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Monday, December 27, 2004
Essay on the world's religions
Introduction
Since its beginning, religion has held a significant position within civilization. Religion is based on a set of beliefs of what one holds to be true. According to the influential book, “The World’s Religion by Huston Smith (1991)”, there is a common bond between all of the religions. However, there is also uniqueness in each religion that differentiates them all. Smith carefully makes a distinction between Hinduism, Buddhism, Confucianism, Taoism, Islam, Judaism, and Christianity. This research project will focus on the world’s religions and exclusiveness of religion in each culture and the results on an individual’s principles.
Discussion
One of the primary values of Hindu religion focuses on “The Path of Desire” (Smith, 1991). The Hinduism religion specifies that people seek two things in life, to include pleasure and success from the world. Wanting pleasure is a natural feeling that humans are born with. In addition, wanting to have pleasure should not be frowned upon, but requires sound judgment and logic. The religion also states that pleasures must not be censored, but sought carefully with wisdom. According to Smith, worldly success stems from three areas in life to include wealth, fame, and power (1991). However, both pleasures and worldly success have there end of coarse. Simply stated by Smith (1991), “the idea of a nation in which everyone is famous is a contradiction in terms; and if power were distributed equally, no one would be powerful in the sense which we customarily use the word” (p. 15). Next, an ability or talent is required to gain success, money, fame, and power. Another setback with the idea of worldly success relates to hedonism. For example, the rich is not always happy and secure, but seek to gain more riches in this life. Moreover, the last reason for why worldly success does not please people completely, due to its short-term effect. Meaning that, riches cannot be taken with one after he or she dies. Overall, within the Hinduism religion the need to be included in the future holds a stronger weight than the here and now.
In the Buddhism, it is highly encouraged for people to focus and challenge themselves. This concept eliminates the need for God or another power telling them what to do, think or believe. According to Smith (1991), the four noble truths also stem from the religion. The first noble truth defines life as dukka or suffering. Suffering may include the trauma of birth, sickness, morbidity of decrepitude, death, dislikes, and separation from loved ones. The second noble truth is called Tanha or a specific type of desire. This type of truth, “consists of all those inclinations which tend to continue or increase separateness, the separate existence of the subject of desire; in fact, all forms of selfishness, the essence of which is desire for self at the expense, if necessary, of all other forms of life” (Smith, 1991). The third noble truth follows the second truth in sequence. Moreover, the fourth noble truth conquers tanha, and leads to the eightfold path. The eightfold path includes right views, right intent, right speech, right conduct, right livelihood, right effort, right mindfulness, and right concentration. All of these principles are included with the religion to produce treatment for the basic self-seeking problems faced in life.
Confucius discovered the religion Confucianism within the Chinese culture. One belief within the religion focuses on a combination of individualism and education. There are five terms to answer the question; “what is the character of the social life it should engender?” (Smith, 1991). Jen focuses on the relationship between two people. The Chun tzu concept deals with mature person versus someone of that is insignificant. The Li concept holds two meanings, as the way things are supposed to be completed also pleasures should not be overindulged in. The Te concept defines the authority in which all creation is ruled. Lastly, the wen concept is the final notion to include the “arts of peace as contrasted to the arts of war; to music, art, poetry, the sum of culture in its aesthetic and spiritual mode” (Smith, 1991).
The Taoism strongly correlates to the Hinduism religion. There are three meaning of the word Tao. The meanings of Tao are defined as the way of ultimate reality, way of the universe, and the way of human life (Smith, 1991). This religion teaches the believers that power comes from knowledge. In addition, “selfishness, cleanliness, and emotional calm are the preliminaries to arriving at full self-knowledge, but they must be climaxed by deep meditation” (Smith, 1991).
The basic theological concepts of Islam are identical with Judaism and Christianity (Smith, 1991). For instance, in the Islamic religion every thing centers on the ultimate God (Allah) and the Koran. Other strong concepts may focus on economics, status of women, race relations, and the use of force. Judaism primary belief system is extremely close to the Christianity. One of the primary beliefs of Judaism is faith based. Both Judaism and Christianity believe in the Ten Commandments and that all are equal and created in the image of God.
Moreover, within the Christian belief system the, “supremacy of the spirit is over nature without question (Smith, 1991). Within the bible, people are attracted to the spirit filled scriptures, because of the power they withhold. According to Smith (1991), “the bible frequently depicts them as filled with the power of the spirit, a power that enabled them at times to influence the natural course of events (p. 320). Some of the manifestations of power in the spirit included healing of diseases, casting out of demons, quelling storms, parting waters and raising the dead (Smith, 1991). Often the bible reports people being drawn to Jesus because of his reputation to work through signs, wonders, and miracles. Smith (1991) states, “what made him out live his time and place was the way he used the spirit that coursed through him, not just heal individuals but – this was aspiration – to heal humanity, beginning- with his own people” (p. 321).
Christianity is also based on faith, within the bible many parables can be found within the scriptures. He compared the faith of a mustard seed to the having a small amount of faith, and being able to move mountains. The religion is built on other principles such as being kind and doing well to one another. For instance, a Christian is told to abstain from evil and retaliate when trouble arises. The religion also tells us to, “love our enemies, and bless those who curse us” (Smith, 1991).
Christians also believe in faith of the resurrection of Christ. Once Christ died on the cross, Christians believe that he did not stay in the grave to rot. However, he was resurrected from the grave after three full days and nights. Another important notion, according to Smith (1991), “faith in Jesus’ resurrection produced the church and its Christology” (p. 330) which could bring salvation for all that believe. Some of the values with the Christian belief system included, incarnation, atonement, and faith in the Trinity.
Conclusion
There are many different belief systems within the world today. It is important that leaders within companies as well as co-workers familiarize themselves to gain knowledge about diverse faiths and religions. A company that can achieve unity within the work place along with understanding the makeup of diversity will go far. Each religion has something new and unique to offer to any culture. And working together for a common cause will help managers, leaders, and employees prepare for a changing world.
Reference:
Smith, H., (1991). The World’s Religions. The revised and updated edition of the
Religions of man. New York: Harper San Francisco
Tuesday, December 14, 2004
Information technology in the 21st century
Running Head: INFORMATION TECHNOLOGY IN THE 21ST CENTURY
Issues. Carr presents several issues to explain his opinion for why IT does not matter. Carr argues companies remain successful by introducing new and fresh concepts into the market. IT lacks the ability to gain a competitive edge due to ordinary routine procedures (Carr, 2003). Becoming a common tool used by everyone inside and outside the business worldhinders a successful plan for the system. Instead, from a strategic viewpoint IT fails to influence competition. Further concerns within the technology field stem from a vanishing advantage, as the systems provide access affordable to everyone. Accessible IT systems fail to offer unique products to businesses. Moreover, once the procedures become obtainablefor all the strategic potential for the company deteriorates. Other disputes involved with IT include over investing and overspending. A breakdown in IT can demonstrate a crippling effect in a company's capacity to surmount.
Ideas to avoid. Carr (2003) suggests companies need to spend less toavoid the risk of over investing. By seeking trouble-free and cost efficient options, businesses will eliminate IT waste. Another problem with IT focuses on follow don't lead concerns. Smart IT investors will not venture to make hasty decisions when purchasing devices or applications. Preferably, companies will decide to choose wisely to avoid defective or dated materials. Next, Carr states companies need to focus on risk and notthe opportunities provided to them. These ideas suggest the need for IT todevelop proposals to protect against disruptions due to violations in security, service outages, and malfunctions in technology.
