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The organizational structure is not static, but rather with the Internal and external environment In which companies change and enterprise adjustment strategy for enterprise organization structure. This paper mainly discusses the basic organizational structure and strategic relationship to Dell as an example, Dell’s strategy for the evolution of and in accordance with the strategic how to adjust its organizational structure, so that the two promote each other’s development, analysis, Dell in the matching process in the neglected problems that can not buy that?
Finally from Dell’s strategy and the organizational structure of the matching process of revelation, given the organizational structure of the process of how to adapt to the strategic principles and policy proposals. Key words: strategy: organizational structure; matching analysis; Dell Inc. Abstract: The level of productivity determines the developmental trends in constructional pattern of the corporation organization. With the limitation of productivity level, the organizational structure of the company Is closely related to what activities It conducted.
Moreover, what determines the company ‘activities Is the strategy made by the manager. The organizational structure Is not kept all the time and will be adjusted to the changes of the environment in and out of the company as well as the company’s changing strategy. This article mainly discusses the basic relationship between organizational structure and strategy. It takes Dell as an instance to analyze that strategy development and structural adjustment are greatly promoted by each other.
It also points out the problems ignored in the match process and asks If they can be Ignored. Finally, according to the Inspirations In the match process of Dell’s strategy and organizational structure, It briefly gives some principles and suggestions about organizational structure how to adapt to strategy in a company. Key words: strategy; organizational structure; match analysis; Dell Strategy is the face of intense business change, severe challenging Company environment, In order to obtain long-term survival and continued development of the overall conduct of planning.
Changes in the modern enterprise to survive in the fierce, severe challenging environment, we must In this environment, survival and development, it is necessary innovation to creative ventures. That is, through the implementation of innovative strategies in real terms, so that enterprises from not suited to the current state of the environment into the future to adapt to another environment The organizational structure refers to the enterprise people, and objects and people and things combined form a relatively stable, the two not only complement each other, but also checking the other.
In the strategy and organizational structure of the relations between, who can decide who is and who people have been subject to who is the focus of attention. The first strategy and the organizational structure of the research concerning the relationships are American scholars Chandler. Chandler studied the history of the development companies, in particular, DuPont, General Motors, Sears, Roebuck and Company and Standard Oil, the four major companies such as United States history f the development.
His research concluded that: the organizational structure of subordinate strategy, corporate strategy change would lead to changes in the organizational structure, the most complex organizational structure is a combination of several basic strategies for the product. To effectively operate a business strategy and organizational structure must be linked. In strategic management, effective implementation of another aspect of the strategy are: the establishment of appropriate organizational structures and strategies to make them match.
The degree of match between them will ultimately affect business performance. Strategy and organizational structure of the master-slave relationship of business from the existing organizational structure can not be considered in the light business strategy, but should be based on business requirements of internal and external environment in which to develop strategies, and then under the new strategy developed to adjust the business The organizational structure of the original [2].
The organizational structure inhibited the strategy, so unsuited to the organizational structure and strategy, will become an obstacle to play its due role in the strategic enormous power, so we should continue to seek a sound business strategy and a sound organizational structure. Leading the strategy and organizational structure of the lag also contributed to the strategy and organization does not significantly match the major reasons. Enterprises as an open system, always in the ever- changing external environment.
Relative to changes in the external environment in terms of business, strategy and organizational structure to respond to the time there is a difference, from Chandler to the United States for several large companies stage f historical development analysis, we can see, the first response is the strategy, then the organizational structure of only under the impetus of the strategy to respond to environmental change, thus leading to the formation of a strategic nature and organizational structure of the lag [3].
Strategy of leading-edge refers to the changes in corporate strategy is faster than the changes in organizational structure, it is because when companies realized that the changes in external environment has provided new opportunities and demand, enterprises will change strategy to the new conditions seek economic growth or to ensure survival.
Of course, a new strategy requires a new organizational structure, at least on the basis of the existing organization to adjust, if there is no corresponding changes in the organization, the new strategy does not cause companies to gain greater benefits. However, the organizational structure change is often slower on strategic innovation, especially in the new period of rapid economic development especially.
Lag caused by changes in the organizational structure for two reasons, first, the old and new organizational structure of alternating the need for a longer time to process, when the emergence of new environment, companies first consideration is the strategy, the new strategy organizational structure, while the original structure there is a certain degree of inertia, the original management staff are still using the old terms of reference and channels of communication to manage the activities of the new strategy, so a new strategy of implementation and enforcement of has also been a lot of restrictions and obstacles.
