THE COMPANY

Dell Inc. is one of the foremost merchant of computer systems globally. The company
offers desktops, laptops, tablets, software, storage, network servers, workstations,
printers, monitors and a range of computer compartments and software. Besides that,
it has also ventured into the consumer electronics field where it offers projectors,
LCD Television, etc. Dell sells their products directly to their customers in business
firms, educational and health care institutions and government companies through
zealous sales representatives, online via their official website and telephone-based
sales. The innovation of Dell began in 1984 by its founder Michael Dell. Back then,
Michael Dell intended to sell computers at an affordable price. Thus, he bought
computer parts at wholesale stores and assembled them as clones of IBM and sold
them by mail orders under the name of PC’s Limited, thus winning over customers
who were unwilling to pay the costly prices charged by computer stores
(Referencesforbusiness, 2018). In 1988, the company started growing 80 percent
yearly, and changed its name to Dell Computer Corporation (Dell, 2018) Thereafter, it
started to extend its production and marketing by opening manufacturing factories in
different countries and regions. In 2013, the company was renamed as Dell
Incorporation to affirm that the company's growth is beyond just computers
(Britannica, 2018).
Dell is currently operating in 203 countries around the world (Dell, 2018). However,
Dell has not ventured into countries like Sudan and North Korea because of the
ongoing wars that have stunted the development of those countries.
Dell earns profits by engaging with their customers directly without any retailers. This
enables them to understand their customer’s needs better and provide the best service.
Customers can customize their products according to their preferences online or by
informing sales representatives.. Their online website provides ease to customers, as
they are able to place orders from the comforts of their homes and have their orders
delivered to their doorstep within days (Referencesforbusiness, 2018).
Under the act of employee legislation, Dell has a Vulnerable Worker Policy whereby
it is committed to endorse the human rights of its workers by ensuring that they are
treated with dignity and respect. Secondly, the Dell Human Rights and Labour Policy
Statement consists of several outline standards to assure that all employees are
working under their own free will, are rewarded for their work and efforts and are

1
treated fairly (Dell, 2018). Moreover, it also has Dell Global Health and Safety Policy
in which it ensures a safe working place that is free from occupational injury and
illness in all its operating areas world-wide. In addition to that, the company believes
in diversity and equal employment opportunity, thus providing equal opportunity to
all employees and prohibiting office harassment and discrimination (Dell, 2018). All
job recruitment decisions are based solely on the particular job requirements,
individual qualifications and business needs without considering factors such as race,
nationality, sex, age, disabilities, marital status, medical status or any other
characteristics that are protected by the company’s regulations. In conjunction with
this, employees that witness or encounter harassment, discrimination, vengeance, or
any other inappropriate acts are encouraged to immediately file a report with the
appropriate authorities. The employees that have been reported against will then be
imposed to disciplinary action that includes termination of employment from the
company (Dell, 2018).
Dell also practices many social responsibilities. It pairs its technologies and expertise
to innovate and make an idealistic social and environmental impact. In the process of
production, it designs its products in a way that benefits the environment by using
environment-friendly materials to avoid potential risk, increase the product life cycle,
and be energy efficient besides encouraging customers to recycle their unwanted
computer equipment to reduce e-waste (Dell, 2018). The packaging of their products
are made of recycled materials and their latest packaging system is made from plastics
that are collected from beaches and coastal areas, thus saving the ocean from
pollution. The company works closely with their suppliers to assure labour standards,
protect human rights and ensure a conflict-free supply chain. In contribution to the
community, they apply volunteerism, technology and expertise to solve acute social
issues. For example, the company works with non-profit organizations to provide the
needy youth with better access to technology (Dell, 2018).

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THE PRODUCT AND SERVICE

The New Product Development Process

Dell reorganized their Product Development Process as their traditional process had
too many flaws, thus they needed to find a way to overcome those flaws. By doing
this, they incorporated structure, formality and discipline into the previously ad hoc
process (Asad, H. 2016). The new process showed that a cross functional team is
responsible for the project and goes through a six step process from start till end. This
phase gate approach uses funnel tools, thus ensuring that the projects that are pursued
are of high priority and fit the business strategy as well as they provide enough returns
for acceptable risk.

The cross functional team determines the components and technologies to be used.
This process relatively increases the speed of decision making thus reducing the time
taken to market products in the rapidly growing computer industry, considering the
increased competition from the imitators of the Dell Model (Asad, H. 2016). The new
process developed a system of risk assessment which was not available before and
involved market research and customer feedback from the first phase. This process
ensured that the launched products satisfied customer needs, leveraged the new
technologies of its supply partners, increased profitability and also sustained Dell’s
competitive edge in the industry. The new method has enabled Dell to adopt a
proactive approach instead of a reactive approach. However, for an organization to get
the most out of its development resources, it is essential to create a right project that
utilizes new technologies to support existing markets. Also, by creating an aggregate
project plan, Dell will not only investigate all the alternatives that exist but create
more alternatives to be pursued (Ahmed, I. 2016). This plan will allow management
to see the gaps in the current development and make more informed decisions
(Ahmed, I. 2016).

