Assignment 2_Satrategic Plans

8/20/2019 Assignment 2_Satrategic Plans

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Angela Suarez Lozano_S40031030

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AUSTRALIAN PACIFIC COLLEGE

BSBMGT616A DEVELOP & IMPLEMENT

STRATEGIC PLANS

STRATEGIC PLANNING

Angela Suarez Lozano

6/27/2013

BSB60407 Advanced Diploma of Management


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A. SWOT ANALYSIS DELL COMPUTERS

SWOT Analysis

STRENGTH 1. Price Performance

2. Wide range of products and services including

customization

3. Latest Technology

4. High quality customer service: direct sell to

customers (meeting personal needs more

effectively, in-person relationships, etc)

5. Financial stability

WEAKNESS 1. High competition in this segment

2. Keeping consistency and quality while providing

the latest advance technology (occasionally the

latest products of the market have flaws that

require redesign)

3.

Solve technological errors in devices

OPPORTUNITY 1. Taking over, merging, or forming strategic

alliances with other computing companies

2. Continuously expanding (value-added services,

new markets outside the U.S.)

3. Merchandising

4. Loyalty offers, packages, discounts or pay on a

monthly basis options

THREATS 1. Consistently transforming industry

2. Highly competitive (entry of foreign players)

3. Depreciation of the U.S. dollar, decline in revenue

4. Global financial crisis


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B. PEST ANALYSIS DELL COMPUTERS

A PEST analysis is an analysis of the external macro-environment that affects all firms. PEST

stands for the political, Economic, Social, and technological factors of the external

environment. Such factors usually are beyond the firm’s control.

Political factors

Political factors have an important effect on an industry development. China´s current

political situation can be defined as stable. After the reform and openness in the late 1970s,

the government in China has devoted to create a stable political environment to drive the

development of economy. China maintains good relationships internationally attracting

many foreign enterprises to invest in China in the past twenty five years. Almost all the mainforeign PC makers have entered the market of China through direct investment.

The government of China has greatly reduced the direct interventions in industry

developments which are no longer planned by the government but based on the needs of

the market. On the other hand, with China's joining into WTO, China' government has

gradually released the restrictions of many industries and free development and

competition is encouraged.

Without the government interventions and policy restriction, the communication and

cooperation in PC industry is enhanced. The entry of foreign PC makers brings with the

technologies and experiences so that drives the development of PC industry in China.

Economic factors

In the past few years, China's economy has been keeping a rapid growth. The Socialist

market economy of China is the world's second largest economy by nominal GDP and

by purchasing power parity after the United States. It is the world's fastest-growing major

economy, with growth rates averaging 10% over the past 30 years.

Some economic challenges are yet to be confronted. These include, social safety net, job

growth sustainability, corruption and economic crimes and possible environmental damage

caused by the rapid transformation of the economy.

However, foreign trade and foreign direct investment are the forces to drive the

development of economy in China. And the rapid growth of China's economy has driven the

development of different industries in China including the PC industry. In addition, it is

expected to keep growing in the future.

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Social factors

Social and cultural factors also have an important effect. In the early periods of the

development of PC industry in China, PC was only used in the companies and was looked as

a tool for work. But with the development of economy and society, computers began to

enter the life and home of people.

Computers are increasingly becoming a necessity for enterprises and users for People´s

Republic of China. The current PC-density in big cities of China is very high and the

computer´s industry is rapidly growing.

The market in the small cities and countryside has big potentiality, as well as, the new

generations born under its influence. PC is expected to play a more and more important role

in the Chinese society.

Technological factors

Technological innovations have an important effect on the development of the PC industry.

When PC emerged in the market, the high cost restricted the development and popularity of

PC in China. But with the development and innovation of the technology, the cost of PC has

been greatly reduced. PC now is a normal commodity in China that can be afforded by many

people. On the other hand, the quality of PC products is continuously enhanced by

technological innovations. The technologies of PC develop very fast. The development oftechnologies leads to the fast update of PC products and the consumers can use the PC with

newest technologies within short periods of time. So the technological development and

innovation makes the price of PC cheaper and the quality of PC better.

