Dell’s Initiative

Planning is essential to an organization’s success in the market. There are many different types of planning processes to help a corporation determine what focus or initiative a business wants to take with their customer. Strategic planning is the process that an organization uses to determine the main goals of the company and the allocation of resources to ensure that the goals are met. Financial planning correlates with the strategic planning process of an organization, because financial planning manages the allocation of resources to help meet the strategic plan’s objective. Dell, Inc. has an established strategic plan with strong initiatives. This document will discuss the following topics regarding Dell, Inc.’s strategic planning and financial planning process:
1. Description of Dell’s Strategic Planning Initiative: Innovation
2. Impact of the Innovation on Costs
3. Impact of the Innovation on Sales
4. Risks Associated with Achieving Innovation and the Financial Impact

Description of Dell’s Strategic Planning Initiative: Innovation

Initiatives of an organization are determined in the strategic planning process. An initiative that has been outlined in Dell’s strategic plan is to improve customer satisfaction through innovation. Dell is executing on strategies to simplify information technology and provide customers easier ways to connect with an expanding portfolio of innovative products and services, Michael Dell today told shareholders at the company’s annual meeting (Financial News, 2007). Dell is focused on achieving an enhanced product with a greater value for their customers. Dell’s innovation has led to the organization being one of the leaders in the computer technology industry. Dell’s innovation approach very customer driven in the aspects of the approach is to listen, solve, and then achieve an impact on the customer. The mission is to deliver innovative and cost-effective solutions that meet today’s real live customer challenges and work seamlessly in existing environments and with other products (Customer-driven innovation, 2009). The innovation approach is used to continue growth within the corporation and to achieve a higher efficiency rating than the company already has. The computer technology industry has been a very competitive market and innovation is key to accomplishing success within the market. Dell has developed the innovative approach to improve customer relations by providing solutions that address customers’ current and future technological needs.

a. Describe how this initiative will impact the organization’s financial planning.
1) How will the organization’s initiative impact costs?
2) How will the organization’s initiative impact sales?
b. Describe the risks associated with the initiative and the financial impact that these risks may have

Dell’s initiative

Dell a leading computer technology organization has established a high ethical standard of doing business with customers, vendors, stakeholders, suppliers and shareholders. As a result of the changing technology world Dell have dealt with rapid environmental changes in their market in order to be competitive. The management tools of an organization have is clear in order to achieve and develop growth and success. Such tools like strategic and financial planning are essential to the growth of an organization. The strategic planning is a process of establishing long-term goals and developing ways of achieving those goals. The financial planning is a way of determining the organizations expenses, assets and future income in order to acquire cash to achieve the strategic goals that have been established. The relationship between strategic and financial planning in an organization is to drive the decision making for long-term success allowing them ability to succeed in a changing environment. Dell is a driven organization that is the leader in the industry and in order to be successful in such a competitive market they must set the company for success by developing strong strategic and financial planning goals. . The goal of Team B is to describe the strategic planning initiative and identify an initiative used by Dell in their annual report. Our team will describe how this initiative will impact the organization financial planning, costs and sales. The risks associated with the initiative and the financial impact that these risk may have will also be discussed. These objectives will be established based on the financial planning and reports submitted by Dell’s organization.
In order for Dell’s organization to be successful and competitive in the technology market the focus must be on setting clear strategic and financial planning in order to respond to changing environment. In order to drive a successful organization Dell quickly realized that they must understand and create value for the customer and not follow the path that the other organization developed in the market. As stated in Rosenquist (1997) Dells strategic planning initiative was to promote growth and enhance efficiency by using an information process maturity model. The purpose of this model was to identify and evaluate the organizations growth, strength and weakness in order for the organization to be more efficient and effective. The strategy gives executives, contributors and staff a clear understanding of the focus and maturity of the organization. As stated in the Dell’s business report they must continue to meet the customer’s needs and organizational goals by expanding the business strategy. Dell’s business strategy is based on direct customer model, relevant technology and solutions with highly efficient manufacturing and logistics. The organization has continued to develop this strategy with new distribution channels that reach consumers across the country. Dell is pursing an acquisition strategy that will enhance the products and technology that bring value to the customer. As stated in Rosenquist (1997) for Dell to continue to grow in such a competitive market they must achieve goals of continuous improvement, lowering cost and meeting customer needs which will help them to sustain profitable growth in a competitive market.

o. Describe how this initiative will impact the organization’s financial planning.
1) How will the organization’s initiative impact costs?
2) How will the organization’s initiative impact sales?