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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: Innovation2. Impact of the Innovation on Costs3. Impact of the Innovation on Sales4. 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
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