business strategy
Q # 1
What is your evaluation of Michael Dell as CEO? How well has he performed the tasks of Strategic management discussed in Chapter 1?
• He is an excellent CEO
At age 33, he is a multi-billionaire, one of the richest people in the world and one of the most respected CEOs in the world. He has done his job in the best way he could because given the age and lack of experience, we think he has done what he could.
Assessment of his job as CEO
• Company’ s chief strategic visionary
• In 1990, Michael Dell set an objective for Dell Computer to become one of the top three PC companies.
• Company’s financial position has improved with the passage of time
• He is the chief architect of the company’s strategy
• Michael Dell has pushed the company to revamp the traditional industry value chain, shortening it and slashing out cost-producing activities.
• He is pushing the concept of “Virtual Integration”
• Best execution of Just in Time inventory concept and reduction in the number of days of parts of inventory
• Very aggressive in advertising and always pushing for communicative and forceful ads
• Close personal touch with Customers
• Dell has responded to changes in the PC marketplace by pursuing greater and greater market segmentation.
• On the whole, Michael Dell is a very effective CEO and has performed his job quite well.
Q # 2
What are the elements of Dell’s strategy? How well do the pieces fit together? Is the strategy evolving?
Vital Elements of Dell’s Strategy;
• Build-to-order manufacturing and mass customization
• Partnerships with suppliers
• Just -in-time delivery of inventories
• Direct sales
• Market segmentation
• Customer service and Technical support
• Virtual integration and information-sharing
• Demand forecasting
• Research and development
• Advertising
• Servers
Yes, in our opinion the pieces fit together beautifully. The strategy is evolving which has been witnessed by the recent entry into servers and the move to virtual integration.
Q # 3
What does a SWOT analysis reveal about the attractiveness of Dell Computer’s situation?
Strength
• Product quality
• Efficient, low-cost assembly
• Global manufacturing and global sales capabilities
• Efficient cell-manufacturing assembly
• Just-in-time inventory know-how and capabilities
• Long-term partnerships with key suppliers
• Capability to load customer software and install asset tags; lowers customer costs
• First hand information of what are the customer requirements, [next page]