1. MICHAEL DELL:DELL CORPURATION
Assignment-01
“You don't have to be a genius or a visionary or even a college graduate to
be successful. You just need a framework and a dream.”-Michael Dell
Dell's parents wanted him to be a doctor. But by the time he was in junior
high, Dell was hooked on computers. While most of his classmates were
tinkering under the hoods of old cars, Dell loved to tinker with his Apple IIe.
“Business In His Blood”
Michael Dell has often been quoted as saying, "I always knew I wanted to run a
business someday." Indeed, it does appear that Dell was born a businessman.
The system has four characteristics: economic freedom, voluntary
exchange, private property, and the profit motive. The free enterprise
system may also be referenced as capitalism or the free market system.
Successful Characteristics of Michael S. Dell
He has faith in his ideas
Michael's father ideas of success urged him to become a physician, which led the
teenager to enroll in biology as a pre-med student. Yet, his nose for opportunity
enabled him to
recognize how computer markets were growing. His curiosity and self-taught tech
know-how had
led him to dis-assemble his Apple II computer and find parts had different origins.
He then
devised a vision for a new kind of made-to-order 'supply and demand,' bought IBM
PCs
wholesale, greatly undercut the retail price while adding extra components to suit
each customer.
The more he believed in himself, the more he attracted lucrative opportunities.
2. He knows when to ignore naysayers
Michael initially downplayed his business ideas to his parents and friends. Before
they'd
drop into his dorm, he hid boxes in the bathroom which revealed his true passion.
Early on, he
learned different people had different ideas of success. Encouragement wasn't
always
forthcoming from people with little knowledge of his area of interest. By the end of
his first year
in college, his profits topped US $50,000, and this gave him the courage, will and
means to drop
out of college with a completely new success vehicle
He invests in marketing
Dell moved his company, then PCs Limited, to a strategic shop front in Austin,
Texas.
During the first year at the location, his ability to cleverly promote the venture via
various means
resulted in sales of hardware worth ~$6 million. He proved that he didn't just get
from others
what he required from others. He also discerned which among his business
practices and beliefs
weren't working and he changed strategies to suit his company's evolution.
He focuses on doing what others do, only better
During the second year, he started building complete computers 'from the ground-
up' for
mail-order clients which enabled him to further personalize his service. Sales that
year soared to
$34 million, in part because Dell's IBM clone called the Turbo PC was half the
price of a
comparable IBM. His ability to offer hardware direct to customers enabled him to
cut out
middlemen and charge lower prices. He created a business where it wasn't
necessary to keep
3. much stock, which was key with part prices dropping.
He realizes he doesn't know everything
Even at 21, he remained humble about his fast track to financial prosperity. He
accepts he
is ignorant about aspects of business, and historically, has been unafraid to seek out
mentors and
hire people more experienced than himself. Even back in his youth, he chose to
learn from every
glitch, from client complaints about delivery time to lack of accessible staff. This
prompted Dell
to adopt benchmarks, including amazing client service and a 30-day money back
guarantee with
unlimited phone support.
He welcomes opportunities to improve
In 2001, a comprehensive, internal review of Dell corporation led employees to
comment
openly on their then, CEO. Michael Dell was surprised to learn he was perceived
as "impersonal
and detached." Staff felt he was disconnected from what went on around and
beneath his office.
Dell decided to embrace these comments right away. He made a video, directed to
all staff,
during which he would work to move beyond shyness and take steps to make
himself more
approachable by anyone on a regular basis. It worked!
He continues to innovate
Michael Dell never rests on his laurels. He doesn't base his future visions on his
company
track record for success. In fact, he supports a management style described as,
'two-in-a-box.'
Executives are partnered with a person who challenges ideas, complements their
skills and
4. experience. Dell sets an example, partnered with Kevin B. Rollins, who works in a
nearby office.
While Dell plans the future, Rollins (12 years older) runs daily operations and
reminds Dell to
connect views of an unconfirmed future to reality.
He gives back to society
Dell and his wife established a "Michael & Susan Dell Foundation." Its a children's
charity with projects and areas of focus to benefit future generations. It has an
endowment of US
$1 billion. The Dells realize how sharing their financial success can promote
increased peace,
harmony and cooperation. They show all business success isn't always limited to
power-quests or
self-indulgence. What you have is perhaps less important than how you use it.
