Thursday, August 29, 2019
Strama 1-4
Question1: What is your evaluation of Michael Dellââ¬â¢s performance first as Dellââ¬â¢s CEO and more recently as its Chairman? How well has he performed the five tasks of crafting and executing strategy that were discussed in Chapter 2? Part 1: Same roles and responsibilities both as Dellââ¬â¢s CEO and its Chairman. * A young and learning manager. * A charismatic leader. * Motivated, loyal, and respectful followers. Part 2: * Vision: Directional, strategic vision * Objects: Crafting strategy: moves to achieve diversification, cross ââ¬â business synergies 1+1=3 * Implementing strategy: * Evaluating strategy: Adapt to customer need changes, actively search for new opportunities, have corrective actions when not going well. Question 2: What are the elements of Dellââ¬â¢s strategy? Which one of five generic competitive strategies is Dell employing? How well do the different pieces of Dellââ¬â¢s strategy fit together? Is Dellââ¬â¢s strategy evolving? * The elements of Dellââ¬â¢s strategy: Cost- efficient build- to ââ¬âorder manufacturing( C-95) * Partnership with suppliers: partnering with reputable suppliers of PC >leadership in technology, performance, quality and cost. (C97) * Direct sales to customer (C-99) * Award winning customer service and technical support (C-101) * Customer- Driven R&D : focus on tracking and testing new developments >most useful and cost-efficient for customers (C-103) * Using standardized technology: using industrywide standards ( C-103) * Product-line expansion: data storage hardware, switches, handheld PCs, printers, printer cartridges. C103) From these elements, especially, ââ¬Å"Direct sales to customerâ⬠, Dell is employing ââ¬Å"Low-cost strategyâ⬠. Dellââ¬â¢s strategy is evolving. Question 3: Does Dellââ¬â¢s expansion into other IT products and services make good strategic sense? Why or Why not? Yes, it made good sense, because of the following reasons: Have opportunities to expand i nto industries whose technologies and products complement its present business (related diversification: from PC to data shortage, printers, etc) * Reduce costs by diversifying into closely related businesses * Have powerful brand name ââ¬Å"Dellâ⬠: Customers would try other products * Good long-term profit opportunities ($800 billion market) => Industry attractiveness test * Low cost of entry to other related businesses => Cost of entry test * The companyââ¬â¢s different businesses performed better together than as stand-alone enter prices (from 2% market share in 1995 to 30% market share in 2005, Pc attached with switch made easy sales) => Better-off test Question 4: What does a SWOT analysis reveal about the attractiveness of Dell Computerââ¬â¢s situation? From SWOT: * Dell hold very strong competitive position * ââ¬Å"Direct business modelâ⬠and ââ¬Å"closed relationship with customers and suppliersâ⬠> Dellââ¬â¢s success * Company entered to the â⬠Å" Fortune Global 500â⬠>proved Dellââ¬â¢s efficiency and attractiveness * Dell Inc can profit from all different opportunities of expansion and growth to make it business more profitable.
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