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Michael Saul Dell (born February 23, 1965) is an American business magnate and the founder, chairman and chief executive officer of Dell Inc. He is the 44th richest person in the world, with a net worth of US$14.6 billion in 2011, based primarily on the 243.35 million shares of Dell stock worth $3.5 billion that he owns, giving him 12% ownership of the company. His remaining wealth of roughly $10 billion is invested in other companies, and managed by a firm called MSD Capital (named after Dell's initials
Early life and education:
Michael Dell was born to a well-off, Texan Jewish family, on February 23, 1965. The son of an orthodontist and a stockbroker, Dell attended Herod Elementary School in Houston, Texas. In a bid to enter business early, he applied to take a high school equivalency exam at age eight. In his early teens, he invested his earnings from part-time jobs in stocks and precious metals. Dell purchased his first calculator at age seven and encountered his first teletype machine in junior high, which he programmed after school. At age 15, after playing with computers at Radio Shack, he got his first computer, an Apple II, which he promptly disassembled to see how it worked. Dell attended Memorial High School in Houston, selling subscriptions to the Houston Post in the summer. While making cold calls, Dell observed that newlyweds and people moving into new homes were most likely to buy a subscription. He targeted this demographic group by collecting names from marriage and mortgage applications. Dell earned $18,000 that year, exceeding the annual income of his history and economics teacher.
While a pre-med student at the University of Texas at Austin, Dell started an informal business upgrading computers in room 2713 of the Dobie Center residential building. He then applied for a vendor license to bid on contracts for the State of Texas, winning bids by not having the overhead of a computer store. In January 1984, Dell banked on his conviction that the potential cost savings of a manufacturer selling PCs directly had enormous advantages over the conventional indirect retail channel. In January 1984, Dell registered his company as "PC's Limited". Operating out of a condominium, the business sold between $50,000 and $80,000 in upgraded PCs, kits, and add-on components. In May, Dell incorporated the company as "Dell Computer Corporation" and relocated it to a business center in North Austin. The company employed a few order takers, a few more people to fulfill them, and, as Dell recalled, a manufacturing staff "consisting of three guys with screwdrivers sitting at six-foot tables." The venture's capitalization cost was $1,000. In 1992 at the age of 27, Dell became the youngest CEO to have his company ranked in Fortune magazine's list of the top 500 corporations. In 1996, Dell started selling computers over the Web, the same year his company launched its first servers. Dell Inc. soon reported about $1 million in sales per day from dell.com. In the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent, passing Compaq to become the world's largest PC maker. The
and Dell had become the youngest CEO of a Fortune 500 corporation. After his freshman year. however. as a newspaper delivery boy for the Houston Post. In 1998. which he then followed up with phone calls. a commercial leasing agent. and if things did not work out with his venture. private equity activities. Dell is not involved in day-to-day operations. He never went back. Texas. when he was a college freshman in 1984. The extremely enterprising . The firm employs 80 people and has offices in New York. Alexander Dell. Dell married Susan Lieberman. At one point.000 a month.3 percent worldwide and 30. notebooks and servers grew 34. Investment activities include publicly-traded securities.metric marked the first time the rankings had shifted over the previous seven years. he developed new corporate strategies. In high school. an orthodontist. In October 1989. hoping he might become a doctor. however kept him in school and later sent him to the University of Texas at Austin. kill IBM.” When Michael Dell was only eight years old. His parents. and real estate. he told them he wanted to spend the summer working in his business. With his fledgling computer company (which he operated from his dorm room) making $80. Santa Monica and London. Personal Life Dell was born in Houston. When he was only 12.7 percent in the United States at a time when competitors' sales were shrinking. he would return to school. Dell would often tell his employees that his daughter’s first words were a plea to beat the competition: “Daddy. a stockbroker. the son of Dr. the company had exceeded $500 million in annual revenues.000 through a stamp and baseball card trading enterprise that he operated through the mail. in February 1965. The couple have two children. he made $2. Overview Michael Dell started his company. Daddy. to exclusively manage his and his family's investments. he sent off for information on a high-school equivalency diploma. Although he experienced troubled times in 1993. If there is such a thing as a born entrepreneur. and his wife Lorraine. then sending them a trial offer of two weeks’ free service. Dell founded MSD Capital L. he had other plans. Dell surely is one. he aggressively sought out new subscribers by obtaining mailing lists of newlyweds.P. Dell Computer Corporation. The company's combined shipments of desktops. and by 1997 he was predicting that his company would lead the personal computer industry by the year 2000. hoping he could avoid putting in a full 12 years in school. By the early 1990s. kill Compaq.
