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Soul of Dell

The “Soul of Dell” was created Kevin Rollins was serving as the Senior Vice President of strategy and noticed Dell had a culture that needed to be changed. This culture was, “created a culture of stock price, a culture of financial performance, and a culture of 'what 's in it for me? ' throughout our employee base" (Zellen, 2004). Between Rollins and Michael Dell the “ Soul of Dell” was created. This is now the corporate philosophy for Dell and has been since 2000. The purpose of The Soul of Dell is to define the kind of company Dell is and where they aspire to become. The Soul of Dell serves as a guide for their actions around the world, and ultimately forms the basis of their "winning culture.” The core elements of The Soul of …show more content…

In October of 2002 there was a phone interview with a Dell manager that said the following about The Soul of Dell, “I actually know non of the key tenets [of The Soul of Dell], but would guess they have something to do with maintaining work-life balance, building a long-term career time here, valuing diversity, and leadership” (Rourke, 2010, p.92). In this case Dell spent all this time as the sender, but did not evaluate if the receiver understood the message. Dell should do a better job of evaluating the message and the new corporate philosophy. The high level managers of Dell want to live by The Soul of Dell and have the employees live by these values as well, but in order to do so they need to find a medium that will get the appropriate message across. References Rourke, J. S. (2010). Management communication : a case-analysis approach (4th ed.). Upper Saddle River, N.J.: Prentice Hall. Soul of Dell | Dell. (n.d.). Dell – The Official Site | Dell. Retrieved February 6, 2011, from http://www.dell.com/content/topics/global.aspx/corp/soulofdell/en/index?c=us&l=en Zellen, B. (2004, September 1). Getting In Touch With Dell 's Culture: You 've Got Soul! - Analyst Insights - EnterpriseInnovator. EnterpriseInnovator. Retrieved February 6, 2011, from

Fedex Form 10-K

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.

Observable Artifacts Associated With The Chrysler Culture

Lueneburger, Christoph (2014). Lessons from Chrysler: how to rev up a purpose-driven corporate culture. Retrieved from

Chick-Fil-A Case Study

McCoy’s Building Supply Centers and Chick-fil-A are two 70 years old, successful companies withstanding the test of time. They continue to sustain growth and longevity through economic turbulence, and remain competitive with new and upcoming companies. What is the secret to their success one might wonder? As we examine each company, we begin to recognize the existence of a strong organizational culture. The organizational culture of a company is the anchoring core values, which permeates throughout the company and its employees (Schermerhorn, Osborn & Uhl-Bien, 2012, pp. 9).

Dell Share holders bear the risk in the form of cost of potentially issuing the stock at below market values if the employees do convert the options into stock when the options are in-the-money. However, if the options expires out of the money, the shareholders realize equally better benefits. In this case, the firm obtains labor from employees without having paid for the labor by issuing shares. The employee stock options provides a cushioning from the full burnt

HRM 500 Assignment 4 Essay

Kupritz, V. W., & Cowell, E. (2011). Productive Management Communication. Journal Of Business Communication, 48(1), 54-82. doi:10

McCoy’s Building Supply Centers and Chick-fil-A are two 70 years old, successful companies withstanding the test of time. They continue to sustain growth and longevity through economic turbulence, and remain competitive with new and upcoming companies. What is the secret to their success one might wonder? As we examine each company, we begin to recognize the existence of a solid organizational culture. The organizational culture of a company is the anchoring core values, which permeates throughout the company and its employees (Schermerhorn, Osborn & Uhl-Bien, 2012, pp. 9).

An observable artifact is defined as the physical manifestations of an organization. These artifacts can include a company’s dress code, stories about the company, and rituals within the company (Kreitner & Kinicki, A.2013). The main observable artifact that Chrysler had, and the reason Mr. Marchionne was in distress was about, was the way manager Fong doubled rebates in order to make profit from the dealership sales. This approach was part of the culture that led the company to diminished lucrativeness. Another observable artifact came with the changes Mr. Marchionne implemented, such as his

Fin 370 Strategic Initiative Paper

Dell is a leading computer technology organization. Dell constantly keeps up with changes in their market to stay competitive. Dell is focusing on cost from issues of storage to transportation of products.

Dell Inventory Management

Dell is a computer corporation recognized for manufacturing computer systems through parts assemble. In 1983, Michael Dell saw an opportunity in using IBM compatible computers for a new assembly line that can be sold to local businesses. The idea as explained by Michael Dell, in one of his interview, is that in the early days of computers' manufacturing, companies had to be able to produce every part of the system. As the industry matured, companies started to focus on single parts and to become specialized in creating items that can be assembled with other parts to prepare a computer. As a result, Dell understood that to have a competitive edge in the market, they needed to

Revitalizing dell

Dell Computer Corporation was founded in 1984 by Michael Dell. From the early 1990s until the mid-2000s, Dell was ranked as a PC market leader relying on their distinctive marketing pattern “Direct Model” which undertook direct communication with customers and provided customized products. Recently, the PC industry is facing inconceivable worldwide competition, and Dell is gradually losing their competitive advantages by using its direct model in critical business segments. The company is facing shrinkage of growth, increasing competition, declining quality of customer service, and limitation of expansion. These issues have an enormous impact on Dell’s position as a technological giant in the PC industry.

Cost Leadership Strategy Of Dell

Dell Company has a successful business strategy. As it is following cost leadership strategy. Its success story is hidden in cost proposition, delivery, and unique customization. In response to the high performance and better chances for growth Dell is applying two way strategy parallel to one another.

Essay 1 : Introduction to Dell 3 Parts - Look at the Business Model in Particular (Is it fit for purpose?) – Then the Ecosystem – The Modularization and mention licensing Look the Paradigm of Dell Conclusion

Internal And Strategic Management Process Of Apple And Apple

Internally, Dell goals are implemented to enhance internal environment achievements, by using their business model which is directed at focusing on the companies’ climatic decision-making capability in directly selling to their customer base.

Dell 's Competitive Advantage Analysis

Dell Inc. (Dell) is an American 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 (Wikipedia, 2016). Dell founded in 1984 by Michael dell, is the world famous computer systems, computer products and service provider in the first place (Jones, 2013, P.388).

An Overview of Dell

Dell is a leading technology company that offers a wide range of products including desktop computers, networking products, servers, mobility products, storage, peripherals, software as well as general IT services. The company mainly operates in the United States and is headquartered in the city of Round Rock, Texas. In the financial year ended 2011, the company recorded a revenue of $61,494 million, a figure which indicated a 16.2 percent increase over the FY2010 figure. Its FY2011 operating profit was about $3,433 million, an amount which marked a 58.1% increase over the FY2010 value. Its FY2011 net profit was $2,635 million, a value which represented a 83.9 percent increase over the FY2010 value (Datamonitor,2011).

Related Topics

  • Kevin Rollins
  • Communication
  • Michael Dell
  • Globalization

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How Dell’s strategy transformed it from a doomed player to leading the data revolution

Table of contents, here’s what you’ll learn from dell's strategy study:.

  • How to sustain your company’s growth beyond its initial success.
  • How a sober bet for the future fuels your conviction to win.
  • How to think long-term and not sacrifice your future for short-term benefits.

