Task(1a,b c) 2

Introduction

Identify the Mission, Values and key 3

objectives of the company Task 1

Identify three internal and external 4

groups of stake holders Task 1(B)

The main responsibilities of the 5

company Task 1(C)

Task 2 - 5
Describe the two main economic
systems for resource allocation

The impact of social welfare policy 7

and industrial policy measures 2B

: 7
Impact of interest rate, exchange rate,
control of money 2c

Market structure in the UK 8

3a
Behaviour strategies / competitive strategies 9
Organisations and the Market Environment
3b and 3c

Impact of the foreign trade and social 10

policies4abc

Conclusion: 17

References 19

Task (1a,)
Introduction
Ever business organisation is much dependent and influenced
by surrounding environment. These influences can be
political, economical, legal, technical, or social by nature. The
capacity to understand this environment and formulating
excellent strategies to cope with this can determine the
success of an organisation.

Identify the Mission, Values and key objectives of the

company Task 1 a

While developing an organisational strategy first it is

important that company’s personality is well defined. The
mission, vision is part of normative management of the
company which can be told as a self profile of the company.
The company which will be analysed as part of this
assignment will be Dell Company which is one among the
major largest manufacturers one of computer and related
items in the world. It is the major tool of a corporate branding
portfolio. The mission of the Dell is to find the more and more
potentials of growth and to use it. Del (2010)

This can be simply said in commercially as finding newer

opportunities and making use of it. The Dell core values were
not identified through in the incorporation but were developed
core during the course of operations. The main aspects of the
corporate philosophy of Dell are its commitment to technical
innovation, providing tailor made services to customers.
Another important aspect of Dells company philosophy is its
commitment to environment and corporate ethics.

Identify three internal and external groups of stakeholdersTask

(B)

Source www.googleimages.com (2010)

Stake Holders have a key influence in the formulations of the

policies of a company; they can be any person, group or
legal authority who has a direct or indirect influence on the
company. One among the main stake holders is government
.Laws cannot be changed by the company but none less
company has to work according to the law. . One of the main
ways in which stake holder pressured affected has forced
changes in Dell company is in carbon reduction.
Environmental groups and Costumers have been demanding
from the industry more commitment regarding carbon waste.
This has forced the company to produce products which are
environmentally friendly. Consumers of today don’t mind
paying more to purchase goods which are produced by a
socially responsible company.
There are both internal and external stake holders in a
company. External stake holders can be customers, general
public, judicial systems, and environmental groups and so on.
Internal stake holders can be share holders, employees to
extent suppliers also... The main stake holder is share holders,
concerns are more like increasing the share value, continuous
communication of results, and continuous business growth.
Dell addresses the investor concerns by providing
communication of company performance regularly through
website and b y mails. Face to face and web interaction also
takes place time of important decision making. Another
important stakeholder is customer who is an external stake
holder but is the very reason for firm’s existence. Their
concerns can be quality of products, service effectiveness both
during sales and afterwards. Dells origin is a clear example of
strength of customer as a stake holder. Earlier industry was
mass producing the computers without much regard for the
variations in the necessities of individual customers.
Customers demanded more tailor made products suiting their
needs. This was the major gap in market which founder of
Dell found and explored Dell always tries to create a two
way communication with customers so that they could be
better understood and products can be more tailor made.
 Another main group of stakeholders is the employees. Their
main concerns are related to good remuneration, excellent
working conditions and continuation of company. This is
addressed by dell giving more freedom in work and
implementing participatory management. Samantha et al (2002).
The main responsibilities of the company Task(C)
The responsibilities of a business organisation are many in the
organisations of today. British laws take the stand that
primary responsibility of the organisation is to its share
holders B Sjafjell (2009)

Earlier profit making was considered the sole reason of the

existence of a trading organisation, but today it is recognised
that there social and legal responsibilities which the
organisation should pursue. The legal obligation providing
equal opportunities to staff, while social responsibilities can
be seen as supporting green cause, providing quality service ,
extending help during crisis as a corporate citizen.
Responsibility cannot be classified as social or legal or
business as they are interrelated. Strategies employed to
achieve each objective differs, also there are internal
responsibilities of the company like cost reduction and good
corporate governance. In order to ensure growth different
strategies cost leader ship, price reduction, segmentation is
employed. For realising the social objectives companies tie up
with various non profitable contributing too many ways to
their noble. It is helpful that cause which company supports
and firm’s business aims have some relation Heald. M (2005)
If consider Dell supports initiatives for IT materials in school
this can be helpful for the business cause in the future
Task 2 - Two main economic systems for resource allocation
Theoretically economies can be termed as free market
economy, restricted economy, mixed economy and traditional
economies David W. Conklin (1991). Market barriers have forced
countries to towards more free economies even countries
which had highly restricted economies like Iran, are even
opening. Dells main country of operation is United States
which is a free market economy. In this resource allocation is
done on demand basis if there is more demand production is
increased. Here the power of customer is more and company
has to provide more details during the purchase. One main
country in which there is restricted economy is Ethiopia. Here
the company can operate more through trusted partners. In
these countries the level of government interference in
commercial activities is high. Resource allocated for working
in such economies may be relatively low. In restricted
economies customers will be more organisations rather than
individual Across Borders (2010)
The impact of social welfare policy and industrial policy
measures task 2B

