Quiz 6: Managing Change: Innovation and Diversity
Business
Q 1Q 1
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
How does the systems effect relate to the four types of change?
Free
Essay
Change is driven by environment and management functions. When internal or external environment change, organization need to adapt to those changes. Managers implement plans as part of their day to day functioning and that leads to change. Changes are of four types: Change in strategy, change in structure, change in technology and change in people. Change in strategy refers to an organization deliberately changing its business strategy to exploit the external environment. The change may be at corporate, business or functional level and may be in response to environmental factors. Change in structure refers to changes in organizational structure like departmentalization, chain of command, responsibility and authority and coordination. Change in structure typically follows change in strategy. Change in technology refers to changes made in the system, process, machines, level of automation and IT infrastructure deployed by the organization to achieve its business objective. Change in people refers to changes in skills and performance level of people, attitude and behaviors, changes in culture. These four types of changes are interrelated. Together they form the system that organization has deployed to achieve its objective. Change in strategy A change in organization cannot be effected without change in people. When an organization implements new strategy to enter new products, it plans changes in skill level of the employees to design and service new product. Attitude and behavior of people may need to change to tackle entry into new market or new geography where employees would be dealing with entirely new types of clients. A change in strategy to design new product would also entail change in technology. New technology deployed to make new product has to fit into existing technology infrastructure of the company. Organization structure would change to accommodate new division. Change in people Change in people may affect strategy, structure and technology. An example of such change is changing attitudes of new generation towards its use of technology and work life balance that leads organization to adopt latest technology like e-mails, web conferencing and virtual offices. This would lead to change in structure and reporting hierarchy also that would cut several layers of management. Changing attitude of people may lead to change in strategy related to how company structure and deploy its resources and how it can use new attitudes and behavior to exploits market opportunities. Change in technology Similarly change in technology like implementing a new IT infrastructure may reduce several layer of management and thus change structure. Implementing new technology may lead to changes in strategy as new, better and faster resources would be available at organizational disposal to exploit market opportunities. This may also lead to changes in people as people would be retrained and develop new skills. Change in structure If organizational structure is changing in terms of altering the existing chain of command, departmentalization, responsibilities and authority, this would lead to changes in peoples attitude and behavior as they would have to adjust to new type of set ups. Technology needs to be realigned to adjust to new structure. Such changes may require change in strategy itself or may follow change in strategy. As is obvious form above discussion, one type of change affects all other types of change. This is the system effect. Types of changes does not work in isolation but is related as the system wherein change in one leads to changes in other.
Q 2Q 2
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
The pressure for Michael Dell to change Dell's business strategy is coming from the environment.
A) internal
B) external
Free
Multiple Choice
Change can be driven by environment and management functions. When internal or external environment change, organization need to adapt to those changes. Sometimes, managers use their own judgment and alter strategy and plans as part of their day to day functioning and that leads to change. Example of internal changes could be shift in on objectives of the organization, change in senior management including new leadership taking over, and internal drive to improve productivity, efficiency and profitability. These factors would drive organization to embark of change program by changing strategy employed by the organization. It is obvious form the case study that these are the not factors that are driving change in Dell. Hence, change in Dell was not driven by internal factor. Choice a. is incorrect. Change can also be driven by external environment. Such changes would refer to changes in consumer preferences for goods and services, actions of the competitors, changes in economic environment and changes in regulatory frameworks. From the case study, it is obvious that competitors of Dell embarked on a series of strategies to bolster their performance. Consumer preferences also changed as a result of advancement in technology. Dell did not keep pace with such changes. Hence, change in Dell was driven by external factor. Choice b. is correct.
Q 3Q 3
Objective
To improve your skill at identifying resistance to change.
Skills
The primary skills developed through this exercise are:
1. Management skill - decision making (conceptual, diagnostic, analytical, and critical-thinking skills are needed to understand resistance to change)
2. AACSB competency - analytic skills
3. Management function - organizing
Preparing for Skill Builder 1
Below are 10 statements made by employees who have been asked to make a change on the job. Identify the source and focus of their resistance using Exhibit 6-4. Because it is difficult to identify intensity of resistance on paper, skip the intensity factor. However, when you deal with people on the job, you need to identify the intensity. Place the number of the box (1-9) that best represents the resistance on the line in front of each statement.
1. "But we never did the job that way before. Can't we just do it the same way as always?"
2. The tennis coach asked Jill, the star player, to have Louise as her doubles partner. Jill said, "Come on, Louise is a lousy player. Betty is better; don't break us up." The coach disagreed and forced Jill to accept Louise.
3. The manager, Winny, told Mike to stop letting everyone in the department take advantage of him by sticking him with extra work. Mike said, "But I like my coworkers and I want them to like me, too. If I don't help people they may not like me." 4. "I can't learn how to use the new computer. I'm not smart enough to use it."
