Category: Dell

The merger between HP and Compaq elicited several issues. Indicatively, there are critical lessons about corporate strategy that can be learnt from this merger. The acquisition was unique from other dominant mergers that have occurred in the recent past. The stock market played a crucial role in the acquisition process.

This strategy enabled HP to develop a potential stepping-stone towards a remarkable global performance. The corporate strategy applied also enabled HP to acquire the largest share, (64 percent) of the total value. The next strategy involved the absorption of Compaq employees in HP. This integration also included the senior board members of the company.

The strategy was vital since it enabled the protection of key interests of Compaq. Particularly, this is critical in the process of decision-making and policy formulation. The acquisition involved the establishment and analysis of product plans. This important observation enabled HP to continue dealing in the Compaq products.

However, the product brand changed and combined both the companies. The strategy has enabled a successful process of marketing and product promotion during the period of merger. The two companies also rationalized the product lines. Apart from this, they engaged in the harmonization of branding and outlook. This initiative enabled Compaq to continue with its client base and market orientation. Hp decided to operate within four major frontlines and divisions.

In the acquisition deal, the IT infrastructure division was slotted for Compaqs leadership. The president of the Compaq was to provide the critical leadership in this special division. Operating within four divisions managed at a focal point was a transformational and unique corporate strategy.

The fundamental objective was to enable Compaq to exhaust all its products and attain its projected level of efficiency. HP chipped in to augment the low level of organic development evident in Compaq. Another significant strategy for the merger process was the development of a uniform business model. This strategy entailed the engagement of expert advice and assistance. Key partners from the two companies tested the operational structure.

The testing process provided a chance for identification and classification of expected challenges. A remarkable length of time was used for rationalization. During this period, several operations were undertaken. These included the closure of several manufacturing plants.

The merger also made specific improvements on different joint operations. These included improvements on product brands, manufacturing and delivery systems. Observably, the acquisition process applied diverse strategies that are crucial for effective learning and development.

The Advantages and Disadvantages Associated With the Strategies Followed By Dell and HP

The corporate strategy applied by the two companies during the process of acquisition has notable disadvantages and advantages. For instance, the strategy enabled a smooth and successful transition process.

This was achieved through fusion of the major product lines and brands. Apart from this, it is notable that the strategy enabled the reinforcement of the human resource and expert capacity. The companies brought together most of their senior, experienced and expert workers together. Other notable disadvantages emanate from this strategy.

For example, absorption of employees from Compaq may lead to the importation of foreign work ethics. Compaq had already failed to gain the competitive advantage. Ideally, a fresh group of employees would be ideal for the new joint venture. There could also be possible risks of infiltration on the capital and assets of HP. These include some of the advantages and disadvantages of the strategy.

Dell is undoubtedly one of the big and most prosperous companies in the world. It has evolved to set a precedent for decades and its milestones can never be underestimated. Started by Michael Dell, the company began in 1983 by selling desktops and has grown to become a leading supplier of computer systems.

The company is also well known for its cost effective and direct models that have enabled it compete at the highest level with other competitors. The company has however not had it easy in its endeavour to succeed as it has faced tremendous challenges that have at times led to decline in its revenue and growth. This paper therefore endeavours to provide an insight on dell with analytical and cynical view.

A critique is meant to affirm its weaknesses and areas in which it has failed to produce much of the impact with dell objective being to attain success by being a company that provides personal computers and also one that ensures their customers have had the best experiences with their products.

This objective at some lengths has been attained in the history of Dell where it led in periods of the 2000 up to 2003 as the biggest and worldwide firm of computers in both the U.S and other countries such as Asia and North America. The year 2003 saw Dell shift its focus to other hardware products such as ink jet printers that led to the company attaining revenues from other quotas.

The subsequent year of 2004 was no different as the company attributed its success to four strategic initiatives. These initiatives were driving the economic growth, having an improved customer relations, product leadership, and continuous winning ways of Dell. In 2006 however the company started facing tremendous challenges that stemmed from management.

At the time the founder Michael Dell had left the position of CEO to Kevin Rollins. The question then is why Dell started experiencing challenges that had grave effect on the financial performance of the firm. The company had declined margins of sale and received negative news coverage. These made it possible for the former CEO Michael Dell to resume office and try to get the company to its former glory.

It however had to surrender its leadership position to companies such as Apple and HP. Dell had exited from low end products hence making the competitors able to catch up and overtake them. The competitors had also resorted to same tactics of lower prices hence capturing Dell customers. The company therefore resulted in manufacturing so as to re-establish itself as a powerhouse.

The change in technology in the recent years has made it easy for corporations to produce Smart phones and tablets that have relatively taken control more than the laptops. This trend has seen a rise in the revenue of companies such as Apple that have embraced tablets and smart phones. Dell in recognition that computers are at a slower growth rate have come up with strategic plans to introduce low cost tablets.

This will enable the company to increase sales and be able to catch up and have an edge with firms that do not produce tablets. Dell intends to do these with the idea that there are about other 15 competitors. This will have to mean that they need to produce something that is different and gives customer satisfaction.

The tablet will have a state of art technology from advanced technology of windows 8 to cloud technology that enables users to save and transfer data. A microchip for increasing speed will be combined with a battery that is more efficient than the Dell laptops.

