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Essay / Dell's Strategic Management Plan - 1173
Dell, Inc. began in 1984 when Michael Dell, a student at the University of Texas, began building computers for his fellow students under the name PCs Limited (Edwards, 2007). Over the next decade, Dell experienced phenomenal success as it continued to grow through catalog and enterprise sales (Hunger, 2006). Dell made technology affordable and thus became a fierce competitor in the computer technology industry. However, the company's disorganized structure could barely support this impressive growth. There are three specific performance measures that I would have included in Dell's strategic management plan if I were running Dell. Additionally, I would include behavioral and production controls in the control system to regulate organizational activities to ensure that they conform to company performance standards. Dell, Inc. pursued an aggressive growth strategy that was met with equally aggressive customer demand. Dell delivered a quality product at a reasonable price and this value Dell created for its customers was initially unmatched by competing IT companies. In fact, Dell saw an opportunity to expand its product line to include things like printers and software. The company's sales increased from $389 million in 1989 to $2.9 billion in 1993 (McGraw, 1994). However, the management structure did not evolve with the company (McGraw, 1994). Financial results were not analyzed properly and the company was not managed strategically (Hunger, 2006). Dell's management team decided to slow its growth initiatives in part by eliminating retail sales of its products (Hunger, 2006). This decision created three separate problems for the company. First, customers were unhappy that the middle of paper ......management (6th ed.). Mason, OH: South-Western Cengage Learning. Edwards, O. (August 2007). Baby Dell. Smithsonian, 38(5), 34-36. doi:131320451Faim, DJ (2006). Dell, Inc. In T. L. Wheelen & J. D. Hunger (12th ed.), Strategic management and business policy (pp. 31-1 – 31-5). Upper Saddle River, NJ: Prentice Hall. Matthews, J.R. (2011). Assessing organizational effectiveness: The role of performance measures. Library Quarterly, 81(1), 83-110. Taken from EBSCOhost. McGraw, D. (1994). The child responds. US News & World Report, 117(23), 70. Retrieved from EBSCOhost. Rogers, B. (2006). High performance is more than a dream: it is a culture. T + D, 60(1), 12. Retrieved from EBSCOhost. Wheelen, T.L. and Hunger, J.D. (2012). Strategic management and business policy: towards global sustainability (13th ed.). Upper Saddle River, New Jersey: Prentice Hall.