Further disputes. Journalist Dan Farber (2003) takes a different approach in an article titled What Matters more than IT. Farber places the focus on people and not just technology. By claiming, the biggest issue resides in the people, instead of technology. While other chief executiveofficers ( CEO's) from Microsoft and Sun Microsystems feel IT contributesto a tremendous role for advancement of business success and technology innovation. Business CEO Scott McNealy of Sun Microsystems determines without IT companies cannot gain a competitive advantage. In order toexcel above competitors, firms must concentrate on developing and enhancing the latest technology.
Farber (2003) presents several questions and tactics as to whether IT doesn't matter or if IT has become a commodity. Farber claims the presenceof IT remains as important as water to sun and living things. Next, if IT adopts as a commodity, several challenges must occur to prove Carr's opinion. The organization will need to change processes and replace old technology with user-friendly powerful tools. Farber does not recommend revamping the mainframes and mission critical systems. Rather, suggesting the entire infrastructure of IT review the basis of the system to combat competition in the future. Another approach results in preparing people with the proper training and supplying personnel with the necessary skill to achieve a competitive advantage (Farber, 2003). Farber believes the initial focus should be placed on people and leadership versus putting the responsibility on technology. In addition, by training people to deliver goals and finish the strategic plan will position the blame to where the need lies and not on technology.
Patricia Keefe (2003), a former editor with computer world, explains Carr's views of IT as an ordinary structure without a competitive orstrategic edge to triumph in the market. Keefe reasons technology will potentially succeed since everyone uses the products in their lives. Furthermore, positions in the IT field will reach far beyond supervisory roles and into technician advisory trades, while providing test sites forproducts. With much to offer Keefe claims, IT has not finished its course.Keefe further disagrees with Carr's opinion of IT dissolving into an entity sternly focused on items such as perpetuation, risk prevention, and financial prudence. Lastly, IT directors who can reason theoretically and find new inviting ideas to promote ambition in the business by use of technology can gain an advantage.
An interesting statement from Ralph Szygenda, a chief informationofficer (CIO) of general motors approves of Carr's recommendation ofspending less on IT systems (Evans, 2003). Carr claims businesses will likely create a cost disadvantage due to struggles with achieving competitive advantages. Szygenda further reacts to the statement and holds the same opinion, minimal spending on IT will prove to reach rewarding and effective results. Mr. Szygenda feels meticulous investments on central infrastructures for IT systems results in more cost aware businesses and approaches. He also suggests business should spend the required amount on IT systems that provides the company with essential support.
Teo Chin Seng (2003) a CIO of Singapore technologies engineering examines the infrastructure requirement stated by Carr. Agreeing withCarr, one important fact IT has lost is its uniqueness. IT has become too typical and the core functions of the systems are accessible and affordable to everyone. Further, Seng predicts ordinary use of these systems will pose a problem down the road. If not carefully look into IT will suffer damage on its infrastructure and operations. Possible solutions include focusing on optimizing IT, doing more with less, extending use of the systems, and enriching the skills of IT workers. For instance, prolonged business projects may result in a reduction of 12 months to 6 months for completion. For IT to survive business, practices will need to change drastically over the years.
Views. Overall, the notion of Carr's editorial of IT doesn't matter proves senseless. IT still offers a strong voice in the 21st century. And one really cannot fathom the idea of living without such technology. Carr states that IT is nothing more than a commodity (Carr, 2003). Carr tends to find fault with the IT system based on overspending of the systems. Further stating for business to stay open, establishment of new budgets must be set. Although Carr may pose some good reasons for his argument, IT still matters. Agreeing with Dan Farber (2003), what matters more than IT,concludes the real need for the system. Using IT smartly presents businesses with the required tool for advancement in technology. Technology giants such as Amazon, Wal-Mart, and Dell, all learned thecorrect way of applying expertise to profits the company's success. In addition, Keefe (2003) suggests without IT a business cannot function.Today most companies run their business on some type of IT system. Although technology offers a common tool to the public, the infrastructure of the system can still survive through constant change.
Evidence. In the article by Carr, IT doesn't matter, poses aninteresting reflection about the future of the computer generate world. Although, companies need to bring new and innovating ideas into the market for success, we have not seen the last of IT. The system will improve in the future to gain a competitive advantage. Reflecting back over the past 20 years technology, certainly came a long way and continues to advance.Carr's opinion of IT doesn't matter seems prematurely expressed. Through addition of advanced technology, IT will continue to take us to places notseen before. Overall, the facts remain clear; IT does matter and will continue to matter in the future lives of citizens.
References
Carr, N. G. (2003, May). IT doesn't matter. Harvard Business Review,81(5), 41-50.
Dickerson, C. (2003, May 30). Fuhgedgabout IT. InfoWorld. RetrievedNovember 29, 2004,From http://www.infoworld.com/article/03/05/30/22OPconnection_1.html
Evans, B. (2003, May 19). Business technology: IT is a must, no matter howyou view it.Information Week. Retrieved November 29, 2004, from http://www.informationweek.com
Farber, D. (2003, September 30). What matters more than IT. Tech updateIT management.Retrieved November 29, 2004, from http://techupdate.zdnet.com
Keefe, P. (2003, May 12). IT does matter. Computerworld. RetrievedNovember 29, 2004,from http://www.computerworld.com
Seng, T. (2003, December). The evolution of IT. CIO. Retrieved December6, 2004, from http://cio-asia.com/pcio.nsf/
Introduction
Information technology (IT) creates a long lasting challenge forfuture survival of systems. Nicholas Carr a journalist published acontroversial article in the Harvard Business Review, titled IT Doesn'tMatter (2003). The title alone captivates the readers attention to decipher whether Carr's opinions leads towards fact of fiction. Accordingto Carr, IT no longer intrigues companies, for a competitive advantage.Carr views IT, as a boring commodity, in which the future looks dim. This analysis will compare Carr's responses with favoring and opposing viewpoints. The results of Carr's response combined with the perspectivesof other authors to determine if IT matters or not. Moreover, to fulfill the overall need in the 21st century and beyond.
Detailed discussion
Carr's IT Problems
Issues. Carr presents several issues to explain his opinion for why IT does not matter. Carr argues companies remain successful by introducing new and fresh concepts into the market. IT lacks the ability to gain a competitive edge due to ordinary routine procedures (Carr, 2003). Becoming a common tool used by everyone inside and outside the business worldhinders a successful plan for the system. Instead, from a strategic viewpoint IT fails to influence competition. Further concerns within the technology field stem from a vanishing advantage, as the systems provide access affordable to everyone. Accessible IT systems fail to offer unique products to businesses. Moreover, once the procedures become obtainablefor all the strategic potential for the company deteriorates. Other disputes involved with IT include over investing and overspending. A breakdown in IT can demonstrate a crippling effect in a company's capacity to surmount.
Ideas to avoid. Carr (2003) suggests companies need to spend less toavoid the risk of over investing. By seeking trouble-free and cost efficient options, businesses will eliminate IT waste. Another problem with IT focuses on follow don't lead concerns. Smart IT investors will not venture to make hasty decisions when purchasing devices or applications. Preferably, companies will decide to choose wisely to avoid defective or dated materials. Next, Carr states companies need to focus on risk and notthe opportunities provided to them. These ideas suggest the need for IT todevelop proposals to protect against disruptions due to violations in security, service outages, and malfunctions in technology.
Thorough discussion of Disagreements
Disagreements. According to a business article in Information Week,by Bob Evans (2003), disputes Carr's claim about IT. Evans believes improvements in business processes provide important strategies and lead to competitive advantages. Further, stating IT optimization and successful businesses matters to companies in a real time corporation. This theory depletes Carr's notion of IT being just a commodity.
