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Impacts of Globalization on Dell

Info: 3378 words (14 pages) Essay
Published: 17th Jul 2018 in Business

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Globalization has had major effects on the corporate culture of DELL, in the global environment DELL has also benefited from the technological advancements. The drivers of globalization have improved the methods and systems of international transportation, dominating the international commerce, its impacts have been felt by dell.

Technology has not only enabled DELL to enter into the world business, but it has allowed the world’s economy to be fused into a single point of operation which has enabled DELL to gain an interdependent system of operation. The world has transformed into a global village due to the help of the information technology which allows the companies such as DELL to shares new ideas. Technological revolution has no uniformity in its effect; it has assumed different forms at different situations depending on the forces which can be economic, political, or cultural. Technology is the key factor in the development of DELL’s strategies.

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The source of technological advancements at DELL is due to the search for the increased economic efficiency and the desire to reduce the cost that the society has to pay for the availability its products. The purpose of the technological advancements is to improve the usage of the available natural resources through the gadgets such as those provided by DELL.

Globalization has enabled DELL to improve its Productivity and the competitiveness, this is the function of knowledge which is generated due to the information processing by the globalized firms and the territorial organization into the networks of production, management and distribution, All of DELL’s core economic activities are global since they have the capacity to work as an individual unit in the real time.

Globalization has had major impacts on DELL, Many activities which were previously involved in the face-to-face interaction, or those that were local, can now be conducted across great distances. DELL has gone through a significant de-localization in its social and economic exchanges. Due to globalization, DELL has been de-localized, it has been able to adopted new technologies which involve interaction with its customers. The most strategic and crucial activities especially in the economic sector have been networked around the globalized system of the inputs and outputs. What happens in local environment of a company is increasingly influenced by the activities of other global companies and the international systems which operate many miles away. For instance, an innovation in the world’s commodity and the money markets can cause a significant impact on other products across the globe. Companies and international systems are increasingly becoming interdependent. Globalization has a marked acceleration to the rate of expansion of the DELL which spans along with the significant improvements in the economic activities.

The technological advancements enable DELL to tap new skills and new opportunities for employment of its workforce. This increases the ability of the company to run its activities effectively and carry out its financial obligations in a more effective manner.

The technological advancements combined with increased rate of globalization increases the importance of developing the corporate culture, for economic necessity/social demands, and for resource availabilities which affects the scope and the pace of technological adoption in each industry and the consuming community.

However, the technologies that have been described above appear to have the most promise for the significant global effects which are riddled with the uncertainty, with the progress in time, the unforeseen technological developments and its effects on may eclipse the economic or the political growth trends. Globalization may cause other trends with the technical challenges that do not have the significance in the global effects in the near future but can become significant with time.

Due to the globalization DELL is facing stiff competition from its competitors, the leadership and the participation in the development in the technical area depends on the several factors, this include the future regional economic arrangements international and amount of the public and the private sector research for developments and capital investments. There are signs for a more stiff competition amongst the economic alliances, which increases the support for the global intellectual property protection, more globalization, and the division of the responsibilities for a faster growth in the technological front.

Technology brings the benefits and prosperity to a company, it may sideline others and create new dimensions. Technology helps to alleviate some severe hardship, it will create real economic development. Those companies which are not willing or able to adapt to new technological opportunities may fall further behind. The market weakness of a product of a developing company due to the lack of the economic incentives will be insufficient to drive the acquisition of the new technology or skills.

Many companies are threatened by the fact that the corporate cultures that have had long-term existence are threatened by the new ways of living which has been brought about by the technological advancements. DELL has seen the benefits of technology, this is partly due to the changes which are difficult to prevent. However the corporate culture of any company can preserve certain values and the cultural values which have an impact on the guiding regulations and protections which affect its technological development corporate social responsibility

DELL is committed to the highest ethical standards, it does the right thing and operate with the integrity and transparency, DELL has build and maintained credibility and trust with its employees, the customers, partners, stockholders, and the community

Dell’s global principles guide the company as it globalizes its operations, enters new markets, and expands its global employment base. Dell’s goal is to be a green company to the communities where its products are consumed. Its global principles are based on the corporate values and policies regarding the social and environmental stewardship as adopted from the Universal Declaration of Human Rights and the fundamental conventions of the International Labor organization, the International Organization for Standardization, as well as the experience of other corporations around the globe.