This strategic plan of Dell needs a lot of advertisements as it needs to make known to the market on how good and different their product is from the rest. Dell on this note intends to use the low cost tablet message so as to attract a large number of people who have paid a lot more for Apples Ipad. This will all be based on the premise that Dell has for years been the leader in terms of quality and affordability.

Dell intends therefore to apply the high value segment to penetrate the market and make a considerable impact. A considerable 40% of the total expenditure will be required to set up a place for the manufacture of the new product, which is the tablet. With the market growth rate being at 16.3% the industry seems to be in a cut throat competition with already established market that poses a great challenge to penetrate.

The company will have to utilize its strengths so as to make the product to have a lasting impression on the customers. Dell is a well renowned brand that has lasted for years and these can create trust to customers.

An excellent financial position and quality products are part of the advantages that it enjoys that can make it penetrate the market. Dell also has a strong management team that has made it possible to be renowned globally as both a manufacturer and a distributor.

However, Dell hopes to enter into new venture may be dealt a big blow if some considerations are not put into place. Its insistence of forecasting as a way of producing raises a lot of doubts and provides the possibility of inappropriate forecast that may lead to low production or excessive production. The changing trends of technology pose a threat to the existence of tablets and Dell as a company.

This is so because some products over time become absolute. The entry of other competitors in the same line of product will mean there is increased competition. This can even spill to these firms entering the market with low cost product that will mean that Dell product will lose considerable revenue.

Dell has depicted itself as a firm capable of providing the customer experience required and even capable of creating the so called dell effect . However, its lack of observation of the changing markets has made it lag behind other corporate that were behind them a decade ago. This revelation shows that it has indeed taken them time to study the market and realize tablets and smart phones were the current technology needed.

The fall of Dell in 2007 was disheartening but that should have built them to become even more powerful and more aggressive. Its strategic plan of a tablet is more of trying to capture a market that already has its owners. With Apple Ipad leading, Dell will have to contend with second fiddle as they try concentrate high value end. These may be downplayed by the fact that there is the Apple which provides quality.

With the ever looming threats of a new venture, Dell is aspiring to a venture that has risks and may be a failure. This though does not mean failing may be achieved but means that Dell have to put in more effort in convincing the customers to buy their products and further use their strong points to approach these new venture.

Introduction

Dell is the leading manufacturer of computers and computer accessories in the world. It has experienced a market growth over the past one decade. Moreover, the firm currently trades globally. Besides its main specialization, the company produces various electronics, especially personal computers and accessories.

This growth has forced this firm to rethink some of the best ways through which it can carry out its activities to achieve the best in the market that is getting increasingly competitive. As Ryan and Lee (2009) argue, business automation is the best way that Dell could use to overcome the many challenges in the market.

Automated processes are very important to the firm. In other words, the firm could perhaps utilize automation technology to increase its competitive advantage. The emerging technologies are very important, as they have made it possible for firms to computerize most of their processes. This has enabled such firms to cut operational costs (Curcin, Ghanem, & Guo, 2010)). In this article, the main interest is to determine the best-automated processes for Dells marketing department.

Automated Process at Dells Marketing Department

The marketing unit of Dell has the toughest task in the organization. The task of ensuring that the firm remains competitive in the face of stiff market competition is not an easy task. This unit should therefore consider automating some of the marketing activities in the organization.

One of the most current and very popular automated processes in the marketing department is the online marketing. This involves selling products through the companys website. Amazon has grown into a big firm with one of the strongest brands in the market, having perfected the art of online marketing. Dell should therefore move from brick and moter selling strategy to selling through the internet. Product promotion would be done online and the sales process would be completed online.

The chart below shows the stages that should be taken by marketing department in order to make the process successful. It is important to note that all the units identified in the chart below are units within the marketing department (Huser, Rasmussen, Oberg, & Starren, 2011). They are sections of the marketing department and their heads/managers report to the marketing manager. Nevertheless, the accounting and finance units also report to the marketing department. Logistics unit is answerable to the Logistics Department.

The above chart is a computerized process of Dell Company that would enable the customer to receive orders, deliver products, and receive payment electronically. The process given above assumes that customers have knowledge of the products they need. Customers might have acquired product information from various promotional points that the firm uses.

Others might have prior knowledge as regards to the existence of the product, having purchased the product earlier. Moreover, customers might be aware of the existence of the product through friends and relatives. As such, the process starts from the ordering stage.

Order Receipt

At this stage, the sales unit is expected to receive orders from customers. Customers would place their bids and the sales unit would receive the bids appropriately. Because the entire system is automated, orders would automatically be given order numbers to help in the identification process.

The order number would be sent to the customer at the processing stage, which would still be done by another section of the sales unit. This section would first confirm the availability of the product and the ability of the firm to deliver it to the customer within the desired time before sending the order number to the customer, which in essence, is a confirmation to the customer that the order will be delivered (Hacking, 2011).

The accounting unit will have the responsibility of authenticating the payment mode proposed by the customer. This would involve confirming the validity of the card. Furthermore, the accounting unit would as well confirm the validity of the payment mode. This unit would then inform the logistics unit that the customer is in a position to pay and therefore products could be delivered.

