FINAL ASSIGNMENT
Questions (10 marks each)
1. Identify the aspects of high involvement management contained in the “Soul of Dell”
vision statement.
The main goal of the Soul of Dell statement, according to Kevin Rollins' conception, was to
realign with an already-existing relationship, a sense of purpose, and business incentives.
Between the years 2001 and 2002, the need for personal computers reduced over time as the
need for tablets and mobile phones increased. Due to the decline in PC demand, Dell's stock
share price dropped to 17 dollars from 56 dollars, and many employees left the company at this
time in search of jobs in other, more favorable locations. This provided Kevin Rollins and
Michael Dell enough time to start realigning the company's strategic approaches to motivating
and diversifying the stakeholders in an effort to get things back to normal.
Direct relationship: The "Soul of Dell" culture was in line with the company's objective to
provide clients with a superior experience that is significantly more expensive. Working in active
team groups will provide a superior experience to endure strategic manufacturing and selling
strategy with the direct relationship to customers and suppliers. In an effort to provide the best
services to the customers, the staff is considered to be the front lines in interaction with the
suppliers and customers.
The winning culture: The ultimate objective outlined in Dell's vision statement was to achieve
high levels of contact and involvement in all local and international markets. The winning
culture was an objection to the organization's various activities' feeling of responsiveness and
industrial expansion. The management put initiatives in place to motivate individuals and groups
to sustain the successful culture.
Global corporate citizenship: Legal requirements and shared market traits were among the
considerations that Dell Company highlighted in the "Soul of Dell" regarding diversification.
The organization emphasized the need of a stronger worldwide reputation for the corporation
that merged numerous overseas activities.
Customer satisfaction: In an effort to provide clients with high-quality goods and prompt
services, the corporation gave its efforts top priority. Additionally, precautions were taken to
guarantee that clients were treated with decency, attentiveness, and thoroughness. Customers
were involved in the continuing production of goods, prompt response to requests, and provision
of reasonably priced goods that matched consumer preferences.
The Dell team: The management offered steps to promote the business divisions and other
existing synergies in an effort to destabilize the firm. The management also emphasizes the need
of encouraging learning among the organization's teams and personnel. Dell significantly
supported the initiatives to maintain the integration of top professionals among the previously
existing teams.
2. Describe how Dell’s approach to global manufacturing reflects an awareness of cultural
diversity issues.
The Dell Company serves as a better illustration of cultural globalization as a company that
incorporates team members' decision-making abilities. Dell and other firms are distinguished by
this choice in their manufacturing and production approaches and tactics. Dell promotes
outsourcing of goods like accessories, CPUs, and other components rather of establishing a base
to produce its supplies. However, Dell's rivals have criticized the company for not providing
their best work in terms of originality because the company relies on third parties for crucial
computer components.
Dell continues to lead their relationships with many suppliers and manufacturers such that
transparency and integrity were kept, unfazed by criticism from rivals. Significantly, the business
continued to provide suppliers with information about its manufacturing schedules, ensuring a
timely supply of computer accessories and other parts. The decision to outsource some of its
goods always aids the company in generating as many new inventories as feasible and reduces
the expense of brokers in international trade.
The business's plan to outsource accessories made it possible to save expenses and shorten the
timeline for developing production facilities. Dell used gathered earnings that might be used in
the establishment of a manufacturing base to make commodities of decent products at low rates,
in contrast to rivals who used the funds in developing manufacturing bases. Significantly, the
interaction between the firm and the many suppliers improved the connection and the corporate
culture.
Nevertheless, despite the approach's noteworthy successes in terms of the profits made from the
outsourcing of products, there were issues on a worldwide scale. In reality, when it entered other
international markets, the organization was forced to modify its methods and plans. Having a
reliance on items that were outsourced when the company entered the Chinese market is a solid
illustration of the need for changing production practices. Additionally, in the same nation, the
company went beyond its usual online order delivery of computer accessories and other
components to respond to the social clamor to fulfill requests for paper orders.
[Link] the importance of globalization in Dell’s growth strategy.
In theory, regardless of an organization's prior successes, globalization of its activities exposes it
to new problems. With references to financial constraints and issues with social stratification, the
issues are well described. Given that every country has a Dell representative team that analyzes
market trends and supports the company's commercial operations, globalization has allowed the
Dell Company to reach over 170 nations worldwide. The following crucial functions that
globalization of the organization plays; Access to expanded markets: The ability to showcase the
company's goods and services is a benefit of the corporate goal to attract new clients. Gaining
access to new clients and subscribers increased corporate earnings. Additionally, it enables the
business to come across certain social deficiencies.
diversity of services and goods: Globalization enables the diversity of goods and production
methods. For instance, Dell diversified by moving away from being a firm that just manufactured
PCs to one that also deals with different items like servers, televisions, and printers. This is a
reaction to various market issues and developments.
Advantage over competitors: Any firm operating on a worldwide scale should anticipate fierce
competition for its services and goods. In an effort to counteract competition from other
businesses, organizations frequently diversify their services and products to increase their market
share. This also applies to the Dell Company, which has grown through claiming market shares
in several nations.
