Question

In: Operations Management

Dell In January 2006, Dell, the world’s largest computer maker, announced plans to setup its fourth...

Dell

In January 2006, Dell, the world’s largest computer maker, announced plans to setup its fourth call center in India. The company already employs over 10,000 people in its Indian call centers, which provided a telephone help desk service to its many thousands of customers around the world. Like many other Western companies, Dell was attracted to India by the abundance of low-cost English-speaking workers, many of whom are well qualified and highly IT literate. Locating call centers in India sounds like a good deal all round. Customers get access 24 hours a day, 7 days a week wherever they are in the world, companies are able to reduce costs, and workers in a developing country get jobs.

However, not everyone is happy. Niels Kjellerup, Publisher and Editor of The Call Centre Managers Forum, an online chat room for call center managers, argues that the rush to outsource customer contact operations to cheaper locations has resulted in the worst of management practices in US and UK call centers being exported as ‘World Class Call Centre Practice’ in countries like India. He says that too often what is seen in India is bad customer service delivered cheaply. He claims that many Indian call centers are run as sweatshops with intelligent people being treated like cattle. Call center managers with little or no previous experience adopt ‘idiotic vendor measures’ such as ‘how many calls’ and ‘how short’, which simply result in the delivery of poor levels of customer service.

Agents are required to work nine and a half hours a day, but typically work anywhere from 12 to 16 hours. Processing 28 calls an hour is mandatory. Another target is to ensure that no customer calls back within seven days. The informant claimed that there are few, if any allowances for time off, even for doctor visits, sick days or handling family emergencies.

Question 3 (35 marks, maximum 300 words)

Globalization increases connections among people around the globe, both narrowing and widening the differences between them in various ways. On the one hand, increases in trade and communication bring closer awareness among consumers and workers of many brands and businesses’ activities, but on the other hand, it has negative effects on the global marketplace.

Required: Discuss the key negative effects of the global marketplace. Support your answers with examples in relation to Dell.

Solutions

Expert Solution

Answer-

Globalization has affected DELL's business community, and the specialized improvements have likewise helped DELL in the global atmosphere. Globalization powers have improved world coordinations approaches and procedures, crushing international trade; dell has encountered its effects. Innovation has not just helped DELL to enter the world market but has additionally permitted the world economy to converge into a single point of activity that has helped DELL to build up an interdependent operating framework.

On account of the guide of information innovation, the planet has transformed into a digital community that causes businesses like DELL to trade new thoughts. There is no uniformity in the consequence of mechanical revolution; in various contexts it has taken varying structures depending on the components that might be physical, political or social. Innovation is the main component in DELL's strategies evolving.

Key negatives

- DELL's base of specialized innovations is attributed to the journey for improved economic productivity and the need to lessen the demand for the production of the merchandise that society needs to pay for. The point of the specialized advancements is to amplify the utilization of the regular assets accessible by contraptions, for example, those gave by DELL. Globalization has permitted DELL to support its productivity and profitability, this is the job of ability created by information processing in manufacturing, the board and conveyance systems from globalized organizations and territorial organizations

The global marketplace offers the organizations a chance to increase its client base. But every beneficial thing accompanies its own disservices. At the point when a firm enters a global commercial center, the primary issue its countenances is the laws and regulation of various nations. Various nations have various laws for trade and likewise the political environment varies all over. In such a case, the organizations must be cautious in request to follow regulations of various nations. Additionally, the extract obligation and assessments are distinctive for better places and here and there the organizations need to invest a ton just to enter a particular market.

The following downside of global commercial center is increase in competition. Globalization has truly made the world little, today it isn't hard for a US based firm to sell its item in Africa. The nearness of various brands in each side of the world increase competition for them. For instance, Dell has to confront competition with various PC brands like HP, Asus, Apple, and so forth in light of their essence wherever because of globalization. Likewise, because of global marketplace there are various types of work accessible in various pieces of the world.

Government conduct, whether present or under survey, have influenced DELL on many occasions either by promoting or detracting from its strategy. This is in recognition of incentives, wellbeing, adequacy and operating legislation, conditions for licenses, limits on access to items and value tops.

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