Second, the existing management will resist changes in the organizational structure of enterprises, enterprise management personnel are already familiar with he old organizational structure, habits, or the use of ease, while the changes in organizational structure will be a threat to their status, power, interest, especially psychologically confusion and tension, even panic and stress, so they tend to use a variety of ways to resist organizational change.
Leading from a strategic and organizational structure of the lag can be seen that a new strategy in the enterprise at the turn of the old organizations, should consider the organizational structure of the lag, the change in the organizational structure can not act with undue haste, but also try to shorten the the organizational structure of the lag time, as soon as possible to enable them to match the needs of the new strategy.
Organizational structure and strategy should be to form a match and balanced relationship, not only enable businesses to more effective organizational structure to support the strategy, also enable the strategy in a flexible organizational framework, and continue to seek a breakthrough on the environmental constraints and their underdevelopment. 2 strategy and organizational structure of the empirical analysis – in order to Dell (Dell) companies, for example Strategic decision to organizational structure, the structure change with a change in strategy.
But in the real business operations, how to make dynamic matching between the two? The adjustment between the two companies that often exist in a certain degree of ambiguity, the following in order to Dell’s case, analysis of how the organizational structure and strategies to match. Dell (Dell) companies in 1984 by entrepreneur Michael Dell founded the computer industry, he is currently the longest-serving CEO. Since Dell entered the Chinese market, choose a unique marketing approach allows Dell Jumped the sky.
Dell’s direct sales model, collaborative supply chain, direct service and efficient marketing system combined into a whole for the Dell won the unparalleled competitive advantage to Dell’s from a little-known small company into the computer industry giant. 2. 1 Dell the company’s strategy Strategy is based on internal and external environment in which business decisions, according to Dell, Dell’s senior internal and external environment in which, to the highly competitive modern market, the most direct strategy is to become the interests of all the ones who enjoy the cost savings to customers.
Dell Inc. Has established close to the customer the most direct relationship. Close to the customer is the enterprise competitive weapon, but only from a single point of many companies to build relationships with customers, while Dell is based on customer’s needs, characteristics and size to the different organizations and customers directly. Facts have proved that such a relationship has become Dell’s biggest competitive advantage. Dell established mainly from the following aspects of the business strategy, and through several measures, combined with each other to form a kind of
Line sales concern is with the customer to establish a direct relationship, so that customers can interact directly with the manufacturers. Dell has established such a straight-line sales model, through this interaction, whether through the Internet or by telephone or face to face interaction with the salesperson, Dell customers can very easily find what they need to configure the machine, Dell can In accordance with customer’s orders in full compliance with customer needs to create a custom In the direct mode, the benefits are the same configuration, same computer. Laity, the Dell’s products always cheaper than the competition, it is the imitativeness of its sales reflected a big. Dell’s product prices low, quality is low; product configuration higher competitiveness more obvious, which is most people see the direct benefits of direct marketing. Elimination of middlemen profits, the distribution pattern of profits to the middlemen in the split between the customer and Dell, both sides benefit, which is that both sides were ready to accept things.
Of course, the price advantage is definitely not a simple flat distribution channel is naturally formed, and this is due to Dell’s refinement operations (including the back- ND manufacturing, warehousing, transportation management, etc. ) on every aspect of direct marketing is only one of [4]. 2. 1. 2 on-demand In the computer industry, most manufacturers do not provide complete machine to change the configuration, the product less choice. Dell are committed to implement on-demand to customers, according to a single production.
Dell allows customers to custom design their favorite products, customers are free to choose and configure the computer’s various functions, model and parameters, so that each computer is different, the entire sales process is like a computer directly to the city assembly of arbitrarily own a complete system [5]. To provide better services for our customers at the same time, the company which are based on orders for accessories purchased without having to hoard a large number of accessories, the company also received more profits.
This on-demand needs of the refinement of an organization’s management and supply chain structure change. 2. 1. 3 Fine management Low cost has always been the core of Dell’s model. Michael Dell is the company’s most valued marketing operating profit, he considered that in order to Dell’s long- term profits, companies must make their products have enough price advantage. Low-cost, high efficiency must be achieved, and strive to streamline the efficiency of Dell’s main practice.
