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NAME :
INTAKE CODE :
MODULE CODE AND NAME : BM007-3-1-IMT (Introduction to Management)
DATE OF SUBMISSION : 01 November 2010
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Table of Contents
Sno Topic Page Nos
1 Introduction 1
2
Mega Environment ( Legal Political and Technological
Element ) 2-3
3Task Environment ( Customers and Clients andCompetitors ) 4-5
4 Conclusion 6
5 References 7-8
6 Group Task Report 9
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IntroductionDell Incorporated is a multinational information technology
corporation that develops, sells and supports computers and
related products and services. [1] It is the worlds leading
direct seller of computer systems which has employed more
than 96,000 people and is serving worldwide in almost 180
countries. Dell Inc. was founded by Michael Saul Dell on 4th
November 1984 in Austin, Texas with the former name PCs
Limited. In 1988, the new name Dell Computer Corporation was adopted and they began
expanding globally. In 2003, it was rebranded Dell Inc. in a means to recognize the
companys expansion beyond computers.
Dells mission is to deliver innovative and cost-effective solutions to their customers. They
believe in a very simple concept, which is by direct selling of computer systems the company
could best understand the customers needs and efficiently provide the most effective
computing solution to meet their requirements. [2]
Dell follows very closely the American corporate culture. Every employee is required to
speak English. They emphasize on team work. Every person in the organization is believed to
contribute significantly to the brainstorming process. [4]
To increase effectiveness and efficiency of its output, Dell emphasizes on the scientific
management introduced by Frederick W. Taylor which focuses on job division and
responsibility. Each employee has to take responsibility of their actions.
However, business operations might be affected in either a positive or negative way since the
markets are changing all the time. Therefore, it is extremely important to take intoconsideration the mega and task environment.
Figure 1
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Mega EnvironmentThe Mega Environment consisting ofTechnological, Economic, Legal-political, Socio-
cultural and International Elements is the general environment reflecting the conditions and
trends in the societies and markets within which an organization operates.
Sociocultural Element
Peoples nowadays need to be extremely vigilant about the environment, Global Warming
being the major concern. Very often people tend to take things for granted and neglect the
seriousness of this issue. Dell has proved to be an environmentally friendly company by
promoting earth friendly products. Dell was the first company in the IT industry that
established products recycling programme. In 2007, Dell was awarded the National
Recycling Coalitions ninth annual Recycling Works Award for theirefforts. Dell now has
set a goal of becoming the greenest technology company.
Dells objective is to minimize the stress on the envi ronment
simultaneously achieve speed, responsiveness and cost savings. From
the time we conceive and design a product to the point when that product
is responsibly recycled, we seek to minimize our companys impact on
the world and empower our customers to join us, said Michael Dell. [3]
Dell tends to conserve product energy consumption, reduce or eliminate materials for
disposal, prolong product life span and provide effective and convenient equipment recovery
solutions.
Dell believes no computer should go waste. Hence, people are advised to keep technology out
of the trash. To ensure the resale and recycling of obsolete or excess computer systems, Dell
provides Asset Recovery and Recycling Services. The options include recycling, donation,
value recovery, and lease return.
Throughout this campaign, Dell helps customers to decrease electricity usage and system
operating costs as well as educating them to become effective environmental stewards.
Figure 2
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Technological Element
The technological element reflects the current state of knowledge regarding the production of
products and services. With the expanding internet technology, Dell took this opportunity to
expand its business globally by allowing customers to purchase products via internet.
Today technology is changing every day. Every single product comes out with a better
technology. In order to remain competitive, it is extremely important for Dell to stay updated
about the latest technologies and the development of new technologies. This will ensure that
Dell could keep on delivering the newest technologies.
However, pricing competition in China is the greatest war in the world. And this restricts Dell
from achieving high levels of market share in China.
Due to the wide range of competition in China, most
of the technological products are cheap in cost and
price. In order to compete with the markets, Dell
started offering low end products. In fact, this is
such a flaw because the only way to achieve market share is through good quality higher end
products.
