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Essay / Research Paper Abstract
A 3 page paper that explains Dell's organizational structure. Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: MM12_PGdell06.rtf
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Unformatted sample text from the term paper:
build-to-order; become the low-cost leader; have a single point of accountability; and use standards-based technology (Alba, 2004). Dells business goal is to maintain its #1 position and to
increase market growth domestically and internationally (Alba, 2004). Dell sells 90 percent of its computers to the final customer, thereby, eliminating any middlemen (Kraemer and Dedrick, 2001). Each computer has
the exact configuration the customer wants (Kraemer and Dedrick, 2001). Dell eliminates the need and complexity of forecasting trends because its own direct sales data provides better information (Kraemer and
Dedrick, 2001). For instance, after selling so many computers to different populations, Dell knows that certain populations always want the same or similar configuration (Kraemer and Dedrick, 2001). This is
a very simple business model but it is extremely difficult to execute (Kraemer and Dedrick, 2001). The complex demands of the business led to a new organizational structure that if
often referred to as a virtual company or value web (Kraemer and Dedrick, 2001). A graph of this model would show Dell in the middle surrounded by different activities or
groups including: Customer, repair and support companies, distributors, third party suppliers, component suppliers, CMs/OEMs, logistics companies, system integrators (Kraemer and Dedrick, 2001). The structure is modified for geographic locations (Kraemer
and Dedrick, 2001). Dell has three primary customer segments: large corporate customers, referred to as relationship customers; home and small business, sometimes referred to as transaction customers, and public sector,
such as government and educational, customers (Kraemer and Dedrick, 2001). These same segments apply in each of the geographic regions where Dell has a presence. Product development takes place in
the United States and the company has certain base products that are sold across the world (Kraemer and Dedrick, 2001). This company does not manufacturer its own components but it
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