The company is committed to using its unique direct businesses to model and make technology more affordable and accessible to people and all the institutions around the world in order to take the advantage of the tremendous economic and the social benefits of more technological advancements. To achieve its objectives. DELL has done the following;

  • It has used its customer model products to bring affordable technology to both new and the emerging markets, as well as established new ones.
  • It has grown its global employment base to tap the diverse ideas and new skills, this has increased its understanding of the global customer needs by bringing the desirable technology and new jobs to the world community.
  • It has developed the global network of suppliers aimed at improving the performance and lowering the cost of its systems.

To improve on its corporate social responsibility DELL has devised a direct way of working delivers ensures that value is delivered to its customers. It is also based on the distinct company values, this acknowledges the company’s responsibilities to the following groups;

  • Its employees; DELL treats all the employees with high dignity and respect a factor which provides the opportunity for all of its employees to succeed.
  • Consuming community; DELL has strived to be an eco-friendly company which is responsible to the community and for environmental stewardship.
  • Its global suppliers and their employees: DELL ensures that its acts are ethical and also encourages responsibility in terms of employment of the environmental practices from its suppliers.

Dell has made it clear that it will grow its global operations and manage its expansion responsibly with respect to its corporate culture by observing the following;

  • It will conserve the natural environment and protect all the resources of its host countries and the consuming communities.
  • It will provide high quality jobs with good benefits through the employee training in the new communities, and provide the work environment which protects the health and the safety of the employees, customers, contractors, and the general public.
  • It will always communicate its expectations to its suppliers and work in collaboration with its employees to promote high standards of work and behavior.
  • It will maintain respect to the laws, values and the culture of its host countries.
  • Ensuring positive contribution to the community, both individually and organizationally.

As a competitive employer DELL provides the following;

Meaningful working conditions characterized by a safe, secure and very healthy environment, high quality jobs with very competitive benefits, Job opportunities for further training and professional advancement which is open to every employee, Reward its employees based on the performance results and their contribution both to its business and the community, it will create a workplace which values diversity. DELL’S approach to diversity is mainly defined by its recognition of both the similarities and differences in addition to its inclusiveness, respect and the corporate culture which allows the individuals to make positive contribution to their potential.

In cases where DELL will establish its business in the new locations, it will give maximum support to the local authorities in order to provide jobs and create numerous employment opportunities through the following

It will create new opportunities for its qualified individuals that are either unemployed or underemployed;

  • It will provide the ongoing on-the-job training programs and the professional growth opportunities.
  • Instill a culture of ” the best performers does best”
  • Develop a breed of knowledgeable the workers.

Address the digital divide through the provision of the community-based education to the youths. It will ensure minimized disruptions to its employees in case their jobs are changed, if they have been relocated or eliminated as Dell builds the global presence by Providing fair notification in regard to the employment changes, Strive by retaining and placing the employees with good performance by promoting them to new positions in the company, Work closely with the stakeholders in order to ease the transition from Dell to the next employment opportunity for employees who prefer to seek career opportunities outside of the Dell company. Seek to ensure that any disruption caused to the communities in which Dell employee’s experiences job changes is minimized.

DELL is determined to ensure that its suppliers around the world understands and embraces the high standards of ethical behavior by treating their employees with high dignity and respect, it’s therefore a requirement that all the suppliers should partner up and adhere to Dell’s supplier principles or the industrial principles as outlined in the Electronic Industry Code of Conduct.

To achieve this DELL will play an active role in the industrial group developing and the promotion code of Ethics. It will also continually solicit and make reviews for the feedback of the stakeholder organizations.

DELL will also work with the local authorities in every region of its operation and stakeholders to by understanding the community priorities and draft means of how it can play the role of addressing the community environmental issues. It will make it possible for its employees to make the difference in the community affairs through volunteerism and support of the non-profit organizations. DELL ensures faster response in the case of the natural disasters. It has also Leveraged its Foundation and its corporate commitment to equip the youths for the digital economy.

Environmental influences on DELL &its ability to achieve its objectives and deal with competitors.

Environmental factors have both positive and negative impacts on the industry and the market growth potential of the product/service. The following environmental factors affect the global operations of DELL,

The Government actions – Government actions, be it current or under consideration have on several occasions affected DELL by either supporting or detracting its strategy. This is in the consideration of the subsidies, safety, efficacy and the operational regulations, the licensing requirements, restrictions to the access to materials and the price controls.

The demographic changes, anticipation in the changes of the demographic environment also impacts to the growth of the potential of the industry and the market.The emerging technology, the technological changes may not favor the actions of DELL’s enterprise. The cultural trends, the cultural changes such as the fashion trends and the life style trends may not support DELLs offering to penetrate the market.

