The paper "DELL Business Excellence" is a great example of a business assignment. Dell has been a market leader in the personal computer market for a very long time but it started having issues at the beginning of 2006. This was followed by a loss of its market position and share to its competitors such as HP and IBM. Mounting competition, changing consumer demands and technology development are the key drivers of strategic change for Dell. This report will highlight Dell’ s areas of enhanced performance. It will also give an overview of three business improvement methodologies namely Investors in People, Business Process Re-engineering and Six Sigma, including the pros and cons of each method.
In addition, it will present a theoretical overview of leadership of change as well as the human dimensions of change. Lastly, it will recommend the best business improvement methodology that needs to be applied to Dell. Business Excellence: Case Study on DELL Introduction to DELL Background Despite Dell being a market leader in the personal computer sector, it started facing problems in 2006, with its rivals such as IBM, Sun Microsystems and HP taking up their share in the market in the established servers which operated business data networks and websites.
In the initial three months of 2006, the company’ s profit decreased by 18 per cent. This forced Dell to go for AMD’ S Opteron fragments in the established servers segment in order to get back its market share. However, towards the end of 2006, Dell lost its market leadership position to HP. In the last 3 months of 2006, it reported revenue of $14.4 billion which was 5.1 percent lower than that of the previous year.
In addition, Dell was performing poorly in its printer section and experienced a 2.6 percent decrease in its market share. Analysts argued that the company’ s direct retailing business method needed to be changed since consumers were shifting to preconfigured methods in stores. In response, Dell considered to shorten the new product lifecycle, focus on the needs of consumers and foray into the growing Chinese market with personal computers customized for Chinese consumers (Ray, Paul & Krishna 2009, p. 1).
List of references
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Anthony, J & Preece, D 2002, Understanding, Managing and Implementing Quality, Thousand Oaks, Sage Publications.
Bell, E, Taylor, S & Thorpe, R 2002, A Step in the Right Direction? Investors in People and the Learning Organization, British Journal of Management , 13 (2), 161–171.
Fahy, M, Roche, J & Weiner, A 2004, Beyond Governance, Hoboken, John Wiley& Sons.
Hayes, J 2007, The Theory and Practice of Change Management, Hampshire, Palgrave Macmillan.
Oakland, JS 2004, Oakland on Quality Management, New York, Routledge.
Porter, LJ & Tanner, SJ 2004, Assessing Business Excellence:A Guide to Business Excellence and Self-Assessment, New York, Routledge.
Ray, K, Paul, S & Krishna, P 2009, Dell: Reinventing itself in 2007, London, IBS Research Center.