The logistics unit upon this communication would pack the product and transport it to the location indicated by the customer during the ordering process. When giving the logistics the green light to deliver the goods, the accounting department would simultaneously generate a bill that would be attached to the product being delivered. The logistics unit would have this as the main document to be presented to the customer during the delivery process.

Upon the receipt of the product, the finance unit is expected to effect the payment of the products automatically. The system would then generate a cash sale receipt to be electronically submitted to the customer via the email. The complete transactional information for the entire product should then be submitted to the Marketing Manager who should then compile the process to come up with comprehensive details of the sales process.

References

Curcin, V., Ghanem, M., & Guo, Y. (2010). The design and implementation of a workflow analysis tool. Philosophical Transactions of the Royal Society A: Mathematical, Physical, and Engineering Sciences, 368(1), 4193.

Hacking, I. (2011). An Introduction to Probability and Inductive Logic. Cambridge: Cambridge University Press.

Huser, V., Rasmussen, V., Oberg, R., & Starren, J. (2011). Implementation of workflow engine technology to deliver basic clinical decision support functionality. BMC Medical Research Methodology, 11(43).

Ryan, K., & Lee, E. (2009). Business Process Management (BPM) Standards: A Survey. Business Process Management Journal, 15(5).

In the competitive environment it takes huge sums of money, sometimes over long periods, for media campaigns to be really effective. DGS (Gaming System for Dell Computer) is an innovative product which needs creative and unique media campaign to attract potential consumers. Advertisers, on the other hand, should take the attitude that it is indeed possible to know what works, and what doesnt and why. As a result they can confidently reject attempts to obscure their inquiries or fob off their concerns about whether their advertising is working. Belief in the exclusive power and province of the tribal medicine man belongs to an era that has passed (Evans et al, 2004).

The media campaign budget will be based on purchase of media time and space. The main media selected for campaign are TV, press and the Internet. Also, the budget will involve all direct and indirect costs of the campaign. The budget should be aligned with the goals and aims of the campaign. The budget process sets up procedures (financial regulations) for authorizing expenditure and the headings under which money can be expended. The accounting system provides information on the levels of actual expenditure against budgeted expenditure. Taking into account experience and success of Dells competitor Sony, it will require $127M for media campaign. Dell should be able to get much more effectiveness out of their media campaign budget and out of working with their advertising agency And consumers should be able to accept, without necessarily feeling threatened, that advertising does influence which brands they choose, especially when it does not matter to them personally which brands they choose. Indirect costs will involve personal and administration costs. Usually, it takes 25% of the budget ($31,75M for Dell).

The appropriate media for the selected strategies and budget will be TV, press and the Internet. The main advantage of TV and commercials is that moving color pictures of actual scenes, people and products have a realism which his not possible via other media. Any effort is necessary for a viewer to absorb television advertising. Commercials will help to reach wide target audience and inform potential buyers about the new product. A television advertisement can be timed to the hour, day, week or program. The advertisement can be repeated every few hours, daily, weekly, etc. A special attention should be given to TV ads. One of the seductive attractions of 15-second commercials is that advertisers can get more repeat exposure for the same ad budget than they can with a 30-second ad (Evans et al, 2004).

Press is another powerful medium for a new product. This media is cost-effective where offering has broad appeal. It can create an impact and be persuasive. It allows more scope for testing than TV and can use advertorials  ad and editorial combined. The advantage of this medium is that it supports TV and the Internet and persuades potential buyers to try a new product. It can also offer postal response route.

The Internet medium is important for such product as a gaming system because many potential consumers are advanced Internet users looking for innovative products and solution via this channel. Web banner require low production costs; can use free banner ad exchange schemes or negotiate charges per click through; get more than a response (Evans et al, 2004).

Billboards and posters will be used in big cities around the country in order to ensure high response rate. Also, it is necessary to use repetition in promotion campaign because it is as important as the promotion itself. Research has shown that over 95 percent of people forget the exact message within six weeks of seeing it.

Budget for Dell Gaming System (Total budget  $127M)

References

Evans, M., OMalley, L., and Patterson, M., (2004), Exploring Direct & Customer Relationship Marketing, 2nd edition, London: Thomson

Dell gaming system will be positioned as a unique product proposing unique advantages and benefits to potential consumers. The positioning will be based on symbolic concepts: self-image enhancement and ego identification, sense of belongingness and social importance. The aim of positioning is to establish trustworthiness, confidence, and competence for customers. Personalization, innovation, and technology will be the core of positioning strategy. The buyer perception of benefit-generating attribute will be based on unique design and stylish image of the Dell gaming system appealing to a wide target audience. Dell should create a unique image of the game and a sense of belonging to new generation. Product peculiarity of new product is that the product design is its own form of positioning. This positing strategy will locate brand in the customers minds over other brands in terms of product attributes and technological benefits. The relationships between target markets will be based on brand perception and self image of consumers. Self-views of potential buyers arising from the individual level emphasize dimensions or attributes that are personally important and differentiate oneself from others. Their identity is based on personal experience and preferences, tastes and cultural values. For this reason, personalization will be the main attributes of positioning strategy. Personalization is a crucial or such products as gaming systems because a sense of belonging and personal image important factors for gamers which influence their decision to purchase and consume the product. (McDonald & Christopher, 23).