Further disputes. Journalist Dan Farber (2003) takes a different approach in an article titled What Matters more than IT. Farber places the focus on people and not just technology. By claiming, the biggest issue resides in the people, instead of technology. While other chief executiveofficers ( CEO's) from Microsoft and Sun Microsystems feel IT contributesto a tremendous role for advancement of business success and technology innovation. Business CEO Scott McNealy of Sun Microsystems determines without IT companies cannot gain a competitive advantage. In order toexcel above competitors, firms must concentrate on developing and enhancing the latest technology.
Farber (2003) presents several questions and tactics as to whether IT doesn't matter or if IT has become a commodity. Farber claims the presenceof IT remains as important as water to sun and living things. Next, if IT adopts as a commodity, several challenges must occur to prove Carr's opinion. The organization will need to change processes and replace old technology with user-friendly powerful tools. Farber does not recommend revamping the mainframes and mission critical systems. Rather, suggesting the entire infrastructure of IT review the basis of the system to combat competition in the future. Another approach results in preparing people with the proper training and supplying personnel with the necessary skill to achieve a competitive advantage (Farber, 2003). Farber believes the initial focus should be placed on people and leadership versus putting the responsibility on technology. In addition, by training people to deliver goals and finish the strategic plan will position the blame to where the need lies and not on technology.
Patricia Keefe (2003), a former editor with computer world, explains Carr's views of IT as an ordinary structure without a competitive orstrategic edge to triumph in the market. Keefe reasons technology will potentially succeed since everyone uses the products in their lives. Furthermore, positions in the IT field will reach far beyond supervisory roles and into technician advisory trades, while providing test sites forproducts. With much to offer Keefe claims, IT has not finished its course.Keefe further disagrees with Carr's opinion of IT dissolving into an entity sternly focused on items such as perpetuation, risk prevention, and financial prudence. Lastly, IT directors who can reason theoretically and find new inviting ideas to promote ambition in the business by use of technology can gain an advantage.
Thorough Discussions of Agreements
Agreements. Chad Dickerson (2003) published an article in Info world agreeing with Carr's outlook on IT. The article provides supporting statements for IT staff to take heed and a different approach to the future. The editorial further suggests studying the environment and surrounding around IT to grab a better grip on the process. In order toprovide the best solutions for success IT staff members must be properly trained and ready for tomorrow. By placing the right people in position toget the job done, will prove helpful in improving technology. Currently the market for IT jobs remains unsteady and finding the appropriate personnel to fulfill the requirement may require more aggressive job searches. In addition, Carr and Dickerson concur on companies focusing energy on the security vulnerabilities. Maintaining high availability systems will help to cut down theft and focus attention on other needed areas of IT.
An interesting statement from Ralph Szygenda, a chief informationofficer (CIO) of general motors approves of Carr's recommendation ofspending less on IT systems (Evans, 2003). Carr claims businesses will likely create a cost disadvantage due to struggles with achieving competitive advantages. Szygenda further reacts to the statement and holds the same opinion, minimal spending on IT will prove to reach rewarding and effective results. Mr. Szygenda feels meticulous investments on central infrastructures for IT systems results in more cost aware businesses and approaches. He also suggests business should spend the required amount on IT systems that provides the company with essential support.
Teo Chin Seng (2003) a CIO of Singapore technologies engineering examines the infrastructure requirement stated by Carr. Agreeing withCarr, one important fact IT has lost is its uniqueness. IT has become too typical and the core functions of the systems are accessible and affordable to everyone. Further, Seng predicts ordinary use of these systems will pose a problem down the road. If not carefully look into IT will suffer damage on its infrastructure and operations. Possible solutions include focusing on optimizing IT, doing more with less, extending use of the systems, and enriching the skills of IT workers. For instance, prolonged business projects may result in a reduction of 12 months to 6 months for completion. For IT to survive business, practices will need to change drastically over the years.
Supporting opinions and agruments expressed.
Views. Overall, the notion of Carr's editorial of IT doesn't matter proves senseless. IT still offers a strong voice in the 21st century. And one really cannot fathom the idea of living without such technology. Carr states that IT is nothing more than a commodity (Carr, 2003). Carr tends to find fault with the IT system based on overspending of the systems. Further stating for business to stay open, establishment of new budgets must be set. Although Carr may pose some good reasons for his argument, IT still matters. Agreeing with Dan Farber (2003), what matters more than IT,concludes the real need for the system. Using IT smartly presents businesses with the required tool for advancement in technology. Technology giants such as Amazon, Wal-Mart, and Dell, all learned thecorrect way of applying expertise to profits the company's success. In addition, Keefe (2003) suggests without IT a business cannot function.Today most companies run their business on some type of IT system. Although technology offers a common tool to the public, the infrastructure of the system can still survive through constant change.
Conclusion
Summary of evidence
Evidence. In the article by Carr, IT doesn't matter, poses aninteresting reflection about the future of the computer generate world. Although, companies need to bring new and innovating ideas into the market for success, we have not seen the last of IT. The system will improve in the future to gain a competitive advantage. Reflecting back over the past 20 years technology, certainly came a long way and continues to advance.Carr's opinion of IT doesn't matter seems prematurely expressed. Through addition of advanced technology, IT will continue to take us to places notseen before. Overall, the facts remain clear; IT does matter and will continue to matter in the future lives of citizens.
References
Carr, N. G. (2003, May). IT doesn't matter. Harvard Business Review,81(5), 41-50.
Dickerson, C. (2003, May 30). Fuhgedgabout IT. InfoWorld. RetrievedNovember 29, 2004,From http://www.infoworld.com/article/03/05/30/22OPconnection_1.html
Evans, B. (2003, May 19). Business technology: IT is a must, no matter howyou view it.Information Week. Retrieved November 29, 2004, from http://www.informationweek.com
Farber, D. (2003, September 30). What matters more than IT. Tech updateIT management.Retrieved November 29, 2004, from http://techupdate.zdnet.com
Keefe, P. (2003, May 12). IT does matter. Computerworld. RetrievedNovember 29, 2004,from http://www.computerworld.com
Seng, T. (2003, December). The evolution of IT. CIO. Retrieved December6, 2004, from http://cio-asia.com/pcio.nsf/
Friday, December 10, 2004
5 critical success factors for students taking online graduate courses at HPU.
5 critical success factors for students taking online graduate courses at HPU.
1. Familiarize yourself with the web tools – Learning how to actively engage in with the web-based material, will carry a student a long way. The best way to learn anything new relies in familiarizing yourself with the content. If something remains unclear, get help right away and do not pretend to understand the material. In order to be successful in the online classes, you must understand the web tools and understand the limits of your computer. A good rule of thumb would be to find out if your current system supports the demands of the web program.
2. Plan ahead- since this a computer based system, you may run into web glitches, powers black outs or other system failures. By giving yourself enough time to get complete assignments, you reduce the risk of turning in late work. It would be smart to always give yourself a cushion in case a problem should occur. Most instructors stick to their course syllabus outlined in the course. And your points may be reduced for system failures on your end. So be careful!
3. Stay focused – by completing assignments in a timely manner will allow you to enjoy the class. Set up a study time to focus solely on the material for the class. Remember the bar has been raised from undergraduate to graduate work. And more work and higher expectations are required than in undergraduate courses. Allowing your self to get behind in one assignment can be detrimental to your grades. If you have a circumstance in which you are not able to complete an assignment, the instructor should be notified immediately.
4. Get involved – The online experience is designed to enhance your abilities, while providing you with the same structure as a classroom environment. The online experience provides students with a chance to interact online and improve their abilities in a professional environment. Each online class provides unique structures depending on the need of the class. Some classes offer chat rooms, discussion forums, and extensive material to help the student along the way.
