Strategic Planning

  • Category:
    Management
  • Document type:
    Assignment
  • Level:
    High School
  • Page:
    2
  • Words:
    897

STRATEGIC HUMAN RESOURCE PLANNING 5

Strategic Planning

  1. SWOT Analysis of DELL

Strengths:

  • Steady company revenues and strong financial performance

  • Sells customized services and products to loyal customers

  • Strong customer base mainly businesses and government bodies served at competitive prices

  • Low cost strategy and high inventory turnover by cutting out retailers and connecting to customers directly

  • Products are built-to-order with high level of support, service and reliability

  • Enjoys competitive advantages from efficiencies of the internet across the business (Jurevicius, 2013)

  • Efficient business model-Direct Model Dell using the latest technology to provide direct relationships with customers

  • One of the leading global brands in computer technology

Weaknesses:

  • Inability to switch supply given the robust nature of computer making

  • Poor retailer relationships and solid dealers

  • Many suppliers from various countries for components and parts (Bhasin, 2016)

  • Lack of propriety technology

  • Target customers are businesses which locks out the college student segment

  • Customization and Direct Method is inconvenient to many customers

  • Brands are custom built and may not fit the standard requirements of most customers

Opportunities:

  • Increased use of internet and computer technologies by businesses

  • Research and development (R&D) on the latest technology

  • New diversified product range using diversification strategy (Bhasin, 2016)

  • Increased awareness and education among global customers on the use of personal computers and mobile phones

  • Online stores the next frontier for Dell to drive sales and reduce costs of hosting physical stores

Threats:

  • Rapid and robust growth of competitors like Intel Corp. and Microsoft Corp.

  • High rate of innovation among competitors

  • Decline in the relative cost of computing prices

  • Many new entrants waning the profits of Dell (Jurevicius, 2013)

  • Small price difference among brands no longer a consideration by customers

  • Stiffer competition and reducing market share of Dell to Samsung and Microsoft.

  1. PEST analysis of China

Political:

  • Dominant Communist Party (CP) that controls lives of many Chinese people. Political controls are tight.

  • Tensions in the Kashmir region with Pakistan and India. However, talks continue on security and militarized borders.

  • The country asserts some control over claimed territories with Vietnam, Taiwan, Philippines and Malaysia.

  • Interrupted hydrocarbon exploration in Vietnam shores (Fogel, 2014)

  • China alongside North Korea seeks to stem illegal migration by North Koreans by building a fence and imprisoning illegal persons.

  • Border agreement with Vietnam and Tajikistan and fisheries/boundary delimitation agreement in the Gulf of Tonkin

  • Meeting with Hong Kong to resolve ownership of lands recovered from Shenzhen river channelization.

Economic:

  • Vibrant private sector in a liberalized economy especially in mining and mineral processing. GDP growth of 8.4% (2009 est.).

  • Diversified banking systems and liberalized prices

  • Huge Foreign Direct Investment (FDI) inflows ($108billion in 2008)

  • Revalued currency to the US dollar and referenced to a basket of currencies.

  • Efficient and restructured economy but still remains a low middle-income

  • Massive export base ($1.194 trillion in 2009 est). (Mulyadi, 2015)

  • Challenges of high unemployment (4.3%-2009 est.), corruption, social safety and environmental damage/pollution

  • Chinese exports were at an all time low during economic recession of 2008/09.

  • ‘One child’ policy has led to rapidly aging population dependent on pensions

  • Talented population in arts and sciences

  • Huge consumer population for foreign products (Mulyadi, 2015)

  • Increased use of mobile phones and foreign languages apart from the Chinese language

  • Literacy levels on the increase (96.37%).

Technological:

  • Huge investment in automobile and renewable energies

  • Consolidated telecommunication systems for fixed line and mobile services

  • Increasing used of interprovincial fibre-optic trunk lines (Fogel, 2014)

  • Construction of hydro-electric dams in Yangtze River and proposed 13 dams in Salween River.

  1. Employment law that requires companies to employ local workforce or limit the number of working hours will affect the activity of business operations. For example, companies moving into China are required to employ local Chinese workers based on written employment contract. Failure to follow this rule will lead an employer into paying administrative fines and penalties (Yang, 2016). The employer will have to pay the employee double the wage and still enter into a written employment contract with the employee.

  2. Code of Practice provides standards to the conduct at which the organization operates. It guides behavior and professional values to be followed by the management and the employees. It augments organizational values by setting business practices, behavioral standards and values (Gilman, 2005). Code of Practice is aligned to ethics and beliefs of the organization aimed at achieving its goals and objectives.

  3. Porter’s competitive Forces Model is a tool to identify and analyze the position of a company in relation to competitors. The model analyzes competitor rivalry, power of new entrants, power of buyers and suppliers and the threat of substitutes (Arline, 2015). It is important in identifying the structure of the industry and determining corporate strategies to be applied to make the company more attractive and profitable. For example, Dell used the Five Forces model to map its low cost strategies and edge competitors like Microsoft and Intel Corp.

References

Arline, K. (2015). Porter’s Five Forces: Analyzing the Competition. Business News, Available at: http://www.businessnewsdaily.com/5446-porters-five-forces.html

Bhasin, H. (2016). SWOT analysis of Dell. Marketing91, Available at: http://www.marketing91.com/swot-analysis-of-dell/

Fogel, G.K. (2014). Business environment in China: Economic, Political, and Cultural Factors. Available at: https://www.usi.edu/media/3654697/Business-Environment-China.pdf

Gilman, S.C. (2005). Ethics codes and codes of conduct as tools for organizational development. OECD.

Jurevicius, O. (2013). SWOT Analysis of Dell. Strategic Management Insight. Available at: https://www.strategicmanagementinsight.com/swot-analyses/dell-swot-analysis.html

Mulyadi, K. (2015). The macro-environment analysis of China. Available at: https://www.linkedin.com/pulse/macro-environment-analysis-china-karly-mulyadi

Yang, G. (2016). Navigating China’s Employment Laws. Chinalawblog, Available at: http://www.chinalawblog.com/2016/09/eight-keys-for-navigating-chinas-employment-laws.html