Executive Summary
SGM PC Depot is a start-up company that is designed to offer computer products and other gadgets. SGM PC Depot allows businesses and individuals to be informed of the latest trend in technology and grab it in the most accessible way through the internet. With SGM PC Depot, you can choose and shop a wide variety of computers, laptops, and gadgets at all times and you have 24-hour access to us. Customers can avail our products and our service by subscribing to our server on the internet.
As with any start-up company, SGM PC Depot recognizes its risks. We are a new company and as such, we will need to meet market acceptance. To that end, the company is working to determine trends in the industry, the needs of the customer, and how best to address the needs of the customer.
We expect to compete as a thriving computer industry. The computer industry has stable growth in the Philippines today. Laptops are now in demand as they replace the need for personal computers.
Company Summary
SGM PC Depot was established in 2009 to provide computer products with features that give users the ability to remain in touch with the latest trend of personal computers, laptops and gadgets. The company was founded by Mr. Groyon, Ms. Salvador and Ms. Mulles.
I. Mission
At SGM PC Depot, our mission is to provide an online computer shop that provides individuals with quality and trendy products at affordable prices.
II. Financial Risks and Contingencies
The company recognizes that it is subject to both market and industry risks. We believe our risks are as follows, and we are addressing each as indicated.
• Start-up Company. We face all the risks associated with being a start-up company. We feel that we can overcome these with our experience in the industry and by quickly establishing desired relationships.
• Security. Security is a major issue, but all products provide security options: payment-on-accounts are password-protected and have specific buyer-only access rights.
III. Products Description
COMPUTERS
Optimum performance, superior technologies and reliable service are the characteristics of our computer product lines. We carry the leading brands of Personal Computers, Laptops & Notebooks loaded with licensed software and Clone Computers using the latest computer technology that comes with 1 year warranty in cash and easy installment packages of up to 1 year, user friendly designs and superb service anytime and anywhere in the Philippines.
In this essay, the author
Explains that there are major online computer shops that we will be competing with such as qube, k serviko, jollipc etc.
Explains that sgm pc depot was established in 2009 to provide computer products with features that give users the ability to remain in touch with the latest trend of personal computers, laptops and gadgets.
Explains sgm pc depot's mission to provide an online computer shop that provides individuals with quality and trendy products at affordable prices.
Explains that optimum performance, superior technologies and reliable service are the characteristics of our computer product lines.
Explains the intel® atomtm processor n270 and the acer invilinktm 802.11b/g wi-fi certified.
Explains intel® pentium® dual-core processor t3200 (2.0ghz, 1mb cache, 667 fsb) mobile intel gl40 express chipset 14.1" wxga lcd, 1280 x 800 pixel resolution intel graphics media accelerator 4500mhd 64 mb dedicated memory up to 1659mb shared memory 160gb sata hdd built in 8x dvd-super multi double-layer drive
Explains the intel® pentium dual core processor t3400 (2.16 ghz, 1mb, 667 fsb) mobile intel gl40 express chipset 1 gb ddr2 memory ( upgradeable up to 4gb) 12.1" wxga crystalbrite lcd, 1280 x 800 pixel resolution intel graphics media accelerator 4500mhd with 1759 mb dvmt 5.0 160gb sata hdd built in 8x dvd-super multi double-layer drive windows vista
Describes intel® centrino® duo mobile technology pentiumduo t2390 (1.86ghz) 512mb ddr2 ram 14.1" wxga tft lcd,1280 x 800pixel resolution intel graphics media accelerator x3100 with up to 358/3845 mb of dedicated system memory.
Explains intel mobile celeron 900mhz intel uma 8.9" wxga 1gb memory 20gb hdd wfi 802.11 0.3m webcam os.
Explains the via c7tm-m ulv processor (1.0 ghz, 128 kb l2 cache, 400 mhz fsb) and the via 896 chipset.
Explains that sgm pc depot offers pc and laptop repair anytime at our shop on gilmore, quezon city. we assure our customers of quality service guaranteed best or their money back.
Opines that they expect to compete as a thriving company in the computer industry. the demand for computers and laptops has been growing and the need to address the demand has inclined.
Explains that sgm pc depot is a start-up company that is designed to offer computer products and other gadgets.