Therefore, Dell should innovate for low price to high quality products to move with theshift that is currently happening in China. [4]
Figure 3
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Task EnvironmentThe Task Environment consisting ideally of the Customers and Clients, Competitors,
Labour, Suppliers and Government Agencies includes sectors with which the organization
interacts directly and that have a direct impact on the organizations ability to achieve its
goals. The organization interfaces with these elements in the course of conducting its
business. These conditions are not stable but are volatile. [5]
Customers and Clients
Customers and Clients of an organization are those individuals and organizations that
purchase its products and/or services. It has become increasingly important to stay up-to-date
with the needs and demands of the customers as they are crucial to the organizations success,
reputation and sales. They are the recipients of the Organizations output (Products /
Services).
According to a recent survey, more than 37% of Business owners watch video on YouTube.
Dell hopes to reach out to those people with their new YouTube channel: IT Solutions for
Business. The channel
highlights several
business innovators
that have chosen Dell
to help them in their
success. In addition, the
channel also features
almost 200 select
videos aligned to
technologies and
solutions. They also have a feedback system that helps users determine what type of video
content they would like to include to the channel. [6]
The malicious and criminal use of cyberspace or cyber crime as it is commonly called is
widespread these days. Cybercriminals have become a permanent part of the Internets
ecosystem and they are responsible for financial losses and putting critical infrastructures at
risk. It is thus critical at this point of time for companies to quickly move to a process
driven model to respond to threats and manage these risks. Companies need to be flexible
Figure 4
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enough to accommodate the users evolving and complex needs, simultaneously providing and
maintaining a safe environment. [7]
Dell takes these challenges seriously and strives to protect its customers and business
partners. They have begun investigating innovative ways to develop a secure supply system
and to integrate security encryption and other technologies into their hardware and security
services.
Students these days are looking for lighter, cheaper and convenient systems that could help in
their coursework and at the same time be easy to carry around. Netbooks are a good choice
for this. Dell should work more on the production of netbooks thereby targeting effectively
the younger market as well.
Competitors
Competitors are other organizations in the same industry or type of business having the same
target market. The organization needs to keep abreast of what their competitors are doing.
This could be done by obtaining information from news clippings, help wanted ads,
business reports, and advertisements. They have to keep a track on the latest products or
services and upgrades being brought about by their competitors.
Dells major competitors include HP, Sun Microsystems, Gateway, Lenovo, Sony, Acer,
Toshiba and Asus. One major concept of Dell that has given the company an upper hand over
its competitors is the Direct Customer Contact. They have been able to be at the top of the
industry by delivering the best possible customer experience by directly selling products and
services online. Michael Dell, the founder of the company uses a variety of approaches like
chatting, talking to people and being part of discussions to keep an update on the happenings
of the industry, the competitors and the likes and dislikes of the consumers.
A Tablet PC is a portable personal computer equipped with
a touch screen as the primary input device. The four forms
of tablet PCs are Booklets, Convertibles, Slates and
Hybrids. Dell has its product launched in terms of Slates
and Convertibles, but it hasnt yet entered the Hybrid
market. Its major rivals HP and Lenovo have already
inculcated this technology into their products. Dell should thus venture into this product inthe near future.
Figure 5
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ConclusionIn the PC business, competition is extremely intense. Dell needs to maintain their valuable
customers. In order for Dell to sustain its competitive advantage, customer relationshiphas
become the most important management strategy.
Dell Computer Companys direct-to-customer sales service business model is the key to the
companys dramatic growth and success. Dell provides products, technologies, solutions, and
services to individuals of different sectors such
as home, public sector, small and medium sized
businesses, and large enterprises worldwide.
The direct model enables Dell to develop a
complete understanding of what are their
customers expectations thereby assisting them
strengthen customer relationships and increases
customer satisfaction and loyalty. It also helps
eliminate the middleman and offers customers
more powerful configured systems at better prices.
One of the most distinguishing features of Dell that is a critical success factor is that they
provide the mode to customize computers based on the customers requirements on systems,
software, hardware, and also the appearance of the computer casing and the mode of delivery
of the system.
Dell always initiated ways to overcome its weaknesses and use its strengths to gain advantage
over its competitors. Careful analysis of the various factors and business strategies that
contributed to the companys success and subsequent implementation of them created the
path for the companys continued success. Thus the present leader is surely to be credited and
appreciated for the success of the organization.