Dell Technologies is a multinational technology company that designs, develops, and sells a wide range of products and services, including personal computers (PCs), servers, data storage devices, network switches, software, and cloud solutions.

The general public owns 58% of Dell Technologies, while private equity firms and institutions own the rest. Michael Dell is the founder, chairman, and current CEO.

soul of dell case study

Dell's market share and key statistics:

  • Brand value of $26,5 billion
  • Net Worth of $28.7 billion as of Jan 13, 2023
  • Annual revenue of $105.3 billion for 2022
  • Total number of employees: 133.000
  • Total assets worldwide: $93 billion in 2022

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Humble beginnings: How did Dell start?

The story of every company starts with the story of its founder.

Usually, a great company has a great founder story behind it. And Dell Technologies certainly has one. Michael Dell’s story goes hand in hand with the story of the company he founded. By understanding the story of Michael, we can understand the company’s initial advantages and opportunities it pursued.

And like every great tech company story, Dell’s story starts in a college dorm room.

From stamps to startups: Michael Dell's early years and the birth of Dell

Michael Dell founded the company in college, but his entrepreneurial journey started much earlier.

He had an early interest in technology and business, and by the age of 12, he was already buying and selling stamps and coins to make extra money. As a teenager, he worked summer jobs where he learned by trial and error how demand and supply worked, how to be efficient, how to segment the market, and determine the most profitable persona to sell.

By the time he graduated from high school, he had saved up enough money to buy his own BMW and his first personal computer, an Apple and later an IBM.

But he was curious about the inner workings of these machines and, to his parents' horror, he took them apart, learning about the different components and how they worked together. He soon made a crucial discovery. IBM DIDN’T manufacture its own parts. Instead, it sourced them from other companies. This sparked an idea in Michael's mind - he could build his own PCs using the same components but at a lower cost and higher quality.

That idea didn’t come out of the blue.

soul of dell case study

Michael Dell was constantly educating himself on computers, how to build them, how they worked, and how to code. He followed all computer magazines at the time and attended every event in his neighborhood to network and learn the latest about the industry. In high school, he was already an expert, modifying his own PC and, once the word spread, customizing the PCs of professionals.

His first customers were friends and acquaintances who were impressed by his knowledge and expertise. Michael quickly realized that there was a demand for customized computers that were not available in the market. He began assembling machines with increased storage capacity and memory at a fraction of the cost of buying from big brands like IBM.

Doctors and lawyers were among his early customers, and word-of-mouth about Michael's high-quality and affordable PCs spread quickly.

He eliminated the middleman by buying components directly and assembling the machines himself, which allowed him to offer lower prices and better performance. By the end of his first year in college, Michael had a vendor's license, he was winning bids against established companies in the industry, and he incorporated his first company, “ Dell Computer Corporation .”

Dell’s direct-to-consumer strategy & how its corporate culture was formed

The company was growing frightfully fast, forcing the team to constantly change and evolve its processes.

Before the company had its second birthday, they had moved to bigger offices three times to accommodate its increased inventory, growing telephone needs, and physical or electronic systems. However, the company was still a high-risk venture and had a small capacity for expensive mistakes.

In those early days, the challenges Dell faced formed its processes and the core traits of its culture that are present to this day:

  • Practicality and reduced bureaucracy. They did some things unconventionally, like having salespeople set up their own computers. That way, they gained first-hand knowledge of the technology and the customer’s pain problems (customers and salespeople were uneducated on the technology, so they shared the same problems).
  • A “can-do” and “I’ll-pitch-in” attitude. Employees took substantial liberties with their “responsibilities.” Engineers would help with the overloaded manufacturing line, everyone would answer phone calls, salespeople would fulfill orders while taking new ones, etc.
  • A sense of making a difference. Money was tight, so Dell employees wouldn’t mind solving secondary “needs” with cheap solutions like using cardboard boxes to throw their trash because they didn’t have trash cans.
  • Direct relationships with the customers. Maybe one of the most important aspects of Dell’s culture and strategy. The company was talking at the same time with prospects and current customers on the phone. That way, it got first-hand feedback on what the market was currently asking for and was enjoying or not enjoying. That gave birth to Dell’s  “Direct Model.”

soul of dell case study

The company went to great lengths to build and maintain the direct model because it was one of its most important sources of competitive advantage. Where other companies had to guess what to build next, Dell was already on it because their customers were telling them.

There were clear advantages to the Direct model:

  • Closed feedback loop. Dell was talking directly to prospects – no dealer costs – and had no need for inventory. Lower costs = lower prices = more customers. And with every new customer, Dell had another finger on the pulse of the market.
  • A single salesforce. Focused solely on the end customer. There was no need to have salespeople to sell to dealers and then additional salespeople to sell to the customer.
  • Specialization in sales. Dell sold to large corporations, and smaller customers, like SMBs, educational institutions, and individual consumers. But selling to these two different buyers, large corporations and SMBs, was incomparable. So, the company had different salespeople for different customer segments and thus offering the best customer support and experience.

But the model wasn’t without its disadvantages:

  • The model wasn’t irreplicable. Dell was making IBM-compatible PCs and selling them directly to customers. This model wasn’t hard to replicate, and the market’s conditions favored the birth of competitors with the same model.
  • Lack of credibility. It’s hard to make a $5,000 sale when the customer has never heard of you and you lack a physical store.
  • Incompatibility. Dell’s PC had to be compatible with IBM’s. But they had multiple suppliers for their components and sometimes those components were incompatible. Designing high-quality machines that were outperforming and compatible with IBM’s was a challenge.

But these disadvantages didn’t stop the team. The company doubled down on customer support and service and developed a strong reputation around them. It advertised a 30-day money-back guarantee and educated its suppliers to make components based on Dell designs. They even started their first R&D attempts that gave them a  12-MHz  that was faster than IBM’s latest model, cheaper, and got them on the cover of the most prestigious magazine in the industry, the  PC Week .

Dell’s strategy was so effective that phone calls started coming in, urging them to accept capital and go public.

Only three years after the company’s birth in a college dorm room, Dell went public, raising $30 million with a market valuation of $85 million.

Key Takeaway #1: Build a coherent strategy beyond your initial differentiator to sustain growth

Most companies enjoy initial success due to an untapped opportunity in the market, from addressing a niche market to exploiting the weaknesses of major players.

But no company succeeds at growing beyond the limits of the initial opportunity if it doesn’t evolve and expand its competitive advantage. So when evaluating your next move, ask yourself:

  • What is our current competitive advantage?
  • How easily can our competition replicate it?
  • How can we make it harder (if we can)?
  • How can we expand our capabilities to strengthen our current competitive advantage?
  • How can we develop new competitive advantages?
  • What are the market trends and how can we adapt/take advantage of them before others?

The occasional bold move doesn’t hurt, either.

Recommended reading:   6 Competitive Analysis Frameworks: How to Leave Your Competition In the Dust

How Dell’s privatization led to a strategic triumph

In the first decade of the new millennium, the PC business was growing rapidly.

Computing power followed  Moore’s Law  and innovation cycles in hardware were less than 12 months long. At the same time, a new generation of software was spreading and the World Wide Web was expanding globally. Being a part of a growing industry, like the PC business back then, was lucrative. So naturally, many companies did well.

