Introduction
This is the third largest computer manufacturing company named after its founder Michal Dell. He founded this company in 1984 and has long since merged and acquired shares of other companies to form one of the greatest competitors of HP and Lenovo. This company has faced various challenges just like all other business investments but has, however, managed to handle them (Wunker 2011).
This has put its reputation at a higher rank compared to other companies that fail to handle such challenges. This discussion analyses the quality improvement plans adopted by Dell Company to remain on top of the computer manufacturing industry.
Mission
The mission statement of this company is a clear outline that cuts through service delivery and client satisfaction as essential tools to drive the company to unique heights. The mission statement aims at informing clients and Dell workers that the company intends to be the most flourishing computer manufacturer in the globe by delivering quality client experience in all markets the company penetrates.
This means the company is laying emphasis on the following crucial aspects (Wunker 2011). First the company aims at providing quality products that will ensure consumers get the value they deserve. Secondly, the company ensures it leads the race in the provision of modern technology to consumers. This is done through continuous upgrading and innovations that will fit the market demands.
Thirdly, the company offers competitive prices to allow consumers of all economic and social classes acquire these products. This is an essential step that aims at widening the market by providing cheap but quality services and products. Moreover, the mission statement aims at assuring customers of individual and company responsibility in all aspects of sales and services.
This is complimented by the best customer service department that is qualified to offer clients the necessary technical support (Wunker 2011). The company considers customising its products to fit consumer’s needs. This allows them acquire products of their specifications. This is Dell’s mission statement
“To be the most successful Computer Company in the world at delivering the best customer experience in markets we serve.”
Vision Statement
Dell’s vision statement focuses on the company’s ability to provide quality services to clients around the globe. This is an effective company strategy that ensures the company gains customer confidence while widening and developing its market. This statement helps clients identify the uniqueness that distinguishes this company from others.
The vision statement aims at outlining the basic elements that define this company including interactions, transactions, interpretations and all that it takes to make the future bright for the company and its clients. The vision statement is based on the manner Dell Company conducts its activities including business, interactions, interpretations and all aspects that play significant roles in determining the future.
Strategic Objectives
The main strategy employed by Dell Company is direct sales that enable it gain fast hand experience with clients. This approach has received a lot of criticisms and claims that it is inefficient and extremely slow compared to the use of middlemen. However, Dell insists on using this procedure as an effective tool of getting hold of the countless market for computer products (Wunker 2011).
This strategy has given this company some crucial information regarding best strategies that will move the company new markets. This company aims at producing quality products that are not only cheap but durable. This will develop their client’s confidence in all products from this company.
Moreover, the company uses all available opportunities to expand and widen its markets to remote and urban places around the globe. Additionally, this company adopts two strategies that determine its growth and expansion rates. Growth rate includes an increase in production through inventing new products and upgrading existing ones.
On the other hand, expansion refers to an increase in the market due to advertisements and the need to adopt new technology by developed and developing nations. Moreover, this company has effective strategies that address customer’s concerns. These strategies do not only aim at promoting sales but also ensuring customer satisfaction is guaranteed.
Even though, there has been various challenges to dispute the reliability of this company, management and customer relations departments have ensured the company’s reputation is safe (Wunker 2011).
All companies face various challenges that hinder them from implementing their plans and realising their long and short term goals. However, this company has managed to stand strong and endure inevitable challenges.
The second approach this company uses to expand is through mergers and acquisitions. This strategy is one of the long term plans that aim at expanding the company’s operations.
There is no doubt that this company will in the near future offer more than computer related services if the current trends are anything to consider. There is a bright future for this company if these strategic plans are put to use.
SWOT Analysis
SWOT analysis is a four way approach used to determine the effectiveness of a company. The process involves analysing the strengths, weaknesses, opportunities and threats the company faces in the process of implementing its vision, mission and goals. These aspects play crucial roles in shaping a company’s future by giving clues on the expected incomes and outlining crucial paths towards implementing its goals.
