There are many financial analysis and forecasting tools that can assist a business in making sound financial decisions. Firms like Datamonitor can perform these types of analyss, and in turn provide information that corporation managers use to assist in the decision making process for strategic plans on the company’s future.
Managers can review an analysis prepared by firms like Datamonitor, as well as others and be provided with a good picture of where the company stands financially, as well, as offer improvements that can make them more profitable in the future. This analysis will list a company’s strengths, weaknesses, opportunities, and threats and often times provide suggestions that will enable a company the means of avoiding untimely budget cuts.
Maybe you are not familiar with the term money glitch, this is just a reference to how the financial market hiccuped and all our money started disappearing similar to what happens when there’s an electrical hiccup and you wind up in darkness. One can only wonder if any corporations received warnings concerning threats of the present recession money glitch has created.
For example, in 2004 Dell’s SWOT Analysis revealed its strengths as being the number one direct sale computer vendor, however one of its threats was that there was strong competition in the marketplace. Some of its weaknesses were that it had a weak services position and small inventories. The Dell Corporation began to take a look at ways to become more marketable. Such an analysis can let you know that given the present conditions with a few variance probabilities along the way that a predictable outcome can be accomplished. However, those variances could not have matched the big money glitch that occurred with the almost downfall of the financial economy.
By 2007, it was obvious that Dell Corporation was still losing valuable resources with the industry so it began to tighten its belt with a very aggressive plan of restructuring the firm. Dell’s CEO informed his stakeholders of a plan that would generate the corporation $ 3 billion dollars with the next 3 years. These projections and plans were made prior to the beginning of the money glitch that caught corporations and most Americans by surprise. Now Dell, like so many others, is pulling out the forecasting tools and revamping the plans for the corporation’s future. At the beginning of this year CEO Michael Dell announced that the corporation now plans to slash $ 4 billion in expenses annually by 2011which is a billion more that what was stated in 2008.
One knows that such decreases in expenses will be difficult due to the recession money glitch that will probably place even more people out of work. So many people are out of work now that do not have purchasing a new computer on their lists as an immediate need. It would be wonder if we could all just purchase a Dell Computer pop in one of the electronic games with the money glitch on it; go through the secret back door and start making money points to get us all through our present financial situations.