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Factors Affecting Dell Inc.'s Profitability and the Forces of Competition

Essay Instructions:

Overview
*In this assignment, you are to use the same corporation you selected and focused on for Assignment 1.
*Using the corporation you chose from Assignment 1: Strategic Management and Strategic Competitiveness, examine the industry in which the entity operates. Use any or all of the following resources to conduct research on the company:
*Company website.
*Public filings from the Securities and Exchange Commission EDGAR database.
Strayer University's online databases.
The Nexis Uni database,
Other miscellaneous sources. Note: the company's annual report will often provide insights that other resources may not include. Factors Affecting Dell Inc.'s Profitability and the Forces of Competition
Requirements
*Write a four- to six-page paper in which you do the following:
*Choose the two segments of the general environment that would rank highest in their influence on the corporation you chose. Assess how these segments affect the corporation you chose and the industry in which it operates.
*Considering the five forces of competition, choose two forces of competition that you estimate are the most significant for the corporation you chose. Evaluate how well the company has addressed these forces in the recent past.
*With the same two forces in mind, predict what the company might do to improve its ability to address these forces in the near future.
*Assess the external threats affecting this corporation and the opportunities available to the corporation. Give your opinions on how the corporation should deal with the most serious threat and the greatest opportunity. Justify your answer.
*Give your opinion on the corporation's greatest strengths and most significant weaknesses. Choose the strategy or tactic the corporation should select to take maximum advantage of its strengths, and the strategy or tactic the corporation should select to fix its most significant weakness. Justify your choices.
*Determine the company’s resources, capabilities, and core competencies.
*Go to Basic Search: Strayer University Online Library to locate quality references. Note: Wikipedia and similar websites do not qualify as academic resources.
*Your assignment must follow these formatting requirements:
*This course requires use of new Strayer Writing Standards (SWS). The format is different than other Strayer University courses. Please take a moment to review the SWS documentation for details.
Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow SWS or school-specific format. Check with your professor for any additional instructions.
*Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required page length.
*Use the Assignment 2 Template [DOC] to ensure that your assignment meets the above requirements.
*The specific course learning outcome associated with this assignment is as follows:
*Analyze the effects of the general environment, competition, threats, opportunities, strengths, and weaknesses relative to a corporation.
*Grading for this assignment will be based on answer quality, logic and organization of the paper, and language and writing skills, using the scoring rubric.

Essay Sample Content Preview:

Week 6 Assignment 2
Student’s Full Name
BUS499 Business Administration Capstone
Professor’s Name
Date
Week 6 Assignment 2
Dell Inc. is a company specializing in computer technology. Considered to be one of the leading suppliers of PCs worldwide, this global company is also known for its approach regarding its supply chain management and e-commerce. This paper will explore the industry wherein Dell Inc. operates. This will focus on the segments of its general environment, forces of competition, external threats affecting the company, the company’s greatest strengths, and weaknesses as well as determining its resources, capabilities, and core competencies.
General Environment
Dell Inc. grew its company decades after it was first launched. Considered as one of the leading technology companies worldwide, Dell Inc. was able to branch off into new domains and obtained remarkable brands under its company. Two segments of the general environment that influenced most of this corporation is the economic and technological factors.
Economic factors
This segment focuses mostly on the economic conditions in which the corporation functions. This would include factors such as the country’s gross domestic product (GDP), inflation rates, interest rates, unemployment rates, and the growth and decline of the economy. In particular, Dell Technologies Inc. is primarily affected by the fluctuating currency rates internationally, the cost of their products’ raw materials, and the stability of the macroeconomy of the country in which they conduct business with. The increase or decline of the taxation or currency of a certain country influences the product’s cost for the consumers residing in that country (Hitt, Ireland & Hoskisson, 2020).
Another factor that affects Dell Inc.'s profitability is the cost of shipping. When this factor is dramatically increased, it will add up another hundred dollars to its original price just for the customer to obtain such an order. This product becomes a luxury in which only a few people can afford, thus affecting Dell’s profit. If these fluctuating costs would not be controlled, this would result in a change in customers’ preference, choosing a more cost-effective similar product.
By acquiring several brand names such as Alienware, StatSoft, and AppAssure Software, Dell Inc. was able to gain more revenue. This acquisition allowed Dell Inc. to be involved in gaming, Big Data, and recovery software industries. However, this also caused Dell Inc. to get more resources needed to cope with the regulations and safety of the business practice.
Technological factors
With the advancement of technology, competition among companies is always expected. Dell Technologies Inc. faces competition daily due to the fast-growing innovations of modern technology. This would also result in the possibility of dealing with issues regarding technological laws. With the constant and continuous updates, it is unavoidable for technology to become obsolete, especially when it comes to computers. Consumers always anticipate new and latest models and are always on the lookout for computers with better performance than the other. When an upgrade becomes available o...
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