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Michael Dell case

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This is call presentation i thinK.

This is call presentation i thinK.
Thank you everyonE

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Michael Dell case Michael Dell case Presentation Transcript

  • 12/21/2009 6:26:34 AM
  • How does an entrepreneur like Michael dell view profit? From the point of view of an economist or from a business perspective? Explain… • Page : 1, 2 How can competition alter the plans of successful business leaders such as Michael Dell? • Page : 3 What characteristic of the free enterprise system permitted Michael Dell to start & operate his business? • Page : 4
  • Michael Dell profit view: Michael Dell profit view was about logical theory. Store owner is not adding any equipment or giving value on goods of manufacturer. An owner sells goods to consumer not in an actual rate what owner has bought already from manufacturer. Business perspective view profit: A store owner sells goods not in an actual rate. Also owner not adding any equipment on product of manufacturer. So owner is selling goods for only get profit in business which is the major perspective of business. Example: I bought computer of 15,000/= & sells 25,000/= to customer. So my profit is 10,000. Because I’m not adding
  • Economist view profit: An economist view profit has to include opportunity cost. A store owner should add opportunity cost for sell goods view to economist. Example: I am earned 25,000/= by selling computer to consumer. I can earn 50,000/= if I can Economic work in Dell corp. as a sell view manager. so my opportunity profit cost will be 25,000/=
  • A successful business leader Michael dell faced many Plans of obstacles in his journey. But his dynamic plans give successful him a tremendous carrier. Michael dell made a simple business but powerful visions. Those are: leader can spread own 1. personal computers could be built to order and business sold directly to customers. around the world 2. bypassing distributors and retailing dealers reduced marketing and selling costs by eliminate the markups of resellers and building to order greatly 3. reducing the costs and risks associated with carrying large volumes of both and finished goods.
  • 3. What characteristic of the free enterprise system permitted Michael Dell to start & operate his business? Michael Dell had two permitted characteristic of the free enterprise system to start & operate his business. 1. Bypassing distributors and retail dealers reduced marketing and sales costs by eliminate the markups of resellers . 2. Building to order greatly reduced the costs and risks associated with carrying large volumes of both and finished goods.