Dell Strategic Audit Essay Example | Topics and Well Written Essays - 500 words

Dell Strategic Audit - Essay Example After twenty years in the industry, Dell Computer Corporation changed their name to Dell Inc. in 2003. To reach as many global markets as possible, Dell under the management of Michael ensured that they had manufacturing plants and customer service stations in Asia, North America and Europe. Michael endorsed a new chief executive officer, Kevin Rollins in 2004. Kevin made sure that Dell Inc. continued with the same focus linked with driving costs out of supply chain and reaching more foreign markets. Between 2005 and 2007, Dell started to face loses in the market share because the competitors had found ways to imitate its innovations. In addition, the company faced negative new coverage with so much investigation by the Exchange and Securities Commission for irregularities linked to accounting. Rollins could not stand the poor financial performances and decided to resign in 2007 and Michael was up for the task once more. It is evident that this poor performance by Dell was as a result of irregularities in the financial statements from 2003 to 2006. By the time Rollins resigned, Dell had relinquished the position of market share leadership and dropped to become a resurgent competitor. In order to recover, Michael decided to branch out into providing personal computers by retailing. At that time, Dell was operating on a cost reduction plan of three billion dollars annually. Michael announced on September that the company was going to sell most of its manufacturing facilities within one and a half years. This strategy was initiated to try and get back Dell on track and see the stock price growing again. Dell inc. lost its competitive advantage to Hewlett-Packard that became the top supplier of personal computers. Dell Inc. modified its manufacturing model to boost the retail efforts. In addition, the company’s focus became manufacturing high volume products. By 2008, Dell Inc. had sold out more than 12, 000 of its facilities. The focus was