Fin 370 Strategic Initiative Paper

1211 Words Dec 19th, 2011 5 Pages
In this paper, Team C will describe the relationship between strategic planning and financial planning for Dell Corporation. The first section will cover Dell’s strategic planning initiative and identify a strategic initiative discussed in the organization’s annual report; from this report Team C will describe how this initiative affects Dell’s financial planning. Team C will break down and address how Dell’s initiative directly affects costs and the sales of the company’s financial plan. The final section, Team C will describe the risks associated with the initiative and the financial impact that these risks have on the company.
Dell Strategic Initiative Acquisitions are one way for a company to expand its brand, increase its
…show more content…
Outsourcing seems to be the cheaper route, but the cost to establish and maintain the different business locations the company outsources to can be far greater. Dell saves by keeping jobs in house. Dell focuses on transportation as way to cut cost. According to Dell (2011), their job is to get the right product, to the right place, at the right time. Dell strives to be cost efficient while shipping its products, therefore Dell’s Logistic Teams focus on the right cost. Dell continues to optimize transportation cost while improving quality and doing what is necessary to exceed service expectations for customers. Dell is focusing on the most efficient use of air, land, and ocean forms of transportation. Dell faces challenges such as fuel cost. Redesigning the transportation network cuts cost drastically for Dell. In America, Dell optimizes outbound transportation networks to deliver retail products. In Europe, re engineering the delivery model for accessories reduces fuel consumption and truckload volumes. Reducing fuel cost is a major way to save money. In Australia and New Zealand the completion of orders closer to customers are reducing travel distance and cutting down on fuel cost. Dell Logistic Teams continue to explore the use of various modes of transportation. Cutting transportation cost will keep the cost of Dell’s products down and its customers happy.
Risks Associated with Acquisition One risk associated with acquisitions is the vetting

Related Documents