Dell Computers Essay

887 words - 4 pages

Dell Computers Spin Out of Control

Problem Statement

Dell Computers requires a new and effective control strategy because of falling behind in product innovation and customer service.
Analysis and Evaluation

The original business model of dell computers allowed the company to obtain certain controls when it originally started its “value priced” business model early in the company’s conception. The company’s efforts to control costs by selling and shipping directly to the customer was one of the tight controls that ensured the early success of the company. There were other controls, such as flexible manufacturing for low-cost customization, and just in time inventory that held ...view middle of the document...

It seemed as if Dell Computers had a problem with innovation and keeping up with new technology and new products such as, Smart TVs and the new iMac. The company also seemed to be having problems and other issues with its customer service department. Our reading tells us that you should establish valid performance standards when designing effective controls systems. In the case of Dell computers, it seems as if they missed a step or two. When designing an effective control system there are a few things that need to happen in conjunction with establishing the valid performance standards. Managers should also provide adequate information to employees, ensure acceptability to employees, maintain open communication, and also use multiple approaches to accomplish whatever goals or tasks that the company is working towards (Bateman, Snell 2015). Dell lost touch with currency of products and innovation of technology, so they attempted to take measures to correct the issues at hand. Michael Dell reinstated himself as CEO, and at the same time, replaced his Chief Marketing Officer. The company said that they were going to make big changes over the following couple of years. Dell made an attempt to roll out a few new lines of products such as notebooks and a pocket size projector, but they were not having the success that they thought they would have. The company was having problems keeping costs down while trying to expand business, so the controls that they put into place were not working. The introduction of new products and expanding business proved to be too expensive for Dell and like always, what...

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