The company was founded in 1984 by Michael Dell who was then a university or college of Texas learner in Austin. Its initial brand was PC's limited and its founder was an entrepreneur who believed with direct connection with the clients to meet their computing needs. Its first product to produce was the Turbo Laptop or computer which came in to market in 1985 and received a primary advert through computer journals to the consumers. To accomplish market confidence, the business offered a lesser retail price for the products for consumers' conveniences. This immediate marketing model to customers was utilized by other companies but to no avail, this made the Strategic planning methods and bottom part for the business. To their gain, Laptop or computer limited was the first company to succeed in the use of the model with the first year's sales getting to a higher degree of US $ 73 million. In 1988, PC's limited evolved its name to Dell Computer Company using its customers as the major driving a car and motivating element in their procedures (Pearce & Robinson, 2009).
The company thrived so well in this highly technical advancement competitive market and documented sales of over US $ 1 million while venturing in the internet sales market. This trend increased to high point of registering sales as high as US $ 50$ 50 million each day. It was until 2005 when the company was confronted with an top hill activity when it recalled over 4 million laptops due to their default in the charging systems. It's reported that lots of of the notebooks caught fire during their usage a circumstance that was also repeated in 2007. Flaks never finished using its recalling exercise but also it was investigated by the American regulators due to its projected earnings over the last one ten years. However despite all these flaks the company received, it visited record record as the first company to join and become a signatory of the weather group. Under this dedication, Dell Corporation has undertaken several carbon natural and energy efficiency activities presuming a management role in environmentally friendly conservation work (John & Farnum, 2004).
Dell Organization is surrounded with highly competitive market framework especially in the Information Communication Technology world. Although Dell has been seen as a market leader, within the last 2 decades, its affiliations and components havent indicated any development and upward trend for the same time frame. Several indices have been quoted worldwide to include sale of Dell products in international markets. They include Credit Suisse First Boston Technology, Amex Deutsche Lender Croci US+IN, Dynamic hardware and Consumer EI, Amex Fortune 500 Index, Dynamic Large Cap Value Intelli, IPX Composite Index, NASDAQ Composite and Show BuyBack Achievers Index (Pearce & Robinson, 2009).
Resource based view analysis of a business is the marketplace tool used to examine, measure and determine the effectiveness of the firm or a company regarding to its tactical resources at the business's disposal for development and development. For a firm to enjoy the marketplace competitive advantage regarding to resource based view and research, the business must maintain a strategic position to proficiently utilize all the available resources to its advantages. In order for the organization to enjoy long term competitive market benefit, the valuable resources available should be immobile and heterogeneous. In this way, the market is highly restricted to new entrants and competitive advantage is improved to the existing company. The forex market condition creates a predicament where substitutability of the products and service produced becomes almost difficult. By so doing, the dominating company preserves a competitive benefits both in a nutshell and long runs (Plan Ware Invest-Tech Small, 2009).
Dell's benefits of direct relationship with the clients positioned it as the market leader in Personal computer market. It liked a broad and vast platform for learning resource development and customer satisfaction a fact that observed Dell regarded as the best PC owner not only in the American market but also in the international front. In addition, experienced and skilled manpower with able and visionary authority and management under the chairmanship of its founder Michael Dell has enticed a public confidence notion which includes surpassed Dell to all other companies on the market. Therefore, the public figure and respect accorded to the company by the consumers has given Dell an chance to exploit all its competitive advantages on the market over other companies. Due to lack of close substitutability of the Dell products, the market has no choice somewhat than adapt to the use of the business's products. This gives the business with the best system to exercise and exploit all the market available opportunities to increase on sales and reduced costs which consequently leads to increased profitability (McNamara, 2009).
Strategic planning and approach: Control systems
It is at the company's policies and objectives to maintain a leading role searching for PC manufactures as well as internet provision on earth. Dell also strives to maintain a large customer basic in the international market through provision of quality products and services and customer satisfaction. It's only through these tactics that Dell will maintain market leadership role and its international market position. In order for the company to understand its goals, several measures were instigated and adhered to both in the creation, syndication and sales market sections of the company. A strategic methodology was also utilized by the company where production operations were dictated and aimed by customer's specification and inclined towards market extension and growth. In order to achieve these goals, the company further insists and concentrated on both inner and external control systems. The inner control systems were instituted to ensure that the merchandise and services made by Dell were of the mandatory standards and meet up with the government's control systems and requirements. To realize these goals, the business was required to produce quality products and provision of quality services to the customers (Roger, 2003).