Product Life Cycle

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The product life cycle of a particular product is from when it was first brought into the
market until the day that the production for it has been stopped due to the fact that it
no longer brings profits (UK Essays, 2016).

Introduction – At the beginning of the product life cycle, the new product is brought
into the market and the volume of production for it is low. The technology would be
new to the market and the delivery system may be affected. Thus Dell had to
accurately estimate the components needs so they wouldn’t take too long to lead in
the marketplace (UK Essays, 2016).

Growth – In the next stage, the volume of the growth of the company is quite high.
Hence, Dell would have to regularly check in with their suppliers to ensure the
position of parts so that the supply chain does not get affected by any shortages (UK
Essays, 2016).

Maturity – At this point of the product life cycle, the volume of production for the
company is high but the revenue eared is low. This is because Dell’s rivals have
already introduced their own new products in the market so as to compete with Dell.
As the demand for their products have reduced at this stage, Dell would have a lesser
profit margin because they would have to compete with other companies, in terms of
price. (UK Essays, 2016)
Decline – At this step, the demand and volume of production would have decreased
further and Dell would soon decide to stop manufacturing this product as the
technology would have become outdated (UK Essays, 2016). Dell would also have to
plan this in advance so that their sales and supply chains would not be affected.

Dell’s Target Market and their Requirement

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Dell is targeting two different types of customers. They are categorized as the
Relationship Consumers and the Transactional Consumers. The Relationship
Consumers include massive companies, government and teaching institutions. This
category of consumers gives the most important portion of revenue and are backed by
committed sales assistants or account executives (Thakur, S. 2012). On the other
hand, Transactional Consumers are consumers who are sensitive to price and are
seeking for nominal prices, excellent service and products that offer increased value.
They are individuals who would prefer to pick and purchase their products online in
an attempt to satisfy their demands and ensure that the product meets their
expectations. This conveys that Dell’s customer analysis is the primary element in
their market strategy, thus increasing their understanding of consumers’ wants and
requirements in the market. Furthermore, this also affects its strategy for product
segmentation as well as the custom-made product offers that can be offered by Dell.
With that being said, Dell is providing PCs of proportionate standards at reduced
prices in accordance with its functions. Much like other big companies, Dell changed
its position to retain their competitive edge and its primary method of providing value.
Back in the day, they established themselves as a prime computer firm by offering
simple and consumer-friendly online sales channels and exceptional customer service.
Over time, this progress and additional publicity successfully emphasized their
position in the view of customers and portrayed them as a PC manufacturer that
provides great value.I

INTERNAL ENVIRONMENT

5
The internal business environment consists of elements within an organization that
may affect the success of the business (Abukhames, H. 2015). These factors can be
controlled by the company and it is vital to recognize the strengths and weaknesses
within an organization as these may affect the performance of a business.

Marketing

Dell is a well established company that provides an immense scope of products from
PCs to computer accessories to serve all their customers’ desires (Bhasin, H. 2017).
Dell is committed to producing high quality products at low costs to provide great
value to customers (Essay UK, 2018). Hence, Dell is able to ensure customer
satisfaction and achieve brand loyalty in the long run.

As for services, Dell offers customer care in terms of technical support and live chats
so that customers are able to get in touch with Dell experts when problems arise. Dell
also offers limited hardware warranty under their Basic Service Plan for the first
twelve months. Besides that, Dell also has other Service Plans that customers can opt
for at an additional fee. The Advanced Service Plan protects Dell products from liquid
spills and falls, whereas the Premium Service Plan offers technical support. These
options ensure customers are well taken care of even post-sales (Dell, 2018).

The current market strategy that is being implemented would be consumer induced
innovation (Bhasin, H. 2017). Dell clusters all their consumer feedback through the
listening process which provides the firm with necessary information to counteract
against issues (Dell, 2009). Dell then overcomes the problem so consumers will not
experience them recurrently in the near future. However, there is also a downfall to
this strategy which would be the customer’s dissatisfaction and the time factor
(Eduardo, 2008). Customers would typically want their product to have minimal
faults, thus it would be better to manufacture a product with a low possibility of
causing complications than having time squandered for both parties (Bhasin, H.
2017).

In terms of brand equity, consumers have already perceived Dell to be a reliable and

6
trustworthy product so Dell has no issues with that (Jobber, 2007). However, Dell
could start promoting their products on billboards to increase the credibility of the
company. Seeing their name on billboards may attract new customers by sparking
their interest in checking out Dell products.