The advertisement must be informative enough to enable potential customers to make a decision to purchase. The objectives of marketing communication are (1) to locate the brand in minds of consumers, (2) to promote the new product, (3) to create a unique image of the product, (4) to persuade buyers try the product, (5) to position the product. The companys logo and marketing communication will appeal to customers persuading them to try Dell gaming system (McDonald & Christopher, 23). Effective positioning will differentiates each variety from the others. Also, Dell gaming system should take into account a frequently used benefit positioning strategy which exploits reliability and benefit positions. The objectives are to inform potential buyers about benefits and prices, uniqueness of the product and its features.

Also, the objective of marketing communication is to position Dell gaming system on the global scale. One of the main functions of global and international promotional activity is of course to influence the perceptions of the consumer. Dell gaming system maintained policy of product standardization in order to sell them around the world under the same brand. It will help to meet the needs of a particular customer and provide specific personal service for every supplier and customer. The objectives for Dell gaming system is to initiate co-operative marketing with agents and big retailers in the big cities around the country, to increase market share, to expand regionally with both media and sales personnel, to constantly achieve cost benefit through an expanding provider network. Press Releases will help to inform potential consumers about the product line and its advantages. Marketing mix will be based on on-line and offline advertising and promotion. In addition, marketing communication will help to educate consumers and sales personal about the product and announce news (McDonald & Christopher, 29). It will create awareness and attitudes, product preferences and a buying intention. These factors and views will help consumers to create a unique identity, distinguish what is a good and bad for them.

Works Cited

McDonald M., Christopher M. Marketing: A complete Guide. Palgrave Macmillan, 2003.

According to Mentzer, supply chain management is the follow-up process that an organization has regarding the production to the marketing of a product or service (Mentzer 2001). This process revolves around the transformation, movement, and storage of inputs and outputs in the production process. The overall aim of supply chain management is to build a competitive network and create a cohesive relationship between demands and supply in an attempt to measure performance.

In a highly globalized IT segment, different organizations use different supply chain management techniques to initiate strategic coordination and link the various production and marketing techniques to ensure consumer satisfaction. As found out by Singh, the process should be in line with global changes in demand and supply as well as changes in technology (Singh 2004). This adds value as well as reduces the cost incurred in production.

Dell Computer Corporation was founded in 1984 as a company dealing in computer systems. Dell Inc. initiated a marketing technique that sold products directly to consumers. The company uses this technique meaning that the companys products go through a shorter supply channel that is from the supplier, the manufacturer that is the company, and finally the consumers. This direct selling technique helps the company identify different market segments, analyze how profitable is a marketing segment and be able to develop accurate demand forecasts.

The customers of Dell order the companys products either through the phone or over the internet. The companys strategy is to provide cost-efficient but high-quality products that are delivered within the stipulated time frame. Dell Company does not incur the cost of intermediaries in the process of distribution of its products. This also helps the company save on time in processing orders. According to Klein, using this strategy, the company can identify current market trends and plan on future marketing strategies that help the company improve its supply chain management (Klein 2007).

In the early eighties, Walmart came up with strategies that saw the company implement tight supply chains solutions that helped the company become a leading player in the financial sector. Wall marts supply chain management is technology-oriented. This has helped the company overcome some of the supply chain management barriers that economists thought would be rather hard to break. Walmart through its supply chain management strategy can maintain low levels of inventory and still be able to meet consumer demand.

Wall Marts Company reaps the benefit of its superior supply chain management in that it establishes a competitive advantage over its competitors. The traditional labor and paper approach used by many companies today has been rendered ineffective due to the global changes in demand and supply. Wall marts superior supply chain management helps the company incur an oversupply of fad items thus all the companys resources are well accounted for.

Both of these supply chain management techniques are bound to change. This is because of the global market factors that affect supply and demand. According to Keller, the consumers of today are highly dynamic and are the driving factors of the market success of any organization(Keller 2007). It is therefore essential for all profit-oriented organizations to adjust their supply chain management to suit the customers. The business benefits from changes in the supply chain management techniques in that they can identify current market trends hence can predict an increase or decrease in demand.

References

Keller, K.L. (2007), Marketing Management, New York: Grada Publishing.

Klein, G. (2007) Strategic Marketing, New York: GRIN Verlag.

Mentzer, J.T. (2001), Supply Chain Management, New York: SAGE.

Singh, S. (2004), Market Orientation, Culture and Business Performance, New York: Ashgate Publishing.

Introduction

Desktop and laptop computer models are designed for business and consumer markets. It is expected that the business models should be superior, more robust, and should run and last for a longer period than the consumer ones. For business machines, critical care should be taken while choosing the machines to ensure that they serve all the business needs. This ranges from the warranty duration given, compatibility with other equipment, cost, quality, reliability, and the support services provided by the manufacturers (Avaren, 2012). This article will compare Dell and HP products and recommend the best model based on the suitability for business and consumer use.

