A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T. is an acronym for the political, Economic, Social, and technological factors of the external macro-environment. Such factors usually are beyond the firm’s control and sometimes presents themselves as threats. For this reason, some say that “PEST” is an appropriate term for these factors. However, changes in the external environment also create new opportunities and the letters sometimes are rearranged to construct the more optimistic term of STEP analysis. Many macro-environmental factors are country-specific and a PEST analysis will need to be performed for all countries of interest. In the following, the analysis of the political, economic, social and technological factors leads to a description of the macro environment of Dell computers. Political Environment The political environment of a country is influenced by the political organisations such as philosophy of political parties, ideology of government or Continue reading
Business Analysis
In today’s complex business environment, an organization’s adaptability, agility, and ability to manage constant change through innovation can be keys to success. Traditional methods may no longer lead to reaching objectives when economic conditions are unfavorable. That’s where business analysis comes in. The basic idea of business analysis is quite simple. It is the practice of identifying and clarifying a problem or issue within a company, then working with the various stakeholders to define and implement an acceptable solution.
Competitive Analysis of DELL using Porter’s Five Forces Model
Dell Company was founded in 1984 by Michael Dell. It is the world’s largest direct-sale computer vendor; Dell Inc. is now also the leading seller of computer systems in the world, capturing a global market share of more than 15 percent. Dell markets desktop personal computers, notebook computers, network servers, workstations, handheld computers, monitors, printers, high-end storage products, and a variety of computer peripherals and software. In this article we will use Porter’s Five Forces to analysis Dell’s great success in the industry. Force 1: The Degree of Rivalry The PC industry consists of a number of companies; hence the threat from industry competitors is high. Due to the product being highly standardized and shifting costs between brands is low, there is fierce competition which leads to lower margins and profitability in the market. The PC industry can be described as a high competitive industry. For Dell the main competitors Continue reading
The Importance of SWOT Analysis
SWOT which stands for an abbreviation of (strength, weakness, opportunity and threat; is an analysis that defined as method to examine organization’s internal factors dealing with strengths and weaknesses, and its environmental opportunities and also the threats. SWOT analysis usually use in the preliminary phase of decision making as a general tool which it designed for being antecedent to strategic planning in different case and applications. SWOT Analysis can be used as a model, process, technique or framework to provide information about those factors strengths, of an organization by having many applications with possibility of being used in all the levels of the organization. SWOT analysis is a part of the strategic planning process. Companies have some internal and external forces in the business environment. As a first step of a strategic planning system, the strategic factors that are related with the potential of the company, should be identified and Continue reading
Business Strategy Case Study: Relaunch of Fiat 500
On 4th July 2007, Fiat Auto the Flagship division of Fabbrica Italiana Automobili Torino (FIAT) re-launched its heritage brand the Fiat 500. It was exactly 50yrs after the launch of Fiat 500 on 4th July 1957, which not only helped Fiat in post World War-II recovery but also provided mass motorization to Italians. Luca De Meo, CEO, Fiat Auto, on the re-launch occasion stated that “This is the car that gave ordinary Italians four wheels for the first time; that transformed a country and a company.” In its 18yrs of career between 1957 and 1975, 3,893,294 Fiat 500s were built & sold, which provided millions of Italians and Europeans individual mobility. Post 1970 with beginning of free trade in Europe, Fiat’s market share eroded continuously. Foreign companies such as Volkswagen, Renault, Ford, Peugeot, Honda and Toyota became prominent players in the Italian car market threatening survival of Fiat. The prime Continue reading
SWOT Analysis of McDonald’s
McDonald’s today is one of the largest and the best known global food service retailer with more than 31,000 restaurants in 125 countries serving 49 million customers each day. McDonald’s serves more than one percent of the world’s population. McDonald’s outstanding brand recognition, experienced management, high quality food, advanced operational systems and unique global infrastructure ensure a position that enables them to capitalize on global opportunities. SWOT (Strength, Weaknesses, opportunities and threats) analysis provides a basis for crafting a strategy that capitalizes on the company’s resources, while taking advantage of the best opportunities, and defending against the threats to its well being. Strengths McDonald’s is the market leader in fast food franchise with huge customer base around the world. It has a strong global presence with its nearest domestic competitor being only half its size. Approximately 85% of McDonald’s businesses are owned by franchisee operating full time in more than Continue reading
History and Background of Mother Dairy
“MotherDairy” is one among the single largest brands of milk in India as well as in Asia, marketing about 2.2 million litres of milk per day. Mother Dairy commands 40% market share in the organized sector in and around Delhi, primarily because of consistent quality and service – whatever be the crisis – floods, transport-strike, curfew etc. Mother Dairy, Patparganj, Delhi, is presently manufacturing & selling around 8.5 lakh litres of tonned milk through bulk vending shops. Mother Dairy, Delhi is an IS/ISO – 9001:2000 and Hazard Analysis Critical Control Points (HACCP) and IS-14001:1996 Envoirnment Management System (EMS) Certified organisation. Mother Dairy was the first Dairy in the country to implement ISO-14031 (Envoirnment Performance Evaluation) project. The comany’s Quality Assurance Laboratory is ISO/IEC- 17025:1999 certified by NABL (National Accreditation Board for Testing and Calibration Laboratory), Department of Science & Technology, India. This provides assurance to the consumer in respect of Quality Continue reading