Final Audit - FINAL AUDIT 1 William V Clark MGT 497 Strategic Planning for Organizations Instructor Davis FINAL AUDIT 2 Dell has utilized strategic

Final Audit - FINAL AUDIT 1 William V Clark MGT 497...

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FINAL AUDIT 1 William V. Clark MGT 497 Strategic Planning for Organizations Instructor Davis March 07, 2016
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FINAL AUDIT 2 Dell has utilized strategic planning throughout its lifecycle in the technology environment. Realizing “demand” is what defines a product or service, Michael Dell was able to manufacture custom made computers and expand into IT services. Doing so, the entity “Dell”, needed to develop a strategic technology plan with goals that are realistic, action-oriented, and measurable. Dell’s first step is to acknowledge its resources allocations. Resource Availability and Allocation Dell must be aware of how scarce its resources might be, how they are being distributed among producers, and how scarce products and services are distributed among customers. Being in the manufacturing business and having assembly lines, Dell being in the market for computer systems and related items, technological improvements are frequently realized as component prices are changing rapidly. With assembly lines being used as “build-to-stock,” Dell can allocate resources to produce large quantities of identical products. Dell has global resources which makes it easy for them to outsource. Being that Michael Dell (the founder), did not want to manufacture his own components, he knew that he would have to have a supplier with reliable and available resource with top quality PC components (Strickland, 2011). By acknowledging long-term relationships with “select” name-brand PC component manufacturers, and requiring key suppliers to establish inventory near their own plants, Dell could communicate with its inventory hubs in real-time (Strickland, 2011). With these capabilities, Dell was able to implement a strategy of integrated supply approaches with their distributors, through way of virtual integration. Capacity to Understand Competitors’ Strategies and Industry Evolution with Respect to Innovation Dell had to analyze factors such as accounting cost, economic cost, opportunity cost, and other cost that will be associated with the cost of resources, and the cost of products and services. With respect to innovation, Dell has to be able to realize its capabilities. This will allow Dell to have the capacity to understand competitors’ strategies and industry evolution. According to Rothaermel, “technological innovation is in many industries the most important driver of competitive advantage.” In order to gain sustainable competitive advantage, Dell needed to be able to answer a few fundamental questions such as why do some technology company’s start-ups succeed and others fail?, what determines overall performance?, and what can we do to ensure success?. These type of questions believe that the answer to these questions lies within the differences in the
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FINAL AUDIT 3 firm’s strategies (Rothaermel, 2010). According to Dell, they had to realize that instead of competing against its competitors (that are considered top in its industry of technology), suppliers, and original development manufacturers, Dell
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