A Comparison

According to Avaren (2012), HP machines are reliable in terms of Microsoft installations. Consumers find the service pack installations convenient and do not experience problems such as a machine failing to boot after a Microsoft service release is applied. Their services are also reliable, and they often deliver the expected parts within a considerable period. However, this service is varied. Business issues are responded to with more haste than consumer ones.

On the other hand, Dell machines have disappointed consumers on minimal occasions. These are situations where the machines simply could not give the expected results after software installation. Their support to both business and consumer clients is good, although consumers have at times been frustrated. This is common in cases where the shipping of parts or sending support technicians is required.

Quality is the main area of interest when purchasing a computer. The two brands are known to produce good quality machines, and consumers prefer these models over the rest of the models in the markets. However, Dell is lagging behind in terms of standardization. The manufacturing process has a few processes and is cheap. For instance, there have been cases in which two similar models of Dell have been found to have completely different motherboards. Dell has an incompetent, innovative product design that provides customers with various samples of the latest models. When consumers experience such a situation, their confidence in these products can be altered (Hitt, Ireland & Hoskisson, 2009).

In most cases, Dell offers machines with the same characteristics as those of HP at a lower price. This is very convenient for consumer needs, which may not be as demanding as the business ones. Low prices attract customers and win their loyalty if the products that they obtain serve their purpose adequately.

However, this may scare some business consumers who may view lower prices as a question of poor quality. Building a business system is a delicate issue because a minor malfunction may lead to reduced productivity, wasted resources, and business loss. Business organizations would rather go for expensive machines because this increases the confidence in their quality (Direct Laptops Guide, 2011).

When compared to the Dell models, HP computers offer better services in terms of quality, reliability, and support of the manufacturers. Although they are slightly expensive than their Dell counterparts, they guarantee customers an easy time while working with them. They exhibit fewer technical issues both in the software and hardware. Dell laptop machines have a plain simple look that is not as attractive as the glossy finish on the lid of most HP laptops (Avaren, 2012).

Conclusion

The choice of a computer is determined by the business or personal consumer needs. Some consumers may need a basic machine while others are specific, especially business clients who have many processes and procedures in the workplace. They are motivated by the support services offered, quality, and reliability. Preference is based on how these needs are met.

References

Avaren (2012). Desk top Computer Brand Comparison. Web.

Direct Laptops Guide. (2011). The Dell Vs HP Showdown. Web.

Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2009). Strategic management: Competitiveness and globalization : cases. Mason, OH: South-Western Cengage Learning.

Synopsis

The case study analyzes Dell’s initiative to recycle ocean-bound plastics and use them in their manufacturing process. The vice president of global operations, Piyush Bhargava, is leading the program. The innovation to use plastics from the ocean and areas where these materials had a high risk of moving to the water was presented to the company in 2015. Since then, Dell has developed a supply chain and established its priorities for the future.

First, the firm analyzed the sources of plastic waste, distinguishing Indonesia and India as locations with significant waste problems. Then, the company established that plastics that had been in the ocean are not fit for mass recycling and that the chain of disposal can be intercepted before the materials come into contact with water. As a result, by 2017, Dell has implemented its Asia-based supply chain, improved the sourcing costs, and manufactured packaging with 25% recycled plastic. The company’s future concerns lie with the growth of the initiative, future use options, additionality, and the consortium for innovation.

Analysis and Recommendations

Many companies, including Dell, are looking into problems such as plastic pollution due to several reasons. First of all, the rise of environmentally conscious consumer base urges businesses to consider the crises related to production and waste. Second, the issue of pollution is directly related to the firm’s goods, since laptops and computers use many layers of packaging. Dell has also been interested in innovation and customer support from the beginning, which aligns with the intentions behind the ocean plastic initiative. Large companies can address other major problems to attract and retain customers and develop better practices.

For example, the question of poor labor conditions in countries where most materials are sources is one of the major issues today. Another concern is the air and water pollution that occurs from the sourcing, manufacturing, and transportation of goods.

The primary risk of incorporating recycled plastics is the quality of the finished product. Packaging made from unstable plastics can result in it breaking or damaging the product inside. Similarly, goods may malfunction if the materials are not of the best quality. The benefits of using ocean plastic include greater corporate social responsibility, consumer engagement, potential resource and cost savings, and environmental support. Dell defines additionality as a process of moving towards the management of waste that encompasses all aspects of production. Through an initiative that improves education, livelihood, and the environment, while also driving demand for recycled plastics and supporting a circular economy, the company is close to achieving its goal.

To ensure a successful continuation of the project, Bhargava should push other companies to engage in the consortium, thus generating demand for recycled plastics. The company can update its commitment to recycling and propose a policy that would urge other manufacturers to do the same. The change in policy and the development of an open-source platform are long-term goals that will allow Dell to improve access to plastics and their recycling.

An expansion into other territories where ocean-bound plastic waste is a problem is a potential strategy for Dell. The analysis of such states as Thailand, the Philippines, and Malaysia can give Dell more resources. A short-term plan lies in an active marketing campaign to spread the message about plastic waste in oceans. Dell prides itself on customization and client input – including the audience in the conversation seems beneficial. A channel for customer feedback, for example, can help Dell discover which products customers want to see used for this project.

