The report aims at providing an overview on developing an enterprise culture in the perspective of Dell Technologies Inc (delltechnologies.com 2018). An enterprise represents a business company associated with profit and entrepreneurial ventures. Culture refers to the means of behaving within the organization. An organization with an enterprise culture consists of creative and imaginative people and therefore most of the successful business in the country typifies an enterprise culture. Enterprise culture is important has it allowed one to understand how an organization did business, how the employees interacted with one another and the interaction of the team with the outside world specifically the employees, customers, partners, media, suppliers and the stakeholders. The enterprise culture also acts as the primary platform for inspiring and motivating people and is a powerful resource for attracting, hiring, recruiting and retaining the highest talent for the business. This is because the best of the employees always have the urge for working with the companies with the best culture who then act as the catalyst for the creation of an ongoing success of the business. Thus, an enterprise culture helps in defining the business growth. The report will thus put forward a detailed analysis of the importance of enterprise culture and the scopes associated with it.
According to Olasky (2013), the concept of enterprise is used for describing a business. Often the term is used for describing start-ups or various other businesses. More importantly, the concept of an enterprise is used for describing actions undertaken by a person who shows certain amount of initiative by undertaking risk of investing, setting up, or running of a business.
According to Hayton and Cacciotti (2013), an entrepreneurial culture comprises of the group of individuals who suppressed the individual interest inthe effort of achieving the success of a group since the success of the group will help in advancing individual interest. An entrepreneurial culture focuses on empowerment and people and involved value creation takes place through change and innovation. It also involves attention to the basics and followed hands on management. Entrepreneurial culture refers to doing right thing along with a freedom of failing or growing. It also emphasizes on the future with a personal responsibility and commitment
The urge for increased competitiveness amongst the business leaders led to the creation of an entrepreneurial culture as an important advantage. In the present business scenario, the term entrepreneurial means implies something more than business acumen necessary for turning an idea into enterprise (Gabrielsson, Gabrielsson and Dimitratos 2014). Therefore, the term entrepreneurial culture helps in describing a mindset and skill characterized by creativity, innovation and empowerment and calculated risk taking. The term also applies to the teams, individuals and the entire organizational culture. The entrepreneurial culture is something that most of the organizations hope for in the competitive and fast moving industry. However, an organizational culture requires nurturing and does not grow by its own means. This can be cultivated thoroughly through concerted action that includes structuring, modeling, positive reinforcement and continuous communication.
History: Michael Dell found Dell Computer Corporation also known as PC’s Limited in the year 1984 while he was still a student studying at University of Texas, Austin. Michael Dell began trading with the belief that selling of the personal computer systems directly to the customers would help his company in better understanding the needs of the customers and thereby provide effective computing solutions for meeting the needs of the customers (dell.com 2018)
In the year 1984, the company manufactured the first computer known as ‘Turbo PC’ and sold it as US$795. In 1987, the company began its global expansion rechristened the company as Dell Computer Corporation. In the year 1990, Dell computer sold its products indirectly through superstores and warehouse clubs but had little success. The year 1996 marks a year when Dell began selling its products through the website. In 2002, Dell undertook expansion through tapping into multimedia and the home entertainment markets by introducing television. In the annual meeting held in the year 2003, with the approval of the stockholders the name of the company changed to ‘Dell Inc’ for recognizing the expansion of the company beyond the computers. In the year 2004, the company declared building a newer assembly plant while the share of international market sales enhanced during 2005. In the year, 2006, Dell Inc decided to purchase the computer hardware manufacturer Alienware. The quarterly earnings report published in the year 2007 showed the gross sales as $14.4 billion and the net income of $6687 million (dell.com 2018).
Dell Technologies Inc was formed later due to the acquisition between Dell and EMC Corporation. The products of Dell included servers, personal computers, Smartphone, television, computer and network security, computer software and services related to information security. In 12 October 2015, Dell made an announcement of acquiring enterprise software and the storage company EMC Corporation in a transaction of $67 billion that was one of the highest tech acquisitions of history. The major shareholders of Dell from Singapore supported this acquisition. In the September 2016, Dell Inc completely merged with the EMC Corporation that involved the issuance of $45.9 billion in the debt and $4.4 billion in the common stock (delltechnologies.com 2018).
Sector: The heart of the business lay in serving institutional and commercial customers. Dell Technologies Inc sold increasing number of computers to the businesses in comparison to any other company across the world. The part of success enjoyed by the company lay in the ability of delivering enterprise technology required by the large organizations that includes the storage, servers and the services (dell.com 2018). A growing area in the enterprise business of Dell is the virtualization of server. Dell helped organizations in taking advantage of the technology for easily growing and maintaining the operations more effectively. The data centre solution division of Dell addressed specific needs of the hyper-scale centers of data for businesses that relied on the computing solutions of the enterprise. The Dell team also possessed the ability of creating differentiated product since it designed unique services and servers tailored as per the specifications of the customer.
