The relationship between the managers and workers was not good at all, this led to mass layoffs which affected the company’s performance .The other problem was in the process of recruiting new employees in a bid to achieve sustainable growth and development for the Company.
The company did not have enough creative employees who could contribute new ideas on how to venture into new fields of investment. The chief Executive officer was very impatient with new products in the market; he expected quick returns which was not possible within short span of time (Lynch 433-437).
List of Alternatives
The relationship between top managers and the subordinates in any company must always be healthy for productivity purposes. From the case in Dell Company, the relationship between the top managers (the Chief Executive Officer Michael Dell and the President Kevin B. Rollins) with the subordinates was poor resulting to mass lay-off hence poor company performance (Lynch 433-437).
Any established company should always have training programs for new employees on issues related to company management; this includes marketing segmentation and sales strategies. This ensures that high level of productivity is realized.
The success of Dell relies on their improvement in the quality of goods they offer. This has to take place by incorporating new technology in the manufacturing process. This will require structuring of business plan that will incorporate new marketing and promotional strategies. There is need for patience whenever a new product is introduced into the market; this allows it time to catch up before any profit is realized (Bonoma 69-76).
Analysis of the Alternatives
Good interpersonal skills and relationship between workers is vital for effective management and running of any company. Communication is a very important factor that ensures smooth running of activities within the company. This must be encouraged amongst all employees regardless of the positions they hold.
This may as well act as a very important tool for designing communication marketing mix outside the Company. The scenario at Dell Inc clearly demonstrates the results of poor communication that ends up creating poor working environment (Ahmed 1177-1186).
It is very important for the firm to offer training to its own workforce than recruiting them from outside the company. This ensures that the new recruits are those who are very much familiar with the company’s production processes. This also encourages smooth transition when it comes to succession within various departments. Dell had a problem with workers from outside because they were unable to adapt with the required speed to the company’s codes and principles.
For a company to keep up with the ever changing demand and supply curve, they must be ready to invest on better ways of improving the quality of their products, this also includes stepping up their technology by initiating necessary modifications with regards to quality and quantity (Kohli 53-81).
Dell’s conservative ways could not enable the company to invest hence failing to compete favorably within the market. In the business world, it’s not easy for one to get quick returns from newly introduced products. It calls for patience and proper strategizing. Dells impatience and quest for quick profit slowed their productivity and consequently affected the end results (Cravens and Piercy 2009).
The management should work out modalities of creating good relationships amongst the workers at all levels (Johlke and Duhan 265-267). There must be harmony within the working environment. It’s inevitably necessary for the Company to have new recruits if it expects to expand its production and improves on the level of its skilled manpower.
This can be done through training and internship programs. The company should come up with good business plan that enables it to arrest the lucrative investment opportunities. By all standards, when a new product is launched in the market, it will take a while for it to command public confidence. As such the producers must be patient and use good sales and marketing strategies.
Ahmed, Pervaiz. “Internal Marketing Issues and Challenges”. European Journal of Marketing; London 37(9), (2003):1177-1186.
Bonoma, Thomas. “Making Your Marketing Strategies Work”. Harvard Business Review. Harvard Business school USA (1984): 69-76.
Cravens, David and Piercy, Nigel. “Strategic Marketing”. McGraw Hill. 9th edition. 2009.
Johlke, Mark and Dale, Duhan. “Testing Competing Models of Sales Force Communication,” Journal of Personal Selling & Sales Management, United States Vol. 21 (2000): 265-277.
Kohli, Jaworski. “Market orientation: Antecedents and consequences”. Journal of Marketing, New York 57, (3) (1993): 53-81.
Lynch, Merril. “Dell Inc”. Business week, New York Feb 6, (2006):433-437