” Dell’s sales strategy has been to market to large corporations and computer enthusiasts rather than to first-time buyers. Boeing. reasoning that a consumer is a first-time buyer only once. where models can be customized on-screen. He borrowed money from his family. According to an April 1998 article in InternetWeek. the Turbo PC. some of whom have built new facilities near Dell headquarters outside of Austin. reorganized operations. prompting Dell to change his strategy. By early 1985 it had 30 employees. and Toyota. Therefore. Dell was a billion-dollar company. Career Details Soon after he left the University of Texas in the summer of 1984. To ensure timely shipping. From 1990 to 1997 Dell’s stock has increased by 20. Then came a period of challenge and a slump in stock prices. PCs Unlimited. which irritated his roommates so much that they barricaded his door with piles of his computer equipment. it maintains . Dell recognized that his own strengths lay in maintaining an eye on the company’s overall vision.000 this way. the new Dell Latitude XP laptop model was launched and confidence in the company soared. and in July 1985 introduced its own model. to which they added various features. Before Dell suffered the fate of other pioneers who have lost control of their own companies. from $0. Dell began selling stock. In 1994. Dell maintains close relationships with suppliers. Customers can place orders by calling a toll-free number or by logging on to the company’s web site. Soon he started doing business through magazines. “The combination of direct sales and the Internet have made Dell Computer a fierce competitor that has kept heavyweights like Compaq and IBM scurrying to keep up. as he had earlier operated his stamp and card trading business. Another aspect of the company’s business success stems from the fact it only manufactures units it has already sold. and began operating out of a storefront. rather than specific details. and by 1993. he brought in a number of older executives with proven records. and put his CEO Mort Topfer in charge of running Dell on a day-to-day basis.39 to $80. priced. which he used to pay cash for a fully loaded BMW— even though he was not yet able to drive. In 1987. Michael Dell has played a great deal on his image as a “whiz kid.000 percent.” but the 1993 downturn showed the Dell Computer leadership that it was time to adopt a new corporate attitude to replace the brash image that had attended the company’s beginnings. Dell incorporated his company. This period in his life is also when Michael Dell discovered computers and found that he enjoyed taking them apart and putting them back together. The company marketed equipment made by such computer companies as IBM and Compaq. In college. Its sales that year reached $159 million. PCs Unlimited became Dell Computer and in 1988. Texas. Among its largest customers are Shell Oil. the figure was $2 billion. which provides a made-to-order personal computer that is shipped within 36 hours. and ordered with a credit card. and it had grown big and unwieldy. Among the most successful strategies employed by the Dell Computer Corporation is the directsales model. but soon repaid it as his company grew to annual sales of $30 million. he operated his business out of his dorm room.young man made over $18. He soon realized that he could make money by adding components to units and selling them for a profit.00 a share.
we’ll have 12 percent share. magazine. 1984: Founded Dell Computer. and his 1993 reorganization helped to ensure that he would maintain power. Describing the position of Dell Computer in the year 2000. Comparing his own success with that of Dell. 1988: Took Dell Computer public. including an Entrepreneur of the Year citation from Inc.” By fiscal 1998 Dell’s revenues topped $12 billion.no inventory and is free of storage and other overhead costs associated with maintaining a large warehouse stock. 1993: CEO of the Year. In addition. Bill Gates noted in Fortune. a goal he has surpassed significantly. In September 1997 Andrew E. The success of Dell Computer has brought numerous awards and distinctions to founder Michael Dell. Dell has also announced that he hopes to remain CEO for the next 60 years. Some analysts have said that by growing at 40 percent a year for five years. Dell is also the richest man in Texas with earnings of up to $10 million a day. We only have six percent of the PC market share. magazine in 1990. since his focus is on repeat rather than first-time buyers. 1990: Named “Entrepreneur of the Year” by Inc. whose company is an important Microsoft customer. which also reported the company’s income at $944 million for the same period. Financial World magazine. Social and Economic Impact In 1991 Michael Dell said that he hoped to make his company a billion-dollar-a-year enterprise.” He has said that he is not afraid of dire predictions that the personal computer market will be saturated. and learned from our mistakes Michael has the same passion for the industry I do. he was named “Man of the Year” by PC magazine in 1992 and “CEO of the Year” by Financial World in 1993. “We don’t want to be all things to all people. Serwer asserted in Fortune that “Dell Computer has become the driving force in the PC business. Chronology: Michael Dell 1965: Born. That would be a good position to be in.” . “We have both stuck with our convictions. Dell told an InternetWeek interviewer. 1992: Became the youngest CEO ever to make the Fortune 500. according to InternetWeek.
