Managing People- How Should Dell Respond to the HP Challenge?
Major Competitive and Strategic Challenges for Dell to Regain a Position of Strength Within the Industry
Dell is likely to face various strategic challenges in the bid to regain a competitive position within the industry. First, the company faces a challenge in the shift of customer’s preferences toward retail purchases. Notably, HP was able to tap into the rapidly growing consumer market by emphasizing retail stores, whereas Dell remained in its traditional business model. Overcoming this challenge will require Dell to establish a stronger retail channel presence and do away with the traditional direct sales model.
Second, HP managed to achieve a successful turnaround under Todd Bradley’s leadership by paying attention to supply chain optimization as a measure to reduce costs and enhance efficiency. Essentially, this is a challenge that Dell should consider to address the declining margins and market share. Essentially, this can be achieved through process improvement and infrastructure investment. Third, Dell faced a challenge in the way it relates to consumers. Unlike Dell, HP paid focus to product differentiation strategies that entailed using celebrities to endorse products. Overcoming this challenge by Dell will only be attained through copying the marketing campaign programs adopted by HP. Lastly, Dell needs to prioritize customer experience and go a long way in catering to their diverse preferences.
What HR Could Do to Assist Dell in Re-Establishing its Position in PC’s
The HR at Dell can do various activities to assist the company in re-establishing its position in the market. First, HR should be at the forefront of talent acquisition to obtain the relevant skills that will help the company tackle the supply chain problems that the company has faced in the past. Notably, HR should ensure competent talents are acquired for every challenge the company faces, and by solving the challenges, the company will manage to regain its position. Other than acquiring new talent, HR should focus on training the existing staff on customer service excellence and better sales techniques for the company. Second, Dell’s HR has a role in creating a culture of excellence characterized by innovation and collaboration among employees. Essentially, this can foster an environment that is vibrant in producing creative ideas that will assist the company to better its product differentiation (Omotoye et al., 2022). Lastly, the company’s HR has a role in organizing the workforce into cross-functional teams that collaborate to deliver results. HR should structure compensation plans to be driven by results, which in turn will motivate workers to deliver on their mandates.
Explanation to Michael Dell on How HR Will Aid in Regaining its Pre-Eminent Position
A key factor in helping Dell reclaim its leading position in the PC sector will be human resources (HR). To ensure that the workforce is in line with Dell’s strategic objectives, HR will first concentrate on talent acquisition techniques to hire people with experience in retail sales, marketing, supply chain management, and product development. Furthermore, HR will put in place extensive training and development plans to advance the skills of current staff members in crucial domains. According to Awan et al. (2023), such include supply chain optimization, retail sales strategies, and exceptional customer service. HR can stimulate innovative ideas for product differentiation and market expansion among employees by cultivating a culture of innovation and collaboration. Additionally, HR will work with cross-functional teams to create competitive incentive and compensation plans and promote results. Further, HR will assist Dell in restoring its competitive advantage and its standing as the industry leader in PCs through these initiatives.
References
Awan, U., Braathen, P., & Hannola, L. (2023). When and how the implementation of green human resource management and data‐driven culture to improve the firm sustainable environmental development. Sustainable Development, 31(4), 2726-2740.
Omotoye, O. O., Abdulazeez, A. O., & Olusesi, L. D. (2022). Human resource management in entrepreneurial business: a literature review. RUDN Journal of Public Administration, 9(1), 73-82.
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Question
Case Study: Chapter 2: Managing People: How Should Dell Respond to the HP Challenge?
Discuss major competitive and strategic challenges for Dell to regain a position of strength within the Industry.
Summarize what HR could do to assist Dell in re-establishing its position in PC’s.
Explain to Michael Dell how HR will aid in regaining its pre-eminent position.