Social policies are those policies of the government which are

aimed at developing a welfare state. In Britain every working
individual contributes to the national insurance which goes to
the maintenance of social causes .The policies of government
and social policies have an impact on the business.

Many banks where trying to move from the headquarters from

London to other countries when there was a talk about bonus
tax. Dell due to the policies of the government of United
States had to close down operations in many countries like
North Korea, Syria and Cuba, Likewise in United King Dom
the policies / regulations of the government like equal
opportunity s, safety laws have an impact on the way business
is done. For ensuring that no discrimination UK firms make
elaborate arrangements during recruitment and has to ensure
race and cultural diversity in the workforce. This might
sometimes be detrimental in choosing the right candidate.
There are many things which are prohibited by the
competition laws in the Europe this has to be considered while
planning a promotion campaigns.

Impact of interest rate, exchange rate, control of money

Task 2c
An invest rate is either the rate of borrowing or rate at which
you get paid for your investment. This is fixed in the Britain
by Bank of Britain. This in turn affects the mortgage rates.
Which affects the purchasing power of the people. When the
purchasing power of people reduces it obviously has impact
on the sales of firms like Dell. When the interest rate is dull it
is seen as a sign that economy will be more stagnant .
Another important aspect is the massive trade deficit which
we have with China. Mostly exchange rates are determined by
the market forces but central banks have tried to control it in
the interest of nation.

State control of money is an important aspect which had been

neatly argued. Many who supported free market has argued
that financial cycle was part of financial cycle and but today
almost all governments are of the view that government action
may sometime be necessary to save a financial near dead
banks because their fall will not only affect the company but
will have impact on the economy as well. A global
organisation Dell is affected by the changes in exchange rate
and also by monetary policies created by governments from
time to time

Market structure in the UK task3a

Perfect market situation is a scenario in which there is lot of

competition in the market and no one competitor is able to
influence the prices more. The main characteristics of perfect
market are it will have

1) The number of the customers and sellers will be more.

2) Barriers for entering the industry and exiting are low
3) The main factors that influence the production is much
adjustable to the changes in the conditions of the market
4) Information available to the customer by companies will
be full. In a perfect market quality of the product will be more
and every one will be aware of it.
5) In a perfect market the cost incurred for transactions will be
low
6) Profits will be more. The marginal cost and marginal
revenue should be proportionate.
7) The products are similar in the nature and do not vary with
distributors.
8) As there is less increase in the production cost wise
return of scale will be good which will ensure firms are in
market for long run

Up market analysis task 3b

In today’s world perfect market is not possible. In United
King Dom many firms due to their production strategies is
able to influence the price. Super market chains like Ads and
Tesco has been able to provide goods at low price by taking
advantage of cost of production.

Dell is an international organisational organisational working

in almost all countries of the world, growth in
internationalisation has helped the company to start operations
in many unrepresented countries. Main among them is china
which has become a major market for the company. Company
has also engaged with other companies to create partnerships
which has helped the company to enter countries which where
market is less. Global presence has helped the Dell to be more
competitive in its primary market. The company has
substantially reduced its dependence on a single market or
company for profits. This has substantially increased the life
cycle of companies existing products. This has also the
company to improve its international market share company
has also gained by opening its production centres in
developing economies which has helped it gain in cost.
The development of the European Union has paved the way of
taking away the trade barriers which has resulted in
substantial exchange of capital, products, services, human
labour, technologies and legal systems. One major change
which Dell Company had to face now is while planning a
project both European law and European laws needs to be
considered. The whole European market has become a single
internal market which means the lesser cost of operations.
Many countries within the union have emerging economies.
The decisions by Dell to create a production centre is arrived
by many factor consideration, main among them is the support
by the local government plus any tax reduction gift / land gift
it offers. The Dells European production centre is located in
Ireland. This company was chosen because Ireland is member
of European Union and this enabled Dell to have gains in
value added taxes. Another main aspect was the quality of
labour available at lower cost in that country plus the support
of local government. Many companies have made such gains
also. United King Dom has gained from the exposure to
European markets in many ways. It has enabled the country to
get human labour at lesser cost. Earlier Dell had to suffer
losses due to price fluctuations of all currencies within the
Union. This risk has been substantially reduced by the
introduction of single currency, but as UK has not accepted
this company has not been able to make such gains in United
King Dom. Most of the European operations are now being
led from London because of its geographical and high brand
status as one among worlds financial capital. This has also led
the Britain to gain in terms of contributions to national
insurance for employees and other aspects. The substantial
new middle class which has gained wealth through taking
advantage of a One Europe has also helped Dell by triggering
an increase in sales. /www.dell.com/ (2010)

