Strategic management is to increase the production of the companies by implementation of effective administration. It includes planning; organizing, staffing, controlling, directing, etc. to frame effective strategic management is one of the vital parts of each and every organization as it helps to bring improvement in the performance and productivity of the company as well as the individuals related to it.
The formations of strategic policies are done by the strategic manager who is responsible to bring effective implementation of those policies and strategies for the future. The job of the strategic manager is to decide that what is good for the organization for a longer period of time. They are responsible to frame policies that are for internal and external management of the company to achieve the goals. It is the fact that to run a company successfully and to achieve the goals, the managers have to work hard and implement the policies on a prominent basis. A strategic manager needs to decide that what is good for the company and vice versa (Finkelstein, Hambrick, and Cannella, 2009). The relevance of strategic planning is that it helps the companies to assess the opportunities, strehnght, weakness and threat, in a best way so that the strategic plan can be designed.
Strength-
Brand name- the company has a strong brand name and reputation for its products. The brand value of dell is $ 7.5 billon.
Product customization- it is a special quality of dell laptops as they provide customize services to their customers. These kinds of services are not provided by any other company like dell. Like Toshiba, Sony, etc. it helps the company to have competitive advantage in the company and also add great value to the customers.
Environmental record- it is a company that always try to engage itself in the environmental and green initiatives. For this, the company has received many awards as recognition for being eco-friendly. It is one of the benefits that a company has while working with government and public agencies.
Competency the acquisitions and mergers- over the past year, this company has a huge amount on the mergers and acquisitions. It is approximately $ 13 billion which is a successful investment for the company. It helped the company to bring new patents, capabilities, skills, knowledge, talent, assets, etc. (Bass, and Bass, 2009)
Direct selling through the business model
Dell is a company that doesn’t sell its products by the big-box retail outlets instead of this; they directly sell the products to the customers and also to the enterprises by keeping a very reasonable process and profit margins off the products.
Weaknesses-
Commodity product-the commodity products sell by the company has a very less margins. So the major resource of profits for this company laptops, computers, etc. that is commoditized products.
Poor customers services- the after sales services of this company are not effective than the other companies like Sony and Samsung provide to their customers. Dell is trying to fix this problem by investing a large amount of money to its service centers. The call centers and services centers of this company are generally offshore which complex the situations.
The locations are very few- it is a major weakness of this company that the infrastructure is not effective. Due to this the customers are unable to rely on the company as they find it hard to trust on such company (Kuratko, and Audretsch, 2009).
Low differentiation
The low price of the products of dell products are counted as its competitive advantage but the company is unable to manage the competitive process. The products of dell are also different from the other competitors.
Low investment in research and development- the negative part of this company is that it invests a very low part of its income in the R & D department which results in lack of market analysis and knowledge about the market (Kim, 2002). Thus, the company missed the opportunity to make strong product like Smartphone, tablets, etc. as well as the company is lacking behind in the competition due to this factor.
Weak patent portfolio- Due to the lack in the R & D department, the company is also lacking in the strong patent portfolio. The company is now facing many problems due to this and they have to face competition many times.
Opportunities
Threats
Political and legal analysis- The Chinese government wants to promote only the Chinese companies and PC vendors in the markets of china as compared to any other computer company. There are many personal computer vendors in china and government tries to support them. The growth of internet is also limited in china which can be a threat from many computer manufacturing companies (Bryson, 2011).
Economic factors- The biggest threat is piracy in the china’s computer market. The country has a vast scope and lots of opportunities in the computer market as this country has a large population. There is a shortage of skilled labor in china due to which many company faces many problems.
Sociological factors
The cultural and social sectors are closely related to the culture and attitude o the society and are values. The computer companies have opportunities that they can expand their operations in the Chinese markets as it has vast potential and the growth is also tremendous. Still, the china people are not ready to easily accept the outsider company in their country.
Technological factors-
The factors of technology is related to the activities that are directly related to the invention of new techniques of production, processes, materials, etc. the direction of updated technology is to change everything into faster and smaller (Dess, and Lumpkin, 2005). The personal computer production of China was third largest in the year 2000.
The corporation’s act 2001 is one of the relevant legislations required by all the companies. In this act, there are all the details of the company and also about the financial products and services offered by the company. It is a body of corporate that has place in the country like Australia or nay territory or state in the Australia. It is a reference body of the corporate that are carrying business operations in the Australia (Priem, and Butler, 2001). It has a strong impact on the voluntary winding up of the business. The company must have to pass the resolution, cease to carry the business operations.
The code of conduct of a company presents the standards and benchmarking of the company that is expected by the members of the company.
There are lots of values provided by the code of practice that is it provided a support in the economic, social and political matters by the members of the company where the business operations are being performed. It also helps in support and protection of the potential and current work related to the consumers, employment, and also to the allied support service. It provided guidelines to inform and protect the employment support services of the industry and also encourage equal opportunity al all sort of levels of employment. The major function of code o conduct is to demonstrate the core professional values and nature of the underpinning and countered ethical considerations. It is the fact that it cannot address all the ethical issues but try to cover the most. The applicability of each and every code of conduct is related with the each and every country’s ethical issues that may directly or indirectly affect the working of professional practice of the employement services.
