Final examination in Strategic Management

Danico M. Calumba
BSBM 3-4

Case Discussion Questions

1. Why has Dell moved to different kinds of organizational structures over time?
In 1984, Dell did the business on its own but demand came, and one of the best
things Dell did was move to a different type of organizational structure such as a
functional, decentralized structure. The company encourages various departments and
functional divisions to contribute ideas to enhance the strength of the organization.
because as time goes on people's preferences change and time passes. he has to do it
so as not to be left behind or to keep up with his opponents in this business. because
the demand for the product he makes grows, he has to make more or improve it so that
he can provide the different needs of his customers and satisfy them.

2. Has Dell’s performance been improved?

For me, it was an emphatic yes, because as Dell began to build the functional
organization and give authority to the managers, they would be better able to control or
reduce their spending. His firm developed even more because of their strategy of selling
directly to clients, offering quite tailored PCs for their customers and according to their
wants, and also because he recruited a solid strategic manager with a lot of
understanding regarding the good running of such a company.

3. Search the Internet to find out how Dell has been trying to increase its performance
and how its competitors such as HP and Acer have also been working to improve theirs.
While competitors like Compaq and IBM sold PCs through stores, distributors,
and resellers, Dell sold directly to its clients, delivering fully customizable PCs at a
period when computer prices were still high enough to necessitate major tradeoffs.
Business and government customers accounted for the majority of sales, since large
customers valued the flexibility to configure a large number of PCs; Dell also provided
these firms with customized portals where staff could buy one of several company-
approved laptops directly. This straightforward method was a huge hit. IBM and
Compaq, for example, struggled with the politics of managing their numerous channel
partners and fell behind Dell in inventory management. When competitors attempted to
emulate the direct model, their channel partners objected, fearing for their own
companies, preventing other PC manufacturers from going completely direct.
The ability to evolve is crucial to HP's success. HP didn't need to reinvent itself; it
just needed to anticipate market demands and react accordingly. HP's success is based
on a cohesive management team that prioritizes customer, employee, and investor
interests.
Acer's innovative Channel Business Model allowed the company to achieve long-
term global expansion. The strategy allows for flexibility in responding to changing
global IT market trends, as well as collaboration with top-tier industry partners and
suppliers, all while lowering operational costs and increasing profitability.