It is important for a company to analyze the number of potential customers in a

certain market segment before selecting their target market. However, Dell appeals to
everyone. Therefore, the size of their market would be global as Dell intends to spread
their products across the world as an emerging powerhouse in the computer
production and manufacturing sector.

Distribution channels are the different ways in which a customer can get a product
from the manufacturer, e.g. distributors and retailers. However, Dell focuses on direct
selling, thus enabling them to cut down on extra costs that come with having
middlemen. Dell has attempted to sell via retail stores previously but due to an
adverse economic period, Dell has backed out from them (UKEssays. 2013). By using
the direct selling model, Dell increases their credibility by assuring customers that
their products are tailor-made for them (Donna, R. 2016).

Customers associate the price of a product to the quality of a product, thus pushing
them to decide whether or not they should purchase it. The direct sales model that
helps Dell set affordable prices unlike their competitors. The usage of JIT method also
helps them cut down on costs and lower prices for all their products while keeping up
with trends (UKEssays, 2013).

Promotion is a technique that is used to raise customer awareness about the perks of a
certain product, thus convincing them to purchase it (Armstrong, G and Kotler, P.
2009). On Dell’s website, they have a page specifically created to inform customers
about their current promotions for their products to keep customers intrigued to wait
for seasonal promotions (Dudovskiy, J. 2005).

7
Operations

Productivity is enhanced by eliminating the middleman as Dell is only selling their

original products online (Mars. 2011). Dell deduced that if they were to abolish the
use of middlemen, cost-savings could be improved. In terms of productivity rate in
factories, Dell tries to assemble 2350 PCs in an hour in their facility in Texas
(Kanellos, M. 2004).

Despite being in the market for decades, Dell continues to struggle with quality
control issues. It has not yet been determined if these problems are caused by botched
manufacturing or design faults (UKEssays, 2013). In 2004, the company had to recall
over 4 million of their notebook batteries after they burst into flames (Darlin, D.
2006). Dell should strive to improve their quality control so that they can prevent
major financial losses.

8
Dell’s facilities are situated all over the world, such as United States and even in Asia
(Ribeiro, J. 2006). Dell had the vision and analyzed all the plus points before deciding
to set up in Asia, one of the perks being the low cost in raw materials (Oliver, C.
2006).

Dell has also taken a major leap in boosting their supply chain management
(Blanchard, 2010). A well organized SCM will maximize customer and worker
satisfaction and help avoid any misunderstandings. Dell depends on their customer
feedback and share this with their sales department and suppliers (Oracle). This helps
them determine whether their suppliers are able to meet these customers demands.

Dell’s technology has progressed substantially and evolved from their mail-order
system. Dell now provides customers with the convenience of ordering their products
online and having them delivered to their doorsteps, thus creating a better image for
their brand and improving communication levels. Dell is also trying to use technology
to add value to their end users (Geronimo, A. 2018).

Purchasing the product directly from Dell’s website puts customers at ease as they
will not have to worry about confidential information being leaked out (Dell, 2018).
By allowing the direct sales model, Dell also equips themselves with more
information so that they can come up with ideas for more innovative products
(Adhikary, K. 2016).

In terms of workers’ safety, Dell is focused on cultivating a safe environment for their
workers to reduce risks of endangerment. Dell has educated their workers and
suppliers with the necessary steps to be taken if an unforeseen crisis arises. Dell also
tries to promote safe usage of chemicals in their facilities (Dell, 2018).

Dell is highly concerned towards improving the current degree of the ecosystem
(Hardcastle, J. L. 2013). By 2020, Dell expects to scale down the greenhouse
emission effect up to 50% and abolish the use of environmentally sensitive materials.
Dell also strives to achieve a zero-waste manufacturing process and utilize mushroom
and bamboo cushions as well as plastics that are found in the ocean to create
environment-friendly packaging (Dell, 2018).

9
Finance

Dell is experiencing a net loss of $937 million in its ongoing status of its Q3 2018
(Mellor, C. 2017). This issue can be eliminated by increasing the company’s net
revenue by increasing the sales and also cutting down on unnecessary expenses.

However, Dell’s revenue escalated by 9% from its previous year (Mellor ,C. 2018).
There are various methods to increase this revenue such as increasing the average
transaction size (Kaufman, J 2012). Dell may persuade their customers to purchase
other computer accessories to increase the purchase frequency per customer.

Asset utilization could be maximized by adequately handling their software assets

(Dell, 2014). This can be done by cost cutbacks as a result of effective contract
negotiations between suppliers and the company. They could also maximize asset
utilization by making all the purchase records accessible in the occurrence of an audit.