The main aim of porter’s five forces model is to analyze, identify, al the competitive sources present in the market that directly r indirectly affect the firm. They also help in determination of strengths and weaknesses of the company. The major five forces of porter model are-
Competition in the industry- The relevance of this force is to determine eth number of the competitors and their power of threaten the company. There are many types of competitors and they provide equivalent quality of products that to on a reasonable price. The impact of the competitors on the company can be decided through the depth in which the competitors taking the share in the markets. It also impact the suppliers and the buyers if they cannot receive suitable transactions
The potential of the new entrants into the industry- The power of the company is also influenced by the new entrants in the market. The less time, cost and money taken by the competitors to enter in the industry results in effective competition for the companies. It leads in significant impact n the reputation of the company.
The power of the suppliers – The aim of this force is to analyze that how easily the suppliers give up the prices of services and goods. It is also affected by the number of suppliers present in the market of a particular goods and services. It also related to the uniqueness of this aspect that a company has to invest while switching form one supplier to other (Bryson, 2011).
The power of the customers- It is related to the capability of the customers to down the price and to bargain. It is directly influenced by number of buyers, customers, company, how each customer is significant to the company. The strong base of the client holds more power against the company.
The threat for the substitute products- There are lots of substitutes available in the market that give threat to the companies.
The porter’s five forces model for the personal computer industry is important to analyze in development of the business strategy. It helps in identification of all the factors that directly and indirectly impact the working of the company. It is very much useful in competitive analysis as it helps to collect the data and information related to the competitors and substitute products and services. The dell company also uses such models in their company to analyze the forces that impact the company.
A strategic plan for HealthFocus including objectives, strategies, timeframes, performance indicators and methods for monitoring the implementation of the plan will be include in this study. The motive is to provide description of the company, its mission, vision and also the values statement, etc.
It is a consultancy company that is a full services market strategic and research company. It is specialized in nutrition and health trends so that they can create market opportunities. The company is specifically qualified to better understand the science that underlying trends of today’s market.
The aim of the company is to establish latest and updates trend in the nutrition’s and health of the people. The mission is to accomplish the health goals of the customers by providing them opportunities so that they can concentrate on their health. The vision is to be at a leading position in the health and nutrition company. The value statement of the company states that customers are the most values asset of the company and their demands must be entertained and fulfilled in the best way any company can do.
The goals and strategies of the company are very enquire and customers driven in nature. They focus on the trends in the market related to the health and the nutrition and then apply them in the company to achieve the same.
The strategic plan of the company are framed by the top level of authority who analyses and identify the marketing situation and then frame strategic plan so that the goals can be achieved.
The performance indicators of the company are the number of the customers of the company that are present in the market. They are the measurable value that companies achieve. The targets of the company are helpful in evaluation of the success of the company.
The company has lots of plans to evaluate the implementation. They have a particular format that is used to analyze the implementation. They did the review and revision of the implemented plans. They collect the information that change takes place. The make proper records to monitor and control the performance taking place in the company. They also apply effective theories and approaches so that there must be prominent and positive changes take place.
Conclusion
The conclusion on the present study is that the strategic planning has an important role in every company. The purpose of this study is to analyze the relevancy of various types of methods like SWOT analysis, PEST analysis, etc. for the companies to evaluate the internal and external environment of the business. The investigation takes place on the companies that are manufacturing company of computers Dell and also the impact of computer manufacturing company on the economy of china. The economy of china is very rigid as it does not easily entertain any outside company in their company. Afterwards there was a strategic plan designed for company that is a HealthFocus company.
References
Bass, B.M. and Bass, R., 2009. The Bass handbook of leadership: Theory, research, and managerial applications. Simon and Schuster.
Bryson, J.M., 2011. Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.
Bryson, J.M., 2011. Strategic planning for public and nonprofit organizations: A guide to strengthening and sustaining organizational achievement (Vol. 1). John Wiley & Sons.
Dess, G.G. and Lumpkin, G.T., 2005. The role of entrepreneurial orientation in stimulating effective corporate entrepreneurship. The Academy of Management Executive, 19(1), pp.147-156.
Finkelstein, S., Hambrick, D.C. and Cannella, A.A., 2009. Strategic leadership: Theory and research on executives, top management teams, and boards. Oxford University Press, USA.
Kim, S., 2002. Participative management and job satisfaction: Lessons for management leadership. Public administration review, 62(2), pp.231-241.
Kuratko, D.F. and Audretsch, D.B., 2009. Strategic entrepreneurship: exploring different perspectives of an emerging concept. Entrepreneurship Theory and Practice, 33(1), pp.1-17.
Priem, R.L. and Butler, J.E., 2001. Is the resource-based “view” a useful perspective for strategic management research?. Academy of management review, 26(1), pp.22-40.
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