5. Expect the best – Listening to negative remarks about the online environment can deter a student from taking the classes. Students should find out for themselves to determine if the program would best suit their need. Online classes offer a wealth of knowledge for students and are perfect for working adults. And remember the instructors and students can provide helpful insight in helping to understand the material. Have fun and learn, more likely if you combine these two words together you will be successful. Success begins with the person and their drive and determination to get results.
1. Familiarize yourself with the web tools – Learning how to actively engage in with the web-based material, will carry a student a long way. The best way to learn anything new relies in familiarizing yourself with the content. If something remains unclear, get help right away and do not pretend to understand the material. In order to be successful in the online classes, you must understand the web tools and understand the limits of your computer. A good rule of thumb would be to find out if your current system supports the demands of the web program.
2. Plan ahead- since this a computer based system, you may run into web glitches, powers black outs or other system failures. By giving yourself enough time to get complete assignments, you reduce the risk of turning in late work. It would be smart to always give yourself a cushion in case a problem should occur. Most instructors stick to their course syllabus outlined in the course. And your points may be reduced for system failures on your end. So be careful!
3. Stay focused – by completing assignments in a timely manner will allow you to enjoy the class. Set up a study time to focus solely on the material for the class. Remember the bar has been raised from undergraduate to graduate work. And more work and higher expectations are required than in undergraduate courses. Allowing your self to get behind in one assignment can be detrimental to your grades. If you have a circumstance in which you are not able to complete an assignment, the instructor should be notified immediately.
4. Get involved – The online experience is designed to enhance your abilities, while providing you with the same structure as a classroom environment. The online experience provides students with a chance to interact online and improve their abilities in a professional environment. Each online class provides unique structures depending on the need of the class. Some classes offer chat rooms, discussion forums, and extensive material to help the student along the way.
5. Expect the best – Listening to negative remarks about the online environment can deter a student from taking the classes. Students should find out for themselves to determine if the program would best suit their need. Online classes offer a wealth of knowledge for students and are perfect for working adults. And remember the instructors and students can provide helpful insight in helping to understand the material. Have fun and learn, more likely if you combine these two words together you will be successful. Success begins with the person and their drive and determination to get results.
Wednesday, December 08, 2004
Sunday, December 05, 2004
Value Chain Paper on Merrill Lynch
Introduction
Since the emergence of electronic commerce, business practices gained a competitive advantage in the 21st century. Charles Merrill founded the financial services company, Merrill Lynch. The purpose of the business opened monetary opportunities accessible to everyone, with the aim of bringing Wall Street to Main Street (Trompenaars & Hampden-Turner, 2002). According to Trompenaars and Hampden-Turner, Merrill Lynch revamped its efforts on reconciling new technology with customer service. The new technology allowed Merrill Lynch to reduce rates and personalize services offered to the consumer. This research project will investigate the companies’ ability to redirect mission, apply electronic commerce to customer service, online systems, and analyze Porter’s (1985) value chain, to include inbound logistics, operations, service, technology, and development. The outcome of the analysis will evaluate the impact and effects of Porter’s value chain concept combined with financial services. Both primary and secondary activities prove effective in gaining a competitive advantage within the industry (QuickMBA.com, 2004).
Background
Value Chains. The inbound logistics activities comprise of material handling, receiving, storing, and distributing inputs for merchandise (Porter, 1985). For example, Merrill Lynch employs commissioned brokers to work exclusively with electronic commerce. A commissioned broker completes customer orders to buy and sell stocks, with a primary responsibility to gain the best possible price for their orders (Ross, Westerfield & Jordan, 2001). Currently the company plans to institute worldwide networks of trading desks to process orders from regional exchanges versus local connections (O’Brien, 2004). Although the company does not use a central data warehouse, facts from a range of sources are combined into a single feed, choosing information based on the type of account (Peppers, 2003). Merrill Lynch’s inbound logistics include near real time electronic business, allowing clients to interact on line at their convenience (O’Brien, 2004; Trompenaars & Hampden-Turner, 2002). The electronic business provides the company with ease of communicating with suppliers and other business stakeholders to include the New York Stock Exchange Commission (Ross, Westerfield & Jordan, 2001; Trompenaars & Hampden-Turner, 2002).
Operations. Next, the value chain explores the operational functions within the investment company. Porter (1985) defines operations as activities connected with renovating inputs into the finished product. The processes may include machining, packaging, assembly, equipment maintenance, testing, printing, and facility operations. To improve efficiency the company streamlined courses of action to focus on quality of customer’s communications (Peppers, 2003). The company began to fine tune marketing, product management, production, compliance, and legal procedures. The firm’s financial advisors captured and analyzed data to reflect information flow and sought new ways to modernize all communications, in order to meet the demands of the customer. The company refurbished a rules-based content engine to position new methods in place when printing collateral. The purpose of the system, provided customer based satisfaction to suit the need of the consumer.
Online Service. Likewise, Merrill Lynch incorporates Porter’s (1985) service activities into customer support and satisfaction services. Merrill Lynch initiated an online website for clients to converse about investment concerns (Trompenaars & Hampden-Turner, 2002) Information passed from clients to Merrill Lynch improved customer relations, provides confidence and empowerment. In comparison with Porter’s value chain, Merrill Lynch provides clientele with the exclusive Global Investor Network. This network allows clients to connect and participate in conversation through video or audio channels. The purpose of the connection facilitates the investment process on line to the client.
Electronic services. In addition, the company invented a system called the Merrill Lynch Direct (Trompenaars & Hampden-Turner, 2002). The Merrill Lynch Direct personalized service allows customers to transfer funds between accounts, view statements, review portfolios, shop direct, and buy and sale stock on line. The service allows investors to purchase and sell stocks at $29.95 a trade, after-hours and in-hours directly. Online activities produce another important addition to customer service and the electronic commerce, adding to the product. Merrill Lynch launched a company system named “Mr. OnLine”, a product created for the Trusted Global Advisory (TGA) system. The TGA amalgamates more than fifty data resources and matches the requirements of the customers with the latest prospects. TGA provides solid information at Merrill Lynch’s fingertips for client satisfaction.
Customer Service. Additionally if a problem arises, a client can immediately connect with a consultant. This technique develops a tight bond between the company and the client. Merrill Lynch Online subscribers may also use a program named Virtual Vineyard. The purpose of the program is to allow members the opportunity to make wine and specialty food purchases in a secure environment (Internetnews.com, 1998). In return, members that choose to pay for electronic commerce purchase with their Merrill Lynch Visa Signature card receive perquisites such as, Signature bonus points.
Merrill Lynch achieved another goal by instituting personalized 401(k) statements in-house (1to1 Magazine, 2002). The company previously worked with a third party vendor to personalize 401 (k) statements. According to Richard Hopkins, director of the Retirement Group Regulatory department, producing statements within the company allowed Merrill Lynch a stronger control over the procedures. In addition, by keeping service within the company integrity and customization of the statements serve as an asset to the business. With the new process in place, the company customized charts, tables and targeted messages. Through new software, the company cut down on price and gained control of merchandise.
Threats. Perhaps, the technology development component of the support value chain creates the strongest impact for Merrill Lynch. Porter (1985) describes technology development as a variety of actions assembled together to improve the product and the method. The company’s technology and development department tirelessly continues to improve efficiency with electronic commerce, due to the competitors such as Charles Schwab. In order to improve technology communications and customer relations, a new approach must be implemented (Peppers, 2003). In addition, the company updates technology by improving efficiency in electronic commerce through improved online techniques.