Through achievements of these steps, the business will therefore gain public confidence and occupy market leading position due to its product and service procedures. Control systems and quality management practices are essential in functions of any group. Control systems means that all the produced products and services satisfies the required market and customer standards and avoids product recalls like the one witnessed in 2005 with the company recalling over 4 million notebooks in the international market anticipated to problem in the charging system. This exercise can be an embarrassment to the business and lacks determination to worker cutting down their morale when redoing the work again. When control and quality management systems and strategies honored; such kind of an scenario could not have been experienced. When work is performed thoroughly and completion done within the framework of company recommendations and policy stipulations, advice and suits from customers and other stakeholders motivates the employees and management groups of the business. Furthermore when quality management and control systems are well managed and strictly adopted, the staff operate without distraction and disturbance which greatly motivates them unlike when the business is under certain exploration which creates pressure and staff feel intimidated like the situation when the American administration looked into Dell company related to its earning and earnings options and recordings (Robert and Matthias, 2008).
When the above policies and rules are followed in a organization, employees feels satisfied in their personal life as individuals as well as professional job being that they are thought to be highly competent. The idea of trust made from company's success leads to self actualization and self-assurance to professional efforts of the employees.
Functional and dysfunctional control systems
Management functional manners are encouraged in an corporation and companies to ensure that the stakeholders are governed and execute obligations with professionalism and reliability and diligence. However, generally, many personnel in a organizational set up do not comply with the efficient stipulation of the business. Therefore dysfunctional actions are always observed in the training of an company especially from the very best executive managers like game playing and information manipulations. To ease these malpractices within an firm, management control systems are paramount relating components like variance information, performance structured remunerations, costs and standard operating types of procedures. The major control systems involved with correction of dysfunctional manners in organizations will be the rigid adherence and reliance on accounting performance steps (RAPM), standard operating methods (SOP) and the budgetary participation (BP). These control systems ensures accountability, transparency and credibility of not only the employees but also the business at large (Michael & Jude, 2005).
SWOT examination of Dell Corporation
This signifies the Strengths, Weaknesses, Opportunities and Risks facing an organization. SWOT analysis sorts an internal study of an organization in analyzation of its internal and exterior factors included in both negative and positive aspects. This analysis allows company supervision and management device the best strategic approach to benefit maximization in a competitive market. The Talents and Weaknesses symbolize the internal factors while Opportunities and Threats are the external influencing area of the company.
SWOT Analysis Matrix for Dell Corporation
Source: Researcher
The Advantages Dell enjoys is the being the greatest PC manufacture on the globe therefore a big market area size. This witnessed the company enroll the largest gains in America. Dealing with the customer directly provided Dell an top submit market capturing due to reduced bureaucratic processes and red tape. However despite all these strengths, Dell had immanent weaknesses; product recalls done in 2005 and 2007 was a solid indication that the inner operations were not very strong. Constrained supply due to few large range stores also limited its production capacity. External factors influencing Dell were the opportunities it observed after the change of the most notable management team which helped bring new skills in the company increasing production and enhancing progress. The diversification strategy launched boosted sales and increased success. Despite these tremendous opportunities, Dell experienced Risks as well. The market was experiencing new and strong entrants which increased competition minimizing profitability. The planet currency fluctuations and exchange rate instability was a great setback to Dell attempts for development and expansion (Pearce & Robinson, 2009).
Development and evaluation of control systems
The instituted management control systems that were adopted and implemented by Dell were aimed at boosting efficiency and increasing success of the company through market extension and product development. Control systems should be developed outside the company to enhance and promise their independency for efficiency purposes. Their execution entails the monitoring and regulatory functions for directors, managers and all the supervisory staff within the organization on their behaviours and conduct relating to organizational management. They should also be instituted in the decision making process for sound and proper procedures to be integrated in an business. To ensure that quality management programs are maintained at Dell, the business had independent inner as well as exterior auditors who examined its books of account to ensure they conform to the international accepted requirements.
Independence of control management system guaranteed through parting with other departmental offices. The control system should have usage of all the the different parts of the company and its departments as well for efficiency. Individual and external evaluation should be carried out frequently to ensure conformity and really should be practiced spontaneously to avoid inside plans and promote efficiency of the procedure. Dell has a policy of provision of the best services and production of the best products in the market. This is not only targeted at capturing a big market area size, but also for client satisfaction and convenience. From previous encounters and shortcomings, the instituted control management and quality control systems have been effective in their operations at Dell. Product recall is now a thing of days gone by and constitutes to the company history (Pearce & Robinson, 2009).
Conclusion
Every company or a business on the market strives to fully capture bigger market area size to maximize on sales and consequently optimize its profits through increased sales. However, as discussed above, quality forms a fundamental component in achievement of this target. The Strategic Planning of your company or an organization is very paramount towards realization of the targets. Every step and market orientation designed by the company should conform and become grounded from the company's strategic planning types of procedures and guidelines. SWOT analysis should guide the management team of your company in the formulation of the strategic method of propel the business in achievement of its targets. The company should make an effort to utilize its advantages to lessen and eliminate weaknesses while capitalizing on all the actual opportunities to mitigate up against the threats. To be able to achieve all the tactical planning measures, a strong and effective quality control and management system should be in place at all times to guide company's activities and methods.