[Link] the problems that might arise due to globalization for a firm that is dedicated to
direct customer sales? Support your answer with examples from Dell’s history.
Despite being crucial in boosting business, globalization has presented difficulties and
weaknesses to entities held by the firms, particularly with regard to direct sales. Dell's
operational strategy focused on customer direct sales. However, the company encountered a
variety of difficulties in various countries as a result of the necessity to negotiate larger
marketplaces. Among the challenges are:
Staffing issues: With an organization's diversity and globalization, finding the suitable
employees becomes a significant difficulty. When operating in markets such as those in Brazil,
Africa, and China, where market knowledge was anticipated to be essential, the Dell Company,
for example, had difficulties in personnel recruiting.
Change in the way items are ordered: According to Lakshmi (2018), Dell Corporation ran into
problems with the several ordering processes utilized in various nations. Chinese consumers
were not used to purchasing things online, as was previously said, thus the firm was forced to
switch to paper orders, which were considerably slower.
An increase in brokers: Businesses that always want to sell to clients directly protest to doing
away with brokers and other market middlemen. This is because they generate increases in
commodity prices, which costs the business money to compete. In addition, middlemen have a
significant impact on corporate efficiency and waving rates. Given that it was difficult, Dell saw
several difficulties with the brokers in China.
[Link] the strategic importance of leadership at Dell.
Under the direction of Michael and Rollins, the Dell organization offers unit leadership that is in
line with the entity's vision and objectives. Their leadership style plays a crucial part in
promoting the following qualities; Essential traits of an entrepreneur: The leadership at Dell
supports and promotes entrepreneurial abilities within its employees and members, such as
strength, risk analysis, and performance-focused operations. Most significantly, they support the
successful culture and promote worker innovation.
Teamwork guidelines: The management of the Dell Company upholds an operational system
that operates in sync and works with a non-hierarchical structure. This improves everyone's
involvement in conversations, flexibility, and idea creativity. Performance is encouraged to be
effective.
Positive corporate culture: Dell and Kevin's leadership structure effectively incorporates the
culture, which is defined by success and improved performance. By doing this, the management
may concentrate on resolving organizational changes and figuring out various links and
interactions inside the business.
Better methods for resolving disputes: The company has the best method, which prioritizes
employee issues; this is supported by frequent meetings and other pertinent authorial channels.
The likelihood of eliminating bad member relationships and other issues that can threaten
organizational harmony improves when difficulties inside the organization are brought to light.
[Link] how the leadership theories discussed in your eBook apply to Dell?
Numerous leadership ideas, both directly and indirectly, are related to various organizations, the
e-book claims. The interactions between the top management and the rest of the personnel are
greatly influenced by these notions. The theory of contingency, which asserts that a corporation
or company's success cannot be attributed to a single function but rather to the attribute of
multidimensional approaches, is one of the theoretical concepts used in the application of Dell.
For Dell, a variety of factors, including consultants, suppliers, and analysts, are used to make
crucial decisions.
Transactional theory: The basic concept of transactional theory is the interaction between leaders
and employees to achieve a win-win outcome. It aims to serve both parties by fostering unity.
For instance, by paying top performers inside the company, Dell Company supports transactional
theory. Success is also accelerated by the leadership's instilling of a sense of ownership in their
workforce.
The trait theory: : According to Schyns and Riggio (2016), the idea is based on leaders who have
the character to have an impact on an organization's operations both favorably and adversely.
When the market for personal computers fell off dramatically between 2001 and 2002, the
management of Dell represented characters in the characteristic theory. This caused a huge
decline in the company's stock price. They step in to save the business.
The behavioural theory: The theory's main points of contention center on how leaders need to act
to effect organizational transformation. The claim that other employees are encouraged to act in
accordance with senior management's behavior is further stated. Dell's actions, which demand
performance from the management, have inspired the other employees to follow suit in carrying
out their duties on a regular basis.
7. Illustrate how Dell’s meeting and communications procedures would resolve conflicts
within the organization.
The Dell organization has a carefully thought-out plan for handling disputes and for facilitating
communication from the upper levels to the workforce. This aids in resolving urgent problems
and maintaining workable efficiency. The most effective dispute resolution techniques address a
number of claims, including the following;
Managing stereotyped conflicts: In the Dell Corporation, stereotypical conflicts can arise due to
both social and physical differences, which may lead to internal disagreements among personnel.
This may encompass everything from racial to gender prejudice. Better methods must be put in
place to stop such issues and lessen their consequences on the business.
Addressing external variables that contribute to conflict: These conflicts are those that are
brought on by external causes, such as family and health concerns that have an impact on job
performance. As a result, there can be disagreement inside the organization if the employee
doesn't deliver the desired outcomes. Dell's approach to solving this issue involves excellent
communication, which is made feasible by the company's frequent meetings.