The question of finances is complex, as the current cost of using recycled plastics in all products is not better than that of using new material. Nonetheless, the company’s environmentally-conscious approach is worth pursuing since Dell was already able to lower the prices for ocean plastics. Furthermore, continuing innovation can contribute to a further decline in prices and open up new ways of engaging with the environment. All in all, this project creates a positive image of Dell. It allows Dell to capitalize on being a leader in an area that appeals to a broad technology-using demographic.

Introduction

The management of information systems in any organization is indeed an inevitable that cannot be ignored by an organization bearing in mind that the modern business world largely relies on the optimal flow of information as part and parcel of improving production.

It is also worth noting that information plays a key role right from the point of production up to the level of final consumption. While some organizations might find it unnecessary to establish and subsequently manage their information platforms, it goes without saying that such organizations indeed miss out on vast opportunities through which they can expand their operations on a day-to-day basis.

A case study of Dell Inc. and IBM Inc. in terms of information management is indeed typical of dissecting the relevance of thorough management of information systems in organizations. This paper examines Dell Inc. and IBM’s management of information systems to determine how it aids the two companies in managing internal operations, making decisions and gaining a competitive edge.

A brief background of IBM and Dell Inc.

IBM has developed into a formidable company that employs information system in conducting both internal and external business operations for many years. Studies reveal that IBM’s historical development began can be traced back to a time when the use of technology in business had not been fully realized. Research indicates that the company was began and set out to operate as a as a

Tabulating Machine Company. Under the leadership of Hollerith Herman towards the close of 19^th century (1896), studies reveal that the company’s line of specialisation and products was in the development of punched card data machines.

Its products were widely sold and bought in both local and global markets, a consideration that was driven by massive marketing campaigns and better business strategies. It is imperative to point out that the demand for tabulating machines and application of new technology to make quality and efficient products grew by leaps and bounds thereafter.

The 1896 punched cards gave the impetus for the generation of machines which would later be referred to as IBM. However, in 1911, the business exchanged hands when Charles Flint bought it at slightly over two million dollars. This enabled the original founder of the company to develop Computing Tabulating Recording Corporation (CRT) which was later incorporated on 16^th June 1911.

On the other hand, the multinational American computer technology corporation (Dell Inc) was formed back in 1984 and has over the years developed and grown in its application of technology to develop support and sell quality computer products and computer related services.

Its leadership and management team have ensured effective application of information systems, a consideration that has seen the company attain a competitive edge over others and emerge as o0ne of the largest technological corporations in the world today. Some of its products that have dominated the market include software, data storage devices, servers, computers, network switches, printers, cameras and HDTVs.

Over the years; IBM and Dell have been able to manage effectively their operations and information systems through mergers. According to recent studies, the need and articulation of mergers in Dell and IBM is based on their holistic need to formulate a common unit which guides their operations mainly through assimilation of common objectives.

The management both companies as noted by Rao (2010), sought to establish a highly integrated system where key players were represented in the management. Particularly, these companies formed the major baseline and therefore determined the model that would be followed in running the widely spread system. Besides, the structure was further expanded to smaller holding companies which were equally affiliated to the different mother countries.

Comparison of Dell and IBM’s use of information systems in management

At a time when the business trends are increasingly becoming reliant on the global market dynamism which is driven by an ever-changing consumerism patterns, effective management of information systems remains the most critical aspect that can guarantee a business’ success. Studies indicate that the emergence of the computer system and its subsequent adoption in mainstream business circle is one of the key developments in business.

It is worth noting that the systems that have been developed to aid organizations in meeting their information needs and approaches to development of strategies in the current business environment have developed due to availability of information (Rao, 2010). Information systems are therefore a critical factor in the current business environment whose role in ensuring that the needs of the society are accurately addressed makes it vital to operational success.

Effective management of Information systems has taken a fundamental position in modern business operations. As a matter of fact, it has led to the simplification of tasks and speeding up of business transactions thus leading to sustainable profitability.

Both Dell and IBM have form many decades used their information systems to mange their internal operations and make key decisions that impact positively on their success. Studies reveal that one of their objectives in managing their information systems is assure their investments in IT to generate business value (IBM 100, 2012).

This has ensured that their information systems provide the required services throughout its life span thus meeting the needs of all users, particularly the critical ones. For instance, Dell has invested huge finances in IT system expecting to reap the benefits associated with it (Dell, 2012). It is worth noting that effective management of its information systems has continued to provide it with numerous operational benefits.

Studies indicate that success of adopting and using an information system in organizations is dependent on a system selection process. The system Dell has selected has been designed in a way that ensures that the organizational objectives are timely met and the system adopted has a long lifespan.

Developments in both computing and internet technologies have mainly been aimed at ensuring greater operational stability, improving the speed of the transactions and ensuring security. Most new technologies apart from adding to functionalities are generally aimed at ensuring greater speeds and dealing with security threats that are faced by previous architecture.

Many are aware of the application of e-commerce systems though few are aware of its internal systems and fewer have mastered the art of efficiency in implementation of e-commerce systems (IBM 100, 2012).

The management of information systems at Dell and IBM in internal operations and decision making have been designed in such a way that they seek to generate value within the businesses. The use of information systems in decision making has led to its being cited as a strategy which can be implemented in three distinct stages; production, processing and reception that are interdependent on each other.

