Dellcasestudypresentation 100807083137-phpapp01
- 1. The University of Newcastle GSBS 6060 Strategic Management Presented by
- 2. Outline Company Background Strategic Analysis Strategic Objectives Key Current Strategies Strategic Implementation: General Perspective Key Strategic Implementation Issues Leadership Organisation Structure Innovation Evaluation of Strategy Recommendations Conclusion
- 3. Company Background Dell Inc. established in 1984 by Michael Dell Operational regions : Americas; Europe, Middle East and Africa (EMEA); Asia-Pacific and Japan (APJ) Today the number one supplier of computer systems in the United States and second worldwide
- 4. Strategic Analysis Specific Environment General Environment Demand shifting towards emerging markets Cloud computing
- 6. Strategic Objectives Currently Long term value creation by driving revenue, operating income and cash flow To succeed Shareholders Suppliers Customers Definitive Dominant Dominant Customers Employees Definitive Dominant
- 7. Key Current Strategies Ansoff’s Matrix Currently: Market Development (PC) Penetration (Enterprise IT) Diversification (Enterprise IT) Porter’s Competitive Strategy Currently: Cost Leadership & Differentiation Miles & Snow’s Adaptive Strategies 1 st Curve PC 2 nd Curve Enterprise solution Prospector Analyser Analyser Defender/Reactor
- 8. Strategic Implementation: General Perspective Strategic Drift & Flux
- 9. Strategic Implementation: General Perspective Second Curve Activity Enterprise IT Solution - LATE PC Enterprise PC Cash BCG Matrix: PC Business – Cash Cow Enterprise Solution – Question Mark
- 10. Leadership “ Two-in-a-box” Management & Cost Leadership Leader’s Market Acumen Corporate Culture & Leadership Style Executive’s Core Competence & Organisational Needs Leadership Style of Michael Dell & Diversification Strategy Radical change in Dell’s structure to flat organisation Dell: ‘Efficiency’ to ‘Decentralisation and Delegation’ Less directive and more supportive in leadership style
- 11. Organisational Structure Decentralised since inception Bureaucratic & Autocratic: late 1990s – mid 2000s Hierarchical & Structurally Bulky: mid 2000s till now Implications Strategic implementation
- 12. Innovation Dell less innovative Strategic implementation Diversification Innovative in the three types
- 13. Evaluation of Strategy Strategic objective: Creating value for shareholders Key Strategies: Cost Leadership, Differentiation Market Development, Penetration, Diversification Implementation: Leadership, Structure, Innovation Evaluation Criteria: (Viljoen & Dann, 2003)
- 14. Assessing Strategic Performance (Viljoen & Dann, 2003)
- 15. Recommendations Less directive and more supportive in leadership –Supporting style Reducing geographic division of middle management Explicit strategic objectives to address and improve employees’ motivation and skills
- 16. Conclusion Dell has lost its game in the global market. Dell shows no indication of significant change in implementing its strategies. 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.