Presentation Change Management Dell Corporation 111

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PRESENTATION ON CHANGE MANAGEMENT IN DELL CORPORA TION Prepared by: 1

Transcript of Presentation Change Management Dell Corporation 111

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PRESENTATION ON

CHANGE MANAGEMENTIN

DELL CORPORATION

Prepared by:

1

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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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