Change. One problem Merrill Lynch faced was poor marketing strategies in technology. The company fell behind, and several problems surfaced within the marketing process. Customers often received multiple mailings, to include separate waivers, disclosures and authorizations, costing the company money and providing members with tedious, irrelevant information (Peppers, 2003). The company experienced other problems such as sending out too much information. Often security and compliance risk fell into jeopardy caused by inaccurate data sent to the customer, due to the inefficient mail method. Merrill Lynch changed the way of doing business by creating a strategy to combine documentation into an “owner’s manual” and include information significant to the customer.
Through careful scrutiny, Merrill Lynch revamped the communication processes by sending out limited information, instead of multiple products. Today Merrill Lynch provides new customer’s an owner’s manual and a personalized welcome letter to include handpicked information of value. Moreover, the company provides pertinent information to build share to the customer for cross-selling and up-selling messages (Peppers, 2003). The firm also created an online strategy to provide self-service options to furnish online billing, access account details and receive email confirmations. The business cut-rates and saved on postage processes by carefully executing the new procedures within the company resolving problems to minimize the risk of compliance failure within the company.
Another dilemma faced for the company is the profit-maximizing model compared to the client-mentoring model (Trompenaar & Hampden-Turner, 2002). Merrill Lynch encounters competition with Charles Schwab, a discount broker. One important fact Charles Schwab holds over Merrill Lynch is professional expertise. According to Trompenaar and Hampden-Tuner advising on investments is composed of two tests. The profit-maximizing model compares the performance of stocks. Moreover, the client mentoring model which purposes to turn clients into experts. Clients may be attracted to the client mentoring models independence and skill to put them in control of their own wealth. This provides the client with money that works for them.
Conclusion
Financial investing companies, like Merrill Lynch changed business rules and processes. It is necessary for companies to stay up to date with advanced computer technology, to avoid failure. Merrill Lynch is an example of a company that redirected the mission and incorporated modern electronic commerce into the business. The current system used by Merrill Lynch provides important steps for success. Companies in the financial sector must constantly focus on improvement of Porter's value chain. Merrill Lynch combines the value chain into the electronic commerce to include Mr. Online, Merrill Lynch direct, and customer satisfaction. Financial companies will capitalize the market by focusing on inbound logistics, operations, service, technology, and development to the customers. Merrill Lynch continues to institute Porter’s value chain into daily activities. Companies that succeed include every aspect of Porter’s value chain into their company in efforts to build a strong foundation and gain a competitive advantage. Overall, the company must continue to direct its mission by advancement through electronic commerce. Without proper focus on the primary and secondary activities, the company’s mission and vision will fail.
References
Merrill Lynch raises the bar on its personalized 401 (k). (2002, April).
1 to 1 Magazine. Retrieved November 6, 2004, from http://www.1to1.com
O’Brien, J. A. (2004). Management information systems: Managing information
technology in the business enterprise (6th ed.). New York: McGraw- Hill.
Peppers, D. (2003, July 7). Merrill Lynch invests in one-to-one customer
communications. Inside 1 to 1. Retrieved November 6, 2004, from
http://www.1to1.com
Porter, M.E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.
Quick MBA. (2004). Strategic Management. The Value Chain. Retrieved November 5,
2004, from http://www.quickmba.com/strategy/value-chain/
Ross, S.A., Westerfied, R.W., & Bradford, J. D. (2001). Essentials of
corporate finance(3rd ed.). New York: McGraw-Hill.
Trompenaars, F., & Hampden-Turner, C (2004). 21 leaders for the 21st Century:
How innovative leaders manage in the digital age. New York:
McGraw Hill.
Since the emergence of electronic commerce, business practices gained a competitive advantage in the 21st century. Charles Merrill founded the financial services company, Merrill Lynch. The purpose of the business opened monetary opportunities accessible to everyone, with the aim of bringing Wall Street to Main Street (Trompenaars & Hampden-Turner, 2002). According to Trompenaars and Hampden-Turner, Merrill Lynch revamped its efforts on reconciling new technology with customer service. The new technology allowed Merrill Lynch to reduce rates and personalize services offered to the consumer. This research project will investigate the companies’ ability to redirect mission, apply electronic commerce to customer service, online systems, and analyze Porter’s (1985) value chain, to include inbound logistics, operations, service, technology, and development. The outcome of the analysis will evaluate the impact and effects of Porter’s value chain concept combined with financial services. Both primary and secondary activities prove effective in gaining a competitive advantage within the industry (QuickMBA.com, 2004).
Background
Value Chains. The inbound logistics activities comprise of material handling, receiving, storing, and distributing inputs for merchandise (Porter, 1985). For example, Merrill Lynch employs commissioned brokers to work exclusively with electronic commerce. A commissioned broker completes customer orders to buy and sell stocks, with a primary responsibility to gain the best possible price for their orders (Ross, Westerfield & Jordan, 2001). Currently the company plans to institute worldwide networks of trading desks to process orders from regional exchanges versus local connections (O’Brien, 2004). Although the company does not use a central data warehouse, facts from a range of sources are combined into a single feed, choosing information based on the type of account (Peppers, 2003). Merrill Lynch’s inbound logistics include near real time electronic business, allowing clients to interact on line at their convenience (O’Brien, 2004; Trompenaars & Hampden-Turner, 2002). The electronic business provides the company with ease of communicating with suppliers and other business stakeholders to include the New York Stock Exchange Commission (Ross, Westerfield & Jordan, 2001; Trompenaars & Hampden-Turner, 2002).
Operations. Next, the value chain explores the operational functions within the investment company. Porter (1985) defines operations as activities connected with renovating inputs into the finished product. The processes may include machining, packaging, assembly, equipment maintenance, testing, printing, and facility operations. To improve efficiency the company streamlined courses of action to focus on quality of customer’s communications (Peppers, 2003). The company began to fine tune marketing, product management, production, compliance, and legal procedures. The firm’s financial advisors captured and analyzed data to reflect information flow and sought new ways to modernize all communications, in order to meet the demands of the customer. The company refurbished a rules-based content engine to position new methods in place when printing collateral. The purpose of the system, provided customer based satisfaction to suit the need of the consumer.
Online Service. Likewise, Merrill Lynch incorporates Porter’s (1985) service activities into customer support and satisfaction services. Merrill Lynch initiated an online website for clients to converse about investment concerns (Trompenaars & Hampden-Turner, 2002) Information passed from clients to Merrill Lynch improved customer relations, provides confidence and empowerment. In comparison with Porter’s value chain, Merrill Lynch provides clientele with the exclusive Global Investor Network. This network allows clients to connect and participate in conversation through video or audio channels. The purpose of the connection facilitates the investment process on line to the client.
Electronic services. In addition, the company invented a system called the Merrill Lynch Direct (Trompenaars & Hampden-Turner, 2002). The Merrill Lynch Direct personalized service allows customers to transfer funds between accounts, view statements, review portfolios, shop direct, and buy and sale stock on line. The service allows investors to purchase and sell stocks at $29.95 a trade, after-hours and in-hours directly. Online activities produce another important addition to customer service and the electronic commerce, adding to the product. Merrill Lynch launched a company system named “Mr. OnLine”, a product created for the Trusted Global Advisory (TGA) system. The TGA amalgamates more than fifty data resources and matches the requirements of the customers with the latest prospects. TGA provides solid information at Merrill Lynch’s fingertips for client satisfaction.
