Dell Case

a) Based on your reading of the Harvard Business Review interview with Michael Dell, CEO of Dell Computers, what is your conclusion about the advantages Dell derives from virtual integration? How important are these advantages in the auto business?

Ans- Advantages that Dell derived from the Virtual Integration are:

• Help in faster business model by eliminating third party distribution.

• Solves production problems like communication, coordination and control.

• The direct relationship with customers helps them in forecasting the demand

• Virtual Integration help in leveraging relationships with the suppliers as well as customers.

Advantages in auto business

• Help in increase of sales by providing better customer service.

• Help in faster communication between suppliers, manufacture and customers in the value chain.

• By the help of virtual integration which help in eliminate middlemen, and have more flexibility in the supply chain.

b) What operations strategy challenges does Ford face that are not faced by Dell? How should Ford deal with these challenges?

Ans - Major challenges faced by Ford

• Tier 1 Supplier base for dell does not have the capital to invest in the new technologies that ford seeks to get into.

• Also Lack of coordination among different teams across the geographical due to which proper flow of information is not there .

c) If you were Teri Takai, what would you recommend to senior executives by way of operations strategy? To what degree