Addressing conflict: from structural failures, which are failures brought on by low-level
employees' perceptions of being excluded from decision-making. When employees and
stakeholders are excluded from critical decision-making, negative views develop. The
establishment of an effective communication strategy addresses these concerns effectively by
communicating crucial information regarding projects and
Managing work interest conflicts: An company may employ a variety of people with various
goals. Some people only choose careers that will make them happy and profit them personally,
which can lead to a lot of tension. By effectively communicating the compensation and reward
structure, regular meetings and communication by Dell are intended to resolve such problems.
[Link] the strategic importance of Dell’s nonhierarchical structure.
Due to their non-hierarchical bureaucratic leadership structure, Dell enjoyed tremendous success.
Such a structure employed by Dell is crucial in;
Access to sources of quick communication is required: The senior corporate leadership of Dell
immediately communicates information to all other workers through its organizational structure.
This involves stakeholders and other workers while facilitating the sharing of important
information.
Conflict is resolved promptly because to Dell's organizational structure, which promotes prompt
resolution of disputes. Additionally, it is straightforward for employees to report any challenges
they face while carrying out their roles and obligations. This Dell-like organization makes it
easier to handle complaints and claims quickly.
Easy and fast decision making: Making decisions quickly and easily is made possible by the
framework, which allows management and workers to participate directly in business operations.
Everyone in the organization may now easily access crucial information thanks to this. Thus,
quick and convenient access to discussions and questions advances an organization's overall
goals and aims.
Better communication: According to Bashir and Verma (2017), the structure of Dell Company
allows managers to express their intents and interests clearly without putting information at risk.
This is so that the entire company may take part in developmental concerns that are meant to
enhance the organization.
[Link] how Dell’s culture is reflected in its organizational structure.
Its organizational culture is largely concerned with improving performance and giving the firm
the best working circumstances. There, the organization's culture is ingrained with Dell's
cultures, which are built around the desire to value team performance. In addition, synergies and
partnerships are strongly promoted to increase better exploitation of information and expertise.
The top leadership in the corporation is essential in improving collaboration in order to incur
efficiency in organizational activities.
Significantly attentive to the demands of its staff, Dell's management is crucial in fostering
collaboration between the company's diverse workforce in order to achieve operational
effectiveness and fulfilling employment. It should be recognized, nonetheless, that a number of
contemporary modifications are crucial for reducing conflict.
Promotion of external relationships is another manner that Dell gave consideration to the
company culture. The senior leadership made an effort to work with many stakeholders in order
to make judgments that were based on important facts and knowledge about the business
settings. Stakeholder participation is intended to support a culture of well-informed decision-
making.
Another method Dell evaluates its organizational structure is by the adoption of a non-
hierarchical one. Because Dell has a non-bureaucratic organizational structure that requires
orderly processes to reach the top management, everyone, including low-level employees, have
access to the company's management.
The promotion of a positive outlook among employees comes last. The Dell leadership takes into
account a variety of variables to improve employee mindset, motivation, and attitudes. Initiatives
to sustain this include sharing goals and missions with staff, praising achievement, and
maintaining close touch. These factors are all essential for improving culture performance.
[Link] how well Dell has managed change.
The pricing, market, and provisions are only a few of the variables that might vary in the
worldwide industry (Voigt et al., 2017). Based on change inside the organization, Dell has seen
that change brings with it fresh ideas and chances to meet all market restraints. Some of the Dell
features that have undergone alteration are:
Change in strategic sales method: The strategy was ineffective in the Chinese market given that
the nation processed the majority of its orders online and over the internet (Mburu, 2018). This
prompted the market to adopt the paper order sell tactic. Changes to the company's goal, mission,
and vision. When the necessities and motivating requirements of the company's production
capacity changed over time, Dell as an organization adapted. This resulted in the vision
statement "soul of Dell" being adopted. This is opposed because it doesn't address the structural
and strategic issues preventing the company's success.
purchase of EMC. There was a huge arrangement between the Dell Company and EMC that
resulted in a 67 billion dollar supply of data storage. Dell and EMC agreed to a contract as a
response to the problems caused by a lack of data storage accessories. This even addressed
competitors' criticisms about Dell's lack of a creative manufacturing base.
The privatization of 2013 is the last. Michael Dell, the chairman of the Dell Corporation, notified
the public of the company's plans to go private. This was an effort to rethink its tactics. This was
an attempt to maintain the company's competitiveness on a worldwide scale. The strategic
company Dell Corporation has embraced diversity and change to better serve its consumers
throughout the world. This is seen by how far it goes to include a vision statement that embodies
the "soul of Dell" and takes into account the needs of the business, its people, and its clients.
Additionally, the company's success is credited to a variety of elements that supported
performance, including partnerships, a non-hierarchical structure, and improved communication
techniques. However, from its beginning in 1983, it has seen both success and turbulence while
its route to success.
REFERENCES
Bashir, M., & Verma, R. (2017). Why business model innovation is the new competitive
advantage. IUP Journal of Business Strategy, 14(1), 7.
Kiel, D., Arnold, C., & Voigt, K. I. (2017). The influence of the Industrial Internet of Things on
business models of established manufacturing companies–A business level
perspective. Technovation, 68, 4-19.
Schyns, B., & Riggio, R. E. (2016). Implicit leadership theories. Springer.