Their communication strategies, appraisal and even promotional strategies have been effectively carried out with the aid of information systems (MBA Knowledge Base, 2012). There is no doubt that the role played by information systems in theses companies in generating value and as a platform for implementing organisational operations cannot be ignored.

The managements at Dell and IBM have ensured that procedures, policies and even standards have been developed with the sole aim of developing a clear approach employed by manufacturers in developing their systems which has played an important role in ensuring the development of more robust systems (IBM 100, 2012). Over the years, their operating system designs, security system designs and even the role played by information have transformed and presented security as one of the key threats that they face in developing an e-commerce presence.

Awareness on the role played by information system in their security is not a recent development in their business segments rather it is one of the key areas that they have guarded jealously over the years. Besides, they have traditionally guarded their strategies against competition and kept their finances in well guarded safe houses and accounts due to awareness on insecurity (Rao, 2010).

One of the major problems that IBM encountered before fully adopting information system in decision making was brought by its increasing consideration to promote high level focus and raise the value outlined in its vision. Even with its organisational structure of five discrete divisions that handled strategy and change in the organisation, the initial dilemma of decision making in all its operations appeared to continuously haunt the company (IBM 100, 2012).

The primary objective was to focus on growth opportunities available for it. However, the steps to follow in achieving this strategy were unclear to the management and the company as a whole. To effectively assimilate a clear outline that would enhance the ability of the company to maintaining a stronger competitive advantage, information systems applications based on growth standards were established with target being set at high profitability (MBA Knowledge Base, 2012).

As studies reveal, living to the same status generated vast pressure to the company and its structures. The outcome of this pressure led to decentralization of information systems in the company. However, at the initial stages, managing the assimilated information system was still problematic to handle the new transformation demands (IBM 100, 2012).

Competitive advantage

It is worth noting that management of an organization’s information technology strategy for decision making and managing internal operations is essential in determining how well an organization articulates the main procedures.

It was from this consideration that Information and Communication Technology managers at both IBM and Dell were able to focus on effective strategy that consisted of major concepts like global standardization which was later built on to promote growth and development. The strategy entailed change articulation in all the systems to infer the necessary re-alignments that dictate its overall ability to capture and edge out the correct niche that can give it a competitive advantage over others in the market (Dell, 2012).

The ability to address complex situations was harmonized at the management level and articulated in the most viable option that facilitates higher returns. Clear implementation of information system strategies as exemplified by Dell and IBM must therefore precede all aspects of management that have higher chances of enhancing greater returns.

In IBM, the use of information systems is crucial for decision making on short and long term strategic planning for the corporation so as to realize growth, seize opportunities, strategising change within the organisation as well as maintaining high profile market competition in order for the organisation to remain profitable. Besides, it is also used for communication with the Customer Relationship Management that handles all customer related queries such as general inquiries and complaints.

In Dell, the communication and organization of the Supply Chain department is effectively conducted via the use of information systems. This aid it in the efficient distribution of Dell products and services from manufacturing points to the target market. In addition, it is also used in financial management responsible for all the monetary or financial matters of the corporation (MBA Knowledge Base, 2012).

Organizational consequences of the use of information technology potential security breaches

It is important to note that the challenges that businesses are faced with in operations that are a result of their internal systems and changes within their macro-environment are commonly perceived as threats. The security of a business relying on technology can be looked at from both strategic viewpoints and as component of information systems.

There are multiple threats that Dell and IBM face in implementing their information systems which present a large number of factors that have to be considered in formulation. A research that sought to determine the areas that business lack in developing their strategies points to the lack of awareness on the threats that businesses face in formulating strategies as being central to a number of security breaches that are being recorded in e-systems (Rao, 2010).

Various reasons have been cited as being central to the vulnerabilities that systems and even applications display. Though there have been numerous developments in computing, secure programming techniques are yet to be well developed.

Most applications are developed in a manner that does not place priority on security of the resulting package. The commercialisation of software development effectively implies that software packages are developed in a rush to meet deadlines owing to the high level of competition that is being displayed in software development.

Research have identified highly competitive Dell and IBM e-commerce segments as potential breeding grounds for application that have been developed for the sake of competition and place no emphasis on security of applications which plays a role in determining the level of usability that can be attained by the developments (MBA Knowledge Base, 2012).
Some of the security threats that may face

Viruses

Viruses are computer programs that easily copy and infect a computer without the owner’s knowledge. Due to the fast growth of use of technology, viruses have become a major problem to businesses that rely on computer systems to manage information systems as they adversely affects the hosts’ computers causing massive malfunctioning in them.

Some of the most important viruses that may impact on information systems operations at IBM and Dell include resident viruses like W32-Randex, Dloadr-CMJ, and Elvirus which dwell in the RAM and corrupts the files from there to the programs that are either copied, opened, or renamed in the computer.

Perhaps one of the most important aspects that these companies can resort to limit insecurity is the understanding of how to address the virus threats (MBA Knowledge Base, 2012). Owing to the fast developing technology and globalization that threatens to consume the same world that it operate in, there is need to generate the necessary guarantee that can secure businesses operations systems.

