13.

QUESTIONNAIRE

which

way you

are related

with

dell

laptop as follow d] officer e]any other way

a] employee

b] manufacture

c] retail

what

was main

scope of

business

policy of dell d] personnel. an c] organization. and

laptop.

a]Production 3. What was

b] marketing mission and

c] finance purpose of

a]Short term 4which most. A]Internal 5.as b] external kind of

b] medium term business environment

long term the business of dell laptop

affect

c] and both the SWOT analysis .

they undertake a]yes b] no of

6.which

kind

marketing strategy they follow. b] pricing c] distribution e] d] promotion all above

A]Product 7which kind of

pricing strategy they follow. b] penetration c] other pricing strategy

A]Skimming 8 who should

undertake performance appraisal b] subordinate c] professionals d] all of them

a]superior 9. Techniques

of performance appraisal b] rating scale method c] role analysis method

a]ranking method d]any other 10. which promotion A] Merit

strategy they follow. b] seniority c]or both

CASE DISCUSSION / DIGEST QUESTIONS

1. What are the main reasons for the success of the Dell Direct model? I think there are several reasons attributed to the success of Dell Direct: a) Company determination in implementing the direct selling PC model. b) The needs from customers to reach PC suppliers in terms of prices and supports were strong. c) The company's infrastructure has adjusted to meet the model requirements. 2. What are the key differences between transaction and relationship customers? The differences between transactions and relationship customers are: Transaction customers Focus on completion of one-shot order or sales - The key factor between seller and buyer basically is Price . - Short-term relationship. - Very few follow-up activities such as services. Relationship customers Focus on long-term relationships connection. - Customer's needs are key to supplier. - Technical services are always included. - "Total costs" concepts is applied instead of "single price" concern. - Look very much on product standardization, reliability, services.

3. In what ways does the Internet enhance the Direct Model? What benefits does it create for Dell and for its customers? The internet enabled system really speed up Dell Direct's growth and success. Through internet, Dell hence developed its website; provide customers variety of services through internet in addition to PC orders. It also provides opportunities for Dell to communication with customers in depth through FAQ. Customers can track their orders through internet; ask technical services, download software, and purchase of new device drivers. Dell also developed a Premier Dell for its important accounts. This website offers various benefits to its customers such as automated purchasing, integration, facilitated access, centralization control, and management report. For Dell, the internet enabled system offers the company even more significant benefits. Dell not only enjoyed big growth, but also utilized the system with its supply chains. Internet was also applied in Dell's internal management system. All these have saved a lot of costs and enhanced its management efficiency. 4. What is happening to growth in the PC Industry at large in the twenty first century? What are the implications for Dell, and its strategy for the future? The PC industry moved from vertical blocks to horizontal structure allowed most PC companies to create their own PC based on a common silicone platform. This change also created a costs advantage on the PC manufacturing, and stimulate the PC demand, and grow the industry. Dell was born to meet the growth opportunity. With its success in direct strategy, the company hence achieved a tremendous success by employing the modern IT and internet enabled systems. In looking into the 21st century, PC industry is continuing to grow especially in the electronic commerce direct selling model. Most other PC companies were also getting into this model. But they were not as successful as Dell. It is expected the direct model selling in PC will become a major channel in PC industry. Dell should fully utilize its advantages and experiences in this direct selling model. In my personal opinion, Dell also needs to create "more feature services and benefits" in its website for its customers. Although it might be difficult for competitors' to reach the level as Dell in the short period, still there is possibility that some day other companies may

become real competitors in the direct model. The strength Dell has created is the channel advantages and experiences not product inventions or innovations. We can see from Dell's website that Dell has started to carry other electronics other than PC products, such as printers, digital cameras.. I perceive this is the side benefits from its direct selling channel. For long-term, I believe Dell must innovate more attractive and unique features or services for its customers. Otherwise, the competitions are still keen and strong from the company like HP and Japanese companies like Toshiba, Sony. 1. 5. In what specific ways does the Internet enhance Dell's (i) operational

excellence, and (ii) customer intimacy? The internet system does enhance Dell's operational excellence in the following areas: 1) 2) Make its Dell Direct electronic commerce more effectively. Most technical services can be conducted through website with its customers save time

and costs significantly. 3) 4) Over 50% of sales are generated from internet sales Internet is also applied inside the internal management system such as performance reports,

information announcement. 5) The internet enabled Dell to manage its supply chains including inventories and production

schedules reduce costs and time. In enhancing customer intimacy, Dell achieves this through internet: 1) 2) Dell's website establishment and communications with its direct customers. Over 50% technical services can be conducted through internet immediate services to

customers.

3)

Premier Dell website for the important large accounts. Dell was able to provide these

customers with in-depth supports through internet.