After their merger with EMC in 2016, Dell claims to have already settled $13 billion
of gross debt. They are now left with $37.8 billion of core debt (Gara, A. 2018). Dell
should clear their debt before participating in more deals although the debt has not
posed a risk yet (de la Merced, M. J. 2018)

In 2013, Dell became a private enterprise after Michael Dell and Silver Lake bought
over Dell at almost $25 billion (Haranas, M. 2008). Dell has now declared that they
will return to being a public enterprise again as they are attempting to retract a certain
type of stock from investors by doing this.

Although it is close to impossible to determine the per unit cost for Dell’s range of
products without insider information, it it safe to say that it could be anywhere
between 20% to 50% of the market selling price (Leppert, D. 2014).

10
Reports show that Dell’s net profit margin in April 2018 is -3.9% (Finbox, 2018).
Although it has improved since January 2017 when it was at -4.7%, such a low profit
margin is unsatisfactory because it means that the company will soon be having cash
flow issues as they are not generating enough revenue to finance their expenses. Dell
should try and increase their revenue so that their negative profit margin does not risk
the continuity of their business.

Human Resource

Human resources are described as both the people who work for an employer or
business enterprise and the branch responsible for managing sources associated with
employees. The overall process of securing people with the proper skills and helping
to guide and lead them is called Human Resource Management (HRM). The motive
of Human Resource Management is to maximize the productivity of a business
enterprise by optimizing the effectiveness of its employees (Armstrong, Michael. A
Handbook of Human Resource Management Practice. Kogan Page Limited, 1999.).

Human Resource Management indicates that the system, policies and routine of the
company influences an employee's act, manner and performances. These days, most
companies are realizing that employees are significant to a company’s success. A
sustainable competitive advantage and optimized shareholder value is the result of
effective utilization of this resource. In order for employees to excel in their part in
achieving the company’s strategic goals, Dell is implementing HRM practices,
particularly in development and profession management, job analysis and design,
choice and placement, training, recruitment and rewards to make certain that the
employees of organization have the required knowledge, talent and capacity too. Dell
uses its ability to attract top achievers into its company and inspire its current
employees by providing a market-related payroll and by offering a range of
advantages that are offered by other well known big companies. Dell also provides an
online Human Resource feedback form for its employees to let them give their honest
opinions regarding the working environment. Besides that, Dell carries a climate
survey twice a year to rate their managers, organization culture and rewards. As a step

11
to show its employees that they are being treated fairly, HR insurance policies are
consistently being applied in the course of the company. Besides that, the company
has a formal law of behavior that emphasizes high principled standards in each sector
of their company’s business such as interacting with customers, shareholders,
competitors, authorities, environmental standards, through employee privacy and
managing feasible conflicts and concerns. However, Dell does not presume that high
compensation and extraordinary fringe benefits, equal treatment and favorable
working environments are the only factors that can inspire its employees (Armstrong,
Michael. A Handbook of Human Resource Management Practice. Kogan Page
Limited, 1999).
Furthermore, a satisfied workforce leads to a successful outcome for the company.
They consider their team members as family and work to foster an environment that
benefits their personnel and generates private and professional innovation. Dell's
employees have received a couple of awards that have acquired global attention in the
areas of environment, citizenship, dealer responsibility, giving and the workplace.
Dell additionally creates an opportunity for their employees for personal growth.
From technical coaching to communication capabilities and sales workshops, Dell's
Professional Development publications encompass a full breadth of topics. Current
path offerings align with business desires and strategy. We recommend for all crew
individuals to take advantage of gaining knowledge and pursue education
opportunities. Moreover, Professional Career Development at Dell is to presenting
candidates unparalleled career increase by using one-on-one conferences with
mentors and leaders, everyday 360-degree feedback, movements check-ins with a
long-term profession plan, continuous formal and digital training, networking
opportunities, mentorship programs and inside motion opportunities. At Dell, it's all
about inspiring our people. This is why they are continuously allocating sources that
shape leaders to get the very first-rate from their teams. Their active programs grant
high-level understanding and equipment for executives, managers, and professionals
(Armstrong, Michael. A Handbook of Human Resource Management Practice. Kogan
Page Limited, 1999).

One of the factors that may lead to dissatisfaction and low quality of work is the work
relationships employees foster in a workplace. For instance, the bond between the
superiors and the staffs, the level of equality superiors treats staffs and the

12
requirements of management. Likewise, the bond among colleagues is essential too,
for instance, a staff who undergoes intimidation in the place of business has fewer
threats of needs with his job which may adversely influence his excellent of
efficiency. An employee’s performance can be influenced by the amount of pressure
that he undergoes at the workstation. This current pressure occurs when the
satisfaction of the occupation does not meet with the abilities of the worker where he
or she has inability and shortage of contentment with their job. Job pressure is vital to
a staff’s health and can lead to weakness, no appetite for food, depression and rattle
their work schedule. Despite undertaking in a managerial centre is crucial for shaping
of work talent, immoderate pressure is risky to the productiveness of the workplace
(Armstrong, Michael. A Handbook of Human Resource Management Practice. Kogan
Page Limited, 1999).

