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Submitted by nikkimartin on April 20, 2008
Category: Business
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Global Communications Benchmarking
Dell Computers
Issue Identified also facing the company
In the GAP Analysis of Global Communications two of the key issues identified were the layoffs, and loss of revenues. People are an integral part of the solution to many companies’ problems, and if you forget to implement these assets in your problem solving you may be setting yourself up for failure or a rushed decision.
As an article titled “Dell Warns of Layoffs, Motherboard Replacements”, (Spooner, 2005) has identified: “One the main issues identified was the loss of revenues. Dell Inc., which on Monday night issued a third quarter earnings warning, has enacted what it characterizes as a small number of layoffs as a part of a restructuring it says will cut costs and increase efficiencies.”
The Article continues “Layoffs, which have been frequent in the PC industry over the last several years, have been rare for Dell. The company, instead, has been on a growth streak since 2001 when an economic downturn caused a PC market slowdown. Dell saw the downturn as an opportunity. It cut prices in an effort to take market share from competitors, such as Compaq Computer Corp. and Hewlett-Packard Co.
How the company responded to the issue
The company identified a few of the ways that it was going to compensate for the issue one a few of which according to the article was:
“The layoffs and the motherboard replacement program, which Dell says it's handling by working with individual customers, are both included in a $450 million charge the company said it would take against its fiscal third quarter earnings, which will be announced on Nov. 10.” Dell decided to use some of the profits to help offset the damages.
Outcomes of the issue
The outcomes are as any business strategy could be defined, risky. The cited article states also that “Thus, in an effort to maximize its profits, it undertook...
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