In order to achieve more success, Dell must be aware of the benefits they wish to achieve,
how it will be realized and they must ensure appropriate investments of resources to obtain
these benefits. Consumer awareness surveys should be conducted to ensure the positive
image that Dell has created for itself is maintained.
Figure 6
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References Richard L. Daft, Dorothy Marcic (2008) Understanding Management. 6th ed. United
States: South Western Educational Publishing.
Vadim Kotelnikov (2009) Case Study: Dell Computer Corporation [Online]. NA:1000 Ventures. Retrieved from:
http://www.1000ventures.com/business_guide/cs_im_dell.html [Accessed October
2010].
1. Anon. (2010)Dell [Online]. US: Soft Serve. Retrieved from:http://www.softserveinc.com/methodology/technology-partners/ [Accessed October
2010].
2. Dell, 2010, AboutDell|History | Dell sterreich, [online], Available fromhttp://www.euro.dell.com/content/topics/global.aspx/about_dell/company/history/hist
ory?~ck=ln&c=at&l=de&lnki=0&s=corp[Accessed 4th
October 2010]
3. Dell, 2007, Go Green with Dell, [online] , Available fromhttp://www.dell.com/content/topics/global.aspx/vectors/en/2007_go_green_with_dell
?c=us&l=en&cs=555[Accessed 15th
October 2010]
4. Jacob Augustine (2010)Dells Corporate Culture [Online]. US: Pacific LutheranUniversity. Retrieved from:http://www.plu.edu/~augustja/doc/dell-corporate.doc
[Accessed 26th October 2010].
5. Anon. (2010)Define Task Environment[Online]. US: Google. Retrieved from:http://googledefinition.com/definition-of/task-environment [Accessed October 2010].
6. DELL-Laura (2010) Bringing Innovators and Technology for Business to YouTube [Online]. US:Dell. Retrieved from:http://en.community.dell.com/dell-
blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-
for-business-to-youtube.aspx [Accessed September 2010].
http://www.1000ventures.com/business_guide/cs_im_dell.htmlhttp://www.1000ventures.com/business_guide/cs_im_dell.htmlhttp://www.softserveinc.com/methodology/technology-partners/http://www.softserveinc.com/methodology/technology-partners/http://www.euro.dell.com/content/topics/global.aspx/about_dell/company/history/history?~ck=ln&c=at&l=de&lnki=0&s=corphttp://www.euro.dell.com/content/topics/global.aspx/about_dell/company/history/history?~ck=ln&c=at&l=de&lnki=0&s=corphttp://www.euro.dell.com/content/topics/global.aspx/about_dell/company/history/history?~ck=ln&c=at&l=de&lnki=0&s=corphttp://www.dell.com/content/topics/global.aspx/vectors/en/2007_go_green_with_dell?c=us&l=en&cs=555http://www.dell.com/content/topics/global.aspx/vectors/en/2007_go_green_with_dell?c=us&l=en&cs=555http://www.dell.com/content/topics/global.aspx/vectors/en/2007_go_green_with_dell?c=us&l=en&cs=555http://www.plu.edu/~augustja/doc/dell-corporate.dochttp://www.plu.edu/~augustja/doc/dell-corporate.dochttp://www.plu.edu/~augustja/doc/dell-corporate.dochttp://googledefinition.com/definition-of/task-environmenthttp://googledefinition.com/definition-of/task-environmenthttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://googledefinition.com/definition-of/task-environmenthttp://www.plu.edu/~augustja/doc/dell-corporate.dochttp://www.dell.com/content/topics/global.aspx/vectors/en/2007_go_green_with_dell?c=us&l=en&cs=555http://www.dell.com/content/topics/global.aspx/vectors/en/2007_go_green_with_dell?c=us&l=en&cs=555http://www.euro.dell.com/content/topics/global.aspx/about_dell/company/history/history?~ck=ln&c=at&l=de&lnki=0&s=corphttp://www.euro.dell.com/content/topics/global.aspx/about_dell/company/history/history?~ck=ln&c=at&l=de&lnki=0&s=corphttp://www.softserveinc.com/methodology/technology-partners/http://www.1000ventures.com/business_guide/cs_im_dell.html -
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7. DELL-Pam C (2010) Two Sides of the Coin: Cyber Benefits and Cyber Threats [Online]. US: Dell. Retrieved from:http://en.community.dell.com/dell-
blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-
benefits-and-cyber-threats.aspx[Accessed September 2010].
