Reorganizing Dell Inc.

Reorganizing Dell Inc.
Case Code: BSTR367
Case Length: 17 Pages
Period: 2000-09
Pub Date: 2010
Teaching Note: Not Available
Price: Rs.300
Organization: Dell Inc.
Industry: IT, Hardware
Countries: US
Themes: Corporate Restructuring
Reorganizing Dell Inc.
Abstract Case Intro 1 Case Intro 2 Excerpts

"There's been a pretty ginormous shift in our business over the last several years. We can do, and must do, more."

- Michael Dell, Chairman and Chief Executive Officer (CEO), Dell Inc., in October 2009.

"A revitalized Dell must first accept that the Dell of 1999 is gone forever and that the company must go down a new and different road to prosper"

- Richard Kugele, Analyst at Needham & Company LLC, in March 2009.


On December 07, 2009, US-based leading technology company Dell Inc. (Dell) announced that as a part of its latest organizational restructuring exercise that started in January 2009, it would combine its consumer business with its Small and Medium Businesses (SMB) unit.

The new unit would be led by Steve Felice, President of Dell Asia-Pacific and Japan. Commenting on the decision, David Frink (Frink), Spokesperson for Dell, said, "We believe the synergies between consumer and SMB will allow us to streamline how we go to market, reduce costs, and build a value proposition for customers in both segments."

Dell, which develops, manufactures, and sells Personal Computers (PC) and other computer-related products, was founded in 1984. The company went on to become the largest seller of PCs and servers in the 1990s. However, by the early 2000s, it started facing competition, mainly from Hewlett-Packard (HP).

In his bid to arrest declining market share and profitability, in January 2007, Michael S. Dell (Michael), Founder and the then Chairman of Dell, resumed his earlier role as CEO of the company.....

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