Dell Case Study Essay -- Business and Management Studies

Dell Case study. In this report we are going to analyse the business environment of the computer industry in the form of a PESTE which stands for Political, Economical, Social-Cultural, Technological and Environmental. We feel that it is important to analyse the environment of a business as it will help the business to identify the Opportunities and Threats surrounding it. Using the case study of Dell we have identified the following opportunities and threats of the computer industry. Political There are a number of political issues, that large organisations such as Dell must consider when expanding or operating in different countries. Obviously government in the western world have different ideals to the countries in other regions. Rules and regulations in different countries would reflect their different ideals; so in order for companies to be successful, they must have a good understanding about how different governments operate. As stated in the case, patents and trademarks are prevalent in the computer industry, so it is important for organisations to develop good relations with different governments. Other elements that must be considered include: Currency exchange rates, taxation and employment law, labour conditions and political stabilities. Organisations should also understand different governments’ attitudes towards monopolies and competition. Economical Opportunities: 1) The computer industry is predicted to continue to grow in volume over the years. It is expected to grow between 15-20% over the next 3-5 years. This is influenced by the development of the internet and the global expansion opportunities. 2) The foreign markets like Asia and china were previously not accessible due to their political and economical environment. However the situation has changed eliminating barriers thus is now readily accessible; this is a big opportunity for the computer industry to grow in these regions. Threats: 1) Economical changes around the world can affect the computer industry. The biggest threat to the industry is the instability of the world market, for example Dell opened a new manufacturing facility in Brazil and the changes in the South American economical conditions could thus affect the company. 2) The currency fluctuation in different regions can affec... ...mation Ltd (2003) â€Å"European IT chiefs plan more investment in 2004 (analysts' views)† Computer Weekly, 9th of September - Ziff Davis Media Inc (2003) â€Å"HP Promotes PC Recycling† eWeek, 6th of February - Reed Business Information Ltd (2003) â€Å"Suppliers introduce price incentives to get users to invest in the latest PC hardware† Computer Weekly, 14th October - Simon Quicke (2003) â€Å"Suppliers' views; Top supply executives predict market upturn† Computer Weekly, 9th September, Reed Business Information Ltd - Adam Lashinsky (2000) â€Å"The Wired Investor: Once the drivers of the great bull market, PC makers have seen their stocks battered and bruised. The question is: Do they still deserve a place in your portfolio† Fortune, 18th December - Ben Elgin (2003) â€Å"Hitting the Delete on Compaq† Business Week, 14th of April, The McGraw-Hill Companies - Ziff Davis Media Inc (2003) â€Å"Dell Entering Consumer Electronics Market† eWeek, 25th of September - Andrew Park; Faith Keenan; Cliff Edwards (2002) â€Å"Whose Lunch will Dell Eat Next? Now, it's moving into printers, storage, and handhelds† Business Week, 12th of August, The McGraw-Hill Companies