Question

CASE STUDY:

Dell Technologies From unconventional PC startup to global technology leader...

From unconventional PC startup to global technology leader, the common thread in Dell’s heritage is an unwavering commitment to the customer. Explore the company timeline below to view how this guiding principle built Dell Technologies and inspired IT solutions and services that give customers the power to do more.

1984: At age 19, Michael Dell founded PC's Limited with $1,000 and a game-changing vision for how technology should be designed, manufactured and sold. As a pre-med freshman at the University of Texas at Austin, Michael starts Dell Technologies, then doing business as PC's Limited. He left his dorm room at the end of his freshman year to devote all of his time to growing the business.

1985: We design and build our first computer system, the Turbo PC, featuring an Intel® 8088 processor running at 8MHz, a 10MB hard drive and a 5.25" floppy drive. We establish customer experience as a Dell Technologies differentiator with risk-free returns and next-day, at-home product assistance, among the first in our industry.

1986: We unveil the industry's fastest performing PC — a 12MHz, 286-based system — at the Spring Comdex trade show.

1987: We open our first international subsidiary in the United Kingdom.


HISTORY Michael Dell is chairman and chief executive officer of Dell Technologies, a unique family of businesses encompassing Dell, Dell EMC, Pivotal, RSA, Secureworks, Virtustream and VMware. Dell Technologies is an innovator and technology leader providing the essential infrastructure for organisations to build their digital future, transform IT and protect their most important information. With revenues of $74B and more than 140,000 team members, Dell Technologies is one of the world’s largest IT companies serving the needs of global corporations and governments to small businesses and consumers. The company's unique structure allows innovative, fast-moving startups to co-exist with, and leverage, the global reach and trusted reputation of the large enterprise. Michael’s story started when he founded Dell with $1000 in 1984 at the age of 19. Notably quoted as saying that “technology is about enabling human potential,” Michael’s vision of how technology should be designed, manufactured and sold forever changed the IT industry. In 1992, Michael became the youngest CEO ever to earn a ranking on the Fortune 500. Known and admired for his astute business vision and bold moves, Michael took Dell private in 2013, setting the stage to architect the largest technology deal in history with the combination of Dell, EMC and VMware in 2016.
In 1998, Michael formed MSD Capital, and in 1999, he and his wife established the Michael & Susan Dell Foundation to provide philanthropic support to a variety of global causes. Michael is an honorary member of the Foundation Board of the World Economic Forum and is an executive committee member of the International Business Council. He is also a member of the Technology CEO Council, the U.S. Business Council and the Business Roundtable. He serves on the advisory board of Tsinghua University's School of Economics and Management in Beijing, China and on the governing board of the Indian School of Business in Hyderabad, India. He is a board member of Catalyst and also served as the United Nations Foundation's first Global Advocate for Entrepreneurship.

Every day, Dell Technologies is pairing technology with innovation to make a positive social and environmental impact – building a Legacy of Good. We are committed to putting our technology and expertise to work, where it can do the most good for people and the planet, making possible today what was impossible yesterday. Every team member at Dell shares this commitment because being a good company is the right thing to do, but it is also right for our business. We’re creating real value for our customers, employees, and partners while driving social and environmental good in the community.

Our customers expect Dell Technologies to think about environmental impact – that has always been a part of who we are. More than just creating eco-friendly products or one-off initiatives, we incorporate sustainability into everything we do – from design to recycling and every step in between. Through innovation and a relentless focus on efficiency, we are minimizing our footprint while helping customers reduce theirs.

Design for Environment: Innovative thinking and a lifecycle approach to how we design products and source materials are the first steps in delivering products that help you do more while minimizing your impact.    
Reducing our Impact: How products are made matters – to our customers, our communities and the planet. We focus on sustainable operations – using resources efficiently, managing wastes effectively and working to improve our local environment

Green packaging and Shipping: Our goal is to create a waste-free packaging experience, using recycled and renewable source materials, right-sizing to reduce waste, and making it easy for you to responsibly dispose of packaging through recycling or composting   

Reducing your Footprint. Energy efficiency is a top priority across all our product lines. It helps you get the most from your energy use, which saves you money, reduce risk, and meet sustainability goals or regulations.


Recycling your DELL TECHNOLOGIES: We go beyond green IT — technology that itself leaves a smaller environmental footprint — to help you look at IT that enables you to address your sustainability goals and take control of your resources in a way that creates value.

Ocean Plastics: There are more than 86 million metric tons of plastic in our oceans right now. See how Dell Technologies is removing that pollution from our waters and turning it into materials for our products

Net Positive:

Our strategy isn't to just reduce the bad we do, but to increase the good. Creating a balance that puts more into the world and society than what we take from it is creating a net positive. (Adapted: www.google.com)


QUESTION:

The business environment is defined as all the factors or variables, both inside as well as outside the organisation, which may influence the continued and successful existence of the organisation. The business environment consists of three distinct sub environments. Justify these sub-environments as they apply to Dell Technologies in terms of maintaining a competitive advantage.

Answer 1

Answer:

The three distinct sub-environments of business environment are as follows:

1. Micro Environment
2. Macro Environment
3. Internal Environment

Micro and Macro environments are a part of the External Environment.

1.         Micro Environment

Definition of Micro Environment:

The factors which have a direct impact on its business operations and success, for example:

• Customers
• Suppliers
• Society: Employees and Shareholders

Customer satisfaction is the biggest challenge in front of any organization and it has a direct impact on the company’s success and its operations.

Suppliers supply raw materials to the company and the company has to maintain a good relationship with them including carefully evaluating raw materials price and quality.

Employees and Shareholders are a part of society that has their expectations and performances which impact the growth of the business.

Micro Environment and Dell Technologies:

Dell Technologies has always focused on its customer’s expectations about the product and environment responsibility. For which Dell has always taken initiative in building user-friendly and eco-friendly products. Dell has also taken care of the internal atmosphere of the organization including its employees their development & benefits and the shareholder's requirements. These factors have already supported Dell to maintain one of the best images in the Technology industry and among its competitors.

However, Dell should build new plans and strategies for the betterment of the microenvironment factors so that they can be more supportive to Dell for its development and success in the competitive market.

2. Macro Environment:

The environment includes the factors which create forces that create opportunities and pose threats to the business. It includes the following:

· Economic Environment

· Technological Environment

· Political Environment

· Legislature and Judiciary

The economic system, GNP, inflation rate and employment, etc. impact the business environment, its performance, and its struggles.

Change in Technology impacts the business and makes the company speed up its technology change matching in the market.

Political, legislature and judiciary have their impacts on the business, due to the change in laws and political issues the performance of business gets impacted.

Macro Environment and Dell Technologies:

The impact of these macro-environment factors is apparent on Dell and its business. However, Dell has been maintaining a balance between these factors and its performance including its sustainability in the competitive market. Dell has always upgraded itself with new technologies and new laws or legislation for better performance.

However, new plans and initiatives should be taken by Dell to enhance its position in the competitive market.

3. Internal Environment:

Internal environment includes internal factors of the organization, for example:

· Plans and policies

· Human Resources

· Financial Resources

Plans and policies of the company should be framed keeping in view the objective of the business and has a major impact on the operations of the business.

Skilled and committed employees can take the company to great heights and the management should also take care of its human resources for its development.

Financial policies and the financial status of the company should be kept intact by them to meet its overall expectations to run the business.

Internal Environment and Dell Technologies

Dell’s internal policies and its workforce along with its financial policies are already very strong for their survival and success in the technology market. And, their success is quite clear in front of the world by the support of these factors.

However, initiatives can be taken by Dell to improve these factors and their position.