Presentation Change Management Dell Corporation 111
Transcript of Presentation Change Management Dell Corporation 111
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PRESENTATION ON
CHANGE MANAGEMENTIN
DELL CORPORATION
Prepared by:
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DELL was founded in 1984 byMichael Dell
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DELL is a premier provider of products
and services required for customers
worldwide to build their information-
technology and Internet
infrastructures and are by far the mostrenowned name in the computer
industry for customers worldwide.3
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The mission of DELL is "to be the
most successful computer
company in the world at
delivering the best customerexperience in markets we serve"
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DELL has approximately 39,000
employees around the globe and
has a large and diverse corporate
organization
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DELL conducts training for all
employees in order to reduce
absenteeism and human errors
as well because the high-quality
staff is required in enhancing thebest quality performance of the
company.6
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Dell Corporation aims for change
management in order to pursue
sustainable growth as a broad
market leader in mobile computingas well as for segment leadership.
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In both cases, the Dell brands will play
a crucial part. Dell Corporation is able
to establish its broad leadership usually
by acquiring other strong mobile
computing companies and their
products, which are then combined
into a new, larger company.
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The vision of Dell Corporation for
renewed organization is to secure
the growth of the business in a
sustainable manner, while at the
same time constantly improving the
companys profitability
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The strategy to achieve this involves threeelements:
> Striving in order to reach a leading
position in attractive markets.
> Focusing on securing a competitive share of
the mobile computing market segments.
> Working in order to improve the companys
efficiency and cut costs in operations.
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SCOPE FOR CHANGE1. THE CHANGE FOR STAFF
Building a positive communication with employees isimportant because they are the organizations best
ambassadors or loudest critics, depending on how fast
they get relevant information and the context in which it
is received. This also builds employee loyalty andsatisfaction.
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2. THE CHANGE FOR SYSTEM
There was a period when Dell Corporation was generating its first
surplus which was the effect of the cost-cutting activities imposed bytheir management. The result of such evaluation shows that there is
a significant gap between what the staff is providing and what the
customer actually needed. Hence, another management initiative
was the change of the system from staff- oriented to customer
oriented industry through the creation of customer is king culture
within the organization.
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3. THE CHANGE FOR STRATEGY
The organizational structure of Dell Corporation also changed to
a much flatter and slimmer structure. Five sections of the
industry are directly reporting to the CEO and eleven profitcenters were created. This structural alternation aims to enhance
the staff integration and communication, within Dell
Corporation. The performance-related pay was also introduced
by the management based on an appraisal system which values
the significance of customer service and organizational cohesion.This change also includes major investments in ground facilities
and IT in order to adhere to the needs of its customers.
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SPEED OF CHANGE
Although the management change had been able to enhance
the competitiveness of Dell Corporation, this does not meanthat the company felt the changes immediately and became
free from any other problems and issues. However, not all
employees had been able to meet the objective of such
initiative. Hence, the problem encountered by Dell
Corporation during and after the management change is a
concrete evidence of the lengthy time that the company
experienced getting accustomed with the changes.
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PROPOSED ACTION
Product Development
The retailers in the United States represent Dell
Corporations largest sales and marketing channelwhich encompass national and regional office
supply stores and mass merchants. In Europe and
Asia, Dell Corporations market share is stillrelatively high. Dell Corporation has more than
100 international distributors located worldwide.
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Product PenetrationThe company uses the online store as a venue to sell its
products. This is accomplished through the use of e-
marketing campaigns and product bundles. The company is
able to build awareness of its products and brands through
mass media advertising, public relations efforts and branded
Internet properties.
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Enhancement of Operations / Efficiency and
Effectiveness
Dell Corporations direct to customer model solve theproblem for additional capital for marketing and sales. By
selling directly to consumer it eliminated retailers along
the way. One advantage of this kind of system is that the
firm is continuously in contact with its customers and theyare benefiting in two areas concerning sales and
marketing, seeing sales trends and learning about unmet
costumer demands.
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Technology Improvement
Technology is an important source of
competitive advantage. And this is consideredstrength of Dell because the firm enjoys better
access to technology. Dell introduces the latest
relevant technology much more quickly than
companies with slow-moving indirect
distribution channels.
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LEADERSHIP
The existing style of leadership DELL uses is the transformational leadership
style as the CEO Michael Dell applies this particular style of leadership that
involves inspiring employees to transcend their own self interests and work
for the larger good of DELL company. customization . DELL expect that the
success would be forever and they expect that other companies might
implement such leadership models and believed that Information Technology
would play a vital role in the success of the business as well as the
centerpiece of the business per se.
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COMMUNICATION CHANGE
Communication is important in Dell Corporation because its business environment
is the place where many interactions are needed, and where much information is
acquired. It always involves openly competitive activity, in which working
professionals in Dell Corporation debate issues, defend positions, and evaluate the
arguments of others.
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CONCLUSION
It seems that the major cause of the problemsencountered by Dell Corporation is due to the unplanned
management changes imposed. In addition, the
problems also arise because of the inadequate
knowledge of its management about the use of strategicmanagement and other management systems. This way,
the empire of Dell Corporation will remain unscathed
amidst the advent of consolidation and globalization.
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