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DELL operates within the larger framework of the external environment which shapes the opportunities and poses the threats to the companies. The external environment is a conglomeration of complex, and rapidly changing institutions and the forces that affect the organization’s ability to serve the customers. The external forces are not controlled by the organization; these forces may be greatly influenced or affected by the organization. Therefore, it is necessary for the Companies such as DELL to understand the environmental conditions because they affect their strategic decisions. The external environment has major impacts on the determination of DELL’s marketing decisions. This organization can be successful if it scans its external environment in order to respond to the profitability to of its needs and the target market trends.

To adopt into the marketing, it requires the company to provide greater customer values as compared to its competitors. It is impossible for an organization such as DELL to develop a very strong competitive position and strategies without the knowledge of its competitors in terms of their strengths and weaknesses. In view of this three levels of competition have been identified to exist. This include; Direct competitors which are the firms competing for the same customers with the similar products, Product competition which involve the substitute products, and Competition at the level of the consumer’s purchasing power.

Pure competition involves many firms, with each selling identical products, but neither of them is powerful. The monopolistic competition has many firms which are selling slightly differentiated products. Oligopoly is a very small number of firms selling its products, it can act collusively. Monopoly is where a single firm sells in the market for without the substitutes.

DELL’s economic environment is made up of the factors that affect its consumer purchasing power and the spending patterns. The economic factors include the business cycles, inflation rates, unemployment levels, the interest rates, and the amount of the income. The Changes in the economic variables have significant impacts on the marketplace. For example, the income affects the consumer spending which in turn affects the sales for the organizations.

Demographics factors identify the marketers their current and potential customers, the location of the customers, and how many customers are able to buy what the marketers are selling. Generally, Demographic factors involve the human populations in reference to size, density, the location, age, sex, race, the occupation, and other statistical aspects. The Changes in the demographic environment can affect DELL by resulting into the significant opportunities and the cultural threats which presents themselves to the organization. The major trends for the marketers in the demographic environment may include the worldwide population explosion, changing of the age structure, ethnic groupings and the educational mix, the emergence of new types of households; and the geographical shifts in the population.

The Social/cultural forces are somehow difficult and uncontrollable variables to predict. It is therefore of great importance for DELL as the marketers to understand and appreciate all the cultural values of the environment under which they operate. The cultural environment consists of the forces which affect the society’s basic values, its perceptions, and the preferences, the values and beliefs which include equality, level of achievement, the youthfulness, efficiency, the practicality, the self-actualization, freedom, the humanitarianism. The changes in the social/cultural environment tend to affect the customer’s behavior, which in turn affects the sales of the products. DELL being the producer of electronic gadgets it must be aware of the trends in the cultural environment including the individual changes in personal views of themselves, and the world around them and the movement towards the self-fulfillment.

The aim of this section of the paper was to examine the environment and its effects to DELL, the ecosystem refers to the natural systems and the resources that are needed as the inputs by the marketers or affects that the marketing activities have. The environmental concern about the physical environment has been intensified due to the climatic changes. The environmental consciousness is significant to DELL to the sensitivity associated with the electronic waste disposal. To avoid the shortages in the raw materials, DELL can make use of the renewable resources (such as forests) and alternatives (such as solar and wind energy) for nonrenewable resources. It can also limit the energy consumption of its products by increasing the efficiency. DELL can also built Goodwill by voluntarily engaging in the anti-pollution activities and the conservation of the natural resources. Dell will help protect the natural environment by:

Considerations on how it will devise the means for minimizing the environmentally sensitive materials, optimization of energy consumption by its products, and promotion of the dematerialization in its product designs. Minimization of the environmental impacts on the communities where DELL has its facilities can be achieved by the implementation of the programs which reduce the wastes, enhance the conservation of the resources, and prevent the pollution. DELL also provides the easy and affordable recovery of the solutions for end of life products from its customers, including the re-use program which benefits the non-profits and the underserved communities. DELL also prohibits the export of the electronic waste to developing nations. Dell adheres to the stringent standards for the product safety to protect its customers. DELL has also revised its policies to protect the critical technology by complying with all laws as laid down by the United States and those of other countries which concerns the imports or exports of the products/ services, the software packages and technology, this also includes the regulations which restrict the sale of the advanced technologies to rogue or organizations. (Peter, 2011)

Dell respects its customer privacy all over the world through the restricting the collection, storage and illegal use of personal details or private information to specific the purposes such as the processing of purchases, provision of the services and support, and the sharing of its products/service and its news with the customers.


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