5. The police sergeant asked Chris, a patrol officer, to take a rookie cop as her partner. Chris said, "Do I have to? I broke in the last rookie. He and I are getting along well."
6. An employee asked Chuck, the manager, if she could change the work-order form. Chuck said, "That would be a waste of time; the current form is fine."
7. Diane, an employee, is busy at work. Her supervisor tells her to stop what she is doing and begin a new project. Diane says, "The job I'm working on now is more important." 8. "I don't want to work with that work team. It has the lowest performance record in the department."
9. A restaurant worker tells the restaurant manager, "Keep me in the kitchen. I can't work in the bar because drinking is against my religion."
10. "But I don't see why I have to stop showing pictures of people burning in a fire to help get customers to buy our smoke detector system. I don't think it's unethical. Our competitors do it."
Apply It
What did I learn from this experience? How will I use this knowledge in the future?
________________________________________________________________
________________________________________________________________
Your instructor may ask you to do this Skill Builder in class in a group. If so, the instructor will provide you with any necessary information or additional instructions.
Free
Essay
Change is driven by environment and management functions. Organization needs to adapt to internal or external changes. Managers implement plans as part of their day to day functioning and that leads to change.
Most of the failure in implementing change is owing to employees resisting change. There are three major sources of resistance and three major focus of resistance. This gives nine possible types of resistance to change.
Sources of resistance to change are facts about impending change, beliefs based on subjective opinions and values system about what is wrong and right. Focus of resistance to change are self which related to how change is going to affect the employees, others which relates to how it is going to affect other people and work environment which relates to physical setting of the work environment itself. A combination of one focus and one source would make one type of resistance of change.
Given statements are classified based on sources and focus of change.
Statement 1: It is a fact that this work was never done before by the team. Note that statement is not about oneself or others but about the team. The statement indicates focus on work environment. Hence, source of resistance is fact and focus of resistance is work environment.
Statement 2: It is the belief of person J that person L is not as good as person B. The belief is about others, that is person L and person B. Hence, source of resistance is belief and focus of resistance is others.
Statement 3: Person M believes that he must help others so that they like him. This is his value system that encourages him to help others to be likable. The value system is about himself. Hence, source of resistance is values and focus of resistance is self.
Statement 4: Person making the statement believes that he is not smart enough to learn how to use computers. The belief is about himself. Hence, source of resistance is belief and focus of resistance is self.
Statement 5: It is a fact that person C broke in the last rookie. She is also getting along well with him and hence it relates to her. Hence, source of resistance is fact and focus of resistance is self.
Statement 6: Manager believes that current form is fine. This is about belief system of employee and manager. The focus is a form which is work environment. Hence, source of resistance is fact and focus of resistance is self.
Statement 7: Person D believes that what she is doing is more important than what her manager is asking her to do. This is about belief. The belief is about work that is being performed and that needs to be performed.
Hence, source of resistance is belief and focus of resistance is work environment.
Statement 8: It is a fact that team in question has the lowest performance record in the department. Since person making the statement does not want to work in the team, it is about self. Hence, source of resistance is fact and focus of resistance is self.
Statement 9: Since drinking is against one's religion, it is about value system. Value system is driving the person to keep away from a job in the bar. Hence, source of resistance is values and focus of resistance is self.
Statement 10: Person thinks that showing picture of people burning in a fire to sell smoke detector system is unethical. He is driven by his value system. Since even competitors of the company do it, it is about work environment.
Hence, source of resistance is values and focus of resistance is work environment.
The source and focus of resistance for each of the statements above can be presented in the table below. First column refers to the statement. Second column gives the source of resistance. Third column mentions the focus of resistance.
Last column mentions name of the resistance.
Most of the failures in implementing change arise from employees resisting change. There are several reasons for resistance of change. There are also many ways that an organization can use to overcome the resistance to change.
Analyzing the source of resistance and focus of resistance help determine the exact reason for resistance and help tackle the resistance. This exercise helps to analyze a situation and determine the source and focus of resistance. This exercise would be useful in analyzing situations where there is resistance on part of employees, colleagues and juniors.
This would also help in responding to such the situation appropriately.
Q 4Q 4
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Which type of change is the most important?
Free
Essay
Q 5Q 5
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
In order to better compete with its rivals, Dell has had to implement a change in
A) strategy
B) structure
C) technology
D) people
E) all of these
Free
Multiple Choice
Q 6Q 6
Objective
To become more aware of and sensitive to diversity.