Dell was one of them. In 2000, the company became the world’s largest seller of PCs, having enjoyed a decade of skyrocketing sales.

However, in 2011, things changed. The PC global sales reached their peak and the next year was the first of an 8-year streak of decline that lasted until the pandemic hit.

That decline impacted Dell severely.

Navigating decline: Dell's strategy for a shrinking market

Dell was in deep trouble at the start of the previous decade:

  • It had lost its position as a top PC seller in the US to its main competitor, HP.
  • It came third in the global PC market share, behind HP and ACER.

Many believed that it was a dying company that would perish like Kodak or Motorola.

The PC market was shrinking and some experts were saying it was the beginning of its end. Dell was expected to be among the first casualties. The truth was that the PC industry wasn’t dying, but it was evolving – it was losing some of its traits and gaining new ones. The difference is subtle but also key. In a competitive arena, every alert player is aware of the market changes: declining sales, emerging trends, and other important facts. But how each player interprets them determines whether they’ll  formulate a winning strategy  or not.

The more substantial the changes, the more important the interpretation.

soul of dell case study

In 2012, the fact was that the PC business was declining. Every major player could see it with a single glance at their balance sheet. In Dell's case, the decline was even direr since its PC sales were down by double digits. The company desperately needed to turn things around. And only a bold strategic move could do that.

The company tried to bounce back up with some obvious but desperate moves:

  • The introduction of the Streak “phablet.” An embarrassing attempt at creating a new product category between tablets and smartphones. Its design was bulky and its Android software unsuitable for the device, while its purpose was unclear to the consumer.
  • Making Windows 8 its default operating system. Dell and Microsoft have been longtime partners, to the benefit of both companies. Unfortunately, their growing interdependence meant that when one failed, it dragged the other one down. Windows 8 failure dragged down Dell and further decreased its PC market share.
  • Attempts to enter the tablet and smartphone markets: the “Venue” debacle. Dell was always viewed as a PC company, not a technology company, making it harder to expand to new categories. Its first smartphone, the  Venue , ran on Windows Mobile and it never got any traction. As a result, the company abandoned the categories and, even today, it has less than negligible presence in these markets.

But where people saw a vulnerable company, Michael Dell saw an opportunity.

He had an assumption, a vision attached to it, and a plan to make it a reality. But he had no way to execute it with the company’s organizational structure at the time.

The obstacles to implementing Dell's competitive strategy

Dell’s strategy was to go on the offensive. He wanted the company to be highly aggressive by:

  • Becoming competitive in the PC business again.
  • Expanding its services and software solutions.
  • Increasing its sales capacity.

Dell aimed to achieve these goals by investing heavily in R&D, gaining tighter control over its PC and server prices, and expanding its sales workforce. The idea was to fund new business capabilities in the software and services space from Dell's PC segment. That was a bold plan that involved a lot of changes and, thus, a lot of risks.

Dell’s strategy was essentially a  business transformation  proposal.

And although a lot of public companies have successfully gone through a transformation, none did it in such a short period of time without sacrificing the short-term faith of its shareholders. And that was exactly the problem.

The strategy was inherently risky – like every  good strategy  is – as it promised capital expenditure and an immediate decrease in profitability due to increased operating expenses. Things shareholders hate. And if shareholders aren’t happy with the company’s near-term returns, they start selling their shares, and the company loses its value and a good portion of its funding capabilities. 

Short-term risk = lower share prices = less funding for the company

Thus, the strategy was impossible to execute without the support of the shareholders. So the company had only two options: gain the support of the shareholders or go private.

Dell chose to go private.

Dell's game-changing decision was based on a strategic bet

For a gigantic public company with a market cap of nearly $20 billion, going private is a tough decision and a complicated process.

But it was an unavoidable preliminary for the successful execution of Michael Dell’s plan. And the first step was to convince the board of the necessity of the transformation. After announcing his idea, the board started discussions with experts to evaluate the move, i.e. top consulting agencies and other independent third parties.

JP Morgan , Boston Consulting Group, Evercore, and Debevoise were some of the names involved. And they all shared the same view:

  • The PC is dying.
  • Funding a business transformation from a declining business is a bad idea (despite such successful attempts from  IBM  and  BMW  in the past).

The experts had a lot of facts and strong arguments to support their case. However, all of them were based on a single assumption:  tablets and smartphones will replace the dying PC . The growth in those categories would entail a decline in the PC business. They believed the PC was about to be cannibalized.

Dell’s CEO disagreed. What was his assumption?

He believed that tablets and smartphones wouldn’t take away from PCs but rather add to it. He believed that the PC’s central role in productivity and business wasn’t going to be dethroned by the new shiny toys. People would buy and use tablets and smartphones, but PCs would remain their primary productivity tool.

And he would bet Dell’s future on it.

But he had to convince the board of directors first. At the start, conversations were happening in secret and things were moving slowly but steadily. But when the idea was leaked, two new problems presented themselves.

The first was Carl Icahn, who contested for the ownership of Dell.  Carl Icahn is a self-proclaimed “activist investor” but others call him a “corporate raider.” The closer the go-private initiative was to happen, the more Carl Icahn fought for it. And he used every improper tool and method he could muster. The battle that followed between Carl and Michael delayed the deal and almost derailed it.

The second was Dell’s customers’ hesitation in doing business with the company.  The rumors about the go-private initiative left the customers wondering about the future of Dell and doubted whether any kind of investment in it was worth it. They were suspending purchases and all Dell’s leadership could say was, “We don’t comment on rumors and speculations.”

The press had also concluded that the go-private initiative was a declaration of Michael Dell’s incompetence and a desperate attempt to keep Wall Street’s eyes away from its demise.

History would prove them wrong and crown Michael Dell victorious.

A new chapter: How Dell's go-private move set the stage for future success

The deal happened.

In February 2013, Michael Dell and the investment firm of Silver Lake took Dell private in a leveraged buyout of $24.4 billion, at $13.65 a share.

Despite all the time that passed until Dell could fully execute its strategy, the company didn’t remain idle. It had made several calculated moves to significantly reduce its dependence on the declining PC market before the deal conversations ever happened.

From 2007 to 2012, Dell spent north of $12.40 billion in key acquisitions to increase its enterprise software and hardware solutions, including cloud data storage and management. The acquisitions focused on areas like:

  • Data storage
  • Systems management
  • Data management in healthcare
  • Cutting edge software

The company had already started severing the connection between its financial health and its PC market share many years ahead of its privatization.

But after the buyout, it went all in. Speed and agility became its prominent advantages. Dell became, nearly overnight, a hungry, quick, and ready-to-attack-its-prey jackal. Whenever a new opportunity arose and people asked for resources to pursue it, leadership committed double the resources and said, "Go faster!"

For example, SMBs (small and medium businesses) presented a gigantic opportunity. So the company increased its sales workforce, retrained its existing salespeople, and hit endless SMB doors. They would enter a business selling their low-margin PCs and simultaneously become their trusted advisor on all things tech. Then they sold their whole portfolio of solutions.

And the morale of employees was off the charts. Leadership kept their promises on the changes and provided all the support their people needed to execute the plan.

In addition, people started viewing PC and smartphones as complementary, just as Dell expected.

