Dell's Bangalore Disaster
February 11, 2006
1. Was the company's experience positive, negative, or mixed? Justify your answer.
Deciding to do business overseas is both a big growth potential and a big risk for companies. It is important to know what the future prospects are for your business before deciding to do business overseas. There is a lot of research that is necessary to do before starting overseas business. It is important to know the laws of the country in which you are going to be doing business in. There are many legal implications your business could be effected by if you do not comply with the laws of the country. A new company can learn a lot from companies who are currently doing business in other countries. Learning from other companies mistakes can help you not make the same mistakes.
Dell is a company who does business all over the world. Dell has employees from both the United States and other countries. Dell had 46,000 employees as of Jan. 30, 2004. About 22,200 of those, or 48.3 percent, were in the United States, while 23,800 people, or 51.7 percent, worked in other countries. In 2003, 54.2 percent of Dell's workers were in the United States, which was higher than in 2004. Dell's work force grew 17.6 percent during 2003. During the same time period Dell's workforce in the United States dropped from 54.2% to 48.3%. (http://msnbc.msn.com) Dell is a company who obviously does a lot of business overseas for a multitude of reasons, one being cheaper labor. It is less costly for Dell to pay someone to work 40 hours a week in India than someone to work 40 hours a week here in the United States. Many of D ...