Supply and demand task 3b

This is an important economic theory which is important to
any seller. Supply means the availability of the goods in the
market while demand means the number of persons who are
willing to purchase at a particular rate. Law of demand states
that when price is high demand is low, low of supply interns
puts the theory if higher the price more will be supplied. Del
has to keep in these when it goes to a market. Countries where
there is higher demand and people are ready to spend more
should be chosen as the marketing destination. Currently main
destination of Dell is China where peoples bargaining power
has increased and there is greater willingness to pay for
quality goods. Fisher .B. (2007)

Competitive and Behavioral strategies:

Organizational behavior is the behavior of a group of people
when they come together as an organisation. The competitive
strategy which Dell can use a focus, cost leadership or
differentiation. Main aim of the strategy is the development of
a competitive advantage. The behavioral strategies which
organisation can adopt are corporate responsibility,
commitment to environment and commitment to be a good
employer. These strategies can help the companies to gain
social recognition and competitive advantage.
Impact of the foreign trade and social policies

Foreign trade continues to be one of the main revenues of the

United King Dom and has a huge impact on British economy.
Learning to work in foreign countries is important for any
company Bissau (2010). Dell at first was very much
dependent on the U.K and U.S economies for their revenue
but diversification into many countries has ensures that profit
is not dependent on one country. This has also ensured that it
can produce more.
Impact of social policy

The social policy of the European Union was prepared to

ensure that Europe cope up with the challenges of this
century. The main aim priority of the policy is to improve the
living conditions EU citizen provide them better life and to
ensure that European citizens are less adversely affected by
global age. The focus of the EU policy is on promoting
gender equality, greater mobility with in the territories,
bettering employee bargaining power; another important thing
is about the protection of children. Another important aspect
is about the providing good working conditions which are
more safe and healthy. Dell Company has to work as per these
policies while designing planning the recruitment, in the work
atmosphere and in product designing as well. Company as
also working with chosen local authorities and charitable
institutions as part of its responsibilities as a corporate citizen
The Company is also ensuring that health and safety standards
are kept as per regulations. During the recruitment itself care
is taken to ensure that cultural and ethnic minorities are
represented adequately. Company needs to analyse how it can
use this polices to further its growth strategies. This is a major
concern company needs to address.
Regional policies are policies which are developed by the
European commission to help that area of within the European
Union which are backward industrially. For this tax
reductions, land gifts other special benefits are offered. The
Dell is moving its operations to some of these areas to ensure
that company can avail these opportunities.

One of the main aims of the monetary union was the creation
of a single European currency. This it was argued that will
provide certain benefits. Main among them was freedom from
the fluctuations in the exchange rates. Another main
argument was that Dollar will replaced by Euro as the world’s
most used currency in which international operations are
undertaken, but this has not happened. Due to United King
Dom not accepting the single currency benefits has not been
much realized. But during the time of crisis economical UK
had to receive less hardship due to the same. Another main
area in which European Union has helped is regarding the
consumer rights. Earlier customers in one European country
were apprehensions of ordering products from other European
areas. Union has ensured that customer rights are protected
more low cost arbitration methods has also been developed.
This has helped the companies to conduct business more
smoothly. There has been much gains and losses from the
European integration but the keeping Pound intact has proved
to be a main advantage.
Conclusion:
The environment in which company operates has a huge
impact on entire activities of a corporate organisation. This
assignment the attempt was to analyse the business
environment from various angles.
References;
Friedman, Andrew L.; Miles, Samantha (2002). "Developing Stakeholder Theory". Journal
of Management Studies

The Social Responsibilities of Business Company and Community, 1900-1960

(2005)  Morrell Heald Transaction Publishers Somerset, NJ/US ISBN 10: 1412804809

David W. Conklin (1991), Comparative Economic Systems, University of Calgary. Press, p.1.

Across Borders (2010). Available at http://iab.worldbank.org/ accessed on 16/07/2011

Byron Fisher (2006) The Supply and Demand Paradox Book Surge Charleston/US ISBN 13:
9781419664274 ISBN 10: 1419664271

Del(2010) available at www.del.co.in accessed on 17/07/2011