PESTLE Analysis and the bigger environment - Free Essay Example

Sample details Pages: 6 Words: 1948 Downloads: 8 Date added: 2017/06/26 Category Marketing Essay Type Research paper Did you like this example? Founded in 1984, Dell is one worlds leading technology manufacturer specialising in personal computers and other computer related products. Currently based in Texas, Dell is also a large multinational company employing 76,500 employees worldwide in 2009 (Mintel). The purpose of this essay is to identify, analyse and discuss strategic issues of Dell using the PESTLE method which will look at a range of macroeconomic factors the company should to consider. The PESTLE analyses Political Government regulations and legal issues are all part of the political factors that determines the conditions which the company will have to operate under. As a large multinational company with operations in many countries, Dell will have to take into account the different political factors in different countries if it wants to succeed. Some countries may have policies which favours home companies or to protect them from large multinational such as Dell. Sometimes, it may be necessary to form partnerships with local companies in order to distribute or manufacture to the home market and/or export. However, with increasing globalisation, a large multinational like Dell should also benefit from access to new emerging markets and free markets as their government loosen up trade barriers (FT, 2009), such as when China joined the WTO in 2001, or when some of the eastern European countries enter the EU. Don’t waste time! Our writers will create an original "PESTLE Analysis and the bigger environment" essay for you Create order Economical Like most companies, Dells performance will be greatly affected by many economical factors which include changes in exchange rates, interest rates and overall economical growth. For example, similar to its competitors, many of Dells personal computers may have all or parts of it manufactured or assembled in emerging economies such as China where the cost of production is low. If the local currencys exchange rate, i.e. the Chinese RMB, rises against the currencies of Dells exporting markets, then this would clearly have an effect on Dells production cost. Another example is the recent economic crises (the credit crunch) had clearly had its negative impact on Dell; it reported another fall in quarterly profit when computer sales were down as consumers cut back their spending (BBC News, 2009). Of course, as the recession recedes and economic growth improve again, sales should improve again. Social Social factors include areas such as population growth, education level and other culture aspects. These issues will have an impact on the type of consumers in a market and demand. Studies have shown that there is a positive relation between the education level and demand of computers. Also, as computers become more integrated in peoples daily lives, and more people, old and young, get more familiar with technology, this can all increase demand or create niche markets for Dell to explore and take advantage of. Trends can also influence the design and marketing methods of products in order to make it more appealing, and should not be ignored if Dell wants to gain or remain its competitive advantages. Dells made-to-order approach helps to tackle this issue by allowing customers to choose what they want in the product (Dell). Technological With the advancement of technology, new products and market can be created, e.g. the MP3 players. Also, with the development of electronic databases to store large volume of information and increasingly sophisticated processors and memory storage system, the computing industry can expect growing demand in computer hardware as businesses seek to upgrade their IT system. As Dell is largely a technology based company, it will need to keep up with new technologies and invest in research and development to remain competitive. For instance the development and growth of the smartphones has prompt Dell to enter the market. Another example is the more recent introduction of the Netbooks, considered a niche between mobile phones and Laptops (Mintel). Legal Consumer laws, labour laws and many other legal factors can all affect how Dell can operate, and similar to the political factors, it can vary country by country. For example, the legal changes in the UK on age and disability legislations can affect how Dell hires or fires employees. Also, different standards of the minimum wage (if a country has it at all), will most likely have some influence over the labour cost of the operation in that region. In some countries, certain laws may not be enforced as rigidly or underdeveloped compared to most industrialised countries. Different competition laws can also affect how Dell can compete against rivals in a country (Times 100). Environmental Just as the name suggests, environmental factors includes climate change and weather. This is an important area for certain sectors such as farming, tourism and insurance (Gillespie, 2007). However, Dell is in the technology sector, its factories can still be operational whether the local weather is rainy or sunny. If its customers cannot get to the shops because of the snow, then they may still make the purchase when the weather gets better or order online. Therefore, direct influence from the weather is small for a company such as Dell. The bigger environment Dell should also consider the opportunities and threats from external factors. For example, the growing wealth in China can create much opportunity for Dell, but there is also the threat from Chinese firms increasingly competing on a global stage, such as Lenovo and its increasing global presence ever since the acquisition of IBMs Thinkpad division (BBC, 2005). Also, the constant deflation in the PC sector as the average prices falls may allow more people to own a PC or laptop, but it can also affect the profitability of the sector. The PESTLE analysis already provided many factors for managers to consider on a macro-environmental ground. However, for Dell to be successful, managers should concentrate on areas that will have the