Dell organization structure
Organization structure is an overview of how rights and duties are distributed in an organization. The structure describes the line of designation of authority to various individuals. Dell structure is matrix, and is characterized by high decentralization. The structure is formed out of functions and duties and not product or geographical location. It is structured into three divisions’ namely institutional which is the highest level, administrative and functional level.
The second level in the hierarchy is administrative level. Managers are assigned to head various department, for example marketing, research and development, finance, distribution, human resource and sales. The manager oversees all the activities undertaken by his or her subordinates. The duties of managers in this level include planning, staffing, organizing, directing and controlling. Managers are required to report to the CEO on matter relating to his or her duties. The bottom level is functional or tactical. Supervisors who get their authority from managers in their department occupy this level. Their responsibility is to supervise junior staffs and project undertaken with in the department (Hitt, Michael, Ireland & Hoskisson, 198). This level is concerned with routine tasks that are undertaken daily. They are operational task that require being undertaken. The strategies in this level are routine and based on daily achievement.
Competitive, aggressive and defensive strategies and their evaluation
Dell Company uses three strategies to attain a competitive edge. These strategies include aggressive, offensive and competitive. Dell main competitors include Cisco, Lexmark, NEC and Sun Microsystem. These strategies are implemented to deal with competitors in the same industry. Michael the CEO of dell, lately threatened to use aggressive strategy in dealing with competitors if he succeeds in merging with a private owned company. Some of aggressive strategies include reactive marketing and analyzer marketing. A company using reactive marketing strategies responds to challenges in the market as they occur. A company responds to competitor’s plans after they executed. The company waits for competitors to implement their strategies, and in response strategizes more efficient plan that are better compared to competitors. Analysis and market research are crucial tools for a company using aggressive strategies. The company also needs a strong financial back ground. This will help the company attain a competitive position against the competitors. Defensive strategy is employed by the company to secure its self from competitors. A company majorly invests in protecting itself from external threats. Defensive strategy helps the company create a wall on its operation to avoid attacks from customers. The strategies implemented are proactive, and helps avoid competition attack from competitors at all cost. However, Dell is renowned for employing competitive strategies.
The strategies ensure that their products are focused in terms of price and quality. The prices of Dell’s products are highly competitive against those of competitors. The price is well articulated to match with the quality of a product. Though the technology industry is characterized with dynamism, Dell enjoys a competitive advantage (Hill, Charles, & Jones, 245). Companies using this strategy need a solid financial resource to steer marketing force and increase sales force. The marketing force is expanded by introducing the product to the new market to increase sale. A competitive strategy also needs improvement of the product line. Dell Company has sufficient resources to stay competitive in the industry. Competitive strategies include horizontal, backward and forward integration. In a wider perspective, it includes mergers and joint venture, market penetration and market development. The strategies are evaluated on the performance basis. The performance is based on increase in sale and profit margins realized. For example if a market penetration strategy is employed, the performance is evaluated on increase in number of customers, which leads to an increase in sales. Sales are the back bone of profit margins. Without sales there will be no profit realized. Hence, sales revenue is the measure in which strategies are evaluated.
Firm’s performance
The company has recently recorded high performance compared to other players in the technology industry. The high performance is noted by the increase in revenue and profit levels. The company recently had recorded an increase of 22% in revenue, which reflects a 30% increase in profit margin in the quarterly financial report in November. Dell continued to record a high market share compared to competitors (Hill, Charles, & Jones, 258). The consumer database has also recorded a 33% compared to the last period’s 20%. This means that the customers have increased by 13%. The comparison of the performance of Dell’s company shows high performance in the industry.
Dell has employed competitive strategy like market penetration, product development, market development and joint ventures to attain a competitive position. These strategies has enabled dell to record high performance in the industry. Dell has covered wide market hence increasing its customers. It is also focused on developing products that are focused to price and quality. Prices are well evaluated to enhance competition with substitute brands. Products are also developed to match the current technology in the market. Innovation is a key to relevance. Developing products enables Dell to stay relevant in the market.
Work cited
Hitt, Michael A, R D. Ireland, and Robert E. Hoskisson. Strategic Management: Competitiveness and Globalization; [concepts and Classes]. Mason, Ohio [u.a.: Thomson South-Western, 2007. Print.
Hill, Charles W. L, and Gareth R. Jones. Essentials of Strategic Management. Mason, Ohio: South-Western/Cengage Learning, 2012. Print.
