The company chosen for this analysis is Dell Inc., the USA Multinational Corporation, and its activities in the UK. The Dell Inc. headquarters are centered in Round Rock, Texas United State. Dell Inc. deals with selling, developing, and repairing computer and computer related products. It has managed to employ more than 103300 of workforce from various parts of the world.
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The multinational corporation (MNC) model for companies such as Deal Inc. is centralized Hub (CH). In this model, the nature of the MNC tactic is based on principal control export, and the corporation implements group supervision while maintain exchange of information within the supply chains. The company understands that its triumph rests on the public and thus it emphasizes on export.
The function of the supply chain is to decide how the products reach the consumers. The company anticipates diverse barriers in a nation they want to start a supply chain of innovative and scale-exhaustive products. Besides, the companys philosophy stresses on cost improvement and value guaranteeing products, and the need of central control during product improvement, procurement, and manufacturing.
The Dell Inc. headquarters resides in the US, the home country, for authorizing the controls desired and building tactical judgments to the supply chain in other countries.
Analyzing the Strategies
In the UK, the market sale for the Dell Inc. products has continuously been reduced over the recent years. The reason for the drop is lowering the performance of the Dells Personal Computers and mobile divisions in the market. Most of the users of Dell products have changed their taste to emerging technologies of smart phones and tablets.
The producer of the best iPhone and iPads, Apple, aggravates this. Being Dell Inc.’s competitor in production of computer and computer related products, it is a threat to the company. Additionally, Apple has changed its aim to transforming community from using huge Personal Computers to using smart phones and iPads.
Consequently, Dell Inc. earnings dropped and the firm management lowered the targeted revenue. Besides, it lay off workers to cut a high number of workplaces, shut down some of its manufacturing plants and sold some of its financial services.
However, these cuts are not going to untangle its situation, as these strategies are not enhancing any creativity, hardworking, and innovativeness to Dell workers.
Political Environment Analysis
In the UK, apart from the normal political debates, the country has enjoyed peaceful moments for a long time. The political parties only differ in opinions but work together for the good of the country. Moreover, UK is safe from economic instability.
However, the economic growth in the UK has been low (0.2%). The country has not increased the number of job vacancies, as its interest rates are low. This has weakened its economy to an extent of affecting the jobs available, peoples living standard and business investments.
For the Dell Inc. to remain competitive in the UK market, it has to keep up with the technological innovations. New technology emerges within hours and Dell Inc. has to be aware of such technologies.
To counter the above effect, the Dell Inc. has diverged into software firm, data storage, and computer servers. Moreover, the Dells supply chain has changed from cost-efficient equipment they used to facilities for ordering customized products from headquarters.
Consequently, this will alter the Dell Company to a corporation offering value added services to its consumers on wider perspective and for a long-term basis.