Threats to Dell's global Business
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Problem
What are the major operational threats Dell's logistics functions face as a result of global terrorism? Identify mitigation strategies that could help secure domestic and global supply chains. Assess the impact of global terrorism on logistics. Discuss the major operational threats Dell's logistics functions face as a result of global terrorism. How might Dell better mitigate the threats of terrorism relative to its logistics operations? Armed forces personnel who believe they may have difficulty answering these questions because of security concerns should shift the scale of inquiry to the logistics risks the nation faces and how it might better mitigate vulnerability to these risks.
Demonstrate an understanding of how domestic and global terrorism affect the logistics of Dell. Identify the risks of terrorism facing Dell's logistics and offer creative solutions to mitigating the risks. Integrate the background materials, employ synthesis from previous courses, and use creative thinking in determining feasible solutions and strategies for balancing security initiatives with efficiency and effectiveness objectives.
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Solution Summary
Freedom to move around the globe has perhaps enabled people, technology, goods, and ideas to instigate dissent and variance, which have opened the way for terrorists to carry out their ideologies. Dell has a huge role to play, as they engage in global commerce, in order to mitigate these threats. Its strategies are laid out within in over 1000 words.
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I. Strategic Responses to Global Terrorism
Terrorism today represents a growing threat to global businesses, and has created increasing challenges for companies; such as the Dell organization. Experts say that globalization is both the cause and potential cure for terrorism (Rivkin, 2008). Just when tariffs and other man-made barriers helped the integration of global markets, new and insidious avenues and ideological forums enabled terrorists to conduct disruptive measures to threaten these emerging markets as they worked to engage in the global economy. In order to mitigate these threats, Dell implemented a strong preparedness business strategy while establishing an uninterrupted global presence.
All of Dell's inbound logistics concerning the material needed to assemble its PCs in EMEA (Europe/Middle East/Africa) are handled by suppliers from supply hobs or production facilities that are located within a 30-minute travel areas of the plants (Kraemer & Dedrick, 2002). Dell's outbound logistics involve its five distribution hubs that are close to major markets, transportation networks and logistics expertise (Kraemer & Dedrick, 2002). Each hub is operated by a different logistics partner. Similar logistics for outbound staging and inbound partners exist in the Americas and Asia-Pacific (Kraemer & Dedrick, 2002). To learn more about Dell's logistics, read Dell Computer: Organization of a Global Production Network by Kraemer and Dedrick (see reference page). Johnson and Kasarda (2003) in their article 9/11 and the Economic Prospects of Major U.S. Cities suggest that since 9/11, companies should redesigned their supply chains and backed up their inventories, as well as move their single ...
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