Was Michael Dell’s bet a good one? Well…

45% of Dell’s revenue was generated from PC sales, but 80% or more of its profits were generated by its new solutions. Eight years after the privatization, the value of their equity had increased more than 625% and their enterprise value reached $100 billion.

We’re pretty confident that’s a yes.

Key Takeaway #2: Successful strategic bets require a sober conviction

Markets change and evolve all the time. The difference between players that emerge prosperous and those that struggle to fit in the new order of things isn’t the unique access to data.

No. Every alert player in your competitive zone has more or less the same access to market trends and changes. The difference lies in what you envision the future to be. That’s your bet.

That’s what a winning corporate strategy needs. And because bets are inherently risky, you require two things to place a successful bet:

  • Sobriety to envision what the future of your industry will look like.
  • Conviction to pursue that vision relentlessly.

Steering towards success: Dell's current strategy and the EMC merger

Michael Dell had foreseen the evolution of the technology industry since the 2000s.

Not the specifics, but the trend of PCs and hardware becoming less relevant – or at least less profitable – and software, the cloud, and back-end taking the front seat. He realized (from very early on) that servers and storage management would become a huge concern for large enterprises building (or upgrading) their IT infrastructure.

Dell anticipated the market’s needs by making a simple observation: the quantity of data in the world expanded exponentially and the traditional way of data management would require server performance that wasn’t physically possible to achieve. But he knew there was a solution underway: virtualization – software that mimics the computer, creating virtual mainframes within the physical mainframe.

That’s why the company had started investing in these technologies since 2001.

Achieving synergy: Dell's competitive strategy and the merger with EMC and VMware

Dell, EMC, and VMware are three major players in the technology industry with distinct but complementary offerings.

EMC  had a successful product in networked information storage systems, i.e. a database management system for enterprises.

VMware  was pioneering in virtualization, allowing users to run multiple operating systems on the same device.

Dell  had an established distribution network and a series of back-end solutions that could expand and fit well with the former technologies.

The relationship between these three companies started in 2001. Dell and EMC entered a strategic alliance to rule a market of $100 billion worth by 2005.

soul of dell case study

For EMC, the alliance was a one-stone-three-birds initiative.  First,  it offered a lucrative distribution channel to customers their competitors were already targeting.  Second,  it ensured Dell wouldn’t partner with a competitor.  And third,  it reduced its supply costs for components.

For Dell, it also had a threefold benefit.  First,  It added high-performing products to a rapidly growing business.  Second,  it gave it an important customer – EMC was using Dell’s servers.  And third,  it allowed Dell to infiltrate deeper into enterprise data centers.

A strategic alliance that gave both Dell and EMC a competitive edge.

Then EMC bought VMware. That gave the company massive capabilities around cloud infrastructure services ending up being a very lucrative move. Dell, which had invested in VMware back in 2002, saw a massive opportunity to acquire the new EMC.

So Dell and EMC first began discussions of a potential partnership back in 2008, but the idea was ultimately shelved due to the financial crisis. However, in 2014, Dell revisited the idea as both companies had grown and become leaders in their respective industries.

Dell saw the potential for a merger as the two companies' services would bring significant value to their customers when combined. EMC's CEO, Joe Tucci, agreed with this assessment, but they still had to convince EMC's board. EMC was publicly held while Dell was private, and as soon as the idea was on the table, Dell found itself competing with two other interested parties, Cisco Systems and HP. In fact, HP nearly succeeded in acquiring EMC.

It failed due to a financial disagreement. So Dell jumped on the opportunity.

By then, EMC had grown tremendously and had eliminated any short- to mid-term potential start-up disruptors by acquiring them. EMC’s three businesses were uniquely complementary to Dell’s solutions:

  • EMC Information structure , a leader in the data storage system market.
  • VMware , the undisputed leader in virtualization.
  • Pivotal , a start-up with a platform to develop cloud software.

However, the acquisition was a tough process. EMC had grown to a market cap of over $60 billion. It was impossible for Dell to fund an acquisition. Instead, the two companies merged.

The merger happened through a complex but effective financial plan, and the synergies created by the combined company increased revenue significantly. A year after the merger was initiated, the added revenue was well above expectations. This allowed Dell to pay down a significant portion of its debt and improve its financial standing and investment rating. The success of the merger led the company to simplify its structure and align the interests of the stakeholders of the three companies.

In 2018, Dell went public again as a very different entity than its first IPO, uniquely equipped to lead the 5-S sectors:  services, software, storage, servers, and security.

What is Dell’s business strategy’s primary focus today?

Dell aspires to become a leading player in the data era by providing a wide range of solutions, products, and services.

Excluding VMware, Dell is divided into two main business segments supported by its financial subsidiary:

  • The Infrastructure Solutions Group ISG helps customers with their  digital transformation  by providing multi-cloud and big data solutions that are built on modern data center infrastructure. These solutions are designed to work in multi-cloud environments and can handle workloads in public and private clouds as well as on-premise.
  • The Client Solutions Group CSG focuses on providing solutions for clients such as laptops, desktops, and other end-user devices. ‍
  • Dell Financial Services DFS supports Dell businesses by providing financial options and services to customers according to the company’s flexible consumption models. Through DFS, the company tries to tailor its financial options to each customer’s way of consuming Dell’s solutions.

Dell's core offerings include servers, storage solutions, virtualization software, and networking solutions. The company is constantly investing in research and development, sales and other key areas to improve its products and solutions and to drive long-term growth.

Its primary strategic priorities are:

  • Improving and modernizing its current offerings in the markets it operates in.
  • Expanding into new growth areas such as Edge computing, telecommunications, data management, and as-a-service consumption models.

And its plan involves several key  initiatives :

  • Developing its flexible consumption models and as-a-Service options to customers to meet their financial needs and expectations.
  • Building momentum in recurring revenue streams through multi-year agreements.
  • Investing in R&D to develop scalable technology solutions and incorporating AI and machine-learning technology. Since its Fiscal year 2020, the R&D budget is consistently at least $2.5 billion. Most of it goes towards developing the software that powers its solutions.
  • Collaborating with a global network of technology companies for product development and integration of new technologies.
  • Investing in early-stage, privately-held companies through Dell Technologies Capital.

Although Dell has a coherent strategy to achieve its objectives, competition isn’t idle nor trivial in the core competitive arenas. The company faces a significant risk that includes:

  • Failure to achieve intended benefits regarding the VMware spin-off.
  • Competition providing products and services that are cheaper and perform better.
  • Delays in products, components, or software deliveries from single-source or limited-source suppliers.
  • Inability to effectively execute its  business strategy  (transitioning sales capabilities, expanding solutions capabilities through acquisitions, etc.) and implement its cost efficiency measures.

The technological advances are rapid, and players are in a constant race to innovate not only on the technologies they provide but on their business models and all of their services and solutions. Emerging players and strategic relationships between competitors could easily shift the competitive landscape before the company finds a way to react.

Key Takeaway #3: When making transformational decisions, prioritize thinking long-term

A major acquisition, or a merger, between industry leaders is a bet on the industry’s future.