Customer Service. Additionally if a problem arises, a client can immediately connect with a consultant. This technique develops a tight bond between the company and the client. Merrill Lynch Online subscribers may also use a program named Virtual Vineyard. The purpose of the program is to allow members the opportunity to make wine and specialty food purchases in a secure environment (Internetnews.com, 1998). In return, members that choose to pay for electronic commerce purchase with their Merrill Lynch Visa Signature card receive perquisites such as, Signature bonus points.
Merrill Lynch achieved another goal by instituting personalized 401(k) statements in-house (1to1 Magazine, 2002). The company previously worked with a third party vendor to personalize 401 (k) statements. According to Richard Hopkins, director of the Retirement Group Regulatory department, producing statements within the company allowed Merrill Lynch a stronger control over the procedures. In addition, by keeping service within the company integrity and customization of the statements serve as an asset to the business. With the new process in place, the company customized charts, tables and targeted messages. Through new software, the company cut down on price and gained control of merchandise.
Threats. Perhaps, the technology development component of the support value chain creates the strongest impact for Merrill Lynch. Porter (1985) describes technology development as a variety of actions assembled together to improve the product and the method. The company’s technology and development department tirelessly continues to improve efficiency with electronic commerce, due to the competitors such as Charles Schwab. In order to improve technology communications and customer relations, a new approach must be implemented (Peppers, 2003). In addition, the company updates technology by improving efficiency in electronic commerce through improved online techniques.
Change. One problem Merrill Lynch faced was poor marketing strategies in technology. The company fell behind, and several problems surfaced within the marketing process. Customers often received multiple mailings, to include separate waivers, disclosures and authorizations, costing the company money and providing members with tedious, irrelevant information (Peppers, 2003). The company experienced other problems such as sending out too much information. Often security and compliance risk fell into jeopardy caused by inaccurate data sent to the customer, due to the inefficient mail method. Merrill Lynch changed the way of doing business by creating a strategy to combine documentation into an “owner’s manual” and include information significant to the customer.
Through careful scrutiny, Merrill Lynch revamped the communication processes by sending out limited information, instead of multiple products. Today Merrill Lynch provides new customer’s an owner’s manual and a personalized welcome letter to include handpicked information of value. Moreover, the company provides pertinent information to build share to the customer for cross-selling and up-selling messages (Peppers, 2003). The firm also created an online strategy to provide self-service options to furnish online billing, access account details and receive email confirmations. The business cut-rates and saved on postage processes by carefully executing the new procedures within the company resolving problems to minimize the risk of compliance failure within the company.
Another dilemma faced for the company is the profit-maximizing model compared to the client-mentoring model (Trompenaar & Hampden-Turner, 2002). Merrill Lynch encounters competition with Charles Schwab, a discount broker. One important fact Charles Schwab holds over Merrill Lynch is professional expertise. According to Trompenaar and Hampden-Tuner advising on investments is composed of two tests. The profit-maximizing model compares the performance of stocks. Moreover, the client mentoring model which purposes to turn clients into experts. Clients may be attracted to the client mentoring models independence and skill to put them in control of their own wealth. This provides the client with money that works for them.
Conclusion
Financial investing companies, like Merrill Lynch changed business rules and processes. It is necessary for companies to stay up to date with advanced computer technology, to avoid failure. Merrill Lynch is an example of a company that redirected the mission and incorporated modern electronic commerce into the business. The current system used by Merrill Lynch provides important steps for success. Companies in the financial sector must constantly focus on improvement of Porter's value chain. Merrill Lynch combines the value chain into the electronic commerce to include Mr. Online, Merrill Lynch direct, and customer satisfaction. Financial companies will capitalize the market by focusing on inbound logistics, operations, service, technology, and development to the customers. Merrill Lynch continues to institute Porter’s value chain into daily activities. Companies that succeed include every aspect of Porter’s value chain into their company in efforts to build a strong foundation and gain a competitive advantage. Overall, the company must continue to direct its mission by advancement through electronic commerce. Without proper focus on the primary and secondary activities, the company’s mission and vision will fail.
References
Merrill Lynch raises the bar on its personalized 401 (k). (2002, April).
1 to 1 Magazine. Retrieved November 6, 2004, from http://www.1to1.com
O’Brien, J. A. (2004). Management information systems: Managing information
technology in the business enterprise (6th ed.). New York: McGraw- Hill.
Peppers, D. (2003, July 7). Merrill Lynch invests in one-to-one customer
communications. Inside 1 to 1. Retrieved November 6, 2004, from
http://www.1to1.com
Porter, M.E. (1985). Competitive advantage: Creating and sustaining superior performance. New York: Free Press.
Quick MBA. (2004). Strategic Management. The Value Chain. Retrieved November 5,
2004, from http://www.quickmba.com/strategy/value-chain/
Ross, S.A., Westerfied, R.W., & Bradford, J. D. (2001). Essentials of
corporate finance(3rd ed.). New York: McGraw-Hill.
Trompenaars, F., & Hampden-Turner, C (2004). 21 leaders for the 21st Century:
How innovative leaders manage in the digital age. New York:
McGraw Hill.
Competitive Forces Paper on Dell
Dell Case Analysis:
Direct Service for the customer
In order to generate a competitive advantage, information technology must remain steadfast during rapid change. Dell stabilizes itself as the leading computer hardware company, by incorporating new fresh ideas into the industry. In an influential book, Trompenaars and Turner (2002) stated “Michael Dell’s method of direct service helped gain an advantage in the computer industry” (p. 241). The direct sales process allowed express selling to the customer by cutting out the middleman. This study examines the computer technology field with Michael Porter’s competitive forces. Additionally the analysis will connect the direct service method that transformed the industry by creating improved productivity.
The corporation’s focal point relies on Michael Porter’s (1980) competitive forces, a sound reliable strategy in the business world today. Porter states that the economic and competitive forces in an industry segment are the result of five basic forces: bargaining power of suppliers, bargaining power of buyers, threat of new entrants into the industry segment, threat of substitute products or services, and positioning of traditional industry rivals (1980). A well-rounded business will facilitate a tactical plan to identify strengths, weaknesses, opportunities and threats present within the company for survival.
Background
Out of the five competitive forces that influence the computer technology world today, “rivalry among current competitors” (Porter, 1980) possesses the biggest threat to Dell. Within the technology industry competition will arise in order to gain increased position or opportunity. Dell challenges the market by providing direct service to customers, price cuts, and staying up to date with modern technology. To make things easier for the customer Dell established user-friendly relationships with the customers.
In 1996, Dell shook the computer world by establishing the direct model. The direct model combined with the use of the Internet formed a successful strategy for the company. For the first time customers were able to buy a Dell computer from the Internet. In 1997, Mr. Dell’s brilliant idea created a net growth of $1 million dollars per day in sales. In addition, Dell shipped its ten-millionth computer, and gained per-share value of common stock that reached $1000 on a pre-split basis (Trompenaars& Turner, 2002). At the end of 1999, Internet sales sky rocketed to $30 million dollar per day, giving the company a forty percent increase in revenue. Dell established a key advantage by creating the direct service model.
The company’s direct model consists five of tenets, “beginning with the customer and ending with the customer” (Dell, 2004). The company’s first principle took the most efficient path to the customer. Dell’s principle’s resulted in customer satisfaction, which allowed the team’s precise understanding specific to the needs of the customer. The company revamped the lines of communication, by speaking directly with customers. Moreover, open lines of communication with the customer created a clear concise understanding of the buyer’s exact needs. Ultimately cutting out the middleman and proving direct support to its clientele. Dell next established a single point of accountability, to grant customers with a direct connection to associates through proper channels.
Perhaps, the most influential competitive force used in Dell’s industry is bargaining power of buyers. Bargaining power of buyers exist when buyers compete with the industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other at the expense of industry profitability (Porter, 1980). Dell gains a competitive advantage in the industry by focusing on bargaining power of buyers.