biggest impact and the most relevant. The factors can also change as time progresses, so the analysis should be done on a regular basis to remain accurate and useful. Overall, Dell has performed well despite the fall in profit due to a recession, its str ategy to keep its pricing sharp and remain competitive has proven effective and helped it grow year-by-year on the long run. Warwick Business School, University of Warwick IB1170 Markets, Marketing Strategy Essay Assessment Due: Thursday 14th January 2010 Marketing: An analysis in Innovation and the product life cycle of Dell in comparison with Acer Student No: 0708827 Introduction Every organisation should constantly innovate and improve in order to adapt to changes and gain competitive advantages. Both Dell and its competitor, Acer, are part of a fast paced technology industry where innovation is very important factor to survival and growth. Currently, Acer ranks third in global PC market share (IDC) behind HP and Dell. The rate of innovation can also have impacts that can be felt throughout the whole industry and the market. For instance the average prices of computers falling significantly in the past 15 years (Mintel), this was a result from the increasing competition and shortening of the product life cycle where new products and innovations have been released constantly and faster. This essay will largely analyse innovations and product life cycle of Dell and Acer and compare their differences and similarities in those areas. Innovation and product life cycle Figure Source: https://www.trumpuniversity.com/business-briefings/post/2008/04/product-life-cycle.cfm All products will have a life cycle which starts with the introduction and end in withdrawal. This can be shown in different stages and can be seen in Figure 1. Managers will need to identify the stage where each of their product or service lies so that an appropriate marketing strategy can be applied (Kaplan, 2007). As the product reaches maturity, decline can be pushed back and product life cycle extended by innovation. Otherwise, a new product may need to be introduced in order to maintain income and growth for the firm. Also, the time frame of the product life cycle will vary between industries as well as products. The PC and laptop industry, of which both Dell and Acer are part of, tends to have short product life cycles as new technology becomes available. For example, as a new faster processor is developed, PC companies may need to assemble new laptops or PC with the newest accessories, which in turn devalue the existing models. Of course, innovation does not necessarily apply only to new products; it can happen in any area of the organisation. There are three main types of innovation; product innovation looks at the development and improvement to products (i.e. a new laptop), process innovation targets areas such as where manufacturing or supply lines can be improved, and service innovation can focus areas such as the customer service. Product innovation The PC makers are likely to have access to similar technologies to build their computers, although there are still much room for innovation. One way is to target specific markets, where products are made with a certain type of user in mind. For instance, Dell has a range of products catering different types of users; like its Studio range consists of desktops and laptops with high specifications for multimedia purposes (Dell). Although most leading computer makers have a similar range, but Dell offers its customers the option of a range of custom cover designs, increasing its computers appeal to art conscious consumers. Acer also has a broad range of computers which has helped to make it the leading player especially in the laptop sector. The Timeline laptops were advertised as super-slime and light weight, offering a cheaper alternative to Apples Macbook Air for frequent travellers while maintaining high specifications. In addition according to Mintels report, Acer was the firs t major computer brand to launch a netbook product into the UK with its Aspire One model, helping it to gain a foothold into this growing market from the start. Process Innovation Process innovation can be defined as the execution of a new or considerably enhanced production or delivery process (OECD, 2005). In this area, Dell has established itself as a leader in supply chain management and just-in-time (JIT) manufacturing. Its ability to keep the inventory low has helped to keep Dells cost low and producing competitive prices for the customers, all the while transforming it from a second-tier PC maker to a market leader (Byrnes, 2003). For Acer, it has retained strong growth even during the recent credit crunch where Dells profit faltered. This has been due to the companys constant streamlining in recent years, selling off low value operations, and diverts focus away from manufacturing while becoming a pure brand company (Slob, 2005). Service innovations As part of its direct customer business model, Dell is also well known for its build-to-order services, as emphasised in its TV adverts as well. Taking the progress of online shopping, its customers are given a degree of choice to customise their chosen computer from its cover to the specifications inside, allowing Dell to gain a greater access to a wide range of audience. Acer, like its major rivals, has also implemented the use of the internet to market its products and opened new forms of communication with consumers. Conclusion Both Dell and Acer compete in the low end and the high end of the market; however the methods they use to compete is very different. In contrast to Dells shift towards being more like a traditional manufacturer by using methods such as selling directly to customers and predominantly web-based, Acer outsources all manucatusing and assembly, selling through retailers (Einhorn, 2009). This strategy has drastically reduced costs and cutting the overhead expenses. This clearly helped Acer to maintain its profit during the recession as the industry was hit by a fall in demand. However, in order to gain long term success, both companies will need to constantly come up with new innovations to keep up with changes in the market.

