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Mission and vision of Dell

Paper Type: Free Essay Subject: Business
Wordcount: 2493 words Published: 1st Jan 2015

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Firstly what a company need to do is to check for few things that is for example competitor analysis, self-evaluation and situation analysis.

There should be a proper evaluation and ones the evaluation is done the objectives should be set. The objectives should be such that the work in line with the time-line. Both the short-term and long-term objectives need to be set. The after setting an objective a mission statement must be set, corporate objectives as a whole, Strategic business unit objectives which will involve both strategic and finance, and tactical objectives.

One the objectives are formed on the basis of the objectives be analysed situational and upon that a strategy plan can be suggested. Plan will provide details of what are the objectives and can they be achieved.

Strategy Evaluation: It is very important to have a SWOT analysis to know the strength, weakness, opportunities and threats both internal and external This will help us to make few changes in the strategy and even help to change the strategy.

In corporate strategy, Johnson, Scholes and Whittington present a model in which strategic options are evaluated against three key success criteria: [3]





We are going to talk about the company DELL Computers which is one of the leading companies which is dealing with the production and distribution of pc’s and laptops to the for private,corporate and in the government sectors.It has acquired a large amount of the U.S market and it has now penetrated into the Asian markets leaving a competitive edge.

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Dell is ranking 12th in the global fortune 500 list of companies.so it is a successful global company and a pioneer of its field.It is the first of its kind to manufacture computers with an intel Pentium core 2 duo, dual core and now the latest quad core processor computers.Also it is worth noting that the company mekes huge profits with less amount of inventories with the help of the latest technology.When compared this aspect with its competitors then it can be noticed that many companies are still struggling to widen their processor ranges.So this company strategically builds around a strong intra and inter networking which helps the company to achieve a competitive edge.Also the laptops of Dell can be personalized and used for professional and private purposes.The customer can select a design that is unique to his or her laptop using the personalisation settings either online or in person at the shop.This is the unique feature provided by the sole company.Also the keys of the laptop can be designed in the way they are used to allow for more ease during the usage. This build-to-order approach allows the company to maintain low inventory levels and integrate emerging technologies into systems.


The mission of dell is to make the optimum use of all the resources and other the macro ,micro and the internal environment in providing the best quality products and services and the best customer experience of the best value.It is considered to be a practical and a feasible mission as it talks about today and not the future.What is included in the mission is the customers and the services which means it is talking about the present .

The vision of DELL is to provide structurally and functionally efficient computers to visually impaired individuals globally.It is the vision of the company and thinks about the future.

The code of ethics for dell is to incorporate and inculcate social,economic environmental and corporate responsibility in all the activities of the company so as to deliver high values to the society from the company as a whole.

STRATEGY IMPLEMENTATIONhttp://t1.gstatic.com/images?q=tbn:ANd9GcQeSnn1MFmVrwWcHAqM0No11QLK3Xfifw3S5_N_X9G4ZUpLAdU&t=1&usg=__53BnH-BdW91zrDsaImwcxPGSp9c=

Dell has targeted corporate relationship customers that had predictable, budgeted needs and that wanted a predetermined set of product models. The company also selected individual customers who were high-end, repeat purchasers with a preference for early technology adoption. Effective operations require powerful technical capabilities, customer knowledge, and the ability to fit into the customer’s organization and work processes their unique customer knowledge and customer relationships created a set of barriers to entry that others could not overcome.. Dell differentiated itself in the corporate market by developing a set of extremely effective customer-specific intranet Web sites. Each Web site was highly tailored to the customer’s individual situation. Dell worked with each customer to specify a particular set of product configurations that would work best in the customer’s network. Tailored offerings were specified and developed for each customer. At the same time, Dell used its direct links with both corporate and individual customers to get immediate review of the customer needs and to identify new generations of products and services.



Dell had to find a way of operating with no inventories in order to raise desperately needed cash. The basis of this model is to match the supply and chain demand in which all the managers from the sales, marketing,purchases,production collectively decide the company’s activities.This gives Dell liquidity and responsiveness to match the supply and chain demand instantly to emerging customer needs and market trends. Supply chain managers employ a powerful set of strategy creation and change-management skills to successfully lead their companies. The key to successful implementation of the new business model is to utilize a team approach . These managers should be given detailed information that enables them to identify the causes of poor or good performance in their respective subunits. In this organizational structure, they will have the coordination and flexibility to make the many adjustments that come with the complex task of implementing the new business model. Dell has used the team approach very effectively not only in creating its masterful strategy but also in ensuring business model alignment on an ongoing basis. Dell makes computers in three hours but has a 60-day lead time for components.


Strategic Planning Framework: Scan the environment; Determine the criticla implications; Develop the desired future state; Assess the current state; Do a gap analysis; Develop the strategies to move forward; Outline implementation

In order to balance the system, Dell’s top manufacturing and marketing executives meet weekly as a team to determine which products are “makable” that week. Dell manages demand by using day-to-day price changes and sales rep incentives to steer customer orders to the makable product

Dell maximizes its capabilities by outsourcing component-part manufacturing. Dell invests heavily in the information technology infrastructure that could bridge the gap between them and the customers. Dell streamlines its operations and relies on its computer monitor suppliers to ship directly to the customer. As long as a supplier retains its strategic position, Dell will collaborate with it to achieve mutual success, but if a particular supplier loses its edge, Dell has the flexibility to respond quickly and customer focused to ensure Dell continued competitiveness. In addition, customers are important assets to Dell as the company as a whole.