Other Factors

Organization Culture

Organizational culture is related to the field of administration and organizational

studies, and it is at once associated with the attitudes, beliefs, norms, and values
which are connected to an organization. The company’s culture describes the detail on
how personal directs differently in addition how they treat different shareholders that
attached to the association. Thus, the association is thoroughly related with the
corporation culture, besides it also includes the vision and mission of the organization.
These social moral are linked to the dreams of an organization, they are widely
observed as "beliefs and ideas”. These cultural values enhance guidelines for the
organization, and positive norms are formed which would define how the personnel of
the enterprise must collaborate with different employees and what are the instructions
of working with various stakeholders of the organization. In addition, Dell is
considered one of the leading manufacturers of PC systems and computers related
products and is regarded as a multinational company with its employees more than

13
82,700 people all around the world. The organizational subculture of Dell is
outstanding, it emphasizes on their company's culture and customs as they
acknowledge that through it they can change their whole organization into an
effective one (UKEssays, November 2013). However, the characteristics of Dell's
culture is the 360-degree approach. The belief of Dell is different from other
companies which is they do not believe in the future. Dell’s organizational way of life
shows that the future is and tonight. This enterprise considers in necessity, and that is
the goal why their consumers are comfortable with them. The financing in upcoming
occurrence can be thought as a trick, and that is the motive why Dell focuses on the
today phenomenon. The core focal point of the company is that the organizations do
not tolerate and hold these corporations that are unable to make money. That is the
reason why they are implementing a 360-degree method for their organization. The
General Managers and the Culture are focused a lot by way of the organization, and
Dell continues a zero-tolerance policy on culture right from the beginning. The
personnel of the enterprise are concerned in the primary decision-making process, and
the enterprise asks the query like how can Dell grow quicker and how can we lower
our cost, etc. The breakthrough concept of the company is entirely novel and the well-
known managers usually come up with this idea, and in Dell, they prevail time and
time again. The unreasonable expectations of the company are stuffed up through the
ordinary managers. The tradition of the corporation is quite, and the management of
the company is charismatic. New personnel are engaged in the organization, but the
ratios of new employees are much less because previous staff in the corporation are
trained, and then they are promoted to work for the betterment of the organization.
(UKEssays, November 2013). Therefore, it can be said that the way of life of the
company is a bit flexible, and it varies with scenario to state of affairs but the
complete emphasis of the organization is on the fantastic of work, and if personnel are
unable to produce excellent then they are unable to work in the employer (Fredman &
Dell, 2006).

E-Commerce

Dell has websites that provides information regarding products, technical aid, and

14
other carrier aids to their customer ever since 1995. Furthermore, customer can
purchase laptops, software and other merchandises on Dell’s website. In addition,
Dell’s statistics provides information regarding on annual reports, economic rate and
inventory value. By 1996, the company made e-commerce for the customer’s needs
generally to obtain their catalogue and the right target market. Thus, customer
willingly purchase a model, quotes, and use them through their PC system via online
or by using their phone. Therefore, clients obtain ordering confirmation and ordering
development through Dell’s order popularity system.
 
Also, Dell sells refurbished computer system to auctioneers at dellauction.com.
(Kraemer and Dedrick, 2001). Likewise, Dell’s support on online aids to clients are
presented variously with tools such as product warranty, resolution assistance, contact
details pf technicians as well as client discussion board to data sharing and elevate
requirements. Dell’s web services, an E-Collaboration science is used to communicate
with the logistics in preserving data and transforming it to a component that assists on
decrease on inventory. Moreover, Dell establish a website called
ValueChain.Dell.com to assist suppliers on real-time records like inventories,
capabilities, first-rate metrics, and value then shares customer’s demand, product
interest, and client’s requirement to their suppliers. Thus, the entire process of buying
and acquisition with suppliers is computerized (Lewis, 2001). In short, Dell’s
achievement on their E-commerce to coordinate with suppliers, logistics providers,
device integrators, and service company’s usage is as of quality to the needs of their
company. (Kraemer and Dedrick,2001).