Skills
The primary skills developed through this exercise are:
1. Management skill - decision making (conceptual, diagnostic, analytical, and critical-thinking skills are needed to understand diversity)
2. AACSB competency - multicultural and diversity understanding
3. Management function - organizing
Answer the following questions
Race and Ethnicity
1. My race (ethnicity) is __________________.
2. My name, __________________, is significant because it means __________________. [or]
My name, __________________, is significant because I was named after __________________.
3. One positive thing about my racial/ethnic background is __________________.
4. One difficult thing about my racial/ethnic background is __________________.
Religion
5. My religion is __________________.
6. One positive thing about my religious background is __________________.
7. One difficult thing about my religious background is __________________.
Gender
8. I am ______________ (male/female).
9. One positive thing about being (male/female) is ______________.
10. One difficult thing about being (male/female) is ______________.
Age
11. I am ______________ years old.
12. One positive thing about being this age is ______________.
13. One difficult thing about being this age is ______________.
Other
14. One way in which I am different from other people is ______________.
15. One positive thing about being different in this way is ______________.
16. One negative thing about being different in this way is ______________.
Prejudice, Stereotypes, Discrimination
17. If you have ever been prejudged, stereotyped, or discriminated against, describe what happened.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
Apply It
What did I learn from this experience? How will I use this knowledge in the future
________________________________________________________________
________________________________________________________________
Your instructor may ask you to do this Skill Builder in class in a group. If so, the instructor will provide you with any necessary information or additional instructions.
Free
Not Answered
There is no answer for this question
Q 7Q 7
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Do you believe that organizational change today is more incremental or radical?
Free
Essay
Q 8Q 8
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Dell's shift in its business strategy is an example of change.
A) incremental
B) radical
Free
Multiple Choice
Q 9Q 9
Objective
To better understand the need for change, resistance to change, and how to overcome resistance.
Skills
The primary skills developed through this exercise are:
1. Management skill - decision making (organizing requires conceptual skills)
2. AACSB competencies - analytic skills and reflective thinking skills
3. Management function - organizing
Preparing for Skill Builder 3
As an individual, group, or class select a change you would like to see implemented at your college. Answer the following questions and conduct a forcefield analysis.
1. State the change you would like to see implemented.
________________________________________________________________
________________________________________________________________
________________________________________________________________
2. State which of the four types of change it is.
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. Identify any possible resistance(s) to the change.
________________________________________________________________
________________________________________________________________
________________________________________________________________
4. Select strategies for overcoming the resistance(s).
________________________________________________________________
________________________________________________________________
________________________________________________________________
5. Conduct a forcefield analysis for the change. In the space below, write the present situation in the center and the forces that hinder the change and the forces that can help get the change implemented, using Exhibit 6-8 as an example.
Hindering Forces Present Situation Driving Forces
Apply It
What did I learn from this experience? How will I use this knowledge in the future?
________________________________________________________________
________________________________________________________________
Your instructor may ask you to do this Skill Builder in class in a group. If so, the instructor will provide you with any necessary information or additional instructions.
Free
Not Answered
There is no answer for this question
Q 10Q 10
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Which stage of the change process is the most difficult to overcome?
Free
Essay
Q 11Q 11
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
What stage in the change process was Dell in during the mid-2000s when it refused to acquire new companies in order to compete against HP, Apple, and IBM?
A) denial
B) resistance
C) exploration
D) commitment
Free
Multiple Choice
Q 12Q 12
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Which of the reasons for resisting change do you believe is most common?
Free
Essay
Q 13Q 13
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
In branching out into services, software, and new hardware categories, Dell is at what stage in the change process?
A) denial
B) resistance
C) exploration
D) commitment
Free
Multiple Choice
Q 14Q 14
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Which of the seven ways to overcome resistance to change do you believe is the most important?
Free
Essay
Q 15Q 15
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Dell is innovative.
A) true
B) false
Free
Multiple Choice
Q 16Q 16
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Does creating urgency really help to get people to change? Give at least one example to support your position.
Free
Essay
Q 17Q 17
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
With the implementation of its new business strategy, Dell is undergoing ____ innovation.
A) product
B) process
C) both product and process
Free
Multiple Choice
Q 18Q 18
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Do you consider yourself to be a creative and innovative person? Why or why not?
Free
Essay
Q 19Q 19
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Dell is currently at which stage of Lewin's change model?
A) unfreezing
B) moving
C) refreezing
Free
Multiple Choice
Q 20Q 20
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
How has diversity affected you personally?
Free
Essay
Q 21Q 21
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Which of the organizational development interventions could Dell most benefit from?
A) training and development
B) sensitivity training
C) team building
D) process consultation
E) forcefield analysis
F) survey feedback
G) large-group intervention
H) work design
I) direct feedback
Free
Multiple Choice
Q 22Q 22
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Should men help break the glass ceiling and promote more women to top management positions? Why or why not?