If you believe in the bet long-term, don’t sacrifice a good move for short-term returns, as HP did with EMC. Instead, do your due diligence in the consideration phase:

  • Consider real alternatives.
  • Understand deeply how the capabilities of both companies will be improved.
  • Validate your assumptions with current market needs and trends.
  • Move faster than the competition.

Why is Dell so successful?

One of the key reasons Dell has been so successful is Michael Dell’s intuition and strategic instinct.

He demonstrated a consistent ability to take an accurate pulse of the market, make a winning bet and chase it relentlessly by performing a business transformation. Additionally, Dell never lost one of its core strategic strengths: building strong relationships with its customers by providing excellent customer support and tailored solutions to meet their unique needs. The company has also been successful in streamlining its  operations  and supply chain, which has allowed it to offer competitive prices and high-quality products.

Dell puts the customer first and makes strategic pivots with perfect timing.

How Dell’s vision guides its steps

According to Dell’s annual report, its vision is:

“To become the most essential technology company for the data era. We seek to address our customers’ evolving needs and their broader digital

transformation objectives as they embrace today’s hybrid multi-cloud environment.”

And their two strategic priorities, growing core offerings and pursuing new opportunities, are their roadmap to achieving it.

Growth by numbers

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soul of dell case study

Case study: Dell—Distribution and supply chain innovation

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Read the highlights

  • Cutting out the middleman can work very well.
  • Forgoing the retail route can increase customer value.
  • Re-examine & improve efficiency for process/operations.
  • Use sales data and customer feedback to get ahead of the curve.

In 1983, 18-year-old Michael Dell left college to work full-time for the company he founded as a freshman, providing hard-drive upgrades to corporate customers. In a year’s time, Dell’s venture had $6 million in annual sales. In 1985, Dell changed his strategy to begin offering built-to-order computers. That year, the company generated $70 million in sales. Five years later, revenues had climbed to $500 million, and by the end of 2000, Dell’s revenues had topped an astounding $25 billion. The meteoric rise of Dell Computers was largely due to innovations in supply chain and manufacturing, but also due to the implementation of a novel distribution strategy. By carefully analyzing and making strategic changes in the personal computer value chain, and by seizing on emerging market trends, Dell Inc. grew to dominate the PC market in less time than it takes many companies to launch their first product.

No more middleman: Dell started out as a direct seller, first using a mail-order system, and then taking advantage of the Internet to develop an online sales platform. Well before use of the Internet went mainstream, Dell had begun integrating online order status updates and technical support into their customer-facing operations. By 1997, Dell’s Internet sales had reached an average of $4 million per day . While most other PCs were sold preconfigured and pre-assembled in retail stores, Dell offered superior customer choice in system configuration at a deeply discounted price, due to the cost-savings associated with cutting out the retail middleman. This move away from the traditional distribution model for PC sales played a large role in Dell’s formidable early growth. Additionally, an important side-benefit of the Internet-based direct sales model was that it generated a wealth of market data the company used to efficiently forecast demand trends and carry out effective segmentation strategies. This data drove the company’s product development efforts and allowed Dell to profit from information on the value drivers in each of its key customer segments.

Virtual integration: On the manufacturing side, the company pursued an aggressive strategy of “virtual integration.” Dell required a highly reliable supply of top-quality PC components, but management did not want to integrate backward to become its own parts manufacturer. Instead, the company sought to develop long-term relationships with select, name-brand PC component manufacturers. Dell also required its key suppliers to establish inventory hubs near its own assembly plants. This allowed the company to communicate with supplier inventory hubs in real time for the delivery of a precise number of required components on short notice. This “just-in-time,” low-inventory strategy reduced the time it took for Dell to bring new PC models to market and resulted in significant cost advantages over the traditional stored-inventory method. This was particularly powerful in a market where old inventory quickly fell into obsolescence. Dell openly shared its production schedules, sales forecasts and plans for new products with its suppliers. This strategic closeness with supplier partners allowed Dell to reap the benefits of vertical integration, without requiring the company to invest billions setting up its own manufacturing operations in-house.

Innovation on the assembly floor: In 1997, Dell reorganized its assembly processes. Rather than having long assembly lines with each worker repeatedly performing a single task, Dell instituted “manufacturing cells.” These “cells” grouped workers together around a workstation where they assembled entire PCs according to customer specifications. Cell manufacturing doubled the company’s manufacturing productivity per square foot of assembly space, and reduced assembly times by 75%. Dell combined operational and process innovation with a revolutionary distribution model to generate tremendous cost-savings and unprecedented customer value in the PC market. The following are some key lessons from the story of Dell’s incredible rise:

1. Disintermediation (cutting out the middleman): Deleting a player in the distribution chain is a risky move, but can result in a substantial reduction in operating costs and dramatically improved margins. Some companies that have surged ahead after they eliminated an element in the traditional industry distribution chain include:

  • Expedia (the online travel site that can beat the rates of almost any travel agency, while giving customers more choice and more detailed information on their vacation destination)
  • ModCloth (a trendy virtual boutique with no bricks-and-mortar retail outlets to drive up costs)
  • PropertyGuys.com (offers a DIY kit for homeowners who want to sell their houses themselves)
  • iTunes (an online music purchasing platform that won’t have you sifting through a jumble of jewel cases at your local HMV)
  • Amazon.com (an online sales platform that allows small-scale buyers and sellers to access a broad audience without the need for an expensive storefront or a custom website)
  • Netflix (the no-late-fees online video rental company that will ship your chosen video rentals right to your door)

2. Enhancing customer value: Forgoing the retail route allowed Dell to simultaneously improve margins while offering consumers a better price on their PCs. This move also gave customers a chance to configure PCs according to their specific computing needs. The dramatic improvement in customer value that resulted from Dell’s unique distribution strategy propelled the company to a leading market position.

3. Process and operations innovation: Michael Dell recognized that “the way things had always been done” wasn’t the best or most efficient way to run things at his company. There are countless examples where someone took a new look at a company process and realized that there was a much better way to get things done. It is always worth re-examining process-based work to see if a change could improve efficiency. This is equally true whether you’re a company of five or 500.

4. Let data do the driving: Harnessing the easily accessible sales and customer feedback data that resulted from online sales allowed Dell to stay ahead of the demand curve in the rapidly evolving PC market. Similarly, sales and feedback data were helpful in discovering new ways to enhance customer value in each of Dell’s key customer segments. Whether your company is large or small, it is essential to keep tabs on metrics that could reveal emerging trends, changing attitudes, and other important opportunities for your company.

See additional learning materials for distribution .

Summary: Dell combined operational and process innovation with a revolutionary distribution model to generate tremendous cost-savings and unprecedented customer value in the PC market.

Read next: customer discovery: identifying effective distribution channels for your startup.

Strickland, T. (1999). Strategic Management, Concepts and Cases . McGraw Hill College Division: New York.

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Soul of Dell

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The Soul of Dell

Introduction.

This paper seeks to provide recommendations to management on what to do with the Soul of Dell including the success of its implementation for Dell.

