Dell Strategic Audit - Essay Example

Speech affiliation Speech: Dell Strategic Audit I am going to take you through Dell Inc. and discuss a brief strategic audit. In addition, I will take you through the strengths and weaknesses associated with Dell Inc and incorporate various strategies they have had in place to attain competitive advantages. As we all know, Dell was founded in the early 1980s by Michael S. Dell. During that time, the main goal was to be the leading desktop computer supplier globally. Dell has been a leading supplier of items associated to computer systems.

Most people preferred them since they offered their products and services at low-cost. After twenty years in the industry, Dell Computer Corporation changed their name to Dell Inc. in 2003. To reach as many global markets as possible, Dell under the management of Michael ensured that they had manufacturing plants and customer service stations in Asia, North America and Europe. Michael endorsed a new chief executive officer, Kevin Rollins in 2004. Kevin made sure that Dell Inc. continued with the same focus linked with driving costs out of supply chain and reaching more foreign markets.

Between 2005 and 2007, Dell started to face loses in the market share because the competitors had found ways to imitate its innovations. In addition, the company faced negative new coverage with so much investigation by the Exchange and Securities Commission for irregularities linked to accounting. Rollins could not stand the poor financial performances and decided to resign in 2007 and Michael was up for the task once more. It is evident that this poor performance by Dell was as a result of irregularities in the financial statements from 2003 to 2006.

By the time Rollins resigned, Dell had relinquished the position of market share leadership and dropped to become a resurgent competitor. In order to recover, Michael decided to branch out into providing personal computers by retailing. At that time, Dell was operating on a cost reduction plan of three billion dollars annually. Michael announced on September that the company was going to sell most of its manufacturing facilities within one and a half years. This strategy was initiated to try and get back Dell on track and see the stock price growing again. Dell inc. lost its competitive advantage to Hewlett-Packard that became the top supplier of personal computers. Dell Inc. modified its manufacturing model to boost the retail efforts.

In addition, the company’s focus became manufacturing high volume products. By 2008, Dell Inc. had sold out more than 12, 000 of its facilities. The focus was reducing cost, reaching the enterprise, and emerging markets. Like any other company, Dell inc. has its strengths and weaknesses. In this case, we will focus on the internal environment analysis that includes the corporate management and management team, corporate structure, corporate structure and the corporate resources. The management of Dell Inc.

is highly efficient, and the internal control of its functions linked to manufacturing and marketing are superb. Michael, as the chief executive officer has ensured that the labor force is skilled with more focus on trading of skills. Regarding the corporate structure, the company has fewer aspects of decentralization. The operations and marketing activities that Dell Inc. undertakes see to be on the right track. There is efficiency in serving the customers with less use of distribution channels. Dell Inc. has invested on the internet to reach the global market.

However, there are a few cases of accounting irregularities, and the information is less updated on the internet sources. Now we are well conversant with how Dell Inc. has been operating, their current stand and future prospects in the market related to computer systems. Thank You.