Case Study 6 - Research Paper Example

Dell was accessible and delegated authority believing in, “turning loose talented people who can be relied upon to do what they’re supposed to do.” Dell also spent 30% of his time at company operations and meeting with customers. The issues with Dell's performance are his lack of understanding the employee's initially and Dell's inability to communicate. The Five tasks of crafting and executing strategy by “Crafting and Executing Strategy” are discussed below: 1. “Developing a strategic vision of where the company needs to head and what its future product/customer/market/technology focus should be.

” Dell took the right approach in desiring to sell directly to the customer, custom to the customers needs build-to-order computers. Dell also wanted to take the discount pricing approach for the company. 2. “Setting objectives and using them as yardsticks for measuring the company’s performance and progress .” During the early years the company did not seem to have many hard set objectives. Dell's objective was to adhere to the strategic vision while also improving quality control. Dell also began to partner with key suppliers and incorporating e-commerce technology and use of the internet. 3. “Crafting a strategy to achieve the objectives and move the company along the strategic course that management has charted.

“ Dell began to increase his workforce, and his marketing capabilities in order to sell directly to individuals desiring a 2nd and 3rd computer. By doing this Dell became a cost leader, due to direct sales. 4. “Implementing and executing the chosen strategy efficiently and effectively.” By allowing the company to be managed by a more experienced person in the early stages of the company Dell was able to implement and execute the discount strategy very well. 5. “Evaluating performance and initiating corrective adjustments in the company’s long-term direction, objectives, strategy, or execution in light of actual experience, changing conditions, new ideas, and new opportunities.

” Dell was able to become one of the industry leaders in quality, price, and market share within a 20 year period. When Dell realized the margin was low on using retail stores to resell dell computers, the company made the correct adjustments and began to only sell, as was their strategy, directly. 2. What are the elements of Dell’s strategy? Which one of the five generic competitive strategies is Dell employing? How well do the different pieces of Dell’s strategy fit together? In what ways is Dell’s strategy evolving?

Dell's strategy involved: “1. Selling direct to customers is the most efficient way to market the company’s products because it eliminates wholesale and retail dealers that impede Dell’s understanding of customer needs and expectations and that add unnecessary time and cost. 2. Allowing customers to purchase custom-built products and custom-tailored services is the most effective way to meet customer needs. 3. A highly efficient supply chain and manufacturing organization, grounded in the use of standardized technologies and selling direct, paves the way for a low-cost structure where cost savings can be passed along to customers in the form of lower prices. 4. Dell can deliver added value to customers by (1) researching all the technological options, (2) trying to determine which ones are “