Strategy and Headquarters at Dell Computers Term Paper

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There are several advantages and disadvantages to locating the company headquarters here, and part of the reason for this headquartering is a matter of historical convenience -- it is still near where Michael Dell formed the corporation in 1984, so initially this was a matter of personal expedience, to some degree; since then, the company has grown hugely yet remains in the area because that is where the company grew up. Even with international distribution and operations, there are definite advantages to being headquartered in the United States and Texas specifically, including certain regulatory and tax advantages, not to mention the respect and continued sense of solidity that being based in the United States provides.

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There are also disadvantages, however as this location means that Dell headquarters are far removed from many of their operational facilities, including primary manufacturing and customer service establishments, which are overseas.

If given a choice to keep Dell headquartered near Austin, Texas or to move the company elsewhere, the decision should be to keep the company where it is for now. In a few more years, relocating headquarters overseas, potentially to China, might prove advantageous for a variety of reasons, including closer proximity to labor. In the current economic climate and continuing uncertainty, however, making such a major move would not be advisable as it could lead to unforeseen consequences and exposures to unnecessary risks......

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