Final answer:
Dell found that by implementing effective control systems, it was able to reduce costs through streamlined operations, energy efficiency, and ethical behavior. These systems contribute to economic and environmental sustainability, fostering innovation and expansion into new markets while also ensuring responsible corporate practices.
Step-by-step explanation:
Within the context of Dell's business operations, the implementation of effective control systems has most likely helped it to reduce costs. Control systems are fundamental in managing and streamlining operations, leading to greater efficiency. By investing in technology, human capital, and physical plants, firms can create a stable and market-ready economic climate. This leads to reduced emissions through energy efficiency, production of greener products, and the establishment of efficient global take-back programs for old products. All these factors contribute to cost reduction. Moreover, companies that invest in these areas are recognized for not only their control systems but also for their forward-thinking and ethical behavior.
On an international scale, by fostering an environment conducive to innovation, businesses, particularly in the ICT sphere, can grow and create wealth while managing the related externalities. The impact of reduced costs on business expansion is evident in companies like Amazon and Apple, which have grown into megafirms. While this growth can present challenges in terms of government relations and power dynamics, it can also lead to expansion into new markets and international growth, as Dell has found.
Lastly, establishing ethical practices and reducing environmental impacts can attract consumer support and help ensure that companies are not engaging in a "race to the bottom" regarding environmental or labor standards, as seen in some low-income countries. Instead, firms can attract business by showing a commitment to high standards and ethical behavior. Ethical behavior becomes a cornerstone for building trust and loyalty among customers, thereby assisting companies in maintaining a sustainable competitive advantage.