15
EXTERNAL ENVIRONMENT

Factors of an external environment are unmanageable elements that impact an

organization’s decision-making, execution, and strategies. External elements such as
social conditions, economic factors, political factors, technological factors,
demographic factors and natural forces drive a firm’s growth exponentially as well as
negatively impact the firm. Any threat that occurs in the external environment will
create more challenges to a firm’s growth and expansion as well as create
opportunities for them as they will need to learn how to adapt. Hence, many firms
would analyze their external environment thoroughly to avoid threats that may affect
their company’s performance. For example, political factors would disrupt a firm’s
power to maximize profits as taxes and prices are set based on political intervention.
Also, natural forces are uncertain and may demolish products in a sum or a shop itself
that cost a high rate of investment and money. Therefore, Dell plays a huge role in
dealing with its external environmental factors and what influences it.

Economic Environment

16
Economic conditions are a summation of nature of economics like inflation, economic
policies, capital market, business cycle, and socioeconomic infrastructure. The
economy influences the demand, supply, capital and cost of production of a company.
With economy shifts, a growth of the computer industry is expected to increase about
10% over the upcoming years as a forecast to improvise the company’s economy (UK
Essays, 2018).

Gross domestic product (GDP) is a measure of the country’s income and the output of
a country’s economy. GDP balances the total expenditure of finished goods and
services that are produced in a country at a certain period. For instance, Malaysia’s
GDP for 2015 in revenues for computers was estimated at RM301,792 with a growth
rate of 5.1% while in 2016, the revenue dropped to RM296,536 with a growth rate of
4.2% (Natural Economy, 2017). Consequently, the growth rate in 2017 has increase to
5.9% with GDP of RM310,000 for Dell in Malaysia.

Presently, the country’s financial and economic crisis of 2007 – 2009 made
considerable adverse effect on the growth of the PC market. This further affected
Dell’s revenue and amounted at 13% in growth for 2007. Nevertheless, the global PC
market resulted a growth of revenue by 2% in 2009 during the crisis (Dudovskiy, J.
2015). Subsequently, the economic crisis is said to be the most substantial economic
factor that stimulated the inflation rate, interest rate, and labour cost most promptly.

At the same time, economic factors affect sales in the exchange rate of currency,
imports of branded products, and price-setting. India’s market is highly volatile due to
its inconsistent exchange rates and this plays a major role to Dell’s price setting in
India. The currency exchange rate of 1 USD was equivalent to 40.24 Indian Rupees in
2007 but increased to 47.41 Indian Rupees in 2009 and then dropped again in 2010 to
45.57 Indian Rupees (Francis. A. 2013). In general, this economic factor affected
Dell’s pricing strategy in India and has led to the decrease in customers and unstable
levels of income to their employees.

Thereafter, the labour unemployment causes a reduction in consumer expenditure as

consumers would lack the purchasing ability. This would greatly impact the IT

17
industry and country’s performance as they lack experience and knowledge of
softwares and hardwares. Eventually, a decrease in volume of sales will also occur as
there would be a reduction in the output of a company and subsequently profits and
revenues of Dell, prompting them to tone down their expenses by firing their
employees. As Dell’s output is mostly monitored by computers and machines, hence
the cost of having a labour force with irregular health conditions in the economy
could cause a downfall to the company as well as the output of the company.
Consquently, lowering the cost of computers into an affordable budget will solve the
society’s problems in greater extent and increase sales.

Political and Legal Environment

The occurrence of political interference and its instability brings a bad charm towards
the business goal and net profit. For example, the unpredictable political changes in
Europe affects Dell because of the contribution of the government in the market of
taxes, franchises, labors, etc. In China, the diplomacy and their relationship with the
US is a strong bond unlike European market. Accordingly, the diplomatic relations
between US and China regarding politics could divert a number of markets to crash
and lose their business after that. It is more convenient to conduct a business and
increase the growth of a brand if the political environment of a nation is friendly and
peaceful. A sound political environment is also important for the continued supply
of raw materials and labour especially for brands having an international supply chain
(Pratap, A. 2017).

Conversely, the legal compliance is another factor that affects the international brand.
Again, laws vary from nation to nation and it is necessary for brands to adhere to the
regional labour and environmental laws as they operate in a certain country. If the
company does not comply with the laws stated in the bonds, the company will receive

18
substantial fines regarding the claim that they did not comply with the country’s rules
and regulations. For instance, Dell encountered a number of issues with the law in
China and other countries for not complying with the country’s bond (Pratap, A.
2017). Dell also had to pay a fine of 4 million USD for false and inaccurate
advertising about PCs sold to consumers in New York whereby more than one
company claimed that Dell had colluded with city officials to sell CCTVs.
Consequently, Dell’s method of collecting users’ personal and confidential data was
disrupted as a consequence of their actions and the legal issues that they faced in
multiple countries.

