. Modify laptop designs according to students
preferences.
2. Double laptop sales in student market.
3. Increase revenues by 25% by the end of the second year of
launching.
4. Develop a promotional campaign to promote the modified laptops.
5. Increase awareness of the existent agency project objective research strategicplan
conclusion.

GOALS:Goals are the specific interim or the ultimate time based measurement to beachieved.
While implementing strategies in pursuit of companies objectives. Thegoal of the
organization are set consistent , achievable and realistic. As
per surveys the present major goal of the organization is to adopt
the best technologyand appoint few more personnel that would

bring efficiency in

the organization.

PROGRAMS:Last

but not the least program plays a significant role in maintaining a

smooth

track within the organization. Dell has got an implementation

plan

followed up by the above strategic plan. The Program of Dell


creates opportunities to develop real-world skills in an
environment that encourages personal and professional growth and

gain
same

STRATEGY:-

exposure. It learns the ins and outs of one of the high-tech industries in the
sector.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


To do business with its customers one on one through the phone and internet. In
doing so, Dell will meet its customers expectations of:

Highest quality.
Leading technology.
Competitive pricing.
Individual and companys accountability.
Best in class service and support.
Flexible customer capacity.
Financial stability.

The direct relationship continues throughout the customer experience

CHAPTER 5: STATEGIC MANAGEMENT PROCESS

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

Strategic thinking provides the foundation of the strategic management. By providing an


insight into the forces behind the intense competition, by developing a sustaining competitive
advantage based on organization core competency. It can be broadly divided into three phases:

PHASE 1: STRATEGIC FORMULATION:-

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It is referred as a strategic plan
1. Framing mission objectives:-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


The first step adopted by Dell Corporation was to frame the mission and
objectives for the organization. For example mission: The purpose of the organization is
to achieve the honor of becoming the best consumer friendly company.
2. Analysis of the internal environment:After setting the mission and objectives the next step is to analyses the internal
environment. E.g.: Dell Corporation needs more qualified manpower, machines adopted
by Dell Corporation should be highly Resultant.
3. Analyze of external environment:The management conducts the analyses of the external environment. E.g.: Dell
Corporation manufactures product that are hygienic and long lasting.
4. Gap analysis:Management also conducts gap analyses that is for this purpose the management
compares and analyses its present performance level and desired future performance
level. E.g.: Dell Corporation has in acted gap analyses as it compared the last 5yrs.The
performance level with the present level and came with a conclusion that in future they
will surely come up with the new brand launch.
5. Framing alternative strategies:The management needs to frame alternative strategies and accomplish the
objectives of the firm.
6. Choice of strategies:Dell Corporation already has a highly sophisticated server with alternative
strategies it chooses the best among the various strategies.

PHASE 2: STRATEGIC IMPLEMENTATION:The strategies are formulated for each and every functional area. Once the strategies are
formulated the next stage is strategic implementation.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

Step
1:
Step
2:
Step
3:
step
4:
Step
5:
Step
6:
Step7:
Step 1: Formulation of plans, programs and projects:Setting strategies will not guarantee success, so every organisation also needs to work
laboriously in order to achieve the desired results. Dell Corporation has abroad plan which
includes the goals, policies and procedures.
Step 2: Project implementation:The project passes through various stages i.e.
i.
ii.

Dell Corporation makes it a point that their concept is achievable.


Their plans are organized in such a way that the results are achieved without any damage

iii.

or duplications.
clean up phase: Dell Corporation follows follow up action of above listed phases.

Step 3: Procedural implementation:-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Dell Corporation before implementing any new strategies examine all the government
regulatory framework. E.g. Dell Corporation before dealing with any foreign company needs to
be aware of all the export and import charges.
Step 4: Resources and allocation:It deals with the arrangements and commitment of physical financial and hr, Dell
Corporation allocates all its resources in such a way that there is no duplication of work and also
aims at avoiding wastage. e.g. it sets different goals for the delegates.
Step 5: Structural implementation:There is a need for an organizational structure for implement strategies. Dell Corporation
follows the divisional structure and therefore the implementation strategy moves on division
wise.
Step 6: Functional implementation:Dell Corporation as an organization implements all its functional plans and its policies.
Step 7: Behavioral implementation:After implementing the strategy an organization studies the behavior of the strategy. E.g.
Dell Corporation studies the impact of its strategies by keeping a small conference meeting with
all its divisional heads.

PHASE 3: STRATEGIC EVALUATION AND CONTROL:It is the phase in which the manager tries to assume that the strategic choice is properly
implemented and is meeting the objective of the organization.

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

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Step 1: Setting standards:Dell Corporation in order to initiate control is done by setting standards and making them
aware of the tolerance limit they should keep.
Step 2: Measurement of performance:The next step is to measure the actual performance with the planned one. E.g. the
organizational heads compares the set targets with the achieved one.
Step 3: Finding out deviation:At this step the organization pin points the deviation or blockages if any. E.g. while
implementing a strategy for a new branded product Dell Corporation faced a difficulty as the
packaging of that product was done with the help of low quality plastic.
Step 4: Analyzing deviations:Here the top executives are the cause of deviations. E.g. Dell Corporation could not
procure better spare parts from the company it used to buy earlier. The emotional bonding was
the main cause for its dependence of that company providing low quality spare parts.
Step 5: Taking corrective measures:The top level management of Dell Corporation will analyze the blockage and give an
alternative. E.g. in order to remove the blockage Dell Corporation may replace the low quality
spare parts and find out other good quality plastic at the low price.

CHAPTER 6: CONCLUSION

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY

Dell computer is successful in global markets as a result of best understanding of customers'


needs and their direct sell business model.
Dell's 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.
Dell is a well known name in the world that has been very successful towards its mission.
It has focused on customization and maintaining low cost that has been very profitable for
the company.
But are faced with the problem of slipping sales in the U.S. They are being forced to look at
alternative ways of bringing revenue to the company and will be able to tackle this situation
and would maintain a tight grip on the market due to their cost leadership and because of
their coming strategies.

RECOMMENDATIONS
Dells lead in customer service and support has declined in recent years. Declining
training

and

the

outsourcing

of

customer service

and

support has

damaged

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


its reputation. To rectify this problem, Dell must improve its customer service
representatives selection process.
Dell must pursue relationships with only those suppliers that are able to integrate
seamlessly with Dells supply-chain. This strategy will allow Dell to offer additional
choices for its customers while maintaining production efficiencies.
There is a stark discrepancy in computer use among ethnicities. Whites and Asians
are much more likely to use and own computers than their Black or Hispanic
counterparts. This high ownership among Whites and Asians makes it difficult for Dell to
grow in this demographic segment.
Dell must improve its customer service representatives selection process, ensuring they
are easily understood and well trained. By improving this segment of business Dell can
once again clearly differentiate itself from rivals HP and IBM.

bibliography
BOOKS:-

STARTEGIC MANAGEMENT PROCESS OF DELL COMPANY


Strategic management (M.com I)
- By Manan Prakashan
Strategic management (MBA)
- By Arun D Sawant

WEBSITE: http://www.managementstudyguide.com/strategic-management-process.htm
http://smallbusiness.chron.com/five-stages-strategic-management-process18785.html
http://www.scribd.com/doc/51862116/Dell-Strategic-Management
http://www.balancedscorecard.org/BSCResources/StrategicPlanningBasics/tabi
d/459/Default.aspx