Macro-Environmental Factors Affecting Dell Computers

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MACRO-ENVIRONMENTAL FACTORS AFFECTING DELL COMPUTERS Following is an analysis of the external macro-environment that affects Dell Computers. Usually these factors are Political, Economic,Social and technological ( P.E.S.T.) .Such factors usually are beyond the firm’s control and sometimes presents themselves as threats. However changes in the external environment also create new opportunities. Generally these macro environmental are country specific. POLITICAL FACTORS The political scenario of a country is affected by factors such as philosophy of political parties, ideology of government or party in power, nature and extent of influence of bureaucracy of primary groups etc. Other factors include government regulations and legal issues that determine the conditions under which companies operate. In this field, DELL…show more content…
Other economic factors include trends related to income levels and the production of goods and services. The economic factors affect consumer buying power and spending patterns. DELL computers expects a growth of approximately ten percent over the next five years. This growth is influenced by the economic situation in a specific country as changing economic situation has direct impact on purchasing power of potential consumers. Moreover, changing inflation rates and currency fluctuation also determine the profitability of a company. Another economic factor that can adversely affect the computer industry is the exchange rate of the home currency, all branded products are imported, and their prices vary with changes in the relative exchange rates. Also with an increase in income, consumers are likely to purchase higher quality products rather than to simply purchase more. Thus there is a growing market for higher quality and priced

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