Free
Essay
Q 23Q 23
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Use the five steps of the comprehensive change model to explain how Dell is changing its business strategy.
Free
Multiple Choice
Q 24Q 24
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Should the government get involved in breaking the glass ceiling? Why or why not? If yes, what should the government do?
Free
Essay
Q 25Q 25
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Cumulative Case Questions
Discuss Michael Dell's management functions in implementing Dell's new business strategy.
Free
Multiple Choice
Q 26Q 26
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Do you believe that it is acceptable for people who work together to date each other?
Free
Essay
Q 27Q 27
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Cumulative Case Questions
What external environmental factors were most influential in Dell changing its business strategy?
Free
Multiple Choice
Q 28Q 28
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
Do you have a mentor? Why or why not? If not, will you get one?
Free
Essay
Q 29Q 29
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Cumulative Case Questions
What type of grand strategy is Dell pursuing?
Free
Multiple Choice
Q 30Q 30
The following critical-thinking questions can be used for class discussion and/or as written assignments to develop communication skills. Be sure to give complete explanations for all questions.
As a manager, which, if any, OD interventions would you use?
Free
Essay
Q 31Q 31
Dell is a multinational information technology corporation based in Round Rock, Texas, that develops, sells, and supports computers and related products and services. Bearing the name of its founder, Michael Dell, the company is one of the largest technological corporations in the world, employing more than 96,000 people worldwide. From its early beginnings, Dell operated as a pioneer in the "configure to order" approach to manufacturing- delivering individual personal computers (PCs) configured to customer specifications. In contrast, most PC manufacturers in those times delivered large orders to intermediaries on a quarterly basis. To minimize the delay between purchase and delivery, Dell has a general policy of manufacturing its products close to its customers. This also allows for implementing a just-in-time manufacturing approach, which minimizes inventory costs. Dell's manufacturing process covers assembly, software installation, functional testing, and quality control.
For years, Dell had the largest share of the PC market over rivals Hewlett-Packard (HP), Apple, and IBM. By 2005, Dell was valued at $100 billion-more than HP and Apple combined! However, that all changed in the late 2000s as Dell fell on hard times. While HP, IBM, and other rivals transformed themselves by acquiring new companies and capabilities, Dell long stuck with its old playbook of cranking out PCs as efficiently as possible. Corporate PC sales began slowing, while HP began pulling consumers into stores-and away from Dell-with its stylish notebook PC designs. Dell suffered the consequences. It lost its position as the largest PC maker in the world to HP, and profits tumbled. Dell's net income dropped 28 percent in 2007 and by 2009, Dell's net worth was $30 billion-less than a third of its rivals' market values.
To help Dell turn its fortunes around, CEO Michael Dell has been making sweeping changes to Dell's business strategy. Dell has focused the company's shift in strategy in four areas: distribution, innovation, acquisitions, and management.
• Distribution. Dell used to undercut rivals on price by selling PCs directly to businesses and consumers. Now Dell is broadening its distribution, selling through retailers such as Best Buy and Wal-Mart and wireless companies like AT T to appeal to a wider audience.
• Innovation. Dell used to rely on Microsoft and Intel for most innovations, investing less than 1 percent of its revenues in research and development (R D) so it could offer the best-priced PCs around. Now it is ramping up R D to make its products stand out with innovative features and designs.
• Acquisitions. In the past, CEO Dell promised investors they wouldn't see his computer company anywhere near a negotiating table. Now, it's a different story. In 2008, Dell acquired EqualLogic for $1.4 billion in a move to expand further to storage networks and related products. In 2009, Dell closed its largest acquisition ever by acquiring Perot Systems, a provider of information technology services and business solutions, for $3.9 billion. The acquisition is expected to bring Dell an additional $8 billion a year. In 2010, Dell acquired data storage company 3PAR for $1.8 billion in an effort to enhance Dell's position in utility-storage solutions.
• Management. As long as Dell focused on selling hardware, it could concentrate on the one objective of making those products as efficiently as possible. Now the CEO wants to branch out into services, software, and new hardware categories, including smartphones and tablet-like devices. To achieve this, CEO Dell has installed an almost completely new management team and has restructured the company around four customer groups-Consumers, Corporations, Small and Midsize Businesses, and Governments and Educational Buyers-to give each division manager more responsibility, autonomy, and flexibility to respond to clients.
It's not clear whether Dell can turn itself around and become the number one PC maker in the world again. The old Dell succeeded because of its mastery of logistics and the supply chain, allowing it to sell computers directly to customers at prices no rival could match. The new Dell requires completely different skills-flexibility, customer focus, and innovation. The old Dell is history, Michael Dell vows, and a new one is just beginning.
Cumulative Case Questions
What type of departmentalization does Dell's new business strategy emphasize?
Free
Multiple Choice