Explains that the company recognizes that it is subject to both market and industry risks, and they are addressing each as indicated.
Opines that computers will become the backbone of a company's business infrastructure. small businesses use computers to raise their profile and recruit employees.
Explains that customers are expected to use our products and avail of our services based on traditional factors.
Explains that they have a development team that is up to date with the latest in the computer industry. diversification makes it difficult to duplicate what we have.
Explains that the company intends to become the leader and most creative provider of computers and gadgets on the market by developing an innovative and progressive development and management team.
Explains that their employees are knowledgeable in computer systems, networks, connectivity, programming, and all the new trends offered around the globe. they are trained to do services such as computer repair as well.
Historically the personal computer (PC) industry has sold its products at reasonably high prices yet garnered only small profit margins. One reason for this is the high competition in the PC industry which led to competitive pricing among producers. Analyzing the competitive environment of the PC industry, it is evident that there is very little barrier to entry in this market. PC's have very low physical uniqueness and are made of standard components that require very little expertise to assemble.
In this essay, the author
Explains the low profitability of the personal computer industry due to the high competition in the pc industry, which led to competitive pricing among producers.
Explains that the capital requirements to set up an assembly line to produce pc's are relatively low, which means virtually any firm can enter the market easily.
Explains that pc manufacturers who limit their inventory are at a cost disadvantage by failing to reduce costs through economies of scale in purchasing components.
Explains that the existence of many large manufacturers and the continuous entry by smaller manufacturers results in limited differentiation and decreased competitive advantage among pc manufacturers.
Explains that dell's differentiated strategy compared to its competitors has been successful in reducing its bottom line costs. dell retail had 7% gross margin and dell direct 19% despite higher operating expenses.
Explains how dell's direct interaction with customers enabled it to understand customers' needs better than its competitors. this market-focused initiative with customized products differentiated dell from its competition.
Explains that dell's after-sales support built up an excellent reputation in the industry, as proven in customer surveys done in 1998. customer problems were solved using diagnostic software with 90% cases resolved over the telephone.
Explains that dell's unique capability was not only through its direct selling but also its efficient manufacturing line.
Explains that dell's extensive sales, service and support network and superior supply chain and manufacturing process flow are critical factors in its success in a low-profitability industry.
Analyzes how dell is ahead of its rivals with an impressive 62.9% return on equity. however, due to the transparency of competitive advantage, the likelihood of imitation by its strongest competitors was extremely high.
Explains that major pc manufacturers could not challenge the dominance of dell despite the fact that the direct business model was easy to imitate. costly changes in infrastructure and relocation of facilities are an economic deterrence to competitors.
Opines that dell's remaining advantage will be eroded due to imitation by its rivals. gateway has managed to reduce its days in inventory to 10 days.
A risk can basically be defined as "the possibility that a specific action or situation can bring about adversity which blocks an organization from reaching its objectives. Organizations must consider a variety of different risks when it comes to those involving their reputation, finances, or other crucial resources.
In this essay, the author
Combines concerns related to the risk of organization's regular decisions, and the creation of the implementation process.
Explains that financial risks have been of most concern to most companies for decades, and if an organization loses its financial resources, many of the other risks will naturally follow.
Explains that to put any risk in the proper perspective, one must compare a risk which is unfamiliar to one which can be useful and helpful, and avoid comparisons that may alienate the members of their audience.
Opines that having a risk assessment strategy set in place without making use of an rmmp is like trying to drive without gas.
Explains that risk management is an important concept that many employees, managers, and stakeholders refer to when concerned about the effects of a certain move on reaching key objectives.
Explains that to understand risk management, one must become familiar with the term "risk." risk is defined as anything which poses a threat to an organization.
Explains the different types of risks involved in risk management, including financial, process, intangible, human, legal, and physical risks.
Explains that risk management is a systematic process that must never be taken lightly by any organization.
Explains the process of yokoten, which translates into "one place to another," meaning that information from one project is immediately transferred to other projects.
Explains that it is important to come up with a database tool that is automated, one that can share information seamlessly between projects, regardless of the location, time, or related factors.
Explains that the goal of risk response planning is to come up with options and plans which will allow an organization to face threats which can reduce the likelihood of the project succeeding.