C. US-CHINA BILATERAL AGREEMENT LEGISLATION

Like in all markets, DELL computers is also subject to laws that regulate virtually all aspectsof their business, including such areas as health safety, pollution, and advertising and

labelling requirements. Problems can arise in countries where political stability is not

guaranteed. Many countries still have restrictive policies which are maintained to protect

domestic manufacturers and production. Such policies often hinder foreign companies from

entering into these markets. The only possibility to do business in those countries is to

establish partnerships with local companies, where they are additionally forced to accept

minority shares and to provide money and technological know-how.


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U.S.-China trade rose rapidly after the two nations reestablished diplomatic relations and

signed a bilateral trade agreement (July 1979) providing mutual most-favored-nation (MFN)

treatment.

China's commitments according to this legislation will eliminate broad systemic barriers to

U.S. exports, such as limits on who can import goods and distribute them in China as well as

barriers such as quotas and licenses that restrict imports of U.S. products.

China has made commitments in all major service categories with reasonable transitions to

eliminate most foreign equity restrictions (especially in sectors where the U.S. has a strong

commercial interest), agreeing to accede to the Basic Telecommunications and Financial

Services Agreements, and "grandfathering" of current market access for U.S. service

providers.

In addition, trading rights and distribution are the major priority of the manufacturingsector. At present, China severely restricts trading rights (the right to import and export)

and distribution (wholesaling, retailing, maintenance and repair, transportation, etc.). Under

the Agreement, China will provide, for the first time, trading rights and distribution rights to

U.S. firms. Trading rights will be progressively phased in over three years. Distribution rights

will be provided even for China's most restricted distribution sectors such as wholesale,

transportation, maintenance and repair. China will provide for trading rights and

distribution.

All these and many other measures of this bilateral agreement greatly influence the U.S.

business operations in China.

D. CODE OF PRACTICE

Codes of Practice set out industry standards of conduct. They are guidelines for fair dealing

between you and your customers, and let your customers know what your business agrees

to do when dealing with them. Codes of Practice can relate to a single business, or represent

a whole industry.

An organization can establish their own Code of Practice, or to adopt an industry specific

Code of Practice (in some cases this is mandatory).

Code of Practices aims to prevent corporations and businesses, including the computer

industry, from:

• behaving anti-competitively or unconscionably

• contravening an industry code of practice


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• treating consumers unfairly or deceptively

• limiting third party access to nationally significant infrastructure

• reducing competition in the telecommunications industry.

E. PORTER´S FIVE FORCES ASSESSMENT

The Porter's Five Forces tool is a powerful tool to assess the forces that influence our

business, including strengths and weaknesses, understanding better the industry and the

competition operating in it.

This is useful, because it helps you understand both the strength of your currentcompetitive position, and the strength of a position you're considering moving into.

With a clear understanding of where power lies, you can take fair advantage of a situation

of strength, improve a situation of weakness, and avoid taking wrong steps.

Factors to be considered and analysed through Porter´s Competitive Forces include:

SUPPLIER POWER

-Number of suppliers

- Size of suppliers

- Switching costs

- Unique service/product

- Ability to substitute

- Examples: suppliers of processors and computer memory (Motorola, IBM,

Intel)

BUYER POWER

-Number of customers

- Buying volumes

- Differentiation

- Price elasticity

- Incentives

- Brand identity

- Switching costs

- Examples: retailers may pressure for lower prices or better terms

(Distributors), consumer/business may reduce spending on computers if they

fear economic downturns


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COMPETITIVE RIVALRY

- Number of competitors

- Exit barriers

-Niche, quality

- Differentiation

- Switching Cost

- Industry concentration

- Diversity of competitors

- Examples: alternative sources of computer hardware (HP, Mac, Lenovo),

small stylish MP3 players (Creative, Samsung, Sony)

THREAT OF SUBSTITUTION

-Substitute performance

- Cost of switching

- Buyer willingness

- Examples: entertainment media, media and music (XBOX,PS)

THREAT OF NEW ENTRY

- Time and cost of entry

- Knowledge

- Economies of scale

-Cost advantages

- Technology

- Barriers

- Examples: Streaming audio and video with v-cast (Verizon), new entrants

with disruptive technology.