Figure 1:https://www.dosd.dell.com/portal/en/Home.aspx
Figure 2:http://thepirata.com/college-dropouts-who-became-billionaires/
Figure 3:http://www.engadget.com/2007/03/21/chinese-dudes-and-dudettes-get-
cheap-dell-desktop/
Figure 4:http://en.community.dell.com/dell-
blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-
technology-for-business-to-youtube.aspx
Figure 5:http://www.techgadgets.in/tablet-pcs/2009/10/dell-latitude-xt2-convertible-
tablet-pc-announced/
Figure 6:http://e-learning.dmst.aueb.gr/mis/Cases/Dell/Case/overview.htm
Video: http://www.youtube.com/dellbusiness
http://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspxhttps://www.dosd.dell.com/portal/en/Home.aspxhttps://www.dosd.dell.com/portal/en/Home.aspxhttps://www.dosd.dell.com/portal/en/Home.aspxhttp://thepirata.com/college-dropouts-who-became-billionaires/http://thepirata.com/college-dropouts-who-became-billionaires/http://thepirata.com/college-dropouts-who-became-billionaires/http://www.engadget.com/2007/03/21/chinese-dudes-and-dudettes-get-cheap-dell-desktop/http://www.engadget.com/2007/03/21/chinese-dudes-and-dudettes-get-cheap-dell-desktop/http://www.engadget.com/2007/03/21/chinese-dudes-and-dudettes-get-cheap-dell-desktop/http://www.engadget.com/2007/03/21/chinese-dudes-and-dudettes-get-cheap-dell-desktop/http://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://www.techgadgets.in/tablet-pcs/2009/10/dell-latitude-xt2-convertible-tablet-pc-announced/http://www.techgadgets.in/tablet-pcs/2009/10/dell-latitude-xt2-convertible-tablet-pc-announced/http://www.techgadgets.in/tablet-pcs/2009/10/dell-latitude-xt2-convertible-tablet-pc-announced/http://www.techgadgets.in/tablet-pcs/2009/10/dell-latitude-xt2-convertible-tablet-pc-announced/http://e-learning.dmst.aueb.gr/mis/Cases/Dell/Case/overview.htmhttp://e-learning.dmst.aueb.gr/mis/Cases/Dell/Case/overview.htmhttp://e-learning.dmst.aueb.gr/mis/Cases/Dell/Case/overview.htmhttp://www.youtube.com/dellbusinesshttp://www.youtube.com/dellbusinesshttp://www.youtube.com/dellbusinesshttp://e-learning.dmst.aueb.gr/mis/Cases/Dell/Case/overview.htmhttp://www.techgadgets.in/tablet-pcs/2009/10/dell-latitude-xt2-convertible-tablet-pc-announced/http://www.techgadgets.in/tablet-pcs/2009/10/dell-latitude-xt2-convertible-tablet-pc-announced/http://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/24/bringing-innovators-and-technology-for-business-to-youtube.aspxhttp://www.engadget.com/2007/03/21/chinese-dudes-and-dudettes-get-cheap-dell-desktop/http://www.engadget.com/2007/03/21/chinese-dudes-and-dudettes-get-cheap-dell-desktop/http://thepirata.com/college-dropouts-who-became-billionaires/https://www.dosd.dell.com/portal/en/Home.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspxhttp://en.community.dell.com/dell-blogs/Direct2Dell/b/direct2dell/archive/2010/09/23/two-sides-of-the-coin-cyber-benefits-and-cyber-threats.aspx -
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Group Task ReportGroup Members:
No. Task / Description / Responsibility Name & Signature
1 Task EnvironmentIntroduction and Customers and
Clients
Compilation and Editing of individual works
2 Mega EnvironmentTechnological Element
3 Introduction to the organization Mega EnvironmentIntroduction and Legal Political
Element
4 Discussion about the success of the organization and
conclusion
Task EnvironmentCompetitors