Turnover: Close to fifty percent of the revenue of the company is derived from United States where the company had operations under the following three divisions (dell.com 2018):
1.The Client Solution Group of Dell that manufactures desktop, personal computer, tablets, notebooks and the peripherals including printers, monitors and projectors accounts for 60 percent of the revenue.
2.The Infrastructure Solution Group of Dell that provides storage solutions accounts for 35 percent of the revenue
3.A publicly traded company known as VMware and operating under Dell focuses on cloud infrastructure and virtualization
In the fiscal year of 2018, Dell Technologies Inc earned overall revenue of $78.7 billion.
Figure: Net Revenue of Dell Technologies from 1996 to 2018 (in U.S. billion dollars)
Source: statista.com 2018
Dell Technologies Inc represents a global company that operates across 180 countries and has approximately 145, 000 employees (delltechnologies.com 2018). Dell has its presence in America, Europe, Asia, Middle East, Africa and Japan. Each region has its regional headquarters along with the supply network and assembly plant. The business activities of Dell remain organized in each of the regions across different segments of the customers though each region has different methods of management. The organizational culture of Dell is defined based on the following aspects:
Customer: Dell Technologies Inc ensures providing the best quality service and product in terms of technology and outperforms competition by ensuring value and superior experience to the customers.
Dell Team: They believe that constant success lies in the teamwork and each team member has to develop, learn and grow based on each opportunity. They remain committed to attracting, developing and retaining the best members of the staff (dell.com 2018). In fact, the company sets its standards by defining themselves as business people and inventors and then setting the goals for the growth of the company. In other words, the people belonging to Dell help in defining the principles while living up to the standards and values.
Direct Relationship: The Company believes in maintaining direct relationship with the customers, suppliers, and partners and even with one another. The operation of the company without following a typical bureaucracy and hierarchy enables them in doing their best compared to other competitors.
Global Citizenship: The Company is committed to respecting and understanding values, cultures and laws in whichever place they do business (dell.com 2018). The company tries to profitably grow in all the markets and positively contribute to all the communities.
Although Dell operates as an enterprise but its business model is very complex due to the following reasons:
Firstly, the company does not rely on the storefronts or the agents for selling the products. They rely on either web sales or channels for selling their computers to the customers.
Secondly, the company should have components and parts in stock for building wider range of specifications based on the user with minimum lead-time.
Thirdly, Dell has outstanding logistics and manufacturing capabilities supported by the information system that enables the company in substituting information for the inventory. Dell can use the specific sale channel in gaining more profit and market share. This enables the company in gaining maximum amount of customer satisfaction through minimum cost of distribution.
Dell can lead to the creation of similar but distinct functions in every vital region thereby future customizing the marketing and the service functions for the individual countries. Globalization has helped in shaping the structure of Dell thereby enabling the company in running the largest company in comparison to its competitors. This is explained with the help of Porter’s five forces that refers to a tool for determining Dell’s competitive intensity and attractiveness and profitability.
Threat of the New Entrants: The cost, technological knowledge and the financial barriers do not make the process of entry quite significant (E. Dobbs 2014). To overcome such barriers new businesses should introduce newer products based on the innovative concepts. The entrepreneurial culture of Dell enables it to manufacture innovative products that help it enjoying economies of scale that acts as an additional barrier.
Bargaining Power of the Consumers: The buyers are fragmented and there exists low expected switching cost given the fact that the product specifications remain homogenous. This might often lead to lower level of product satisfaction (Browning, Chiappori and Lewbel 2013). The entrepreneurial culture of Dell enables it increasing brand loyalty at lower production cost thereby resulting in higher servicing quality that helps in moderating the bargaining power of the buyers.
Bargaining Power of the Suppliers: Dell remains dependent on the suppliers since it does not undertake manufacturing but assembles the products from various parts conveyed by the external vendors. The entrepreneurial culture of the company encourages it to take supplies from reputed suppliers located close to the assembling units of Dell thereby increasing the bargaining power of the suppliers (Fabbri and Klapper 2016).
Threat of Substitutes: Given the irreplaceable functionality of products, the company faces a weaker threat of substitution. Threats are mostly from the young customers who remain more attracted towards the game console of next generation. However to establish long-term profits it is necessary for the company in particularly targeting the youth market (Porter and Heppelmann 2014). The acquisition of Alienware can act as a strategic move entrepreneurial culture of Dell focused on expansion and increase of the brand value.
Degree of Rivalry: The degree of the rivalry remains moderate. On this note, Dell Technologies Inc undertakes specialization in the production efficiency and not much in the aspect of innovation (dell.com 2018). The organizational culture of the company is not ready for switching to a production led by innovation. Hence, outsourcing the R&D department might help the firm with newer solutions.
Conclusion:
To conclude, one can say that Dell Technologies Inc. has been quite successful in global market due to its direct sell business model. The company however lags behind the competitors in global position and quality. The focus on these two areas could make the company a top reseller. Nonetheless, the company has positioned itself as a remarkable computer retailer by being low cost provider that allowed them in continuing operations and moving towards newer markets. The company is able to produce different computer for supplying different levels of the customers. The company also focuses on improving the organizational culture and the business environment for increasing the base of the customers.
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