Dell’s Performance Measurements And Control Systems

1133 words - 5 pages

Introduction
Performance measurement and control are very important for any organization either government or business to measure the success of the organization and it is one of the most difficult parts of strategic management (Wheelen & Hunger, 2012). According to Crosson & Needles (2014), Performance measures are “quantitative tools that gauge an organization’s performance in relation to a specific goal or an expected outcome” (p 302). Many studies have suggested that organizations need to use both financial and nonfinancial performance measures to assess their strategies and operations (Milost, 2013). The financial performance measures might include net earnings, return on investment (ROI), net income as a percentage of sales, the costs of poor quality as a percentage of sales and earnings per share (EPS) (Milost, 2013; Wheelen & Hunger, 2012). The nonfinancial performance measures might include number of customer complaints, customer satisfaction, job satisfaction, management control system (Milost, 2013), economic value added (EVA), market value added (MVA) and a balanced scorecard (Wheelen & Hunger, 2012). It is suggested that organizations use multiple performance measures of 20% of the factors that determine 80% of meaningful and reliable results (Wheelen & Hunger, 2012).

Dell’s Performance Measurement
Dell was started on a simple concept of made to order machines and delivered directly to customers without distributers or retailor stores. Due to strong competition in Computer business and “Rising sales coupled with rapidly falling net income caused Michael Dell to rethink his retirement and resume his role as CEO in January 2007” (case study, p 9-2). “Dell has made more than 10 acquisitions, cut about 10,000 jobs, and hired executives from Motorola and Nike to add more excitement to its product line” (case study, p 9-5). The industry’s focus shifted from desktop PCs to mobile computing, software, and technology services where HP’s stock gained 11% and IBM gained 31% while Dell’s stock fell 42% since January 2007 as this shift of business focus was an area of relative weakness for Dell (case study, p 9-5).
Michael Dell indicated that “The computer industry started out as a hardware business, but customers now are showing more interest in solutions than they are in products. So that’s obviously where we’re headed.” (Preimesberger, 2011, p18). According to Dell’s official Webpage (2014), Dell completed the reorganization of its functions during the first quarter of Fiscal 2014 from the “customer- centric” functions to the following product and services business units (Form 10-Q, 2013):
• End-User Computing ("EUC"): EUC includes desktop PCs, thin client products, notebooks, tablets, third-party software, and EUC-related peripherals.
• Enterprise Solutions Group ("ESG"): ESG includes servers, networking, storage, and ESG-related peripherals.
• Dell Software Group: The Dell Software Group includes systems management, security, and...

Find Another Essay On Dell’s Performance Measurements and Control Systems

enhancing performance and security in vanet based traffic message dissemination with pragmetic cost and effect control

1274 words - 6 pages the entire information affects its performance and reliability and only the advertisements are disseminated to other vehicles with the help of DBG algorithm. PROPOSED SYSTEM The main objective of this paper is to forward the traffic messages to other ongoing vehicles on the road side with low cost and effort control. By allowing only the traffic message to forward, the throughput will be increased and the delay will be reduced which incase

Operations and Legacy of the Dell Corporation

1798 words - 7 pages effectively than HP because Dell generates approximately $1.59 in sales per dollar of assets, whereas HP generates only $0.98 in sales per every dollar of assets. Gross profit margin and net profit margin indicate the how much of the company profits from each dollar of sales and also indicates the firm’s ability to control costs. Dell’s gross profit margin is 18.53% which means that for every dollar of sales, 18.53% of that dollar is gross profit to

Dell: Supply Chain Management and Electronic Commerce

1499 words - 6 pages a vital part in Dell’s growth. The main task is to serve customers efficiently and satisfy their needs. By reducing the organizational stress in the working environment, employees are now motivated to improve their performance at work. The effective communication between the two departments has enhanced the cooperation where both sides adjust based on shared information. A more democratic leadership style has encouraged stronger employee

The Value Chain

623 words - 3 pages their profitability and be more responsive to customer needs. We are going to look into Dell Incorporation on how they use the value chain in their business tactics. We will start with Dell’s Direct Model which is categorized into two parts, indirect PC value chain and direct PC value chain which is Dell’s hardware delivery system. Indirect PC value chain is where Dell’s suppliers send orders to PC maker and from there they send their product to