Sovereignty is a norm of the International system upon...

Sovereignty is a norm of the International system upon which the ‘society of states’ rests. Territorial sovereignty refers specifically to the power of the state ‘the territorial limits within which state authority may be exercised on an exclusive basis.’ This essay will explore the concept and development of sovereignty within the system of states. Firstly, it will identify the state system before the ‘Peace of Westphalia’ in 1648, then it will compare the ever changing forms of sovereignty since, and the reasons for change, which have established the modern form of sovereignty which exists today. The ‘Middle Ages’ - Before Sovereignty Before the ‘Peace of Westphalia’, States relied upon different normative foundation’s to†¦show more content†¦Instead, Europe was overlapped with continuously altering Lordships, in which municipal Governments, Dukes or leaders of religious organisations had a ‘proprietary right’ to land, over which they could exercise control. Lordships were usually, though not always, inherited by nobility or dynasties. These rulers had an almost autonomous rule over their territorial land, with only a small say belonging to wealthy class citizens, and little involvement by Kings. The land owned by these rulers stretched like an archipelago, in that it was scattered amongst the territory of other rulers, with the central portions interrupted by intervening jurisdictions. This led to leaders having to rule their territory differently on where its position was. For instance, Prussian Kings ruled as Absolute Monarchs in Konigsberg, but in Berlin they ruled as the Royal Vassals of the ‘Holy Roman Empire’. The ‘Middle Ages’ – An Emergence of Sovereignty? A political idea known as ‘respublica Christiana’ emerged in the Middle Ages, as the closest sovereign institution before the Peace of Westphalia in 1648. A joint arrangement, between the Sacerdotium, led by the Pope, and the Regnum, led by a designated emperor, ‘respublica Christiana’ was ‘universitas’ in that it was a unified authority devoted to Christian ‘redemption and salvation’. Although, this unification differs completely from the ‘societas’ notion of the sovereignty norm, in the Middle-Ages it was a bridge which helpedShow MoreRelatedSovereignty Is The Central Organising Principle Of The System Of States990 Words   |  4 PagesSovereignty is the central organising principle of the system of states. Since the end of the Cold War, the nature of sovereignty has seemingly changed from one that endows states with absolute infallible rights, to one that grants them certain responsibilities. The international system was not always arranged regarding sovereign states. Throughout the Middle Ages alternative legal arrangements governed Europe and states lasted up until the modern period. At the Peace of Westphalia in 1648, the developmentRead MoreLatin America Foreign Policy Essay2955 Words   |  12 Pagesaspects—culture, language, and history—there is not a single standard culture that distinguishes the region. One aspect of Latin American culture, regarding foreign policy, is a prevalent respect for the norm of sovereignty and non-intervention. There exists a strong disposition to follow international law as a means to prevent war or at the very least ward-off potential intervention by extraregional powers. Accordingly, the factor of self-interests and self-preservation creates a divergent spectrumRead MoreNato s Dismemberment Of Serbia2220 Words   |  9 Pagesyou! Stop violating the post-1945 norm against territorial conquest. There are peaceful mea ns to assure your state’s security. Your country can guarantee power through participation in international cooperation and collective security (Russett, 2010). Putin [DEMONSTRATING HIS RAGING MASCULINITY BY DROPPING THE LIBERAL TO THE GROUND WITH ONE SWIFT JUDO MOVE]: Trust me, you would know if Russia waged war on Ukraine. To the contrary, Russia, like any capable state, is a power-monger. Influence is powerRead MoreEssay on Kosovo And Milosevic1482 Words   |  6 Pagesits Albanian population has been forced to flee the country under the relentless assault of the Yugoslav army and police, amid unbelievably cruel carnage of human lives and burning of villages and towns. Kenneth Waltzamp;#8217;s first-image theory rests on the assumption that the causes of war are to be found in the nature and behavior of man and on the role of specific individuals, as in this case Slobodan Milosevic. If you ask the question quot;Why is a war taking place in Kosovo?quot; a largeRead More The Rise of Universal Liberal