Malcom baldrige

Dell Company -Vishal Kanjariya 12BIT152

History

• • • • • • • • • • •

1980

Purchased first computer and takes it apart

1983

Wanted to beat IBM, Sells upgraded PCs out of UT Dorm Room

1984

Registers Dell Computer Corporation DBA PC’s Limited,Sells Direct to end users

1986

12 mhz 285 based system. 30 day money back guarantee

1987

International subsidiary in UK

1988

Initial IPO $30 million

1989

Accumulates excess inventory

1990

First to sell through retail CompUSA, Best Buy, WalMart

1991

Converts entire line to 486… high technology priority

1993

$2 Billion in sales

1994 Launches Latitude Notebook Setting new records on battery life.

History • • • • • • • •

1996 Introduces Power Edge servers for small and medium server markets 1998 Solidifies internet market. $12 million per day from customers. Sets up supplier network. 2000 Revenue hit a record $25 billion. 2001 Sales topped $30 billion. 2004 Annual sales passed $40 billion. 2005 Dell launched XPS, a line of high-performance. Dell tops list of "America's Most Admired Companies" in Fortune Magazine. Opens third major U.S. manufacturing location in WinstonSalem, North Carolina. 2006Annual sales hit a record $55.91 billion And Dell shares fell 4.7 per cent. Dell ships more than 10 million systems in a single quarter (Q4, FY06) for the first time in its history. 2007 - Michael Dell returns as Chief Executive Officer. Dell opens manufacturing facility in Chennai, India.

Baldrige Criteria Can Help Utility Industry

Leadership Team Michael S. Dell Chairman of the Board, Chief Executive Officer

Jeffrey W. Clarke Vice Chairman, Operations and President, Client Solutions

Marius A. HaasChief Commercial Officer and President, Enterprise Solutions

Steve H. PriceSenior Vice President, Human Resources

Karen H. QuintosSenior Vice President, Chief Marketing Officer

Richard J. Rothberg Senior Vice President, General Counsel

John A. Swainson President, Software

Thomas W. SweetSenior Vice President, Chief Financial Officer

Suresh C. VaswaniPresident, Services

Leaders Point Of view About Organization •

VISION: It’s the way we do business. It's the way we interact with the community. It's the way we interpret the world around us-- our customers’ needs, the future of technology, and the global business climate. Whatever changes the future may bring our vision -- Dell Vision -- will be our guiding force.

•

MISSION: Dell's mission is to be the most successful Computer Company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of: Highest quality Leading technology Competitive pricing Individual and company accountability Best-in-class service and support Flexible customization capability Superior corporate citizenship Financial stability

Planning Of Strategic • Strategic planning is an organization's process of defining •

•

its strategy, or direction, and making decisions on allocating its resources to pursue this strategy. Strategic planning became prominent in corporations during the 1960s and remains an important aspect of strategic management. It is executed by strategic planners or strategists, who involve many parties and research sources in their analysis of the organization and its relationship to the environment in which it competes. Strategy has many definitions, but generally involves setting goals, determining actions to achieve the goals, and mobilizing resources to execute the actions.

Core Element Of Strategic • Build-to-order manufacturing • Mass customization • Partnerships with suppliers • Just-in-time components inventories • Direct sales • Market segmentation • Customer service • Extensive data and information sharing with both supply partners and customers.

Planning & Development Of Strategic

•

Strategic planning is a process and thus has inputs, activities, and outputs.

•

Michael Porter wrote in 1980 that formulation of competitive strategy includes consideration of four key elements: 1) Company strengths and weaknesses;

2) Personal values of the key implementers (i.e., management and the board); 3) Industry opportunities and threats; and 4) Broader societal expectations.

•

The first two elements relate to factors internal to the company (i.e., the internal environment), while the latter two relate to factors external to the company (i.e., the external environment). These elements are considered throughout the strategic planning process.

Planning & strategic Of Strategic

Customer Focus

Manuf acturer Distributor/ Reseller

Suppli er

Retailer

Custo mer

Logist ics

• Supply Chain Management is a business practice that has been employed in order to give an effective service to customers and to make the business sustainable by considering all the aspects from the suppliers to the consumers. • Supply Chain integrates all these features such as manufacturer, supplier, transport, wholesalers, retailers, customers and all other elements which show in picture. • DELL has realized that supply chain is becoming more and more important for the success of today’s business world and they work accordingly to keep a competitive advantage in the market.

Customer focus Supplier

Pc Maker

Dell

Distributer

Distributer

Supplier

Retailers/Resell ers

Final Customer

Final Custom er

Customer focus

•

DELL has a different business model than its competitors, which can be identified as “direct model”. In this model DELL sells its PC s directly to customers without using a retail channel.

