Management Fundamentals

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.

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?

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.

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

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?

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.

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?

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?

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?

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?

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.

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?

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?

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.

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?

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?

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.

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?

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.

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.