Order custom essay The Soul of Dell with free plagiarism report

 With Dell CEO Kevin Rollin’s development of the Soul of Dell, he hoped people would refer to Dell as a place where respect, integrity , honestly and forthrightness are valued.  For Mr. Rolling the importance of the philosophy cannot be overemphasized.  The Soul of Dell is designed to  five major tenets including: Customers, The Dell Team, Direct Relationships, Global Corporate Citizenship, and Winning.  Since the purpose of the initiative was to create a statement of corporate philosophy and to provide all employees with an explanation of the company’s basic values and belief for the latter to know what kind of company they are and what they hope to become, Mr. Rollin is very much eager to have the philosophy understood and adopted the stakeholders including the employees.  However, some of the employees do not yet fully understand the Soul of Dell and for some it is not a priority in their jobs.

Can the Soul of Dell help in acquiring the company’s identity and culture?  How? The Soul of Dell as new company philosophy can help in identifying company’s identity and culture in terms of really addressing what needs to be accomplished organization with due considerations to the strengths and weaknesses of the company in terms of attaining its defined mission or vision and objectives.

Should top management have considered employees, suppliers and customers’ opinions and viewpoint in developing The Soul of Dell? The Soul of Dell is initiated by management so that some employees were not consulted before it was made and announced.  Since the success of a philosophy lies in its fulfillment and its fulfillment, there is reason to assert the opinions of other stakeholders like employees, suppliers and customers’ opinions should have been considered.  Since the company is just initiation, these opinions will still be integrated since the philosophy could always be amended.  The  need to consider other stakeholders’ opinions is premised on the fact that an organization is but a group of people who must be motivated to go under one direction. This is only possible if all stakeholders have agreed in what the companies want to do.  Stakeholders can give or withhold their support or agreement and consulting them would be one of the basic requirements of putting up a philosophy.

Was the Soul of Dell diffused correctly throughout the company? It can be observed that the Soul of Dell was not yet diffused correctly throughout the company since not everybody is giving the importance as management has wanted and planned it to be.  Moreover, not everybody is consulted on the new philosophy before it was diffused or announced to all the employees.  However, if management is really decided on correctly diffusing the same, it could be done.  Deficiencies can be corrected by providing the needed information.  The company could reinforce the philosophy in the enactment of work rules and regulations and in code of ethics.  Thus as to how should the Soul of Dell be maintained in the company is management decision that must be done wholeheartedly.  The Soul of Dell should be maintained with utmost support and pride of the stakeholders particularly the employees, as the same will give them the right motivation and as way for them to measure, their success since the philosophy would define the reasons why they are in the company in the first place.

It must be noted even without prior diffusion of the Soul of Dell, the people of the company has already manifested an orientation to have one in the aftermath September 11, 2001  thus the success of the philosophy was partly proven during the time when employees were moved beyond what economic considerations could give.

What is the real value of corporate philosophy statements?  Does every company need one? The real value of corporate philosophy statements is to make the light where there seems to be confusion on what that company should go.  It will serve as guide for the company in crafting its policies and rules in the accomplishment of its objectives.  Every company needs to have one corporate philosophy if a company is to sustain its life over the long-term.  Mr. Rollin is aware that every successful company has a philosophy as per case facts.

Can Dell achieve what it aspires to be? Despite some problems encountered in the Soul of the Dell, the company can achieve what it aspires to be if sets what is wants to achieve and it knows how it will achieve.  The Soul of Dell will be one of the most important ingredients of its success since the people of organization will be doing their roles for the right reasons.

Conclusions and Recommendations

It can be concluded that The Soul of Dell is a very important part of the life of the company.  With it the Dell would be able to define its identify and culture.  By it, the company will know why it is doing what it is doing. In the same manner that a person must have a reason for living, so does an organization like Dell.  It is recommended that management must continue informing its employees through various office memorandums and other means through proper communications systems and management must be willing to receive feedback that could be used to fine tune the philosophy as its business evolves in a fast changing industry of which Dell is in.

Everything starts with a reason. Corporations find reasons to live and so they live.  While some corporations live long others live longer.  It is the reason for being that will make the difference on how to live long. The Soul of Dell was an attempt worth supporting based on the validity of its contents and its success was partly proven in the case when employees were moved beyond what economic considerations could give especially after the September 11, 2001  Twin Tower bombing.  The event was a turning point for the company, which made the company, realized the value of a reason to live as expressed in the company’s corporate philosophy.

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Dell Case Study

soul of dell case study

Show More Register to read the introduction… Dell traces its origin to 1984 and as we all known the founder of DELL is Michael Dell, the company is the largest technological corporations in the world. Operating from Michael Dell's off-campus dormitory room at Dobie Center the startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PCs Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs. Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $300,000 in expansion-capital from his family. Dell is listed at number 44 in the fortune 500 list (company magazine at us) and the third pc vendor after hp and …show more content… The operations management deals with inputs, transformation and output that across the market. Manufacturing operations transform or converts the inputs such as raw materials, labor, capital, machines, machines and facilities into finished goods and services. Operations activities often represent the largest part of an organization’s human and capital assets. In most industries, the major cost of producing of product and services are incurred within the operations, so operation can have a great value for the company’s overall …show more content… Product they used basically personal computer, servers, data storage devices, network switches and software. They built the customer’s believe and also loyalty among their customer. They will find out the information and also the factor that changing the technological overall. All of these products are assembled to custom specifications after orders have been placed; therefore, Dell holds essentially no finished goods inventory. All of the components that go into these products are purchased from other companies. Even the Dell labeled chasses, keyboards, and mice are manufactured by other companies on contract. Therefore, Dell is quite different from traditional manufacturers in that it does not own or operate any injection molders, pick-and-place circuit board assemblers, or sheet metal stamping machines. In addition to its computing products, Dell sells branded computer peripherals and consumer electronics such as monitors, printers, PDAs, MP3 players, and LCD televisions, all of which are made by contract

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The Soul of Dell

It can be argued that a corporate philosophy, value or mission statement can aid in a company’s ability to distinguish itself and standout against competitors. In addition, statements such as these can prove to be an effective medium in the improvement of employee performance and behavior (Seong, 2011). In the early 2000’s as Dell experienced a drop in market share, CEO Michael Dell turned to The Soul of Dell as a way to mend the corporation’s culture and recapture a stronghold on the industry. Dell’s philosophy statement was created in hopes that it would transform the existing incentive-oriented culture to one which adhered to the newly established key standards and principles of the company. Unfortunately, as Dell would find, the company’s vision for improvement failed to make an impression on employees. Establishing Standards The intention of The Soul of Dell was to provide employees with a road map from which to operate from. Acting as a guide, the philosophy statement assists employees in understanding how their behavior contributes to the success of the company. Furthermore, a sound statement serves as the backbone for the overall operation of and organization and provides employees and management alike with the direction needed to fulfill company goals. While this was the purpose of The Soul of Dell, upper management discovered the statement failed to reach and resonate with employees. Unknowingly, it was those who created The Soul of Dell that inadvertently contributed to the disconnect when they failed to consider views and opinions of the components connected to the company. To compensate, upper management should look to individuals throughout the organization who can serve as a resource to identify existing strengt... ... middle of paper ... ...e to follow. Additionally, clear, concise and effective communication is needed to effectively implement any new concept. Sufficient time should be taken to fully understand the best method for reaching an audience. By disregarding this step, it is likely the message will only fall on deaf ears. Works Cited Barker, R., Gower, K. (2010) Strategic application of storytelling in organizations toward effective communication in a diverse world. Journal of Business Communication, 47(3), 295-312. Holem, C. (2008). Business ethics - Part one: Does it matter? Industrial and Commercial Training, 40(5), 248-252. Laman, S. (2011). A tool for anyone. Quality Progress, 44(5), 72. Seong, J. (2011). The effects of high performance work systems, entrepreneurship and organizational culture on organizational performance. Seoul Journal of Business, 17(1), 3-36.

