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Running head: RESHAPING DELL 1Reshaping the Future of Dell Michael GillenkirkStrategic Planning for Organizations (MGT 450)Eugene KaufmanSeptember 17, 2012
RESHAPING DELLReshaping the Future of DellDell Computer Corporation or Dell Inc. is a large corporation that serves a global market in the information technology market, more specific they are one of the largest developers, supporters, assemblers, and sellers of computers and related products in the world. Dell Inc. originated in 1984 (Cleary, 1997) when a gentlemen by the name of Michael Dell began selling computers to customers from his then dorm room at college. Michael Dell developed a corporate vision that simply put the customers’ needs before anything else while also meeting customer expectations through product innovation. According to the Dell Inc. website, Dell Computers quickly became the largest seller of PCs and servers throughout the 1980s and well into the 1990s. (Cleary et al, 1997).Dell Inc. enjoyed huge success early on; however, a steady decline from the top has forced Dell to rethink their business structure and company strategy. The current direction of Dell Inc. is very different then the direction that catapulted the company to unprecedented success. Currently, Dell Inc. has taken an entirely different approach in their business model which CEO Michael Dell realizes is necessary in order for the company to once again claim the top spot amongst computer technology giants. Dell Inc. current direction calls for the company toforgo the concept of direct to customer sales. This method had been the backbone of the company when Michael Dell first developed his vision; however, as times have changed so have consumer demands and “waiting” weeks for a computer is just no longer widely accepted. Consumers want com putters when the purchase is made, Dell realized this and has begun changing their direction. Dells current direction also includes a heads first venture into the $43-billion-a-year computer printer industry (Hoovers, 2008). Finally Dell realized it had major 2
RESHAPING DELLmanagerial issues at the top of their organization and are taking the necessary steps to make certain they secure a solid financial future for Dell Inc. and its stakeholders. To get a better feel for the areas of the Dell Corporation that may need further restructuring we can conduct a SWOT analysis. A SWOT analysis is a strategic tool that helps to identify the strengths, weaknesses, opportunities, and threats involved in a business’s strategic plan or project. Conducting a SWOT analysis on Dell Inc. will provide a foundation for strategic direction that the company can take to improve their situation and ultimately improve the overall condition of the organization.