PRINCIPLES OF MANAGEMENT
ASSIGNMENT NO: 1
Jitha P Nair
Reneesh U R
M.Sc INFORMATION TECHNOLOGY
ABOUT THE COMPANY
Dell Inc. is a privately owned multinational computer technology company based in Round
Rock, Texas, United States, that develops, sells, repairs and supports computers and related products
and services. Bearing the name of its founder, Michael Dell, the company is one of the largest
technological corporations in the world, employing more than 103,300 people worldwide. Michael
Dell, the founder of Dell Inc., has a history of being gifted entrepreneur. By the age 13, Michael Dell’s
stamp collection and trading and business had expanded to include a national catalog and earned him
close to $2,000 a month. In 1983, Michael Dell entered the University of Texas at the Austin and
quickly developed an interest in personal computers. He began his business by purchasing surplus
components from local dealers, assembling computers, and selling them from his dorm room. By 1984,
with sales approaching $80,000 a month, Michael Dell dropped out of college and founded PCs ltd.,
the forerunner to today’s Dell Inc.
Michael Dell started his business with the simple concept of built to order personal computers sold
directly to customers. Michael Dell believed his approach to the personal computer business had two
advantages. First in by passing distributors and retailers, he eliminated the markups of resellers,
thereby improving his profits. In addition, by building computers only when ordered, Michael Dell
greatly reduced the costs and risks associated with carrying large stocks of parts, components and
especially finished goods. When Dell shifted to large scale operations, the company initially retained
the direct to consumer strategy.
Dell initially started direct sales via mail and phone orders. In 1994, Dell became the first computer
company to list a web site. Initially, Dell’s web site merely listed price and products information.
However, Dell quickly recognized the advantages of direct sales via the company’s web site.
Dell’s direct to consumer strategy has given the company a substantial cost and profit margin
advantage over its rivals. Companies such as Compaq, IBM, and Hewlett-Packard manufacture
personal computers in large volumes and keep their distributors and retailers stocked with ample
inventories. In contrast, Dell manufactures computer only when an order is received. In doing so, Dell
has virtually eliminated finished products inventories and has greatly reduced the need to warehouse
both finished products and component parts. These cost and profit advantages have allowed Dell to
prosper and grow during the past several years, while many of its competitors have weekend or gone
out of business.
Dell has grown to be the largest PC supplier in the world with just under 18% of the global market.
It’s the way we do business. It's the way we interact with the community. It's the way we interpret the
world around us-- our customers’ needs, the future of technology, and the global business climate.
Whatever changes the future may bring our vision -- Dell Vision -- will be our guiding force.
Dell's mission is to be the most successful Computer Company in the world at delivering the best
customer experience in markets we serve. In doing so, Dell will meet customer expectations of:
Individual and company accountability
Best-in-class service and support
Flexible customization capability
Superior corporate citizenship
To became the greenest technology company on the planet.
Enhance development of new and existing diverse suppliers
Cost minimization in its operations through low or Zero inventory.
Provide Innovative products at low price
To achieve high levels of customer satisfaction by providing highly customized
Increase market share, beating competitors.
To develop, manufactures, licenses, and supports a wide range of products and services.
To please and satisfy users with great computers, and notebooks.
To be environmentally and socially responsible.
To produce innovative products.
Planning is important at all levels of management within. However, its distinctiveness differs by level
of management. Within Dell the key terms of planning management functions are vision, mission,
objectives and goals. Planning requires an organized approach and an establishment of objectives. It
starts with setting goals and objectives that can be achieved. Those objectives provide an underlying
principle for a variety of tasks as well as designate course of efforts. Additionally those objectives also
focus the attention of the managers on the final results wanted to be achieved. Objectives are the core
to the planning process. Consequently, objectives should be stated in an obvious and accurate manner.
Otherwise the tasks to be carried out are sure to be inadequate.
Dell is following a combination of strategy as it provides a different or customize product in
low cost and with high speed by eliminating steps. Its main strategy is to focus on customer
preferences. And it is implemented to the structure of organization and it follows a direct relationship
with customer in each step of purchase prior, during and post. Dell’s corporate strategy is to provide
products directly to customers. It provides high technology quality products and services through
customization. Their strategy also includes cost cutting where ever possible. Dell's business strategy
combines its direct customer model with a highly efficient manufacturing and supply chain
management organization and an emphasis on standards based technologies. This strategy enables Dell
to provide customers with superior value; high-quality, relevant technology; customized systems;
superior service and support; and products and services that are easy to buy and use.
ACCOMPLISHMENTS & INNOVATIONS:
The company is well known for its innovations in supply chain management and electronic commerce,
particularly its direct-sales model and its "build-to-order" or "configure to order" approach to
manufacturing—delivering individual PCs configured to customer specifications. Important ones are
Dell Chrome book 11: Dell has finally joined the Chromebook and launched the first
ChromeOS based offering, the Chromebook 11.
Dell released New XPS 14 Ultrabook and XPS 15 Premium Notebooks.