It has been predicted that viruses will continue being a major threat to e-commerce as competitors seek to gather competitive advantages in the market. Stronger technology should therefore be constantly sought to generate the correct traces for the viruses and destroy them before they affect and cause malfunction of the businesses systems (IBM 100, 2012).

Trojan Horses

A Trojan horse is a destructive program that masquerades to majority of the computer programs mostly as benign application. To infect the computers, Trojan Horses claims to get rid of the computer viruses but instead introduces them to the system. Trojan horses occur in seven different forms that are classified based on their breaching and damage that they affect in the system (Rao, 2010). To begin with, Remote Access Trojan usually hides in the smaller programs and wait for activation of the PCs to affect their damages.

Data Sending Trojans provide attackers with very sensitive information such as log file, passwords, Instant Messaging contacts, and Credit card information. In most of the cases, these Trojans seek particular information by installing key loggers and sending the records to the attackers (Dell, 2012). According to Rao (2010) Data Sending Trojans are some of the most dangerous threats to the on-line businesses globally.

In order to affect the smooth functioning of information systems at Dell and IBM, the destructive Trojans will delete files of the attacked computers. Just like the Data Sending Trojans, Destructive Trojans causes great inconveniences and losses to the involved businesses when their respective information on their transactions and accounts are lost (MBA Knowledge Base, 2012). A vivid chance will indeed be given to the attacker by a proxy Trojan. As a result, there are quite a number of transactions that will be effected by this kind of attack.

For instance, an entire business system may be affected by a single wave o Trojan attack. In addition, there are other forms of Trojans that may interfere with any well established security system and as a result, be able to gain access to important and discrete data in an organisation (IBM 100, 2012). In this respect, they stop or kill the programs like antivirus without the user’s knowledge. Finally Denial of Service Trojans attacks a network by flooding it with useless programs that are not authorized by the owner of the computer.

Conclusions

To sum up, it is clear that at a time when the business trends are increasingly becoming reliant on the global market dynamism which is driven by ever-changing consumerism patterns, effective management of information systems remains the most critical aspect that can guarantee a business’ success. IBM and Dell are some of the leading companies that have greatly relied on information systems to make important decision and carry out effective internal operations.

Information systems as brought out in the discussion have played a key role in creating a competitive edge for the two companies. However, issues of security and threats related to use of modern technology have presented immense fears on possible attacks which may affect the smooth operations of the businesses.

References

Dell (2012). Data Center Systems Management. Web.

IBM 100 (2012). Information Management System. Web.

MBA Knowledge Base (2012). Case Study: Management Information System at Dell. Web.

Rao, L. (2010). IBM Buys Information Management Software Company PSS Systems. Web.

Introduction

International Business Machines (IBM) and Dell Inc. are American multinational information technology corporations which deal with electronic goods and services laptops, software, and electronic accessories; changes in contemporary business environments have seen the companies enact different strategic management policies. This paper discusses changes on research and development expenditure, earning per share, and net income.

Research and development

IBM has consistently showed a decrease in the amount of expenses spent on research and development; the reason behind the move was that the company has concentrated more on consultancy services than developing new hardware and software. When a business reduces its research budget marginally over a period of time, it means its taking advantage of the innovations and inventions it had made in the past.

IBM has been a leader in the electronics world thus the decision to conduct minimal research with time can be interpolated as a move to first fully benefit from previous research and development programs or there are some reports that the company is working on.

Dell showed increases from year 1 to 2, 2-3, and then from year 3-4 there was the most amount spent on the research and development; during this time, the world economic situation was not favorable for business (the world was suffering from global financial crisis).

Other than the situation, there was high competition of other electronics companies like Apple Inc and Lenovo, Dell needed to beef-up its research and development programs to compete effectively. The increase in research and development expenditure is likely to be on marketing and products development.

Net Income

IBM shown continuous increase in its net income over the five years under review; the increase can be attributed to increased sales and high gross profit margin. The business strategy adopted by IBM is one that maintains current sales level and aims at increasing its sales steadily.

On the other hand, the net income of Dell shown a decline overall with a big drop-off in year four but recovered in year 5; the decrease can also be traced in its sales revenue and gross profit margin. The probable fall of the company’s net profit can be attributed to high competition in the industry; its recovery in year five can be attributed to the results of its aggressive research and development strategies.

Earnings per share

IBM showed a 187% increase from year 1-5 in basic earnings per share and a 189% increase in diluted during that same time; the performance can be attributed to its growth in profit over the period of time and net income available to common shareholders. The increase is an indication of good performance by the company where it has embarked on using owners funds other than borrowed ones.

Dell on the other hand only showed a 118% increase in basic earnings per share and Diluted during that same period of time; the increase is steady but when compared with one recorded by IBM it is wanting.

The company is likely to be suffering from financial deficits as use of preferred stocks seems to remain constant; when considering the fact that the company has had decreasing net incomes, the increase in EPS can be attributed to either decreased shareholding or decrease in dividends paid to preferred stocks holders.

Conclusion

Contemporary business environments have affected the information and technology companies differently; IBM management strategies has enabled the company grow it financial base stronger than Dell Inc. since 2007. This can be attributed to its responsive decisions made by the management from time to time.