Dellcasestudypresentation 100807083137-phpapp01

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Strategic Management

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Dellcasestudypresentation 100807083137-phpapp01

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