Explains the term risk transfer, which is used to describe transferring a project to the third party that is capable of shielding it from any risks which could endanger it.
Explains that risk acceptance involves planning the different ways in which you can deal with an event should it occur, rather than trying to maintain its probability or impact.
Explains the importance of a risk register for project planning, stating that organizations must be able to make better decisions and improve their chances of reaching their goals.
Explains that when identifying a risk, one must ask themselves what could hinder their team or organization from achieving its objectives.
Explains that once you have measured the probability and impact of any potential risk occurring, you will want to give a score to this risk. the external environment may be concerned with any social, economic, or physical problems.
Explains that organizations face a variety of threats, including staff risks and equipment risks.
Explains that the goal of risk response planning is to come up with options and plans which will allow an organization to face threats which can reduce the likelihood of the project succeeding.
Explains the term risk transfer, which is used to describe transferring a project to the third party that is capable of shielding it from any risks which could endanger it.
Explains that risk acceptance involves planning the different ways in which you can deal with an event should it occur, rather than trying to maintain its probability or impact.
Explains the importance of creating a budget for risk contingency planning so that organizations can be prepared for the unexpected.
Explains the goal of risk management is to be sure that the risks that you face do not have a major impact on the project.
Recommends identifying both external and internal stakeholders to be able to deal with conflicts if you are successful in risk communication.
Explains that if a communicator isn't capable of communicating effectively, they run the risk of alienating those they are speaking to.
Explains that the risk management master plan (rmmp) is a powerful tool that provides organizations with frameworks and processes for managing risk.
Explains that the typical risk management mastery plan uses a secure agreement with local partners. the analysis phase is responsible for covering legal and organizational issues in different cities and countries, along with an assessment of risks.
Explains that the goal of risk management is to decrease the various risks associated with reaching any specific goal.
Explains that a risk management plan must be capable of identifying new risks and creating value.
Opines that a good risk management plan should be structured and systematic, and must be transparent and inclusive.
Explains that risk management is a collection of methods designed to ensure that organizations are shielded against key risks.
Explains the difference between a qualitative and quantitative risk assessment.
Best Buy was founded on technological advancement which at a time when people were not conversant with technology. The company identified this niche and capitalized on helping people with electronics. Consequently, the company realized that consumers were willing to pay in return of technical advice on their equipments. Greek Squad was the technical wing that was and is to date designated to customizing electronic equipments to customer specifications. In this case, technology comes hand in hand with the social aspect of the consumers wanting to keep up with the latest technology.
In this essay, the author
Explains that best buy was founded on technological advancement and capitalized on helping people with electronics. greek squad was the technical wing that customized electronic equipments to customer specifications.
Explains the growth of customer base with the increase in technology which has enabled the company expand its physical locations. online customers have also increased within this time as a result of utilizing modern technologies.
Explains that with the advancement of technology and consumer awareness out of access to information, purchasing patterns have greatly evolved with social advancement, economic empowerment, and globalization.
Analyzes how the external environment of the business affects its performance because of their influence on the market.
Explains that globalization has played a crucial role of opening up markets in different countries through which businesses get the opportunity to expand their operations.
Explains that best buy needs to enhance its marketing strategies in order to retain its relevance in the market and capture new markets. as a technology backed business, the company can capitalize on technology advancements such as social media.
Explains that customer feedback and market presence are the main variables that determine customer service and feedback from customers.
Analyzes how the greek case study illustrates taking up one business aspect where competitors haven't capitalized, and creating a niche market.
Opines that the company needs to enhance its strategy to meet the current market needs. with the advancement in technology, many consumers don't have time to physically visit their store.
Substitute goods are different on for different market segments see (4.1) For most of the customers these substitute products cannot satisfy the needs covered by PC computers.
In this essay, the author
Explains that substitute goods are different on for different market segments. for most of the customers these substitute products cannot satisfy the needs covered by pc computers.
Describes the factors that illustrate the fierce rivalry among established firms. the product is highly standardized and the switching costs of the customers are low.
Explains how a ceratin factor affected profitability.
Evaluates dell's competitive advantage in managing and maintaining its stocks.
Explains how the pc industry developed fast in the 80's when ibm launched its first pc series and later on when numerous small companies entered the market. they will apply porter’s 5 forces model to examine pc market and see how forces of competition influence the profitability.
