Essay on Strategy Implementation at Dell

956 Words Jan 19th, 2016 4 Pages
uStrategy Implementation at Dell
Dell was one of the fastest-growing companies of the 1990s, and its stock price increased at the rate of 100% per year, delighting its stockholders. Achieving this high return has been a constant challenge for Michael Dell. One of his biggest battles has been to manage and change Dell’s organizational structure, control systems, and culture as his company grows.
Michael Dell was 19 in 1984, when he took $1,000 and spent it on the computer parts he assembled into PCs that he sold over the phone. Increasing demand for his PCs meant that within a few weeks, he needed to hire people to help him. Soon he found himself supervising three employees who worked together around a 6-foot table to assemble computers
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Dell’s functional structure worked well and, under its new management team, the company’s growth continued to soar. Moreover, Dell’s new structure had given functional managers the control they needed to squeeze out costs, and Dell had become the lowest-cost PC maker. Analysts also reported that Dell had developed a lean organizational culture, meaning that employees had developed norms and values that emphasized the importance of working hard to help each other find innovative new ways of making products to keep costs low and increase their reliability. Dell rose to the top of the customer satisfaction rankings for PC makers because few customers complained about its products. Its employees became known for the excellent customer service they gave to PC buyers who were experiencing problems with setting up their computers.
However, Michael Dell realized that new and different kinds of problems were arising. Dell was now selling huge numbers of computers to different kinds of customers, for example, home, business, and educational customers and different branches of government. Because customers were demanding computers with different features or more computing power, the company’s product line broadened rapidly. It became more difficult for employees to meet the needs of these customers efficiently because each employee needed information about all product features or all of

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