Michael Dell founded Dell Computer Corporation, in 1984 while a student at the University of Texas at Austin. Operating from Michael Dell’s off-campus dormitory room. The startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading the belief that by selling personal computer systems directly to customers, PC’s could better understand customers’ needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $1,000 in expansion-capital from his family (Wikipedia., 2016). This firm has got more than 106,495 staffs and its net revenue was $54.9 billion in 2016. Dell offers products in desktop computers, business servers, network switches, storage area networks, high performance gaming systems, etc.
Accurate financial reports and controls:
Dell has started corporate governance policies and has adopted many policies on executive compensation and securities trading. The main strength of Dell is its Direct Sale Model (Achtmeyer., 2012). Now a days Dell become a popular brand and it has a strong Customer Relationship Management (CRM). This company is considered to be highly ethical.
A critical appraisal of strategic action plan:
Dell provides equal opportunity to all of its staffs. There is no racism or gender inequality in Dell. In dell, there have employees in different cats, gender, ethnic and geography. They believed that different diversify situation only creates the innovation. Innovation is essential for technology improvement. So they respect each other and they categorize their employees on the basis of performance rather than other things. All of Dell’s strategic action plans are made by management and then approved by board.
Evaluation of the strategic leadership skills of the CEO:
At the time of establishment time of dell, the market was totally dominated by IBM. But CEO of Dell, Michele Dell used low - cost direct marketing strategy to undersell better known computer being sold through high - overhead deals networks. As a result dell computers are top brand name and it is in top position (Dudovskiy, 2015). I think Michael Dell has great strategic leadership skills like seeing great opportunities to provide cheaper computing, learning quickly from mistakes, quickly changing with the environment, asks his staffs on decision making, etc (Murphy, 1990).
Executive compensation:
There is an executive committee which has the responsibility of approving all compensations of the board members. So that, the board member and the management are jointly responsible for managing and operating Dell’s business with the highest standards of responsibility, ethics and integrity.
The element that determines an organization’s success or failure is the strategy it follows. Dell’s business strategy is a successful cost leadership strategy. The company’s formula for success has been based upon its unique customization, delivery and cost proposition. Dell integrates its cost leadership skill with differentiated product features and related services to create value for its customers and achieve the benefits of an integrated cost leadership differentiation strategy.
References
Achtmeyer. (2012). Dell Computer Corporation, Center for Global Leadership. Retrieved from Tuck School of Business, mba.tuck.dartmouth.edu/pdf/2002-2-... .
Michael Dell founded Dell Computer Corporation, in 1984 while a student at the University of Texas at Austin. Operating from Michael Dell’s off-campus dormitory room. The startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading the belief that by selling personal computer systems directly to customers, PC’s could better understand customers’ needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $1,000 in expansion-capital from his family (Wikipedia., 2016). This firm has got more than 106,495 staffs and its net revenue was $54.9 billion in 2016. Dell offers products in desktop computers, business servers, network switches, storage area networks, high performance gaming systems, etc.
Accurate financial reports and controls:
Dell has started corporate governance policies and has adopted many policies on executive compensation and securities trading. The main strength of Dell is its Direct Sale Model (Achtmeyer., 2012). Now a days Dell become a popular brand and it has a strong Customer Relationship Management (CRM). This company is considered to be highly ethical.
A critical appraisal of strategic action plan:
Dell provides equal opportunity to all of its staffs. There is no racism or gender inequality in Dell. In dell, there have employees in different cats, gender, ethnic and geography. They believed that different diversify situation only creates the innovation. Innovation is essential for technology improvement. So they respect each other and they categorize their employees on the basis of performance rather than other things. All of Dell’s strategic action plans are made by management and then approved by board.
Evaluation of the strategic leadership skills of the CEO:
At the time of establishment time of dell, the market was totally dominated by IBM. But CEO of Dell, Michele Dell used low - cost direct marketing strategy to undersell better known computer being sold through high - overhead deals networks. As a result dell computers are top brand name and it is in top position (Dudovskiy, 2015). I think Michael Dell has great strategic leadership skills like seeing great opportunities to provide cheaper computing, learning quickly from mistakes, quickly changing with the environment, asks his staffs on decision making, etc (Murphy, 1990).
Executive compensation:
There is an executive committee which has the responsibility of approving all compensations of the board members. So that, the board member and the management are jointly responsible for managing and operating Dell’s business with the highest standards of responsibility, ethics and integrity.
The element that determines an organization’s success or failure is the strategy it follows. Dell’s business strategy is a successful cost leadership strategy. The company’s formula for success has been based upon its unique customization, delivery and cost proposition. Dell integrates its cost leadership skill with differentiated product features and related services to create value for its customers and achieve the benefits of an integrated cost leadership differentiation strategy.
References
Achtmeyer. (2012). Dell Computer Corporation, Center for Global Leadership. Retrieved from Tuck School of Business, mba.tuck.dartmouth.edu/pdf/2002-2-... .
Dudovskiy, J. (2015). Dell SWOT Analysis. Retrieved from Research Methodology: research-methodology.net/dell-swot... .
Murphy, M. C. (1990). CEO Incentives–It’s Not How Much You Pay, But How. Harvard Business Review, hbr: hbr.org/1990/05/ceo-incentives-its... .
Wikipedia. (2016). History of Dell. Retrieved from Wikipedia: en.wikipedia.org/wiki/History_of_Dell .