Strengths
Dell is without doubt one of the leading computer manufacturer in the world. Its operations cost is about $63.07 billion according to the 2012 half year financial report. This means the company has an enormous capital that enables it acquire assets from collapsing companies.
This company has so far acquired Alienware and Perot Systems in 2006 and 2009 respectively (Wunker 2011). These acquisitions would not have been possible if the company did not have adequate capital to finance these processes. Therefore, this company is flexible and allows its operations to integrate with other companies without losing its identity.
Dell Company has come under scrutiny for its ability to influence other companies to merge their operations for effective service delivery. However, this company has kept a stern face and ignored speculations and rumours.
Mergers are one of the complicated business arrangements that hinder most companies from jointly conducting various operations. However, Dell Company has never found difficulties in conducting these businesses due to trained staffs.
This company commands respect from its competitors and other unrelated companies. There is no doubt that Dell is ranked highly amongst companies that have withstood inflations and recessions at all times. It is also evident that the company experiences hurdles in various undertakings.
However, the management and other staff ensure the company upholds its mission, vision and objectives. The core competencies of this company lie on its resilience and consistency (Wunker 2011). While most companies close their operations after allegations and scandals threaten them, Dell Company has withstood a number of damaging allegations and managed to stay ahead of its competitors.
On the other hand, this company has an effective unique strategy that is not easily adopted by other companies. The company uses direct sales services that link it with consumers. Even though, this is an expensive and time wasting undertaking, Dell has managed to conduct it effectively and deliver incredible results. However, there are other approaches this company uses which no other company has managed to successfully use.
In addition, the demand for computers by developing nations has come an appropriate time. Dell has managed to take advantage of this rush and sells its products to most third world countries. Moreover, the prices of all products produced by this company are cheaper than those from other companies. This brings into focus the mission statement of this company and ensures the company produces cheap and high quality products.
The rush from traditional to modern technology has seen Dell contemplate on developing other computer related services like IT services and consulting. These have enabled the company conquer various challenges arising from the production of similar products by its competitors.
The diversification of services and products by this company is a strong entry point to new and existing markets (Wunker 2011). Day by day, Dell has a new product or service that meets the population demands.
Therefore, this company remains relevant regardless of trends and fashions. This is a crucial element that determines a company’s ability to sustain its operations despite the change in demand for products associated with modernisation.
Weaknesses
There is no company in the world that does not have weaknesses despite their glamourous performance records. It is evident that even the most successful companies have various weaknesses.
However, the way these weaknesses are handled determines the confidence clients have on them. A minor weakness can turn into a significant disaster if a company does not attend to it with full confidence and professionalism.
Dell Company has faced various challenges that threaten to hinder its performance and market demands. First, the 1990’s switch from ATX computer motherboards to power cables and boards that are identical was one of the issues that have never been resolved.
This forced consumers to discard their old Dell models since they no longer fitted with the new models. Any loss or damage to the old components means that the consumer has to look for spares from similar models to repair their computers. This has forced consumers to shift to other companies like that offer universally recognised spare parts.
While other companies produced parts that fit on each other, Dell insisted on producing tailor made components for their computers. This means there is no way a Dell computer can accommodate a spare part from HP or other computer companies.
This was an enormous blow to the company due to the absence of spare parts in most retail outlets (Wunker 2011). Most consumers saw this as a deliberate attempt to make them buy new components while disposing their old ones for minor technical breakdowns.
This made the company register more than one thousand five hundred complaints in 2005. Today, the number has dropped due to lack of response from the company or consumer shift to products from other companies.
Customer care is an essential aspect that determines consumer responses to products and services offered by a company. It is impossible to assess a company’s performance without evaluating the effectiveness of this department. It is through this department that companies identify their weaknesses and strengths and make necessary corrections and improvements
However, Dell Company has had more than enough complaints regarding their customer care desk. In 2006, almost half of client’s calls were either not received or redirected to irrelevant departments. Most clients sought minor clarifications like knowing retail outlets located near them.
