Effects of Globalization and Dell`s Subsequent Growth Post 2013

Effectsof Globalization and Dell’s Subsequent Growth: Post 2013


Effectsof Globalization and Dell’s Subsequent Growth: Post 2013

WhenDell on one side and Michael Dell and Silver Lake Partners on theother agreed on a $24.4 billion deal to go private, grossorganizational management abounded. The completion of this deal madeDell one of the largest privately owned companies in America. Themajor functional difference was in how the company would relate withshareholders and the public. After the buyout, Michael Dell, who wasreinstated as the CEO and chairperson, would no longer have to answerto the public markets, analysts and the exchange and securitiescommission. The aspect of independence in decision-making is whatmanifested the facets of globalization and seemingly inspired thegrowth of Dell after the 2013 buyout.

Globalizationrefers to the tendency of business organizations to stretch theiroperations beyond the local markets to other markets around the worldand in the process enhancing the independence and interconnectednessof the world (Investopedia, 2015, n.p). According to this definition,globalization essentially implies the exploitation of differentmarkets and this aptly applies to Dell since it is a multinationalcompany with operations in many countries around the globe. Thecurrent trends in globalization for organizations center ondecision–making processes in areas involving quality assurance,coordinating procurement, inventory control, disposition of inputsand product quality (Dunning, 2014, p. 5). For organizations to alignthemselves with the trends of globalization, it is necessary toincorporate technology into their processes and implement theconcepts of market segmentation, hierarchical corporate structure anda communication system complete with an effective feedback mechanismas well as other strategic management best practices that harness theeconomies of scale (Nelson, 2015, n.p). Due to the highlightedprospects of globalization and its current trend, it is clear thatthe decision to go private was influenced largely by the trends inbusiness globalization. More aptly, the technology industry in whichthe multinational operates, competition is stiff and the market isdynamic. This implies that a successful business needs to haveefficient decision-making structures that enable business executivesto be more nimble and quick. Obviously, such a structure is not easyto achieve in a publicly owned entity therefore, this becomes ajustification for acquisition and privatization. Moreover, theprivatization of Dell also helped it to avoid the IPO and theregulatory hazards that accompanied it, a trend that many companieshave adopted to achieve operational efficiency (Parr, 2015, n.p).

Thebuyout in 2013, which implied several organizational managementchanges, is also observed to have inspired the company’s growth asmeasured by the production and service capacity. In 2013, the sameyear of the buyout, Dell became the number one shipper of P.Cmonitors in the world ahead of seasoned technology firms, whichmarked an impressive growth of the company (IDC, 2013, n.p).Moreover, in 2015, partly due to its independent financial systems,Dell had become the third largest vendor of P.C in the world comingafter HP and Lenovo (Pettey, 2015, n.p). Therefore, globalizationand growth, especially in the context of Dell after the buyout, seemsto be so intricately related such that one aspect leads to the other.According to Dumon (2015), companies that choose to go private (likeDell) usually thrive due to the independence of meeting the quarterlyearnings expectations of Wall Street. Consequently, this gives thecompanies room to set long-term priorities such as research anddevelopment (R&ampD), pension funding and capital expenditures. Thepositive results observed at Dell resulting from effects ofglobalization and internal growth may also be due to the finding thatthe additional time and resources that privately owned firmsaccumulate due to decreased regulation can be put into otherefficiency-enhancing uses thus furthering growth (Dumon, 2015, n.p).


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Dunning,J. H. (2014). TheGlobalization of Business (Routledge Revivals): The Challenge of the1990s.Routledge. Retrieved on October 14 2015from&lthttps://books.google.co.ke/books?hl=en&amplr=&ampid=8DpWBQAAQBAJ&ampoi=fnd&amppg=PP1&ampdq=+globalization&ampots=GMPN3gVfhi&ampsig=FM85nQ1a1Fg3xE_WVuCg415XKG0&ampredir_esc=y#v=onepage&ampq=globalization&ampf=false&gt

IDC.,(2013).DellCaptures Top Position in Worldwide PC Monitors in the Second Quarter,Moves Ahead of Samsung for the First Time Since 2007., Retrieved on October 14, 2015,from&lthttps://web.archive.org/web/20131019112049/http://www.idc.com/getdoc.jsp?containerId=prUS24322313&gt

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Parr,B. (2015)., 5consequences of Dell`s $24.4 billion deal to go private.,onOctober 14, 2015,from&lthttp://www.cnet.com/news/5-consequences-of-dells-24-4-billion-deal-to-go-private/&gtPettey,.C., (2015), GartnerSays Worldwide PC Shipments Grew 1 Percent in Fourth Quarter of2014.,Retrieved on October 14, 2015,from&lthttp://www.gartner.com/newsroom/id/2960125&gt