Dell introduced a new generation of EqualLogic Storage technologies, allowing customers
to scale from small environments to large data centers. The new EqualLogic PS6210 series
arrays feature six models, with all-flash, hybrid and all-HDD options. The new arrays offer
increased throughput and more memory than prior generations with a faster, more
powerful storage controller.
Dell introduced new campus solutions to accommodate new workloads, applications and
delivery models. New Dell W-Series Gigabit Wireless Access Points deliver
unprecedented data rates up to 1.3 Gigabits per second (Gbps) for end-to-end wireless
infrastructure solutions utilizing the 802.11ac standard.
Public cloud ecosystem partnerships with Google Cloud, CenturyLink, Microsoft Azure.
Partnering with Dropbox to enable businesses and their employees work in a mobile work-
environment while providing the security and manageability with Dell’s data protection
Dell Releases Pocket-Size Cloud Connect. It provides a radically different approach to
accessing cloud-stored apps/data, as well as to virtual desktops. Dell's Cloud Connect can
connect wirelessly to Windows or Mac computers, offering quick cloud access to content,
apps, and virtual desktops.
Dell will release Windows tablets later this year that could potentially include devices with
screen sizes larger than 10 inches.
Dell has offered several online services, Manufacturing Peripherals, Software Development,
BPO services in Financing and Accounting, Asset recovery, Financing, Infrastructure consulting,
Customer Support, Systems integration, and Training, as well as hosted IT services.
Dell's major competitors include Hewlett-Packard (HP), Acer, Fujitsu, Toshiba, Gateway,
Sony, Asus, Lenovo, IBM, MSI, Samsung and Apple. Dell and its subsidiary, Alien ware, compete in
the enthusiast market against AVADirect, Falcon Northwest, VoodooPC (a subsidiary of HP), and
Ways in which it is different from the Competitors are as follows:
Dell’s initial competitive advantage can be attributed to its famous direct selling and built-
Dell has eliminated the distributors’ layer from its business model.
Dell became the first company in the information technology industry to establish a
product-recycling goal (in 2004) and completed the implementation of its global consumer
recycling-program in 2006.
Dell had "backend" agreements to purchase large quantities of software from Microsoft and
Motherboards from Intel at prices that were not made available to other companies.
Dell offered customizable options that proved to be customer centric and attractive.
No Inventory buildup and 24x7 customer support.
Dell is on the 61st
rank in Best Global Brands of 2013 with Total Brand equity of 6845 m$.
Dell is the leader in using Supply chain management & sells mostly through Internet.
Big Data/ Analytics
Dell conducts operations worldwide, and manages business in three geographic regions: the
Americas; Europe, Middle East and Africa (EMEA); and Asia Pacific-Japan (APJ).
• The Americas region, based in Round Rock, Texas, covers the U.S., Canada, and Latin
• The EMEA region, based in Bracknell, England, covers Europe, the Middle East, and Africa.
• The APJ region, based in Singapore, covers the Asian countries of the Pacific Rim as well as
Australia, New Zealand, and India.
Dell has invested in high growth countries such as Brazil, Russia, India, and China to design,
manufacture, and supports our customers, and continues to expand global infrastructure as
international business continues to grow.
FUTURE GROWTH PLANS:
Dell establishes partnerships and extends its product line to boost sales of servers, services and
storage hardware. Storage vendor EMC is another key Dell partner aiding the company's enterprise
growth. Dell begins worldwide manufacturing of jointly branded Dell-EMC storage systems, and
introduced new SAN (storage area network) bundles aimed at smaller businesses. The Cloud, Big Data
and social media have come into focus for Dell’s forward-looking plans. The company also setting its
sights on developing more cohesive; all-in-one service offerings in order to keep pace with
technological advancements and better serve heightened customer demands.
Worldwide, Dell strengthened its position as the No. 1 provider of computer systems. Dell widened its
lead by working with integrity and an intense sense of responsibility to all the stakeholders, including
customers, investors and partners worldwide. Dell gained share every year since 1995 in almost every
customer segment and product category in each of our top 15 countries because of the tremendous
drive and dedication of the Dell team, it is clear that our model is being embraced throughout the
Another strategic pillar is customer experience in worldwide market. At Dell, an exceptional customer
experience begins with product leadership. And it continues long after the sale as dell strives to instill
satisfaction, trust and loyalty with each customer contact. Sustaining that continuum has been integral
to our success. The focus of the company includes expanding sales capacity and growing in emerging
markets and tablets.
The company plans to invest in the personal computer and tablet markets, in expanding sales coverage,
and in growing its distribution network. Dell Ventures is launching a new $300 million venture fund
that will broaden its investments beyond storage into several other types of startups, including cloud
computing, big data, security, mobility, and next-generation data center companies. The fund, called
the Strategic Innovation Venture Fund. Dell Ventures has already invested in more than a dozen
companies, two of them are - the flash storage company Skyera Inc. and the OpenStack systems
integrator Mirantis Inc.