However, their calls were unanswered or redirected to the sales department. This is an indication that there was no coordination amongst Dell’s departments. When consumers make calls they expect their queries to be addressed as soon as possible. However, this company seems to delay answering calls or directs them to other department.
Even though, this company increased its spending on this department from $100 to $150 (2006) complaints still abound regarding this department. It is evident that Dell’s website has uncountable remarks that reveal how disgusting their services are despite their assurances that the situation will improve.
In addition, the company has never been off the hooks of blackmail. The introduction of universal motherboards led to a rush by consumers to acquire products from other manufacturers (Wunker 2011). There were allegations that Dell signed a deal with Intel to buy processors from Dell and not other companies.
Even though, this issue raised a lot of controversies in the computer manufacturing industry, the matter is still unresolved. However, the U.S. Securities and Exchange Commission discovered some hanging payments made by Intel to Dell.
Dell did not disclose the details of this payment; therefore, it was assumed they were meant to settle this blackmail against other companies. However, later in 2010 this blackmail was put to public notice after Dell owned up to the allegations and was fined $100 million for fraud and conspiracy to commit economic sabotage.
Even though, the owner and other directors of this company did not admit or deny these allegations it is evident they suffered other undisclosed sanctions after paying heavy fines. Another controversy involved pricing its LE4300 gadget that was selling at $580.
This was an amazing offer meant to attract notebook consumers at the expense of other companies since the price was less than two thirds the normal market prices. The fact that this advertisement was on Dell’s website for a while before it was hurriedly pulled down showed that this company was indeed making intentional economic sabotage (Wunker 2011).
Taiwan was adversely affected by this advertisement making Dell pay handsomely for infringement of consumer provisions.
Product recalls is a common issue that Dell has never managed to handle. Whether this is intentional or not, is something debatable. However, the increase in product recalls diverts a lot of their market to other companies that rarely have this problem. In fact, some companies like HP have never recalled any of their products on the basis of poor quality.
Opportunities
These are aspects that present growth opportunities to a company despite existing challenges. These opportunities present themselves in various forms, and it is upon companies’ managements to identify them and make use of available chances.
Dell Company has numerous opportunities to expand its operations within and outside the United States of America (Wunker 2011). The acquisitions and mergers present expansion opportunities to this company that must be used to effectively expand its operations.
The presence of a massive operating capital attracts other related companies to form with Dell and integrate their operations. The advantage derived from these mergers is the ability to maintain their identities despite conglomerating their operations. In 2006 and 2009, Dell merged with Alienware and Perot Systems to expand their operations and provide quality products.
Secondly, Dell is fast expanding its computer products and now produces servers, printers, scanners, televisions, smart phones, notebooks, laptops and desktops. This gives Dell an opportunity to access all households despite their economic or social orientations.
It is evident that almost half of the world’s population has access to mobile phones or televisions. Most of these products are produced by Dell Company; therefore, Dell has managed to penetrate all corners of the globe.
The diversification of Dell’s products enables it make inestimable sales while making use of the volatile market for electronic products. In addition, Dell offers other services including computer software/hardware and IT services including consulting (Wunker 2011). The diversification of products enables companies maintain steady markets and sales despite changes in demand for one product or service.
Dell is considered the friendliest company amongst computer companies. This means that it has a lot of windows to invite other related companies to form mergers or acquire their shares. Even though, this may seem to be a blackmail approach it has nonetheless managed to put Dell at a contentious situation.
There is the need to identify similar companies to help develop branded products. This is an effective way of keeping competitors at bay while improving the quality of their products without necessarily creating other avenues for unnecessary expenses (Wunker 2011).
Dell has managed to effectively use this tactic to expand its production lines. The recent development is its intention to acquire SonicWALL through an agreement announced on March 2012.