The impact of political and legal factors that differentiate the environmental and
consumer protection laws are equally important as they include a political and legal
analysis. In brief, the types of risk that occur will affect the firm’s management. This
is easily identified as majority of the famous companies have shown the impact of
excluding political and legal factors of the country via the internet.
Technological Factor Environment

There is no other industry that experiences technological development that is as fast

as the computer and technology industry. Thus, an increase of research and
development will fuel an innovation process which may lead to a shorter product life
cycle and resulting in a faster depreciation of the products.

Presently, Dell is famously known to be a technological company. In the past, the

demand of mobile gadgets increased due to the uprising trend worldwide. Again, an
increase in customers would mean increase in demand hence bringing more
profitability to Dell, but technology is always developing therefore the dynamics and
effect of sales in the market would be altered as well as the profitability of a business.
In this era, Dell has experienced multiple fluctuations in the market accessibility as
you can see in the Standard & Poor 500 (S&P500) that shows the companies’ profits
by years as compared to other competitors.

Today, Dell partakes in the cloud business as it offers a range of cloud solutions such
as the use of applications and services to users. In this modern era, it is necessary for
technological companies to adapt with its surroundings to remain competitive and

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responsive due to the rapid technology advancement. With that being said, the latest
Dell XPS 13 can cater to the needs of customers in this era, be it individuals or
businesses (Ellis, C. 2018). However, competitors have also been growing their
technology to venture into cloud data businesses. Thus, Dell will have to learn how to
outsmart them. Furthermore, the technological sector consists of agencies and
activities that incorporate the latest technology into products, materials, processes and
services. The motive and direction of technology today is that all technological
devices have become smaller, faster and portable. Institutions have proven to be a key
government resource by providing them access to the new technology. By year 2000,
China’s PC production annual report reached 7.6 million, making them the third
largest production in the world (Blanchard, D. 2010). At the same time, companies
use the internet as a form of publicizing their brand name and establishing good
customer service. Instead, the high cost of internet usage in China has become a threat
to Dell.

Dell uses technology to bring customers from all over the world closer. In 1996, Dell
officially started selling online using their official website and recently their website
has reported to have gotten more than 4 million visitors on a daily basis. Now Dell’s
official website provides services in 166 countries and uses 34 different languages all
over the world. Dell is ranked number 3 in the top search engines and is also the most
reputable in social media activities.  
 

Dell uses social media to engage with their web community of more than 3.6 million
people. They use platforms such as twitter (@Dell), Orkut for Brazil, Facebook and
other websites.

About 400 ideas are executed and implemented by Dell through idea StormTM that was
introduced in 2017. Idea StormTM is the place where members share their ideas and
suggest ways to satisfy customers and steps to make Dell the better computer.

The Sociocultural Environment

Social culture is easily distinguished by one’s society as they refer to a set of beliefs,
practices, and behaviour that builds up a certain community in a population.

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Thereupon, companies worldwide use this analytical process to examine sociocultural
factors prior to tackle their target market. Moreover, the sociocultural environment is
an ungovernable and demanding factor to predict. Eventually, it is mandatory for
Dell’s sales team to comprehend and value their society’s culture as the social culture
includes forces that impacts the society’s perception, basic values, and preferences.
On the contrary, equality incorporate values and beliefs, youthfulness, efficiency,
practicality, level of achievement, self-actualization, freedom, and humanitarism.
Nonetheless, sociocultural environment changes our time as the customers behaviour
take effect in the long run than quantities the depreciation demand of sales in product
(UK Essays, 2018).

In sum, trends change over time as well as technology hence companies must observe
the ucoming trends of the behaviour in interest for manufactured products.
Conversely, Dell as a leading producer of electronic gadgets requires to observe the
changing trends in social coverage and cultural, change in personal perceptions and
interest of consumer based on their environmental surroundings that provide the
customer with self-fulfillment. However, the Chinese are concerned due to Dell’s
marketing procedures in increasing customers’ loyalty, trust and satisfaction in
purchasing the company’s products due to door-to-door and face-to-face sales
operations.

Competitors Environment

Competitors environmcnt describes the nemesis of companies selling similar products

that substitutes the main products a company sclls for their business. Again, a perfect
competition and provision for better customer value is developed through satisfaction
of products by a competitor with the same motive hence Dell analyses their
competitor's strength and weaknesses to alter their best strategies in attracting the
Market (UK Essays, 2018). Here, there are three different firms producing the same
products and
competing with Dell such as Acer, Compaq, and Hewlett-Packard (HP). At that point,

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we
can see that competition regarding substitute products such as mobile phones and
tablets also compctes with the customers’ royalty, purchasing power and interests
(UK Essays, 2001).