Values? Essay1125 Words   |  5 Pagesilliberal democratic regimes actions questionable or worse, that regime is illegitimate? Such pronouncements not only fly in the face of the democratic orthodoxy, but also dangerously destabilize the props of national sovereignty that comprise the underpinning of the current international system. Democracy, broadly defined, is a mechanism of governance, the participation of a people in the selection of its rulers. Constitutional liberalism, on the other hand, as sketched by thinkers from the EnlightenmentRead MoreBook Review: The Bottom Billion by Paul Collier1802 Words   |  8 Pagesthis trajectory. Collier is concerned with approximately 58 countries that constitute about one billion people, or 20 percent of the earth’s population (Collier 7). This â€Å"bottom billion† group belongs to countries that are not progressing with the rest of the world’s pace; in fact, they seem to be diverging and falling apart when everyone else around them are growing. The purpose of the book is to show these countries are, in fact, diverging. He shows them caught in four different â€Å"traps.† AfterRead MorePolitical Realism Essay examples2272 Words   |  10 Pagesapproach when it is in means of foreign policy and international issues. It is known as â€Å" realpolitik† and emphasis that the most important actor in global politics is the state, which pursues self-interests, security, and growing power (Ray and Kaarbo 3). Realists generally suggest that interstate cooperation is severely limited by each state’s need to guarantee its own security in a global condition of anarchy. Political realist view international politics as a struggle for power dominated by organizedRead MoreGlobal Politics Essay6696 Words   |  27 PagesGlobal Politics The study of international or rather global politics, seeks to provide an account of politics in the broadest domain. The domain of international politics in the twenty-first century is characterised by the increasing number of actors pursuing common and personal interests. It is largely due to the globalised, interdependent nature of the current international political environment that the concepts of sovereignty and power deserve further evaluationRead MoreThe Great War Between Western Powers2141 Words   |  9 Pagescan be said that in the gradual formulation of International Relations theories, scholars have largely ignored the historical, cultural and social context of different regions outside Europe and America. Liberalism has pacific historic origins as a reaction to the huge casualties and damage caused by the First World War in the western world. It aspires to promote peace through international cooperation. However, this theory simplified international relations too much to the extent that it focusedRead MoreEssay on Islam and Democracy: Mutually Exclusive?3517 Words   |  15 PagesThe September 11th terrorist attacks unleashed unimaginable devastation upon the United States and subsequently upon the Arab-Islamic world. While the government of the United States scrambled jets and prepared soldiers for war, there was another battle, arguably more important than the war the United States was preparing to wage. This battle was waged not on battlefields but in classrooms, between scholars who struggled to define and rectify the democratic deficit in the Muslim world. Theories

Corporate Financial Analysis Informed Investment Decision

Question: Discuss about the Corporate Financial Analysis for Informed Investment Decision. Answer: Introduction Investors need to evaluate the fundamental aspect of an organisation in order to make an informed investment decision. Fundamental analysis is key when determining the attractiveness of a prospective company to invest in . It entails carefully screening the company information to establish the key indicators of its attractiveness for investment . Such indicators are a business strategy, performance , governance , and major pronouncements among others . This is beyond the normal analysis of daily stock performance in terms of returns (Exchange, 2010). Apple inc. Background information The company was incorporated in California USA in the year 1977 and has its shares listed on NASDAQ. Its in the information technology industry whereby its engaged in the production of a variety of devices ,software development and provision of services. It has a rich portfolio of products and services which include iPhone, iPad,mac,ios,osx,tvOs, iLife,iWork,iMovie, internet services, icloud , Apple care, Apple pay,Apple watch an Apple Tv and OSX (Inc., 2015) Business Strategy The company devotes its resources to offer high-quality products and services to its customers . It boasts of exemplary resources in terms of investment in research and development and in human resources . Human resources and services usage have been identified as the key determinant factors to the success of the company .It is committed to innovations which ensure that high-quality devices , content , software and new products are availed to the market to meet changing customer needs, for example, it launched Apple TV in September 2015.