For as much as possible to reduce costs, increase profits and Dell in every new product launches are strictly on all aspects of calculations to ensure that their production has always been the most profitable products, work with suppliers synergistic supply chain, thereby reducing the transaction costs and storage costs. Dell’s Fine’s office is that through optimization, reducing the operational behavior in all aspects to improve efficiency, increase market and customer responsiveness, increase sales, while saving costs, thereby lowering prices, so that consumers benefit from the . . 1. 4 Direct Services Directly to the customer after-sales service is part of Dell’s sales in the market- depth understanding of customers after another effective strategy, given the competitiveness of Dell adds a powerful bargaining chip is the Dell brand building process in a very important link. Dell enterprise before selling call center customer Dell’s customer service staff will try to solve the problem over the phone if the phone does not resolve, will be based on the type of customer purchase computer equipment to assign engineers to provide the corresponding-site services.
By contrast, other vendors can only provide repair the door, or charge higher service fees. This centralized management for Dell’s competitive forces into an incomparable, which is taken by the organization of distribution models that can not be beat. 2. 2 The adjustment of the organizational structure of Dell’s Necessarily requires the formulation of corporate strategy can be a good tie in with the organizational structure to serve the strategy, Dell’s organizational structure is how to adjust it? Reposted elsewhere in the paper for free download http:// www. Hi. Mom 2. 2. 1 Direct Mode – divided by customer base and external sales team and adjust the sales department Dell’s direct sales model is the success of business operations a major focus point, Dell’s market focus on target customers, the Dell is the number of personnel according to the customer, the user’s industry, customers and other conditions of regional differences in classification with the appropriate marketing and direct sales personnel – Dell has established a customer-centric organizational structure, rather than product-centric to organize in- house “division.
Dell, Dell’s sales department is the largest and most important sector, but also the fastest-growing number of employees, the largest number of sectors. Dell’s direct sales model and target markets according to a breakdown of the degree will be a simple “Division” adjustment for the different target clients in accordance with different characteristics, preferences, purchasing habits, the establishment of three major sales department: Dickhead (LLC), an important Customer Department (PAD), the Ministry of small businesses and home users.
For different types of customers, Dell arranged inside and outside sales personnel are also different allocation of resources may be based on external sales, internal sales, supplemented by; may also be mainly based on internal sales, outside sales, supplemented, or even arrange outside sales staff. Primarily responsible for outside sales staff to find a large number of large customers or orders, according to personnel flows are also relatively large.
And internal sales force is mainly responsible for the use and maintenance of Dell’s sales force automation system, Dell’s sales management to achieve a central centralized management, allowing the organizational structure of flat, flexible. 2. . 2 on-demand – to adapt the organizational structure of the supply chain On-demand in order to achieve zero inventory, more efficient organization is needed to reflect the ability to achieve.
As the prices of computer products quickly, inventory pressures Clearly, Dell To realize the on-demand, it must be after receipt of customer orders, production, this will inevitably require update inventory the types and quantities, but keep the plot a large number of assembly parts invariably increase operating costs, and ultimately lead to higher product prices. So, Dell has chosen to implement the collaboration thin the enterprise supply chain. Dell’s choice and suppliers through a rigorous selection process in the peer select a reliable supplier and establish partnerships.
By allowing suppliers to Dell’s logistics storage warehouse near the center of the establishment, only when needed supply from here. After the selected supplier, Dell line. The technical staff know their product quality, there is a guarantee of quality control, Dell no longer need to equip ourselves with the inspectors and equipment, thereby saving the cost of production [6]. Dell vendors through providing them with Eng-term production forecast for production forecasts, the whole system to keep inventory to a minimum.
Zero inventory and rapid manufacturing model to shorten the distance of supply and demand, no inventory risk and cost, so Dell’s product price in order to have a significant competitive edge. 2. 2. 3 Fine management and direct services – Dell’s internal marketing system of the establishment of Refinement of the success of management information from Dell’s internal construction, but also direct services to customers also rely on this. If the information is unsuccessful, Dell’s erect service can not be achieved, which will also affect the success rate of direct- sales model.
Dell’s marketing support system is divided into client systems and Dell’s direct use of internal staff to use the system, this is the basis for the success of Dell’s marketing and crystallization, which improved the efficiency of the implementation of marketing and the provision of high-level personnel decisions to the precise analysis of the data. 2. 2. 3. 1 customers direct access to the system – realization of direct services Customers direct access to the system is toll-free telephone (sales, customer service) and the Internet support system.
Phones within the enterprise in general is Just a communication tool to complete the call task over. But Dell can be obtained from the telephone for more analysis of data: the number of calls distribution (advertising, point in time, source of regional, etc. ), phone talk time on average, how many Dell’s customer phone sales or technical staff had not provided assistance to be directly linked out (discarded), etc. , each data change will lead to changes in Dell’s management decision-making.
