QUESTION ONE $[50]$

Read the extract below and answer the questions that follow.

Dell broke into the big time by developing a business strategy and supply chain strategy that worked together. In the late $1980$s and early $1990$s Dell$$s business strategy was differentiation through low cost, speed of delivery, and customer service. The major channel for sales was from customers to call centres. However, the emergence of the internet called for more differentiation and fundamental change. With a well understood business strategy, Dell began to formally integrate operational components $($e$.$g$.,$ logistics$,$ manufacturing, distribution, inventory management$)$ and develop a supply chain strategy. The supply chain strategy focused at driving costs out of the supply chain $$ being the low cost provider $$ while at the same time supporting a business strategy emphasizing customer service. A business strategy creates a vision and direction for the whole organization. It is important that all people within a company have clear goals and are following the direction, or mission of the organisation.

With this regard to the extract,

$1\mathrm{.}1$ Explain the vitality of a strategy on businesses like Dell. $(15$ MARKS$)$

$1\mathrm{.}3$ Discuss the influence of integration to ensure the successful achievement of Dell$$s business goals. $(15$ MARKS$)$