Explains that it is hard for customers to join forces and fight for their interests. the need for computers in every work place and home decreases the power of the customers, but switching costs are low.
Explains that suppliers' bargaining power is generally strong because of the big monopolies and the high importance of purchasing components and operating system.
Explains that the pc industry is affected by two opposite forces: technological advancement that pushes the industry forward and industry sensitivity to economical stagnation.
Analyzes dell's competitive advantage over the team of compaq and a reseller, which manifested in their phenomenal growth of profits.
Analyzes how dell has succeeded in serving its customers better than its rivals. dell's competitors are finding ways to increase their market share by replicating some of its advantages.
Opines that dell's major rivals (ibm, compaq, hp, and gateway) should determine their core competences, focus on them and get rid of all the activities that they are now doing best.
In today’s world every business activity consists of various risk, that directly or indirectly affect your business activities. Some of these risks are controllable till an extent, whereas some factors are uncontrollable like, natural disaster. Though risks can be classified as under:
In this essay, the author
Explains that every food item sold in canada must meet the health and safety requirements.
Explains that any filthy, putrid, disgusting, rotten, decomposed or diseased animal or vegetable substance can be found in whole or in part.
Explains that every business activity consists of various risks, that directly or indirectly affect your business activities.
Explains economic risk economic conditions (economic stability, investment climate, degree of nationalization of industries, property rights, labor force development).
Explains that canada is a safe place to conduct business, and it is welcoming to foreign investors. the important drawback is the increase of government intervention in some sectors, like the power industry.
Opines that wars and piracy are not much of an issue, as both countries armed forces have maintained an enduring cooperation. the relationship is reflected by being excellent partners in the multilateral sphere.
Opines that the euro zone is the main external risk to the financial stability in canada.
Analyzes the negative feedback loop between instabilities in the banking sector, high sovereign and private sector debt, and a sluggish economic recovery.
Opines that the increasing level of household indebtedness and imbalances in some segments of the housing market are the most important domestic sources of risk to financial stability in canada.
Opines that low interest rates contributed to the shifting expectations of the monetary policy. a sharp rise in long-term rates, tighten to an adverse financial or political event, can result in significant disruption across financial markets and investor will lose the buildup of openness in the financial system.
Explains that canadians are drowning in debt day by day. canada witnessed the lowest economic growth since the great recession of 2008 to 2009.
Explains that the canadian dollars (cad) is stronger than the turkish lira (try), so there is no risk associated when importing from turkey.
Explains that the average cdn (the dotted lines) has been increasing since the last 5 years.
Cites the canadian food inspection agency's section d - general requirements for foods: http://www.inspection.gc.ca/food/imports/commercial-importers
Summarizes t. r.'s emerging europe monitor, vol. 19 issue 4, p2-2.
Explains the cfia recommends that food companies establish effective allergen controls to prevent undeclared allergies and cross-contamination.
Explains that there isn't much of monopoly in the canadian market regarding dried apricot, though there are some small players.
Explains that canada's economy in 2014: the biggest risks. keller, j. no immediate end to truckers strike despite proposal from port, gov't.
Dell’s initial competitive strategy, when it was founded in 1984 by Michael Dell, was to focus mainly on differentiation. Its strategy was to sell customised personal computer systems directly to customers, which was a rapidly emerging market at that time (1). This was done by targeting second-time customers, those that already understand computers and know what they wanted. Meanwhile other companies at the time was selling “’plain brown wrapper’ computers” (2). By offering customisations, Dell gained a better understanding of customers’ needs and wants. This helped the organisation position itself differently against the more popular brands, such as Compaq and IBM.
In this essay, the author
Cites chopra, sunil, and kelogg insight's a new channel strategy for dell.
Explains that competitive strategy is the approach that an organisation takes in order to gain advantage over its competitors.
Explains that dell uses a combination of regioncentric and geocentric approach in its international strategy.
Explains that dell's corporate headquarters acts as a synergy manager, which supports its strategic business units and promotes collaboration between them.
Explains chopra, sunil, and sodhi, manmohan s. managing risk to avoid supply chain breakdown.
Describes the financial statements for dell inc. - google finance.
