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Dell Computer was found in 1984 by Michael Dell who was a university student in United States. The company started with the name of PC's Limited and aimed to sell assembled computers. The work was appreciated and the business started to grow in such pace that the company opened its distribution office in Europe within 2 years of company's establishment. The company's name was changed to Dell Computer Corporation. The company was listed in Fortune 500, seven years after starting the business. Dell is among the first companies to sell computers through internet. This hybrid distribution channel has been the backbone for Dell's success till date. It has allowed Dell to access the global market with minimum cost. Dell believes in 'Direct Model' which is built on a theme that product should be delivered to the customers directly because it would help Dell to listen voice of the customers by being closer to them. Today, Dell is one of the largest computer distributors both, in quality and quantity.
Dell's Road to Global Success
Dell is stick with its old model for business i.e. direct business model to make technology more accessible and affordable. To achieve this, Dell is:
Using its conventional direct model so that technology can be brought to established as well as emerging markets.
Expanding its global employment to cater new and diversified skills so that Dell can increase the understanding of global customer needs.
Growing its global supplier network to save time, enhance performance and lower the operational cost.
Treating all employees with respect and providing equal opportunities to grow and develop their skills.
Acting as a good corporate citizen and best practitioner of ethical marketing.
Investments within and outside United States
Dell has catered globalization better than any other company among its competitors. Dell manufacturing plants are at six locations around the globe i.e. Middle Tennessee and Central Texas in U.S; Limerick in Ireland; Eldorado do Sul in Brazil; Penang, Malaysia and Xiamen.
Manufacturing Units of Dell Computer Corporation all over the World
To boost its globalization strategy, Dell manufactured marketing and sales office in Bangalore, India, in 1996. It was followed by the first India customer contact centres in Bangalore and Hyderabad in May 2001 and 2003 respectively. These customer contact centres got huge success and Dell established another customer contact centre in Mohali. These contact centres are a part of Dell's 50 customer contact centres (approximately) around the world.
Inauguration of Dell's Customer Contact Centre in India
Bangalore's contact centre has transformed into leading operation for Dell. Furthermore, Global Software Development Centre is manufactured as a critical unit for Dell's IT department. This unit is established to provide application planning, development and testing facilities with integration of business units like operations, marketing, sales and corporate systems.
Investments other than Business purposes
Dell has implemented its corporate social responsibility efforts in different countries. For instance, Dell has established a foundation in South Africa whose work is for addressing basic needs of children i.e. health care, safety, food, shelter etc. In addition to the basic needs, this foundation also provides computer trainings to the children in different South African schools. Dell also has a trainee program to hire underemployed high school graduates of South Africa for minimum of one year in order to give them work experience related to information technology that can act as a catalyst for careers in technology.
Dell is anxious to prepare generation composed of young people from all over the world for having a pool of talented youngsters to serve the company and society through educational initiatives. To make this vision practical, Dell has launched a signature program "Dell TM YouthConnect". This program would be focusing upon making partnerships with nonprofit and nongovernmental organizations. With the budget of over $8 million, 350,000 students would be targeted in 26 organizations in eight countries. These eight countries include India, Mexico, Brazil, China, South Africa, United Kingdom, Morocco and France.
Dell held competitions to bring ideas from all over the world. Recently, Dell has awarded one college group with $50,000 in seed funding. In the whole process of these competitions, hundreds of new ideas had emerged and improved.
Global Segments for Dell
Dell has planned to reorganize in such a way that it will make three global segments for selling its products to business and government agencies. This restructuring would enable more responsiveness towards particular segments and will result in bringing innovations. These segments are:
Large Enterprise: To facilitate world's largest users of information Technology.
Public: To cater corporate social responsibility through healthcare, education and government.
Small and Medium Business: To provide tailor made solutions and technologies to Small and Medium Enterprises.
One critical success factor behind Dell is its ability to manage diversified workforce. There was an announcement on diversitybusiness.com regarding top 50 organizations for work force diversity. Online elections were happened and over 500,000 diversity business owners got the opportunity to be a part of this election. Dell stood at first place in the list of year 2010 and is named as the number one company in Unites States providing multicultural opportunities. Dell aims to create a culture that can get them access to highly talented workforce, retaining them and provides growth opportunities to them. Dell also sponsors various recruiting events regarding diversity.
Workforce Diversity in Dell
Dell's Principles of Globalization and Global Citizenship
Dell has made some global citizenship principles that guide it to make its operations globalize as well as to enter new markets and enhance global employment base. These principles are derived from Dell's corporate values and policies for environmental and human rights concerns. Following are some of the principles:
The global operations will be grown responsibly by:
Providing good jobs with benefits and training n different communities and creating an environment that protects health of employees, contractors, customers and public.
Respecting the values and cultures of host countries.
To become a competitive employer by:
Providing competency and reward based pays.
Providing health conscious environment.
To work with local governments in other countries to create job opportunities by:
Developing successive planning network for knowledgeable workers.
Providing on the job training and new opportunities to grow.
To work and contribute for different communities to do their part for society by:
Making a difference through our employees by urging them to participate voluntarily.
Contributing through aid in case of natural disaster.
Working with government, communities and stakeholders to identify the better role of Dell towards the society.
To help the environment for gaining stability by:
Minimum use of materials that can affect the environment and using energy efficient devices to save energy.
Preventing pollution by acting on wastes reduction practices.
Enhance the usage of recycled products.
Discouraging the electronic wastes exports to developing nations.
To stick on strict standards of product safety to give more protection to our customers.
To protect the critical technology by taking laws of every country into account in addition to exports and imports rules, technology and software regulations that are made to protect technology by avoiding customers who exploit technology for hazardous use.
To respect the privacy of the customers around the globe by keenly administrate the storage and usage of their personal information as often companies sell customers data to advertisement companies or other businesses.
To expand its global access to bring more innovation and latest technology with affordable prices by:
Communicating and collaborating with our suppliers and vendors to raise each other's standards.
To gain excellence in above all processes as Dell has committed to gain operational excellence, continuous learning, excel in customer experience and leading in global market and being a company which would be known as a great company to work in, and the best in implementing human resource and social practices.
Commitment to Global Safety Standards through Suppliers
Dell is working on producing operations that are carbon-neutral operations. The idea is to minimize the use of energy and emissions of carbon from operations and maximize the purchases of green power. Dell has maintained ISO 14001:2004 certification for manufacturing its operations worldwide that is backed by product development and recycling globally which are also certified through ISO 14001. Dell is one of the safest workplace with an impressive health level (better than average health level in the industry).
As a global company, Dell pushes its suppliers to adapt international standards so that they can work for Dell only if they are approved from International Standards Organization (ISO). In this way Dell brings its vendors and suppliers up to its product and supplies requirement level as well as does its part towards society.