Business Analysis of a Company's Failure - Case Study Example

John Purcell further highlighted the importance of employees in his research which emphasized the huge role played by the company's workforce as "strategic partners." This research strongly supports the highly economist viewpoint of Grant (219) of "aligning employees with organizational goals." Schuler and Jackson gave a more precise description on how management should "align" their workforce to support the company crafted strategy. This paper opts to further highlight the importance of workforce by looking at how Dell, Inc.

failed due to human resource problem. Dell, Inc. is widely recognized as one of the market leaders in the global information technology (IT) industry. The company corners the largest market share in the US personal computer (PC) market accounting for 33% in 2003 (Dell, Inc. in 2005 C-130). This success in the global industry is highly attributed to its employment of a unique direct business model and just-in-time inventory system which is backed by excellent customer service. The organization has gained a strong reputation in delivering customer satisfaction by the manner the customer service representative handles calls, enquiries, and problems.

However, this reputation has been tainted when it choose to employ Indians to handle both corporate and consumer clients. The growing globalization ushered a new trend. Managers argue that BPO is a "management tool" which "frees companies to build upon their core competencies by leaving the non-core stuff to providers" (Banham 1). Through the use of business process outsourcing, Dell hoped to cut costs without affecting service quality. However, this expectation has not materialized with its utilization of Indian call centers.

The customers complain that "technical-support representatives were difficult to communicate with because of thick accents and scripted responses." What becomes apparent is the difficulty in communication due to significant language barrier. This new trend has adversely affected customer satisfaction while also endangering the sales and market share of the business organization. This paper believes that this business failure is primarily due to the employment of Indian human resource. It is stated above that the human resource of companies should be considered strategic partners which are essential in achieving the goals of a company.

Dell, in a sense, is seen to be only concerned on the cost efficiency of business process outsourcing but has not fully considered the issue of turning their Indian employees as strategic partners. It can be seen that Dell is not able to fully communicate and stress to prospective Indian call center agents that they are essential in the company's success. Thus, it turned out that these employees fail to realize their worth in the business organization. It can be seen that Dell has also been lax in their recruitment and selection process.

As the company is striving to maintain excellent customer service, it should also be very strict in hiring customer representatives and ensure that those selected can fully deliver the quality of