Explains dell's 2009 analyst meeting and dell globalizes business groups around major customer segments.
Describes the dell international business strategy conference call and dell's business and marketing strategy in india.
Explains rugman, alan m., and collinson, simon. international business 4th edition.
3. Is Dell “doing the Right Thing” by continuously changing its business model?
Speaking about the business model of Dell, it has ability to remain on the higher end of the scale for a particular time period. Dell has business model, which primarily focuses on direct selling line of attack. It in a straight line supplies the PCs to the regulars.
In this essay, the author
Analyzes dell's business model, which focuses on direct selling line of attack. it does not believe in intermediary, retailers for the business practices.
Opines that dell has done the correct things over the time as they act upon in due course like they go for retail business, invent new tablet (streak) after ipad, and cut the costing immensely.
Explains that dell associates with customers directly or using telephones for sale purposes. the supply chain was found with a huge and nice framework.
Opines that dell's utmost application on pcs and not shift in focus could be incurable for the company.
Compares dell's investment in r&d with apple, which invests too much on quality at all levels. if it doesn't offer additional department and resources for this department, it will wind up its business.
Explains that dell does not believe in working in advance and waits until the product becomes the norm among the customers. the risk management is seen of poor quality in the dell management.
Opines that dell should leave the traditional managerial practices of apple, acer, ibm, and lenovo behind. if it holds on to manufacturing process, cost reduction programs, instead of heavy investment in r&d, it will return the home with zero outcomes.
Asks whether dell should continue with its current strategy of following the consumer market down in price and adjusting its costs accordingly or, like ibm, should it change its focus to more profitable business services?
Opines that dell is one of the renowned companies in the world. however, with the arrival of rival companies, it was testing to stay alive.
Opines that dell can outdo ibm as it has not immense acceptance in the world. ibm in its business structure or model lays emphasis on the profit considerably.
Concludes that dell has to take business model of ibm and hp in its internal and external environment.
Identify the potential risks which affect the company and manage these risks within its risk appetite;
In this essay, the author
Explains that erm is applied at every level and unit across the company and considers the risk at entity level.
Explains the importance of identifying the potential risks which affect the company and managing these risks within its risk appetite.
Opines that wp should implement an erm process and what are the benefits to its stakeholder.
Opines that erm can help wp earn a more stable profit which will be of great benefit to peace family, other employees and related stakeholders.
Opines that erm can provide a common framework to manage different kinds of risk.
Opines that wp's erm process will increase its risk management capabilities and make investors, distributors, business partners, and creators feel confident if it has a well-managed risks framework.
Explains that erm can define the roles of risk management and responsibilities, improve oversight of the board, identify the management-level oversight structures, and make the risk response more effective.
Opines that erm can help the management team to estimate the effectiveness of the existing strategies and the information and data available for decision making.
Opines that the wp management team will create better risk awareness by using erm and a positive and open culture with respect to risk and risk management.
Explains that ceo is ultimately responsible for erm priorities, strategies, and polices. he also needs to ensure that implementation is strategy-setting.
Opines that the board of directors should discuss enterprise risk management with management and oversight the implementation. they should ensure that most of significant risks have been apprised.
Opines that all executive management should provide support to erm implementation and coordinate to decision-making.
Explains that erm is to apply risk management into company's decision-making processes. wp may face the information for decision making risk if information used by business decision is inaccurate, out of date or not related to the decisionmaking process.
Describes the risks wp faces grouping by different categories, such as departments, products, locations, etc.
Explains the value-at-risk (var) report to evaluate portfolio positions sensitivity in terms of market rate changes.
Opines that the board needs a risk management framework because the distributable profit varies dramatically from $0 to $1,000,000.
Recommends evaluating the likelihood and impact of the event which affects the distributable profit and designing solutions to avoid them.
Opines that the erm framework can enhance the board oversight by providing more accurate and up-to-date risk related information.
Explains that erm can provide a good buffer for the distributable profit when business environment changes.
Explains that the erm frame helps everyone in wp to have a good sense of risk management from every level. this business culture can help the board to control the risk.
Summarizes the failure mode and effects analysis (fmea) to demonstrate what the impact is if the core assumption exceeds management’s control. all the above information will help wp make a more accurate business decision.