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DELL’s strategy is collapsing profit margins throughout the PC market, a dire development for rivals who cant keep up. DELL is pricing its machines not so much such as high-tech products but more like airline tickets and low margin commodities. DELL has tight competency with other big computer sellers like Compaq and HP. Social factors also affect the business environment of DELL. Computer companies have to acknowledge that in the Chinese culture, people are still unsure about credit card sales because of the huge expense of computers in China. Companies, then have to invest in door-to-door or face-to-face operations to gain consumers’ faith and consumers trust in the company and its product. DELL also has achieved the ISO 14001 Environmental Management System (EMS). DELL aims at product design, transportation and so on. As a part of DELL’s ISO 14001 EMS, the organization implemented goals where by the goal is to improve internal business environment performance in a continuous improvement processes which are used to share successes throughout the company. DELL has positioned to extend its brand name beyond mainstream computer products by leveraging its reputation as an e-commerce leader. In the year 2000, Dell began to redefine itself as the company that knows how e-business works. It has shared its online sales expertise with a few large customers as they developed their own e-commerce capabilities.

DELL faces some forces from its competitors in terms of Information Technology as the EDI tool gives very effective opportunities in reducing costs and it can establish the tight linkage between DELL with its suppliers and DELL with its customer. DELL started selling its own brand of handheld computers, called the Axim, at low price which can be considered as high potential and CEO, Mr. Michael Dell stressed how DELL’s success lay in making it as easy as possible for someone to buy a computer. There are some applications that are currently being used by DELL and they are critical to the core operations of DELL business and the DELL direct which are its operational factors for success. Some applications that are currently being used by DELL that are valuable but are not considered for certain critical success.


It is not surprising for Dell to determine where it wants to go in the future, it must assess where it is now as a part of the strategic planning process managers can call on the “SWOT” team for assessing Dell strengths, weaknesses, opportunities and threats, a critical phase in the general planning process as it helps determine exactly where the organization is and what resources it may or may not have. Strength assessment identifies what the department tends to do well and can include a skilled, professional staff and a modern, well-equipped facility. Weaknesses denote what the company may not do so well or what diminishes its effectiveness. Inadequate financial resources may fit into this category. Opportunities reflect what the organization might seize upon to do better. This area could include increasing community interactions and taking advantage of particular grants. Finally, threats are environmental factors that may hinder performance as it could include a rising demand for service or increased legislative mandates that can impact resources. Managers should consider “SWOT” analysis for issues both external to the organization, such as population growth and increased industrialization and internal to it, such as an aging workforce that might result in competing priorities for resources. “SWOT” analysis constitutes one of the most important aspects in the strategic management process


DELL’s threats are technological changes that are expected since technology can only get better. Global economy and increased competition in which DELL’s financial ratios identifies that they are no match for their competitors.


DELL has many opportunities such as potential growth in overseas markets, the industry is still in a growth phase and the entering  to the new product markets.


DELL’s weaknesses are single sourcing, new product market and reliance on corporate clients.


Strengths are internal resources and capabilities that have the potential to be core competencies. DELL’s core competencies are their cost strategy. In consistent to being an integrated cost leader, DELL also produce high quality PCs by using their Direct Business Model approach and sells them directly to the customers. With this innovative process, DELL cuts out the intermediary, excluding the associated cost as the company can understand the customers’ needs better and can provide the most effective computing solutions to meet those needs.

Just as in legal disputes, there is often a high risk-adjusted cost in waging price or market-share battles, the same as in litigation. Competition, a combination of the words cooperation and competition, has become quite popular in recent years. Many companies understand the vicious cycle of “trading” customers at lower and lower margins in order to gain market share or win on price. In terms of designing a competitive intelligence system, it doesn’t have to be overly complex. You first need to define the competitive areas that are important at an offering, market and company level. Second, make someone accountable for monitoring each area. Third, determine the best sources to collect info competitor Web sites, trade journals, press releases, financial reports, etc. Finally, create a few pro forma competitive intelligence reports that you can use to evaluate and track trends and material changes. Dell’s ability to change prices and delivery times on the fly has been leveraged effectively to manage demand based on component availability over the common components.


To build customer intimacy and loyalty, Dell leverages its customers’ knowledge of their own unmet needs. Dell’s brand image was and is shaped by customer feedback. Identifying the linked set of assets enables Dell to select strategy-focused, asset-based balanced scorecard measures that support the customer intimacy value proposition include:

ƒ˜      Training dollars spent per full-time equivalent by customer segment to ensure that well-educated business segment managers provide state-of-the art advice to customers

ƒ˜      Number of collaborative customer-solution teams that motivate Dell to collaborate with its customers and jointly create technology solutions that fulfill any unmet customer needs

ƒ˜      Number of emerging technologies evaluated inspires Dell’s leaders to stay abreast of technology threats and opportunities that may alter the competitive landscape in the future.




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