Legal Accounting

1846 words - 8 pages company’s financial condition and performance. Furthermore, “the objective of accounting is to present relevant and reliable financial statements that are meaningful to users by providing a consistent basis for comparing the performance of an entity over time…” As the SEC press release explains, “accuracy and completeness are the touchstones of public company disclosures…” Taking into account the above statements, it becomes clear that Dell’s failure

Dell's Solution for The Y2K Bug

4448 words - 18 pages  Dell earnings rise 63% on 52% sales gain  Dell tops $12 billion in annual revenues 1997  Dell increases limit of stock – repurchase program to 125 million shares  Dell’s direct model fuels record quarterly performance  Dell computer shareholders authorize share increases  Dell board approves two – for – one stock split  Dell reports industry – leading results and two – for – one stock

Diversity and Inclusion at Dell, Inc

2065 words - 8 pages leadership level and assimilating the organization’s philosophies on diversity into performance management (“Advancing Diversity and Inclusion at Dell,” n.d.). The culmination of Dell’s top-down approach to diversity has likely created a workplace that is open and tolerant of staff members’ differences. Furthermore, it has likely helped to promote an atmosphere where discussions of differences and workplace issues related to diversity can take place

Laura Ashley Federal Express Case - Suny Adirondack - Essay

618 words - 3 pages responding to the challenge posed by Dell’s advantage? 4) What should each of Dell’s major rivals (IBM, Compaq, HP, and Gateway) do now? 7. Cisco Systems (Case # 505-006) 1) How have Cisco’s channel evolved in the last 10-15 years? Why have they evolved that way? 2) What grade would you give Cisco for managing that evolution? Good or bad? Why? 3) Against the background of your answer to questions #1 and #2, how should Cisco distribute VoIP products

Dell case

1186 words - 5 pages with operative support services. Dell takes position in direct communication with customers and delivers build-to-order computers. The value created by using the direct model to sell customized products and by providing on-site service ranked Dell between market leaders IMB, Compaq, HP. It represents good performance machines at a reasonable price as well as unique and distinctive “Direct Model? while targeting corporate, medium and small sized

The Importance of Reliable Measurements in Accounting

2307 words - 10 pages Performance measures play an important in all companies and their daily operations. By providing multiple methods of comparison and evaluation, accounting measurements provide a better view of the overall state of a corporation. Not only do investors use certain measures to help decide in which companies to invest, but internal managers use other measures to make sure their company is meeting set standards and that it is not falling behind or

Making Sustainability Work

1032 words - 5 pages identifying background risk sources, identifying real versus perceived risk, and finally identifying company or project relevant social and political risks. The main idea of this chapter is to identify and measure costs and benefits before any major investment decisions are made. Chapter five outlines the systems that encourage performance and aid in performance measurement. These measurements include evaluations, rewards systems, internal waste

Similar Essays

Organizational Systems Analysis And Performance Scorecard D

1325 words - 5 pages Organizational Systems Analysis and Performance Scorecard Diagnosis and DesignMarch 3, 2008Information and Analysis System and Performance Scorecard Diagnosis and DesignOrganizational effectiveness scholars E. Lawler and G. Worley (2006) provide evidence on how effective high-involvement work practices enhance performance and increased company profits. These practices are power, information, knowledge, and rewards. The authors discuss

Development Of Control And Confidentiality For Database Management Systems

933 words - 4 pages Early research efforts in the area of access control and confidentiality for DBMSs focused on the development of two different classes of models, based on the unrestricted access control policy and on the mandatory access control policy. This early research was transmitting in the framework of relational database systems. The relational data model, being a declarative and high-level model for specifying the logical structure of data, made the

Electical Power Systems Operation And Control: An Overview

1707 words - 7 pages Electrical energy is conserved at every step in the process of Generation, Transmission, Distribution and also utilization of electrical energy. It can be said that the electrical utility industry is probably the largest and most complex industry in the world and hence very complex and challenging problems to be handled by power engineering. This paper provides an overview of the power systems operation, control and managing tools. 1

Assess How Performance Management Systems Benefit An Organisation's Efficiency And Effectiveness. How Can An Organisation Ensure Successful Implementation Of Performance Management Systems?

1123 words - 4 pages Assess how Performance Management Systems benefit an organisation's efficiency and effectiveness.Avoiding performance issues ultimately decreases staff morale and management credibility; decreases overall effectiveness; and wastes management time fixing what hasn't been done properly. Organisations are always required to ensure that best value for money is achieved as well as efficient and effective use of resources. In order to achieve these