Fire Department's Mission Statement

An article discussing the importance of a mission statement states that a mission statements’ job is to outline the organization’s unique purpose and establish the basis of its values and traits, as well as describe the attitude that is to be expected of those a part of the organization. Furthermore, this philosophical foundation sets the “tone” for physical actions, meaning that the content of the mission statement can determine the behavior of personnel (Hitt & Ireland, 1992).

Positive Effects of Workplace Reward Systems in Carol Patton’s article, Rewarding Best Behavior

In a business or a workplace, it is essential for the organization, which consists of the employers, the managers, and their employees, to work towards reward programs within the human resources in order to create a healthy and cordial work environment and most importantly, to efficiently achieve business’ goals. In Carol Patton’s (2013) article, Rewarding Best Behaviors, she explains the importance of several companies that are beginning to recognize their employees, not just for the end-results, but for reflecting good behaviors towards the business’ values, such as demonstrating creativity on certain projects, problem solving towards certain issues, and also collaborating with fellow co-workers. Patton stresses that these reward programs could help suffice the overall being of a company as long as the rewarded behaviors correlate with the corporate strategy. Patton expresses that some things human resources must comprehend include “how its company creates success, what drives its business strategy and what behaviors are needed from employees to achieve that success” (Patton, 2013 para. 15). Moreover, the employee would be reflected as a role model for others and perhaps influence them to demonstrate comparable behaviors.

BIG Writing: The Importance of a Strong Brand

Sheldon and Willett argue that the mission statement is the most important BIG message a company can create because it is “a succinct, highly charged statement of the company’s direction and purpose that sets the tone for every employee’s activities” (Sheldon 101) Furthermore, BIG writing should be the official la...

The Johnson & Johnson Corporation have withstood various problems that would have crippled other firms which can only be accounted with the cohesiveness of the corporation members and the internal structure of the corporation. Despite the corporation’s problems over the years their statement of values is an integral part of their corporation culture and how the firm continues to conduct business. “For us, the credo is our expression of managing the multiple bottom lines of products, people, planet and profits” Larsen (as cited by Hartman et al., 2014, p. 165).

book report Winning

The first chapter in this book explains a business’ mission and values. When discussing the mission, Welch states that in order to create an effective mission statement, one must explain how they intend to win in that particular business. The key is profitability, “Delineate their strengths and weaknesses in order to assess when they can profitably play in the competitive landscape,” (Welch, 15). This means to define the business’ strong and weak points to evaluate where they can efficiently and profitably fit within that specific business sector’s scheme. In order to come up with the mission, one can receive input from any source, but one should especially listen to the intelligent ones from all of the different sectors. Although, it is the responsibility of the top management or whoever is held responsible for it, to put it in place, it is their “defining moment,” (Welch, 17). The mission is what a business plans to do to win and values are ...

Case Study Of Techfite

A. As Human Resources Director for Techfite’s new location in Dellberg, I feel it is necessary to implement policies that reflect and maintain our company culture of workplace collaboration and leadership development. In an effort to also encourage employee empowerment and engagement in corporate decision making, I propose the following corporate policies that reflect a virtue-based perspective of ethics, be implemented immediately.

Chrysler Organizational Culture Analysis

The organizational culture of the automotive industry is one that underwent a drastic decline between 2008 and 2009 (Goolsbee & Krueger 2015). However, within a few years the Chrysler organization made enhancing adjustments for the better. The catalyst for the transformation from negative to positive within Chrysler organization was Sergio Marchionne, who took radical measures to realign the organizational culture (Kreitner & Kinicki 2013). Through carefully adjusting the espoused value of the company and guaranteeing that they matched the enacted values he was able to generate a high Person-environment fit (PE fit) that guided the company out of bankruptcy. By using attentive deliberation of the Chrysler culture we can learn about the

Dell Inc. Case Analysis

Dell Inc. weakness was cell manufacturing because their assembled computers were being shipped five to six days after the order was placed. It is an inconvenience for the customers to always send their computer away to have it repaired. First, they are left without internet access. Second, the time it reaches Austin, Texas, have it repaired, and shipped back can take days. The company opportunities were the Dell U.K. that open business in 1987 and in that country it was a lot of companies selling cheap computers. Dell Inc. strides on loyalty among customers and employees, and that could only be derived from having the highest level of service and performing products. Segmentation within the company enables them to measure the efficiency of the business in terms of assets use. Dell Inc. evaluates their return on invested capital in each segment, compare it with other segments, and target what the performance of each should be.

Dell, Inc. Case Study

Before we start, we would like to briefly introduce the definitions of Supply Chain and Supply Chain Management (SCM).

Corporate Culture

Corporate culture is the shared values and meanings that members hold in common and that are practiced by an organization’s leaders. Corporate culture is a powerful force that affects individuals in very real ways. In this paper I will explain the concept of corporate culture, apply the concept towards my employer, and analyze the validity of this concept. Research As Sackmann's Iceberg model demonstrates, culture is a series of visible and invisible characteristics that influence the behavior of members of organizations. Organizational and corporate cultures are formal and informal. They can be studied by observation, by listening and interacting with people in the culture, by reading what the company says about its own culture, by understanding career path progressions, and by observing stories about the company. As R. Solomon stated, “Corporate culture is related to ethics through the values and leadership styles that the leaders practice; the company model, the rituals and symbols that organizations value, and the way organizational executives and members communicate among themselves and with stakeholders. As a culture, the corporation defines not only jobs and roles; it also sets goals and establishes what counts as success” (Solomon, 1997, p.138). Corporate values are used to define corporate culture and drive operations found in “strong” corporate cultures. Boeing, Johnson & Johnson, and Bonar Group, the engineering firm I work for, all exemplify “strong” cultures. They all have a shared philosophy, they value the importance of people, they all have heroes that symbolize the success of the company, and they celebrate rituals, which provide opportunities for caring and sharing, for developing a spiri...

Overview and Analysis of Zappos.com

The mission statement of the company was “As we grow as a company, it has become more and more important to explicitly define the core values from which we develop our culture, our bran...

Industrial Psychology

...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.

Dell's Competitive Strategy

Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.

