QUARTER EXAMINATION

in
APPLIED ECONOMICS

I. INSTRUCTIONS: Identify the STRENGTHS, WEAKNESSES, OPPORTUNITIES and THREATS of

Dell Computer based from the case below. Read and analyze it carefully. Tabulate your
answers. (20 points)

CASE STUDY
In the mid-1990s, Dell Computer used a SWOT analysis to create a strong business strategy that has

helped it become a very strong competitor in its industry value chain. Dell strived in selling directly to

customers and in designing its computers and other products to reduce manufacturing costs. It

acknowledged having no relationships with local computer dealers. Dell faced pressure from competitors such

as Compaq and IBM, both of which had much stronger brand names and reputations for quality at that time.

Dell learned that by noting that its customers were becoming more knowledgeable about computers and

could specify exactly what they wanted without having Dell salespersons answer questions or develop

configurations for them. It also saw the internet as potential marketing tool.

Dell decided to offer customized computers built to order and sold over the phone, and eventually, over

the internet. Dell’s strategy is to capitalize on its strengths and avoiding relying on a dealer network. The

brand and quality posed by Compaq and IBM were lessons for Dell’s ability to deliver higher perceived quality

because each computer was custom made for each buyer.

S- Dell’s strategy is to avoid relying on a dealer network and simply execute direct selling
over the phone to reduce additional costs. It acknowledged having no relationships with local
computer dealers.
W- Dell has needed to improve its ability to deliver higher perceived quality of computer due
to the brand and quality posed by Compaq and IBM.
O- Dell has saw the internet as a potential marketing tool. Dell also learned that customers
were becoming more knowledgeable about computers.
T- Dell faced pressure from competitors such as Compaq and IBM, both of which had much
stronger brand names and reputations for quality at that time.

II. ESSAY
INSTRUCTIONS: Read the following statements then answer the questions that follow. Limit
your answer to exactly 4 sentences only. (30 points)

Most businesses aspire for a Every business gets hit by

perfect score which is simply
a utopian dream. Even if it’s
possible it may not be
desirable as having a perfect
score.
It is very important that
problems that produce
every problem faced by a
negative impact and will
business is addressed
influence customers toward
immediately for damage
or away from purchase or
control.
engagement.

1. Based on the statements above, why is it important to minimize the negative impact of problems
to business?

Minimizing the negative impact of problems to business is highly important in order to prevent further
damage or issues since as what the idiomatic expression teaches us that the devil is in the details. In
other words, business problems may be simple at first look but it can actually become a big one or even
lead you to your own downfall if you fail to address it as soon as possible. For example, a simple issue
of delivering late to a customer can give you a bad reputation that may cause your other customers to
 pull out from patronizing your business as well as your potential customers to be discouraged by your
irresponsibility leaving you with a degrading business in the end. Thus, having a business requires you
to be a good problem-solver because inevitable problems will always be a threat to your ideal future.

2. Right now, all businesses in our economy is greatly affected by COVID-19, what do you think is
this current issue’s negative impact on businesses? As ABM students, how does this problem
affected you?

Due to COVID-19, many businesses had to temporarily close and I think it is negatively affecting them
because it is their main source of living especially for the small employees. The restrictions have caused
financial shortage and uncertainty to business owners and its members. As an ABM student, this current
issue has challenged me to give more importance for this kind of unexpected crisis and think about the
possible measures to solve this type of business dilemma. It made me more motivated to build a business
where it can still be efficient and even be helpful despite of an undesirable situation in the future.

GOODLUCK!