Subsequently, Dell believes in the build-to-order process, which provides the customer with a product to best suit their budget, while allowing the consumer a tailor made a system for their use. The build-to-order concept stands by the notion that its computer systems do not sit around for months aging in a warehouse. Dell dominates the computer industry by being a low-cost leader, a perception pleasing to the customer. In return the customer gains a desirable product at a great value. Since Dell offers direct service and low cost to the consumer, Porter’s generic strategies best fit this company. The three generic strategies developed by Porter are cost leadership, differentiation, and focus. According to Porter (1980), “each generic strategy involves two key choices: (1) the competitive mechanism-a firm can lower its cost or differentiate its products and services; and (2) the competitive scope-a firm can target a broad market or a narrow one” (p. 2). Dell uses cost leadership to make a statement about its price and services compared to other computer companies.
Dell believes in standards-based technology, which represents the suppleness and opportunity to decide in the item of preference. Dell defeats barriers by constantly updating processes and introducing new ideas to remain successful. Dell faces constant threats of substitutes from other computer hardware products; such as, Hewlett-Packard and Apple which are among top competitors. Nevertheless Dell’s perseverance remains untouchable through creative technology such as, direct service, customer service and new gadgets.
Recently Dell introduced the new Dell Pocket DJ and Dell photo printer 540, to gain a competitive advantage over Apple’s iPod mini and Hewlett-Packard photo smart 375. The new innovating idea behind the model is the price comparison. For instance, the purchasing price for the Dell pocket DJ is two hundred dollars, five gigabytes and weighs 4.4 ounces. In comparison to the Apple iPod mini, that starts at two hundred fifty dollars, four gigabytes and weighs 3.6 ounces (USA Today, 2004). Dell climbs to the top of the market with the photo printer 540 another ground-breaking gadget for the company. The Dell photo printer 540 rivals Hewlett-Packard’s photo smart 375 models. The Dell photo printer retail price is $189.00 compared to Hewlett-Packard’s photo smart starting price of $200.00(USA Today, 2004). Again, Dell surpasses in price by offering a quality product at a great price. Dell outshines competitors Apple and Hewlett-Packard, by offering affordable top of the line products.
Certain benefits apply to Dell’s credible reputation as the leading computer hardware company. For instance, Dell upholds a well-trusted name brand commonly found in classrooms, workstations and other places of businesses. Dell’s the first company to offer “computer systems on a next-day, on-site product service” (Dell, 2004) to the consumer. The company also takes pride in being the first company to introduce the notebook computer system. Dell’s computer systems over the past decade turned out to impart an extremely useful tool commonly used today. The notebook computer catered to business professionals with busy lifestyles. An essential tool used by traveling professionals. Likewise, Dell reached number one in the global market share. Together with direct service, excellent customer service and fresh ideas, Dell achieved the number status in the United States for standard Intel architecture server shipment (Dell, 2004).
Overall the company has paved a long road of success for the future. Fighting against competitive rivalry in the computer hardware industry, Dell brings forth new and innovating ideas. The direct selling method created an astounding accomplishment for the company, as described by Trompenars and Turner (2002):
The model of direct selling received a welcome and powerful boost from the Internet,
which was first used to sell a Dell computer in June 1996. Today there are more than 40,000 customized home pages, called Premier Pages, especially for corporate customers. These pages contain not only the details of customized configurations and instructions but also a total record of past and current transactions between Dell and the customer.
(p. 243) With constant advancement and development in the computer industry, Dell realizes the obstacles it has to overcome. Business executives within the company must incorporate the process along with daily enforcement of Porter’s Competitive Strategy. A company that plans for success understands the threats of new entrants, power of suppliers, power of buyers, availability of substitutes and competitive rivalry. By being informed of its competitors and building constant improvements in its products, Dell will gain a competitive advantage in the market. Dell’s a company that is well known for the quality of the product, service, cost and commitment to customers.
Conclusion
During constant development and change Dell gained a competitive advantage by establishing new ideas in the information technology world. Companies in the computer technology sector need to maximize their efforts to succeed in the 21st century. Computer companies will capitalize the market by focusing on the development of new products that are offered and sold to the consumer. Through extensive research and development Dell understands Porter’s Competitive Forces. Focused on capturing the customer’s needs and determined for success, Dell maintains a successful record. When a company does not fully comprehend Porter’s Competitive Forces the company faces a great risk. Companies need to understand the market facing them in order to accomplish the desired goals of success. Careful attention to its competitor’s developments proves to provide a competitive advantage on present and future competition.
References
Dell, Inc. (2004). Dell at a Glance. Retrieved October 8, 2004, from
http://www.us.dell.com/content/topics/global.aspx/corp/background/en/facts?
Kessler, M. (2004, October 10). Dell rides the wave to consumer gadgets. USA Today.
Retrieved October 25, 2004 from
http://www.usatoday.com/money/industries/technology
McFarlin, L. M., & McKenney, J. L (1999). Corporate information systems
management: Textand Cases (5th ed). Boston: McGraw Hill.
Porter, M. E (1980). Competitve strategy: Techniques for analyzing industries and
Competitors. New York: Free Press
Trompenaars, F., & Turner, C (2004). 21 leaders for the 21st Century: How
innovative leaders manage in the digital age. New York: McGraw
Hill.
Direct Service for the customer
In order to generate a competitive advantage, information technology must remain steadfast during rapid change. Dell stabilizes itself as the leading computer hardware company, by incorporating new fresh ideas into the industry. In an influential book, Trompenaars and Turner (2002) stated “Michael Dell’s method of direct service helped gain an advantage in the computer industry” (p. 241). The direct sales process allowed express selling to the customer by cutting out the middleman. This study examines the computer technology field with Michael Porter’s competitive forces. Additionally the analysis will connect the direct service method that transformed the industry by creating improved productivity.
The corporation’s focal point relies on Michael Porter’s (1980) competitive forces, a sound reliable strategy in the business world today. Porter states that the economic and competitive forces in an industry segment are the result of five basic forces: bargaining power of suppliers, bargaining power of buyers, threat of new entrants into the industry segment, threat of substitute products or services, and positioning of traditional industry rivals (1980). A well-rounded business will facilitate a tactical plan to identify strengths, weaknesses, opportunities and threats present within the company for survival.
Background
Out of the five competitive forces that influence the computer technology world today, “rivalry among current competitors” (Porter, 1980) possesses the biggest threat to Dell. Within the technology industry competition will arise in order to gain increased position or opportunity. Dell challenges the market by providing direct service to customers, price cuts, and staying up to date with modern technology. To make things easier for the customer Dell established user-friendly relationships with the customers.
In 1996, Dell shook the computer world by establishing the direct model. The direct model combined with the use of the Internet formed a successful strategy for the company. For the first time customers were able to buy a Dell computer from the Internet. In 1997, Mr. Dell’s brilliant idea created a net growth of $1 million dollars per day in sales. In addition, Dell shipped its ten-millionth computer, and gained per-share value of common stock that reached $1000 on a pre-split basis (Trompenaars& Turner, 2002). At the end of 1999, Internet sales sky rocketed to $30 million dollar per day, giving the company a forty percent increase in revenue. Dell established a key advantage by creating the direct service model.
The company’s direct model consists five of tenets, “beginning with the customer and ending with the customer” (Dell, 2004). The company’s first principle took the most efficient path to the customer. Dell’s principle’s resulted in customer satisfaction, which allowed the team’s precise understanding specific to the needs of the customer. The company revamped the lines of communication, by speaking directly with customers. Moreover, open lines of communication with the customer created a clear concise understanding of the buyer’s exact needs. Ultimately cutting out the middleman and proving direct support to its clientele. Dell next established a single point of accountability, to grant customers with a direct connection to associates through proper channels.