Essay On Vision Mission And Values

“Values are the beliefs of an individual, group, or organization, in which they are emotionally invested” (Carpenter, Bauer, & Erdogan, 2015). Many organizations consider corporate values strategically import for building their company’s reputation and keeping the customers’ confidence and allegiance. That, however, is only a tiny portion of the strategic benefits that organizational values can offer. “Further benefits include:guidance for decision-making on all levels, selection criterion for new employees, driver for individual and corporate behavior on all levels supporting the vision, mission, and goals of the company, and effective definition and implementation of core values” (Gupta, 2015). Values within a company need to be more than just a few words that sound nice to ensure overall acceptance within an organization. “Effective core values need to be emotionally appealing and workable” (Gupta,

The Dell Theory

“The Dell Theory of Conflict Prevention,” is a theory that is approved by multiple famous authors. The theories main points are valuable and the theory should be looked upon more seriously. In Thomas Friedman’s essay, “The Dell Theory of Conflict Prevention,” he gives examples of how global supply chains would be constructive to promoting world peace. Friedman feels that if everyone is an ally to each other in some shape or form, then no one will want to engage in war. Madeline Albright would agree with Friedman’s theory according to her writings in “Faith and Diplomacy.” Albright felt that religion should play a factor in the diplomatic system of America, in order for us to maintain some kind of peace with other nations. Friedman and Albright both were looking for a solution to world peace. Albright would agree with this theory from the religious perspective. Appiah argued that an ideal global citizen would be essential to America, in his essays “Making conversation” and “The Primacy of Practice.” Appiah felt that people must have an understanding of each other in order to get along with each other. Both Appiah and Albright would agree with “The Dell Theory of Conflict Prevention.” “The Dell Theory stipulates: No two countries that are both part of a major global supply chain, like Dell’s, will ever fight a war against each other as long as they are both part of the same global supply chain”(Friedman 125).

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  1. S.O.U.L

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  3. The Dells Let's Make It Last

  4. The Source of Souls, Well of Life & Place of the Book of Life

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  6. De La Soul on Formation of Group and Bringing Balance to Rap (RIP Trugoy the Dove)

COMMENTS

  1. Dell Case Study Flashcards

    The soul of Dell was built around the following 5 ideas: Customers, The Dell team, Direct Relationships, Global Citizenship, and Winning. Global Citizenship The idea of global citizenship is probably one of the strongest points of the soul of Dell.

  2. The Soul of Dell: Unveiling Dell's Corporate Values and Cultural

    "The Soul of Dell" lets people know "Dell is a meritocracy. If you work hard and do a good job, ... In the Case Study, Richard Hagberg stipulates that leadership and culture are flip sides of the same coin. Analyse fully what you understand by the above statement.

  3. MBA Assignment- A Case Study on DELL

    The reason that may could have been taken into consideration by Dell in choosing. Malaysia as part of its globalization are the following: 1. China may have been a part to. the success of the ...

  4. Soul of Dell

    Dell should do a better job of evaluating the message and the new corporate philosophy. The high level managers of Dell want to live by The Soul of Dell and have the employees live by these values as well, but in order to do so they need to find a medium that will get the appropriate message across. References Rourke, J. S. (2010).

  5. Strategy Study: How Dell's strategy transformed it from a doomed player

    In 2012, the fact was that the PC business was declining. Every major player could see it with a single glance at their balance sheet. In Dell's case, the decline was even direr since its PC sales were down by double digits. The company desperately needed to turn things around. And only a bold strategic move could do that.

  6. SAGE Knowledge

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  7. Dell3-3.ppt

    View Dell3-3.ppt from MANAGEMENT 11-108 at National University of Management. The Soul of Dell A Notre Dame case study produced by research assistants Eugenio Escamilla and Celina Celada under the

  8. Case Study: Soul of Dell: The Value of Corporate Philosophy

    1. Yes. The soul of Dell describes that their culture is meaningful and well-implemented. It is meaningful because their new culture shows the values of generosity and social interactions. They helped to rebuild America. It is also well-defined because it solves the issues of the organization.

  9. Case study: Dell—Distribution and supply chain innovation

    In a year's time, Dell's venture had $6 million in annual sales. In 1985, Dell changed his strategy to begin offering built-to-order computers. That year, the company generated $70 million in sales. Five years later, revenues had climbed to $500 million, and by the end of 2000, Dell's revenues had topped an astounding $25 billion.

  10. Soul of Dell

    The Soul of Dell serves as a guide for their actions around the world, and ultimately forms the basis of their "winning culture." ... In short, at the time of the Matching Dell case study the PC industry was essentially in a boom, and particularly in the United States. Steady growth and expansion continued from the first waves created in the ...

  11. Make to Order Strategy at Dell Corporation: A case study

    Abstract and Figures. Make to order supply chain is what Dell Corporation has differentiated itself from the competitors. Its emphasis on Direct model facilitates immediate feedback from the ...

  12. Dell

    Dell prides the company in upholding standards of ethical behavior that go well beyond legal minimum and never asks any members of the Dell team to do so. The company has a beliefs-and-values statement called "The Soul of Dell." It is a statement of the aspirations as a company.

  13. Solved Case Study

    The Soul of Dell consists of five major tenets which are: Customers, the Dell Team, Direct Relationships, Global Corporate Citizenship, and Winning. The purpose of this initiative was to create a statement of corporate philosophy and to provide all employees with an explanation of the company's basic values and beliefs, so that they know what ...

  14. The Soul of Dell Case Study

    The Soul of Dell was developed the following September and communicated to Dell employees in March of 2002. The communication of these principles was poorly executed and resulted in a lack of understanding and commitment to these new company values. This paper will present an analysis on The Soul of Dell case study and present a solution for ...

  15. The Soul of Dell.docx

    2 The Soul of Dell The "Soul of Dell'' defines a meaningful and perhaps a well-implemented culture. Using its 5 tenets: customers, the Dell team, direct relationships, global corporate citizenship, and winning, employees could personally identify with the company and have awareness of its culture. Dell was a company that grew very fast to ...

  16. Improving the Dell Computer Corporation

    Essay on Improving the Dell Computer Corporation The key issues presented in the "Dell Computer Corporation" case study is that Dell needs to align its' identity with its' image, and stop relying heavily ... Dell has a well-founded identity called "The Soul of Dell" which is its' corporate philosophy that "defines the kind of ...

  17. The Soul of Dell

    The Soul of Dell was an attempt worth supporting based on the validity of its contents and its success was partly proven in the case when employees were moved beyond what economic considerations could give especially after the September 11, 2001 Twin Tower bombing.

  18. Dell Case Study

    Krajewski, Malhotra, & Ritzman (2016), teaches how a firm's internal processes need to be organized to ultimately be effective in a competitive environment. This paper analyzes the case study of Vistron Inc: The Z-Glass Project. First, this paper will identify the operational management problems at Vistron.…

  19. The Soul of Dell

    The Soul of Dell. 1065 Words3 Pages. It can be argued that a corporate philosophy, value or mission statement can aid in a company's ability to distinguish itself and standout against competitors. In addition, statements such as these can prove to be an effective medium in the improvement of employee performance and behavior (Seong, 2011).

  20. R2006D10967896

    The incorporation of change is manifested when Dell re- paraphrased its vision statement from "Dell Soul" to become the "Soul of Dell" that mutually takes into consideration the need of the organization, ... A Case Study of Dell EMC Central, East Africa (Doctoral dissertation, United States International University-Africa). End of preview.

  21. R2009D111265002

    The inclusion of change was shown when Dell re-phrased its vision statement from "Dell Soul" to "Soul of Dell," which takes into account the needs of the company, its workers, and its consumers. ... A Case Study of Dell EMC Central, East Africa. Schyns, B. &. (2017). Global Encylopedia of Public Administation, Public Policy, and Governance. (A ...