Dell is a major player in the computer industry. Michael Dell pioneered the direct selling system that catapulted the firm to the top position in the industry. As the case details, controls systems play an important role in Dell’s success. For example, the company makes a mere $12 profit on their low end machines that sell for $299. It is important to control assembly and delivery lest these wafer thin margins are reduced even further. However, as the case points out, Dell’s single-minded obsession with control may come at the cost of innovation.
There are a variety of different essays that can be derived from the reading, our discussion, your research and the case at the end of the chapter. However, each essay should begin with a thesis statement couched in the first paragraph, and should employ your answers to the questions at the end of the case to support the original thesis in the succeeding paragraphs. The final paragraph of the essay should incorporate your general argument to restate the thesis.
It is assumed that at this time all students are now comfortable in their ability to create an effective thesis statement.
Some of the possible responses to the questions at the end of the case are:
Case Question 1: What advantages does Dell gain from its tight control system? What disadvantages does the company experience?
It is important to note that Dell competes in the PC industry where margins are very thin. For example, on a $299 desktop model, Dell makes a profit of $12. In such a situation, it is important to control operations very carefully as else the margins may narrow even more. On the other hand, a single-minded obsession with control may come at the cost of other activities, such as innovation, that may cost the company.
Case Question 2: Which types of operations controls are mentioned in this article? Give examples of each type.
Testers who perform quick inspections—screening control
Reducing downtime—
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