Perhaps, the most influential competitive force used in Dell’s industry is bargaining power of buyers. Bargaining power of buyers exist when buyers compete with the industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each other at the expense of industry profitability (Porter, 1980). Dell gains a competitive advantage in the industry by focusing on bargaining power of buyers.
Subsequently, Dell believes in the build-to-order process, which provides the customer with a product to best suit their budget, while allowing the consumer a tailor made a system for their use. The build-to-order concept stands by the notion that its computer systems do not sit around for months aging in a warehouse. Dell dominates the computer industry by being a low-cost leader, a perception pleasing to the customer. In return the customer gains a desirable product at a great value. Since Dell offers direct service and low cost to the consumer, Porter’s generic strategies best fit this company. The three generic strategies developed by Porter are cost leadership, differentiation, and focus. According to Porter (1980), “each generic strategy involves two key choices: (1) the competitive mechanism-a firm can lower its cost or differentiate its products and services; and (2) the competitive scope-a firm can target a broad market or a narrow one” (p. 2). Dell uses cost leadership to make a statement about its price and services compared to other computer companies.
Dell believes in standards-based technology, which represents the suppleness and opportunity to decide in the item of preference. Dell defeats barriers by constantly updating processes and introducing new ideas to remain successful. Dell faces constant threats of substitutes from other computer hardware products; such as, Hewlett-Packard and Apple which are among top competitors. Nevertheless Dell’s perseverance remains untouchable through creative technology such as, direct service, customer service and new gadgets.
Recently Dell introduced the new Dell Pocket DJ and Dell photo printer 540, to gain a competitive advantage over Apple’s iPod mini and Hewlett-Packard photo smart 375. The new innovating idea behind the model is the price comparison. For instance, the purchasing price for the Dell pocket DJ is two hundred dollars, five gigabytes and weighs 4.4 ounces. In comparison to the Apple iPod mini, that starts at two hundred fifty dollars, four gigabytes and weighs 3.6 ounces (USA Today, 2004). Dell climbs to the top of the market with the photo printer 540 another ground-breaking gadget for the company. The Dell photo printer 540 rivals Hewlett-Packard’s photo smart 375 models. The Dell photo printer retail price is $189.00 compared to Hewlett-Packard’s photo smart starting price of $200.00(USA Today, 2004). Again, Dell surpasses in price by offering a quality product at a great price. Dell outshines competitors Apple and Hewlett-Packard, by offering affordable top of the line products.
Certain benefits apply to Dell’s credible reputation as the leading computer hardware company. For instance, Dell upholds a well-trusted name brand commonly found in classrooms, workstations and other places of businesses. Dell’s the first company to offer “computer systems on a next-day, on-site product service” (Dell, 2004) to the consumer. The company also takes pride in being the first company to introduce the notebook computer system. Dell’s computer systems over the past decade turned out to impart an extremely useful tool commonly used today. The notebook computer catered to business professionals with busy lifestyles. An essential tool used by traveling professionals. Likewise, Dell reached number one in the global market share. Together with direct service, excellent customer service and fresh ideas, Dell achieved the number status in the United States for standard Intel architecture server shipment (Dell, 2004).
Overall the company has paved a long road of success for the future. Fighting against competitive rivalry in the computer hardware industry, Dell brings forth new and innovating ideas. The direct selling method created an astounding accomplishment for the company, as described by Trompenars and Turner (2002):
The model of direct selling received a welcome and powerful boost from the Internet,
which was first used to sell a Dell computer in June 1996. Today there are more than 40,000 customized home pages, called Premier Pages, especially for corporate customers. These pages contain not only the details of customized configurations and instructions but also a total record of past and current transactions between Dell and the customer.
(p. 243) With constant advancement and development in the computer industry, Dell realizes the obstacles it has to overcome. Business executives within the company must incorporate the process along with daily enforcement of Porter’s Competitive Strategy. A company that plans for success understands the threats of new entrants, power of suppliers, power of buyers, availability of substitutes and competitive rivalry. By being informed of its competitors and building constant improvements in its products, Dell will gain a competitive advantage in the market. Dell’s a company that is well known for the quality of the product, service, cost and commitment to customers.
Conclusion
During constant development and change Dell gained a competitive advantage by establishing new ideas in the information technology world. Companies in the computer technology sector need to maximize their efforts to succeed in the 21st century. Computer companies will capitalize the market by focusing on the development of new products that are offered and sold to the consumer. Through extensive research and development Dell understands Porter’s Competitive Forces. Focused on capturing the customer’s needs and determined for success, Dell maintains a successful record. When a company does not fully comprehend Porter’s Competitive Forces the company faces a great risk. Companies need to understand the market facing them in order to accomplish the desired goals of success. Careful attention to its competitor’s developments proves to provide a competitive advantage on present and future competition.
References
Dell, Inc. (2004). Dell at a Glance. Retrieved October 8, 2004, from
http://www.us.dell.com/content/topics/global.aspx/corp/background/en/facts?
Kessler, M. (2004, October 10). Dell rides the wave to consumer gadgets. USA Today.
Retrieved October 25, 2004 from
http://www.usatoday.com/money/industries/technology
McFarlin, L. M., & McKenney, J. L (1999). Corporate information systems
management: Textand Cases (5th ed). Boston: McGraw Hill.
Porter, M. E (1980). Competitve strategy: Techniques for analyzing industries and
Competitors. New York: Free Press
Trompenaars, F., & Turner, C (2004). 21 leaders for the 21st Century: How
innovative leaders manage in the digital age. New York: McGraw
Hill.
Sunday, October 03, 2004
Melisa's Blog
Aloha
My name is Melisa and I enjoy the beautiful sunny state of Hawaii. Welcome to my very first blog. I was born and raised in Inkster Michigan, and graduated from Robichaud High School.
I recently graduated from Hawaii Pacific University with a BSBA in Human Resource Management. I enjoy interacting with people. I also proudly served in the United States Air Force for eight years as a personnel manager. Now I work as a family readiness coordinator for the military. This is a very fun and exciting job, and a way to meet and help out families. I am also a consultant with beauticontrol, specailizing in spa and relaxation techniques. You may visit my website at www.beautipage.com/firstlady/
I am now enrolled at HPU and actively pursuing a Masters of Arts in Organization Change. I enjoy learning new things and traveling the world.
And most importantly I am a licensed minister with the Church of the Living God, International Inc. I have been married since July 2000, since then we have been blessed with a son.
I am taking this course to learn new and exciting things and also to complete a requirement for graduation.
My name is Melisa and I enjoy the beautiful sunny state of Hawaii. Welcome to my very first blog. I was born and raised in Inkster Michigan, and graduated from Robichaud High School.
I recently graduated from Hawaii Pacific University with a BSBA in Human Resource Management. I enjoy interacting with people. I also proudly served in the United States Air Force for eight years as a personnel manager. Now I work as a family readiness coordinator for the military. This is a very fun and exciting job, and a way to meet and help out families. I am also a consultant with beauticontrol, specailizing in spa and relaxation techniques. You may visit my website at www.beautipage.com/firstlady/
I am now enrolled at HPU and actively pursuing a Masters of Arts in Organization Change. I enjoy learning new things and traveling the world.
And most importantly I am a licensed minister with the Church of the Living God, International Inc. I have been married since July 2000, since then we have been blessed with a son.
I am taking this course to learn new and exciting things and also to complete a requirement for graduation.
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