After the founder Michael Dell returned to rerun his failing computer company many changes are expected to sweep through out the organization. Corporate PC sales have slipped while overall spending on computers in the market has increased putting Dell at a disadvantage. Heward Packard was the biggest winner of the past year sliding into the #1 spot for computer sales.
Ronald Gariques, a Motorola executive, will be running Dell’s mobile device division. In addition Michael Cannon , a previous executive at Solectron, will be overseeing parts procurement and manufacturing operations. Together it is assumed that these two high-achieving executives will be able to make significant changes that affect the whole company.
Rollins resigned from his position after Dell reasserted his control of the company. During Rollins tenure the company had seen declining profits, an investigation by the Securities and Exchange Commission for accounting fraud, and almost had its stock de-listed from NASDAQ. More importantly investors and stock holders felt that Dell falsely reported its income and executives too kickbacks from Intel.
The company must transform itself in order to compete against other major computer corporations. In 2007 the company will likely see another wave of stream lining, layoffs, and management shakeouts in order to return to profitability. Furthermore, consumer polls will likely product additional information that will change Dell’s strategy.
Murad Ali is a three-time book author, a Ph.d. candidate and a human resource professional. http://www.thenewbusinessworld.blogspot.com
| | Author Info: Murad Ali is a three time published author, a Ph.D. candidate, and a human resource manager. http://www.thenewbusinessworld.blogspot.com |
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