The invention of computers has made a huge change in human civilization and society, by changing the way people think. Computers replaced jobs and tedious repetitive thoughts that were done by human originally. People became more and more reliant on computers, and thus, computers became essential to our lives. Computers can manufacture products quickly, and eliminate possible human errors. As technology progresses, new ideas have been brought into computer to make them perform more efficiently. Also, scientists and engineers tend to make things “smaller”, so we can enjoy the benefits from electronic devices anywhere and anytime. Therefore, size and efficiency are two main points for consumers. Desktop computer and laptop computer are representatives for each of these concepts. Although desktops and laptops come from the same origin, they are different in many ways.
In this essay, the author
Compares desktop computers with laptop computers, which have more stable performance, greater capacities, and are more reliable to handle every job.
Explains that desktops are bigger and consume more space compared to a laptop. college students know their dorms or apartments are so small that their belongings can barely fit.
Explains that laptops have become more and more popular in recent years. they have all the components of a standard desktop and are smaller compared to desktop computers.
Explains that computers have changed the way people think, and that they can manufacture products faster and eliminate human errors. the first computer was invented by konrad zuse.
Explains that laptops have become one of the spotlights in the news, and people have started paying more attention to some facts about them.
Explains mary bellis' inventors of modern computer: the eniac i computer - j presper eckert and john mauchly.
The PC industry is highly competitive and constantly changing as technology evolves and customer needs change. Some of the top competitors in the PC industry are IBM, Hewlett-Packard, Dell and Apple. Theses rivals are constantly jockeying for the top competitor’s position. They compete in prices, product innovation, advertising, etc.
In this essay, the author
Explains that the pc industry is highly competitive and constantly changing as technology evolves and customer needs change. ibm, hewlett-packard, dell and apple compete in prices, product innovation, advertising, etc.
Explains that apple struggled to keep pace and changed its competitive strategy multiple times. apple didn't use open systems that other producers could clone, instead they practiced horizontal and vertical integration and used apple's own proprietary design.
Analyzes how apple's competitive range in the pc industry was rocky from 1980 to 1996.
Explains that steve jobs' 1997 return to apple as an advisory and with the purposes of reshaping the product line resulted in increased sales and $309 million in profits.
Explains that jobs changed the pricing strategy and focused on value-based pricing that provided customers with premium products at a premium price. product pricing has specifically set apple apart from its competitors.
Explains that apple's aggressive competitive strategy paid off and in 2013, the company was named the world’s most innovative company.
Reports that apple's innovative iphone broke sales records and placed the company in a dominant position within the industry.
Explains that apple aims to be the leading provider of technology and digital entertainment.
Explains that understanding the company's competitive positioning helps managers design strategies that increase its profit potential and optimize its environmental opportunities.
Explains that apple's vertical integration consists of managing all hardware, software, service, and retail entities, which is rare in the technology industry.
Explains that technology has contributed to apple's competitive position in the industry. apple has been the first to release new technology and design, including siri, the iphone finger print reader, and itunes.
Explains that apple's digital asset management tool, itunes, is the last situational factor that contributed to its competitive position.
Explains that apple's competitors are threatening to take over the market by providing similar products at a competitive price. android, amazon, and microsoft also have rights to digital music that can be downloaded and used on multiple devices thanks to the new cloud technology.
Explains that apple's competitors started to advance with the hopes of taking apple’s position in the market. itunes was no longer the sole provider for legally downloadable music.
Explains how competitors caught up with the company and closed the competitive gap. cellphone manufacturers began making similar products with operating systems that had fewer limitations than the iphone.
Explains how steve jobs transformed apple from a failing pc manufacturer to an effective mega-company. jobs increased the budget for research and development and developed game-changing innovations that eventually positioned apple as the fourth largest pc vender in the us.
Explains that jobs developed a strategic plan that targeted an external future that would change entertainment and how consumers interacted.
Opines that ceo tim cook is still focused on creating quality products for consumers, but analyst are concerned about him focusing too much on consumer experience rather than market share.
Cites abel, i. (2008), the apple ipod: succeeding where others fail, bajarin, b. (2011), why competing with apple is so difficult.
Summarizes campagna's key factors behind the success of itunes.