Dell’s opportunity Case Study
Profitability This alternative should be able to maximize Dell‘s opportunity of having more profit.
The decision of choosing between leaving Brazil as a whole, transferring to another state or trying to convince the new governor of their advantages after an agreement with Dell, it must suffice Dell’s goal of having long-term benefits. These benefits are actually broad, they might mean expansion, more reach, and others. But one best goal is to have more profit, be with some core competency against the other computer manufacturing companies.
Since Dell has decided to expand its territorial reign and saw Latin America specifically, Brazil, as a futile ground for their expansion nice computer sales were rapid in that place, Dell is definitely considering profitability. B.
Cost Dell has been visiting different states of Brazil for quite some time, trying to figure out which of the states is best suited for their investment requirements, they have been incurring costs since now and then. Considering the fact that Dell is trying to establish a long-term goal, cost is most likely negligible.
They will make sure they have made the best choice and spend some rather than pursue on a wrong location and loose millions of dollars. But, given that Dell is for profitability, basically they loud be considering an alternative that’s advantageous to their budgetary plans. This will mean additional unexpected occurrences along the way of pursuing their choice. They would most likely pursue an agreement where they could save more.
C. Illnesses The company is trying to find the best way to resolve the conflict that happened with the introduction of the new government.
However, they have also provided that they wanted a solution fast. Since the best timing accompanied by accuracy is one of the major points considered by any company planning to invest, this makes timeliness a retention for Judging which of the three alternatives is most acceptable. A timely alternative will most likely exhibit more advantages than disadvantages.
D. Conduciveness This includes the alternative’s capacity of being suitable. The chosen alternative will be conducive for the company. This entails the action being suitable to the company’s immediate or long-term goals.
VI’. Alternative courses of action 1.
Abort the idea of putting up a plant in Brazil Leaving the country would be a good choice especially with that they had experienced massive devaluation. Moreover, there is also an existing political uncertainty in the area Just as like what happened with the exchange of the political party in ROI Grandee De Soul. Governor Tetra’s action certainly exhibits the political instability of the country. However, there is still a list of options other than ROI Grandee do Soul.
Dell can still have other available solutions like transferring their plan sites in other states such So Paulo, ROI De Jeanine, Paranoia ‘ , and Minas Georgia or they could try to negotiate with the present governor – Governor Olivia Durra.
Thus there is no reason why Dell should totally forge about establishing their plant in Brazil. Furthermore the instability of the political and economic condition of the country cannot be assumed to last for a long time. It might Just pass by and in the next quarter it will be back to normal. The cost of moving out of the country might outweigh the benefits if Dell will remain in Brazil.
Given that Brazil will be the most logical place to set up a manufacturing plant for it is has the largest area and population size amongst Latin American country. And also, there Latin American country sales for computer and other high etc product are growing at a high pace.
Thus, being in Brazil will give Dell a large set of customer to market their products. With these moving out of Brazil is quite a foggy idea that Mr.. Maxwell should take into consideration. 2.
Look for a different location to construct the plant In this alternative Dell is going to find another suitable location to put up their plant in Brazil.
They still have other options for location – So Paulo, ROI De Jeanine, Minas Georgia etc. In this alternative they will imitate what Ford did in Bah. Ford found have gained more financial investment incentive in when it shifted to Bah than it has in ROI Grandee do Soul.
For the case of Dell, one of the best alternatives they have Is In Minas Gerald, wanly nave almost ten same offering WI TN Roll Grandee ay soul as what can be seen in the comparison of the Incentives at the areas of consideration.
Minas Georgia does not also have problems any problems in foreign direct investment; they are interested in working with Dell and are also concern with the needs of the corporation. Given that Dell did not started building the manufacturing plant, the cost of shifting location will not result to a major issue. Therefore, the tendency of Dell to continue its negotiation with the state of Mina is not totally out of he picture. 3.
Negotiate with the new governor, Gob. Durra, of ROI Grandee do Soul The last option for Dell Computer Corporation is to engage in a negotiation with the new governor of ROI Grand do Soul – Olivia Durra.
Dell might have high chances of winning the negotiation for the new governor has Just been turns done by one of his state’s investor – Ford. In consequence of the new governors action a lot of the citizen that would have been benefited by the establishment of Ford plant rallied. Likewise his allies and critiques were very dismayed with the great loss in income.
The offer of Dell to their state will surely bring back the trust and confidence of his people to his governance.
Conversely if we look at it in the point of view of the company, Dell Computer Corporation staying in ROI Grandee do Soul will be very beneficial. The state is one of the most flourishing in Brazil with higher standard of living and the first to privative its telecommunication company. In addition it has also well developed infrastructure and a large number of universities in the state offers courses related to computer science and chemical engineering. Thus, Dell will have a substantial number of resource if they stay in the state.