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Strategic Management

Strategic Management

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    Dellcasestudypresentation 100807083137-phpapp01 Dellcasestudypresentation 100807083137-phpapp01 Presentation Transcript

    • The University of Newcastle GSBS 6060 Strategic Management Presented by
    • Outline
      • Company Background
      • Strategic Analysis
      • Strategic Objectives
      • Key Current Strategies
      • Strategic Implementation: General Perspective
      • Key Strategic Implementation Issues
      • Leadership
      • Organisation Structure
      • Innovation
      • Evaluation of Strategy
      • Recommendations
      • Conclusion
    • Company Background
      • Dell Inc. established in 1984 by Michael Dell
      • Operational regions : Americas; Europe, Middle East and Africa (EMEA); Asia-Pacific and Japan (APJ)
      • Today the number one supplier of computer systems in the United States and second worldwide
    • Strategic Analysis Specific Environment General Environment
        • Demand shifting towards emerging markets
        • Cloud computing
    • Strategic Analysis Today
    • Strategic Objectives
      • Currently
      • Long term value creation by driving revenue, operating income and cash flow
      • To succeed
      Shareholders Suppliers Customers Definitive Dominant Dominant Customers Employees Definitive Dominant
    • Key Current Strategies
      • Ansoff’s Matrix
      • Currently: Market Development (PC)
      • Penetration (Enterprise IT)
      • Diversification (Enterprise IT)
      • Porter’s Competitive Strategy
      • Currently: Cost Leadership & Differentiation
      • Miles & Snow’s Adaptive Strategies
      1 st Curve PC 2 nd Curve Enterprise solution Prospector Analyser Analyser Defender/Reactor
    • Strategic Implementation: General Perspective Strategic Drift & Flux
    • Strategic Implementation: General Perspective
        • Second Curve Activity
      Enterprise IT Solution - LATE PC Enterprise PC Cash
        • BCG Matrix:
        • PC Business – Cash Cow
        • Enterprise Solution – Question Mark
    • Leadership
      • “ Two-in-a-box” Management & Cost Leadership
        • Leader’s Market Acumen
        • Corporate Culture & Leadership Style
        • Executive’s Core Competence & Organisational Needs
        • Leadership Style of Michael Dell & Diversification Strategy
        • Radical change in Dell’s structure to flat organisation
        • Dell: ‘Efficiency’ to ‘Decentralisation and Delegation’
        • Less directive and more supportive in leadership style
    • Organisational Structure
      • Decentralised since inception
      • Bureaucratic & Autocratic: late 1990s – mid 2000s
      • Hierarchical & Structurally Bulky: mid 2000s till now
      • Implications
      • Strategic implementation
    • Innovation
      • Dell less innovative
      • Strategic implementation
      • Diversification Innovative in the three types
    • Evaluation of Strategy
      • Strategic objective: Creating value for shareholders
      • Key Strategies: Cost Leadership, Differentiation
      • Market Development, Penetration, Diversification
      • Implementation: Leadership, Structure, Innovation
      • Evaluation Criteria: (Viljoen & Dann, 2003)
    • Assessing Strategic Performance (Viljoen & Dann, 2003)
    • Recommendations
      • Less directive and more supportive in leadership –Supporting style
      • Reducing geographic division of middle management
      • Explicit strategic objectives to address and improve employees’ motivation and skills
    • Conclusion
      • Dell has lost its game in the global market.
      • Dell shows no indication of significant change in implementing its strategies.
      • Dell stands to lose its competitive advantage in the next 3-4 years, unless significant change is brought about in leadership style, organisational structure, and innovation.
    •  
    • Appendix
      • http://www.theofficialboard.com/org-chart/dell