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STRATEGIC PLAN FOR DELL

This document sets out a strategic plan for DELL. It reviews strengths, weaknesses, threats

and opportunities; presents a series of statements relating to DELL´s purpose, vision,

mission, values and objectives.

Strengths, Weaknesses, Threats & Opportunities

This strategic plan addresses the following key Strengths, Weaknesses, Threats and

Opportunities for DELL:

SWOT Analysis

STRENGTH 6. Price Performance

7. Wide range of products and services including

customization

8. Latest Technology

9. High quality customer service: direct sell to

customers (meeting personal needs more

effectively, in-person relationships, etc)

10. Financial stability

WEAKNESS 4. High competition in this segment

5. Keeping consistency and quality while providing

the latest advance technology (occasionally the

latest products of the market have flaws that

require redesign)

6.

Solve technological errors in devices

OPPORTUNITY 5. Taking over, merging, or forming strategic

alliances with other computing companies

6. Continuously expanding (value-added services,

new markets outside the U.S.)

7. Merchandising

8. Loyalty offers, packages, discounts or pay on a

monthly basis options


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THREATS 5. Consistently transforming industry

6. Highly competitive (entry of foreign players)

7. Depreciation of the U.S. dollar, decline in revenue

8. Global financial crisis

Purpose

To provide customers with superb value technology

Business

High quality, relevant technology and customized systems

Values

Superior service and support, easy to buy, easy to use

Vision Statement

Its the way we do business. It's the way we interact with the community. It's the way we

interpret the world around us-- our customers needs, the future of technology, and the

global business climate. Whatever changes the future may bring our vision -- Dell Vision --

will be our guiding force.

So Dell needs full customer satisfaction. In order to become the most successful computer

company, they need the newest technology and loyal customers.

Mission Statement

Dell's mission is to be the most successful Computer Company in the world at delivering the

best customer experience in markets we serve. In doing so, Dell will meet customer

expectations of:

-Highest quality

- Leading technology

- Competitive pricing

- Individual and company accountability

- Best-in-class service and support

- Flexible customization capability

- Superior corporate citizenship

- Financial stability


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Business Objectives

- To provide a great customer experience, which requires a workforce reflective of

our customers

- To access the best and brightest talent the marketplace has to offer

-To focus on global expansion with employees who understand the various cultures,

giving us a competitive advantage

Key Strategies

- Networking & Referrals - Using existing contacts and clients to build a larger network

of potential clients.

- Web promotion – more agresive providing an "electronic brochure" as well as useful

technical information free of charge.

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Advertising - Traditional methods such as Yellow Page ads, newspaper classified anddisplay ads, local television cable access advertisements.

- Non-traditional - Creative and unique advertising such as door hangers, bumper

stickers, etc.

- Accelerate product launches

- Appoint advisers to reach the younger generation of kids.

- Seek new market segment/application for products.

- Develop overseas market entry plans.

Major Goals

1. Increase profitability by 15% by 2015 – Marketing team.

2. Increase yearly sales 20% by 2014 – Marketing team.

3. Increase customer satisfaction reports 2016 – Human resources & Customer service.

4. Training/Professional development of staff by 2014 – Human resources & Admin

Staff.

5. Meeting stated goals around sustainability, engaging our communities and other key

areas by 2020 – Sustainability team.

Assignment 2_Satrategic Plans

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