Dell To further narrow the distance teens the customer and follow the progress of time, in-house to achieve “e- commerce”, the successful use of the Internet, resulting in marketing, sales, customer service, efficiency of all aspects have been greatly improved, the corresponding costs are further reduced. 2. 2. 3. 2 Dell’s internal systems used by Dell’s internal, has been the implementation of CRM strategies and methods of management, business development according to their characteristics need to develop a marketing support system.
The support system of each department may not the same, but there is a sophisticated seamless link, allows businesses to conduct sigh-level collection, collation and analysis of end customers a full range of information, conduct one to one marketing, better consolidate and strengthen and end-customer relations, in order to achieve meticulous management. High-quality customer service system to provide efficient after-sales service for the direct level, allowing direct services company has some internal structure to support!
Based on Dell’s strong customer service system, Dell has taken within the enterprise is centrally managed customer service, which makes higher quality customer service, lower costs. This requires in-house staffing of the invalidation, build on customer- centric organization structure, faithfully to implement the best “customer experience” corporate slogan. And efficient internal analysis, making in-house personnel structure need to be adjusted, in the establishment of information technology within the enterprise sector, Dell’s information technology to achieve management to provide support. . 3 The organizational structure and strategy of Dell’s problems arising in the matching process While the Dell in the strategy and the organizational structure of the matching process constantly seeking the best ambitions of both, but there are some obvious flaws with the crux of the problem of the emergence of these loopholes and crux of the problem has gradually been curing in the process.
Mainly reflected as follows: (1) neglect of the matching process in the corporate culture and personnel integration issues [7]: Dell is an emphasis on implementation, efficiency and digital management of the company, the company’s appraisal system too harsh, high-level pursuit of short-term performance of the seats passed to the lower will definitely lead the entire company from top to bottom of a quick profit mentality. This corporate culture atmosphere and too harsh assessment, but also resulted in a significant flow of talent. 2), matching the course of a lack of flexibility in the adjustment of the organizational structure: an enterprise’s organizational structure must have sufficient flexibility to allow employees and businesses to co-evolution, rather than GUI the development of enterprise itself. Dell’s specific organizational structure is more easy to manage, but would prefer a sales and customer management, allows businesses to focus on the business opportunities at the expense of the employee’s development [8].
This lack of flexibility in the organizational structures are not well integrated with the strategy, and may even become obstacles to implementation of the strategy. The crux of the problem is not a one-way there, which is the organizational structure of the complications in the adjustment process, then the adjustment of enterprises in the process of matching what should we do? G’s strategy of how to adapt the organizational structure of the Principles and Recommendations Adjustment of the organizational structure in order to better implement the strategy, a strategic catalyst.
In the adjustment process, organizational structure and strategies adhere to under the principle of matching to improve the efficiency of corporate communications and encourage employee involvement to achieve its objectives at the same time, it should be noted the following aspects: (1) The strategy of timely adjustment: the organizational structure is relatively stable, while the external environment of great variability, strategic adjustments in a timely manner within an enterprise should be based on changes in the external environment, strategic decision-making, and comprehensive consideration the adjustment of the organizational structure of difficulty and scope of the strategy for fine-tuning. Although the organizational structure of a strategic decision, but if the implementation of the strategy, the organizational structure of the adjustment of the difficulty and scope is large, then the adjustment of the organizational structure of the implementation of the strategy is difficult to play the corresponding catalyst, which also lost the purpose of adjusting the organizational structure of the and (2) The enterprise culture and employees, organizational structure, the meaning. Mutinous integration: corporate culture to support the development of enterprises, is the soul of the enterprise.
In the process of adjusting the organizational structure, companies should pay attention to washing corporate culture, enterprise culture organizational management, so not only can increase employee loyalty for the company, while can reduce the flow of talented personnel, benefit growing (3) focus on the flexibility of organizational structure: organizational companies. Restructuring strategy is ultimately for the service, but the organizational structure itself should have a certain flexibility. A certain lack of flexibility in the organizational structure of the organizational structure is bound to cause its own problems, thus affecting the effectiveness of the implementation of the strategy.
As Dell Corporation, the organizational structure even though it can well adapt to strategy, but because of their lack of flexibility, resulting in the neglect of surface-level staff development, which will inevitably lead to the loss of talent to the enterprise’s development has brought a certain side effects. Therefore, in the service strategy, organizational structure should be accompanied by attention to their own development and hangers. Strategies for deciding the organizational structure, in turn, organizational structure, the smooth implementation of the firm’s strategy also has a major impact. The organizational structure of enterprises is not only largely determine the goals and policies of how to build, but also to determine the allocation of resources companies.