When comparisons about competitors in regards to Dell's growth rate, Dell being the
4th quarter growth competitor in year 2009 was as low as 11.5%, unlike Acer grew by
13.55% and the biggest competitor was HP as they were at 19.8%. On the contrary,
the highest growth for Dell in the computer industry for 201I rose up in competing
with other computer industries. Subsequently, Dell's competitors like Toshiba and
Lenovo were 5.3% and 8.7% consecutively in the last quarter of 2008 (Techeye.net,
2018).
Dell secures the winning spot as they have a variety of products ranging from laptops
such as Inspiron laptops, 2-in-1 laptops, XPS laptops, G-Series laptops and Alienware
laptops. Desktops like the Inspiron desktop (2017), gaming computers and other
accessories that have been manufactured by Dell also appeal to customers of the new
era, no matter individuals or businesses.

HP, the largest computer manufacturer worldwide uses retail channels strategy that
outcompetes Dell’s revenue and profits as this was shown by the first-quarter profit of
the fiscal year in 2008. According to the retailer's network, the estimated result on
orders of computers, storage, and servers by the top marketer analysis indicates that
HP's sales and marketing strategy performs efficiently.

Recommendation

Dell has used direct sales strategy for many years which did not influence more sales
nor did it help them overtake their biggest competitor, HP. Lastly, I believe that Dell
should adopt HP’s retail marketing strategy to boost and influence their customers
interest into their market.

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Demographics Environment

Demographic environment describes the market’s current customers and potential

customers in their location. In general, demographic environment identifies the human
population description in relation to size, sex, age, race, population density,
occupation, etc. Meanwhile, a change in demographical factors create a massive
impact on Dell just by causing significant leads and present cultural intimidating
remarks in an organization (Sikander, 2008). Thus, the major influencers for
marketers in the demographic factors incorporates population explosion, ethics
groups, educational difference, geographical shifting, and changes of age structure.

Instead, disregarding amusements and pleasers of other factors that leads teenagers to
use computers, government uses Dell commonly for education purposes in the school
industry. So, education today is the biggest factors in PC market ever since
technology used in computers cannot be used by a layman, instead the increase in
education levels around the continent triggers the demand of computers by states in
the country.

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ORGANIZATIONAL STRUCTURE OF DELL

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Organizational structure defines the chain of command within a company (Friend, L.
2018). This means that the top executives concentrate on crucial decisions and allow
middle and lower-level managers to manage the day-to-day operations within an
organization (Joseph, C. 2018). Besides that, Dell also has numerous purposes, which
are stated in their organizational structure. These include Business Development,
Education and Global (UK Essays, 2018). This regionalized structure passes on the
responsibilities of making decisions to managers in various levels of the organization,
thus allowing them to increase their learning opportunities and improving their
decision-making competence, unlike the streamlined structure in which decisions are
only to be made by higher authorities within an organization such as the Chief
Operating Officer (CEO), and the Vice President. In my opinion, this organizational
structure is appropriate for this organization because it has three organizational
structure which is regionalized and streamlined structure. What I have come through
by studying the structure of dell, it is very effective for the company. By following
these structures there is also a high chances of better development in Dell. Besides
that, Dell also is producing better products now and also will in upcoming future as
well.

CONCLUSION AND RECOMMENDATION

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Dell has made a huge mark in the technology industry of computer systems and
gadgets globally. The main strength of the company is that they have a strategic
direction to fulfill their customers’ needs and demands. This empowers customers to
customize their products according to their needs by providing various choices of
special characteristics for better performance and increase the company’s profitability.
They can customize it via online website or directly with their sales representative.
Besides that, the company has a strong e-commerce and efficient supply chain
management. Mainly, the direct relationship between the company and their
customers without intermediaries enables them to understand their customers’ needs
and preferences in advance. Throughout it has been an important strength of the
company to provide the best and satisfy their customers (UK Essays, 2018). Despite
its immense strengths and specializations, the company has plenty of weaknesses too.
One of them is that their types of models and products fail to attract the current
generation. This is because their product features are not up to the technology
advancement that current generations look out for. Furthermore, the company mainly
focuses on business customers thus this has affected its capability to build a good
relationship with current generations and educational institutions. Another weak point
of the company is that it has wide operating areas and suppliers from many different
countries which may cause problems when the products are recalled (Quality-
assurance-solution, 2018). Therefore, it would be a good idea to recommendt that the
company should enhance their products’ characteristics and specializations to be more
advanced in line with other modern computers, software and electronic gadgets to
attract the current generations and maintain their market throughout many
generations. For example, they should invent more laptops like the Dell G3 15
Gaming Laptop and also endorse the production of smartphones that has been stopped
currently. Besides that, they also produce smart televisions and additional electronic
gadgets with advance features. Meanwhile, the company has a wide operating area
globally. It should ensure that all the production units of the company monitored
thoroughly and assure that it is highly safe to use to avoid any recollection of the
products.

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