Threats
There is no doubt that modernisation has created the need to use modern technology in various activities. This has attracted a lot of attention from many people. Consequently, computer manufacturing companies have sprung up within the last one hundred years. In addition, computer related companies have been established in different parts of the globe.
Therefore, competition amongst computer manufacturing companies has not been evitable. Even though, there are more than five known computer manufacturing companies, HP, Lenovo and Dell are the world’s leading computer companies (Wunker 2011).
Competition amongst them has created room for propaganda, blackmail and sabotage amongst these rivals. There is no company that enjoys the markt monopoly in the production, supply and sale of computers and their products.
Secondly, the production of counterfeit goods from the Middle East threatens the survival of these companies. The sale of counterfeit goods to unsuspecting clients results in wrong perceptions regarding products from a genuine company.
Even though, Dell has never suffered a blow regarding counterfeit goods, the introduction of modern technology will increase chances of producing counterfeit products by unscrupulous traders.
Recession has had a significant impact on all computer manufacturing companies. Despite any attempt to regulate inflation rates by various governments and stakeholders, inflation continues to wreck havoc in these companies. The world bureau of statistics continues to record an increase in inflation, and this means there is a bleak future for this company.
The European Union together with other unions has endorsed a policy to curb the manufacture of non biodegradable goods like electronics. This is due to the high number of electronic wastes that contribute a chief percentage of environmental pollutants.
This is going to be a serious challenge bearing in mind the volume of electronic wastes in many homes. The shift from analogue to digital communication will contribute to an increase in the number of electronic wastes. This puts computer manufacturers at risk of facing sanctions.
TQM Approaches
This refers to aspects that enable a company to manage its production by ensuring employees enjoy their work while clients get value for their money. This means customer satisfaction is given high priority compared to other aspects.
This is done through providing quality goods and service to customers (Wunker 2011). Therefore, a company must produce quality goods in terms of price, value, satisfaction and regular improvements like upgrading products.
The rationale behind this aspect is the changing trends in fashion and technology. A product that satisfies consumer needs today may not necessarily do the same purpose five years from now. This means if Dell produces a certain product and launches it within one year, there will be the need to upgrade the product to fit market demands.
Change in technology necessitates the need to have state of the art products that are not only affordable but durable and able to multi task. The application of TQM approaches ensures a company participates in international trade without fearing competition from other companies.
These approaches include effective leadership and management of companies that participate in multinational activities. In addition, the quality of service offered by a company determines its global ratings (Wunker 2011).
Product quality and employee satisfactions determine a company’s ability to command vast markets for its products. Unfortunately, Dell seems to have difficulties addressing customer queries due to poor products and customer care relations. In addition, the deliberate blackmails and economic sabotage expose Dell to dark future in the computer manufacturing industry.
This is in total contravention of the ISO 9000 requirements that stipulate product requirements. Even though, Dell is aware of these requirements it seems to make intentional mistakes that compromise the quality of their services and products. This is evident in their poor customer care department, pricing wrangles and product recalls.
The Six Sigma approach is an essential approach that will help Dell deal with its problems. This approach is based on identifying an error and correcting it immediately. This is a quality improvement strategy that ensures customers get quality products and goods (Wunker 2011).
Similarly, this approach involves activities that will reduce costs and maximise profit generation. An example of this approach is the use of statistical methods to identify money used in production. Additionally, this method identifies profits generated against their costs.
Recommendations
Even though, Dell is a multinational company there are various challenges facing its operations. The management seems to be asleep by failing to address key scandals associated with its operations. The customer care department needs to address customers’ grievances as soon as possible. The company has to work hard to reconstruct its already tainted public image.
Conclusions
Dell is without doubt an influential company in the computer manufacturing industry. It has grown from scratch to grace through hard work, commitment and timely innovations. However, these efforts may go down the drainage within seconds if the company fails to address intentional mistakes associated with its management.
Reference
Wunker, S. (2011). Capturing New Markets: How Smart Companies Create Opportunities Others Don’t. New York: McGraw-Hill.