•

Therefore it creates a direct relationship with each individual customer which they have segmented into groups to make it easier to approach. Mainly there are three customer segments which can be illustrated as large organizations, small and medium businesses, and personal consumers.

•

The other aspect that makes DELLs supply chain unique is the Build-to-order strategy. According to this once the order is placed by the customer, all the configuration details are sent to the manufacturing floor and then the assembly of the PC begins. Once the computer is built and all the software’s are downloaded it will be shipped to the customer by using 3PL.

Measurement, Analysis and knowledge Management

• •

For the supply chain to be strategically effective it has to be implemented in all the levels in the organization. Therefore in all the three levels of DELL . 1) strategic 2) Analytical 3) Operational

Measurement, Analysis and knowledge Management • • • • • •

strategic level decisions will be made regarding the whole organization considering the supply chain. These decisions are critical since it reflects the overall corporate strategy of the company. Senior management of DELL is giving the strategic direction when considering the product that the company should manufacture and offer to their customers. Especially the customer segments are identified targeting company marketing and advertising. It is the same when it comes to manufacturing of products strategically decisions are taken to verify the capacity of existing facilities and other logistics related things. It is needed to analyze and predict the capacity in supply chain therefore measures can be taken to expand the facilities accordingly, The middle level management team has the responsibility of this. There is more significance when it comes to the operational level. All the supply chain activities in DELL are done thoroughly by this cluster. Costing and other all features come in this scenario.

Management • • • • • •

In dell we study about one day review, weakly review, monthly review, yearly review on that basis management higher person make some decision what should changes in company environment. and company provide internal competition for faster work with good quality, because of increase employees efficiency to work. Dell has offered several online services, Manufacturing Peripherals, Software Development, BPO services in Financing and Accounting, Asset recovery, Financing, Infrastructure consulting, Customer Support, Systems integration, and Training, as well as hosted IT services. first computer company to use comparative ads, prominent ads in such leading computer publications as PC Magazine and PC World, as well as in USA Today, The Wall Street Journal, and other business publications. employing more than 103,300 people worldwide. MichaelDell, the founder of Dell Inc., has a history of being gifted entrepreneur. By the age 13, Michael Dell’sstamp collection and trading and business had expanded to include a national catalog and earned himclose to $2,000 a month.

Ways in which it is different from the Competitors are as follows • • • • • • • •

Dell’s initial competitive advantage can be attributed to its famous direct selling and bilt-to-order approach. Dell has eliminated the distributors’ layer from its business model. Dell became the first company in the information technology industry to establish a product-recycling goal (in 2004) and completed the implementation of its global consumer recycling-program in 2006. Dell had "backend" agreements to purchase large quantities of software from Microsoft and Motherboards from Intel at prices that were not made available to other companies. Dell offered customizable options that proved to be customer centric and attractive. No Inventory buildup and 24x7 customer support. Dell is on the 61st rank in Best Global Brands of 2013 with Total Brand equity of 6845 m$. Dell is the leader in using Supply chain management & sells mostly through Internet.

INVESTMENTS

• • •

The company plans to invest in the personal computer and tablet markets, in expanding sales coverage , and in growing its distribution network. Dell Ventures is launching a new $300 million venture fund that will broaden its investments beyond storage into several other types of startups, including cloud computing, big data, security, mobility, and next-generation data center companies. The fund, called the Strategic Innovation Venture Fund. Dell Ventures has already invested in more than a dozen companies, two of them are - the flash storage company Skyera Inc. and the Open Stack systems integrator Mirantis Inc.

SWOT Analysis • • • •

Strengths: factors that give an edge for the company over its competitors. Weaknesses: factors that can be harmful if used against the firm by itscompetitors. Opportunities: favorable situations which can bring a competitive advantage. Threats: unfavorable situations which can negatively affect the business. Strengths 1.Brand name valued at $7.5 billion 2.Product customization 3.Environmental record 4.Competency in mergers and acquisitions 5.Direct selling business model

Weaknesses 1.Commodity (computer hardware) products 2.Poor customer services 3.Low investments in R&D 4.Weak patents portfolio 5.Too few retail locations 6.Low differentiation

Opportunities

Threats

1.Expand services and enterprise solutions businesses 2.Obtain more patents through acquisitions 3.Strengthen their presence in emerging

1.Growing demand for smartphones and tablets 2.Profit margin decline on hardware products 3.Slowing growth rate of the laptops

Company Background Name

Dell Inc.

Industries served

Computer hardware, Computer software, IT consulting, IT services

Geographic areas served

Worldwide

Headquarters

U.S.

Current CEO

Michael Dell

Revenue

$ 63.07 billion (2012)

Profit

$ 3.49 billion (2012)

Employees

110,000

Main Competitors

Apple Inc., Samsung Electronics Co., Ltd., Lenovo Group Limited, Hewlett-Packard Company, Sony Corporation, Fujitsu Limited and many others.