(Inc., 2015). Performance The company sales in major markets rose by 28% in the year 2015 compared to 2014 . This is attributed to growth in iPhone sales by 52% during the year under review and is an indication of market growth for the financial year .Total assets grew by 25% in the year 2015 compared to 2014 while net income grew by 35% during the period under review .Its cash and cash equivalent grew by 32% in the year 2015 compared to 2014. This indicates its financial soundness as it can comfortably finance its working capital and other needs .Its share returns have been outperforming the market indexes (SP 500,SP information technology and Dow Jones US technological supersector) in the last five years (Inc., 2015). Governance Its management which comprises of experienced managers has been attributed to the high success of the company. Tom Cook, who is the CEO has a vast experience in the field of IT . He has previously worked with Compaq, IBM and more as Apple operating officer. He has an MBA from Duke university.The board of directors is made up of persons with key skills which acts as a driving force to the company success. They oversee the management to ensure ethical standards are met .(Inc., 2016) Major pronouncements The company has continued to make pronouncements on new products in the market. Like on September 7, 2016, it has released iPhone 7 , 7 plus,Apple watch series and Air pods(Inc., 2016) Tesla Motors ,Inc Company background The company was incorporated in the year 2003 in Califonia USA and is listed in NASDAQ securities exchange. It is in Automobile industry with its main business activities being manufacturing ,selling and servicing of electric cars and energy saving devices. Its portfolio comprises of model S cars , Model X ,10 KW/h and 7KW/h power banks(Reuters, 2013) Business strategy The company manufactures high-technology electric cars ,an area which their competitors have not yet fully ventured into . They possess the major resources like the engineers and the technological ability which makes them competitive in this market. They are able to manufacture the high performance, safe and well functioning electric cars through this resources (Tesla Motors, 2015) Performance Its stock returns have been growing at a higher rate compared to the market from the year 2013. Revenues have grown by 26% in the year 2015 as compared to 2014.Net assets grew by 39% in the year 2015 compared to 2014. They have been able to deliver 107 units in period 2012 to 2015. However, the company losses have increased by 202% in the year 2015 compared to 2014 and the company has a negative working capital of $24,706 in the year 2015 an indication of strains in financing its operation during the year.Its leverage is 58% which could adversely affect their cash flows in future in sales will not increase significantly (Tesla Motors, 2015) Major pronouncements The company plans to introduce low-cost model 3 car in the year 2017 which could lead to increase in sales as a result of an increase in demand. Also, it is planning to launch a 100 KWH power bank for industrial use which could create new markets and product portfolio increase (Tesla Motors, 2015) References Exchange, M. S., 2010. Fundamental analysis. Bestnet Analytics, I(1), pp. 1-12. Inc., A., 2015. Apple Inc. form 10-k ,For the Fiscal Year Ended September 26, 2015. [Online] Available at: https://investor.apple.com/secfiling.cfm?filingid=1193125-15-356351cik= [Accessed 7 October 2016]. Inc., A., 2016. Apple special Event. [Online] Available at: https://www.apple.com/apple-events/ [Accessed 7 October 2016]. Inc., A., 2016. Leadership Governance. [Online] Available at: https://investor.apple.com/corporate-governance.cfm [Accessed 7 October 2016]. Reuters, 2013. Tesla Motors Inc (TSLA.O). [Online] Available at: https://www.reuters.com/finance/stocks/companyProfile?symbol=TSLA.O [Accessed 7 October 2016]. Tesla Motors, I., 2015. ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2015. [Online] Available at: https://ir.tesla.com/secfiling.cfm?filingid=1564590-16-13195cik= [Accessed 7 October 2016].