Dell is a major player in the computer industry. Michael Dell pioneered the direct selling system that catapulted the firm to the top position in the industry. As internal controls systems play an important role in Dell’s success, its single-minded obsession with control came at the cost of innovation and customer service and its market and financial positions declined significantly by 2008. Dell had a market capitalization of $24.21 billion in mid- September, 2010, and revenues of $53.70 billion and a net income of 1.84 billion in fiscal 2009. Please answer the questions using your own research -- suggestions, Google Scholar, Web -Search on Trade Magazines, etc.
Please answer any ONE of the following questions from your perspective (make sure I know which one you are answering). In 150 WORDS
1. Describe Dell’s original innovative business model and explain the roles played in it by operations, financial, and strategic levels of control.
2. Under its original business model, what advantages did Dell gain from its tight control system? What disadvantages is the company now experiencing? Can you pinpoint two or three areas in which Dell’s approach to strategic control could be more effective?
3. Describe what you think would be an effective new business model for Dell, explaining the roles played in it by operations, financial, strategic, and structural levels of control. In what ways will your new approach to control be effective in the company’s current environment?
4. In your opinion, which areas of control management (integration with planning, flexibility, etc.) most need improvement at Dell?