Dell Case Study. In this report, we are going to analyze the business environment of the IT industry in the form of a PEST which stands for political, economic, socio-cultural, technological and environmental. believe that it is important to analyze a company's environment because it will help the company identify the opportunities and threats around it. Using the Dell case study, we have identified the following opportunities and threats of the IT industry. Politics There are a number of political issues that large organizations such as Dell must consider when expanding or operating in different countries. Obviously, governments in the Western world have different ideals than countries in other regions. The rules and regulations of different countries would reflect their different ideals; So, for businesses to be successful, they must have a good understanding of how different governments work. As noted in the case, patents and trademarks are prevalent in the computer industry, so it is important for organizations to develop good relationships with different governments. Other elements to consider include: exchange rates, taxation and labor laws, working conditions and political stability. Organizations also need to understand the attitudes of different governments toward monopolies and competition. Economic Opportunities: 1) The IT industry is expected to continue to grow in volume over the years. It is expected to grow 15-20% over the next 3-5 years. This is influenced by the development of the Internet and opportunities for global expansion.2) Foreign markets like Asia and China were previously not accessible due to their political and economic environment. However, the situation has changed, removing obstacles and is now easily accessible; this is a big opportunity for the IT industry to grow in these regions. Threats: 1) Economic changes across the world may affect the IT industry. The biggest threat to the industry is instability in the global market, for example Dell has opened a new manufacturing plant in Brazil and thus changes in South American economic conditions could affect the company.2) Fluctuation in currencies in different regions may affect.... .. middle of paper ......mation Ltd (2003) "European IT execs plan more investment in 2004 (analyst views)" Computer Weekly, September 9 - Ziff Davis Media Inc (2003) “HP Promotes PC Recycling” eWeek, February 6 - Reed Business Information Ltd (2003) “Vendors introduce price incentives to get users to invest in the latest PC hardware” ComputerWeekly, October 14 - Simon Quicke (2003) “Supplier Perspectives; Top Supply Executives Predict Market Recovery » Computer Weekly, September 9, Reed BusinessInformation Ltd - Adam Lashinsky (2000) « The Wired Investor: Once Driving the Great Bull Market, PC Makers Have Seen Their Stocks Beaten and bruised. The question is: do they still deserve a place in your portfolio? Dell Entering Consumer Electronics Market » eWeek, September 25 – Andrew Park; Faith Keenan; Cliff Edwards (2002) “Who Will DellEat Have Lunch Next?” Now this extends to printers, storage and handhelds. »Business Week, August 12, The McGraw-Hill Companies