Background: Mr. He has been an Executive Officer of Compellent Technologies. magazine. In 1999.60% Historical Quotes Analyst Estimates Options SEC . He has been a Director of Startup America Partnership since August 23. Dell serves as the President of The Michael and Susan Dell Foundation which established in 1999. 2011 and Dell Inc.P. Dell serves as a Board Member elect of Catalyst. He served as Chairman and Chief Executive Officer of Dell Ventures. 2011. President's Council of Advisors on Science and Technology Chief Executive Officer Council and Member of the Governing Board of the Indian School of Business in Hyderabad. Dell their “High Impact Chief Executive Officer” for 1996 and 1997. Inc. He served as Chief Executive Officer of Dell Inc. 1998. Mr. since 1984. he was included in Business Week's list of “The Top 25 Managers of the Year”.S. in 1984 and serves as its Chairman and Chief Executive Officer.m. executive search firm Heidrick and Struggles named Mr. He serves as a Director of the United States Chamber of Commerce and the Computerworld /Smithsonian Awards. Dell also serves on the U. Dell Founded Dell Singapore Pte. Since 1992. Ltd. He attended The University of Texas at Austin. since February 22. He serves as a Member of the International Business Council and U.10 +0. Mr. In 1997. He is a Member of Foundation Board at World Economic Forum. Michael S. Mr. L. he has been the youngest Chief Executive Officer of a company ever to earn a ranking on the Fortune 500. 2007. He is also a Member of the Computer Systems Policy Project. India. Mr. Mr. 2011 7:04 p. Dell is the Founded MSD Capital. Dell served as a Partner at SkyBridge Capital LLC. from 1984 to July 2004. “Man of the Year” by PC Magazine. Dell has been honored many times for his visionary leadership. Dell Founded Dell Inc. In addition. Business Council. and 1999. Mr. in 1984 and has been its Chairman since 1984 and Chief Executive Officer since January 31. $ 16. in 1998. Mr. “Top Chief Executive Officer in American Business” from Worth Magazine and “Chief Executive Officer of the Year” by Financial World and Industry Week magazines. He serves as Director of The Michael and Susan Dell Foundation. he wrote the best-selling book “Direct From Dell: Strategies That Revolutionized an Industry”. Overview Profile News Charts Financials Filings Picks Hulbert Insiders After Hours --Quotes are delayed by 20 min Oct 14.72 +0. earning the titles “Entrepreneur of the Year” from Inc. his story of the rise of Dell Computer Corporation and the strategies he has refined that apply to all businesses.S.
60 Company Description Dell.31 . desktop personal computers.59% Day low Day high $16.26 +1. It designs.. markets.547 8a 10a 12p 2p 4p 6p Previous close $ 16.99 $17.Volume 526. Valuation P/E Current 12. sells and supports a wide range of products which are customized to individual customer requirements which include mobility products. Inc.29 $16. develops. is a holding company that conducts its business worldwide through its subsidiaries.62 +0.65 52 week low 52 week high $12.. manufactures.
48 Enterprise Value to EBITDA 4.60 .68 P/E Ratio (without extraordinary items) 9.35 Efficiency Revenue/Employee 0.25 Price to Cash Flow Ratio 6.03 Receivables Turnover 6.16 Enterprise Value to Sales 0.31 Total Debt to Enterprise Value 0.60 Income Per Employee 0.74 Price to Sales Ratio 0.P/E Ratio (with extraordinary items) 8.42 Price to Book Ratio 3.
31 Return on Total Capital .71 Liquidity Current Ratio 1.29 Return on Equity 39.84 Operating Margin 6.28 Return on Assets 7.74 Profitability Gross Margin 18.42 Cash Ratio 0.44 Net Margin 4.Total Asset Turnover 1.03 Pretax Margin 5.49 Quick Ratio 1.
44 Return on Invested Capital 23. In 1997 Dell’s unit sales rose 67% over the previous year.26 Long-Term Debt to Total Capital 37.39 DELL COMPUTER CORPORATION: A MODEL FOR INNOVATION Diane Hanson Creative Resource Development Dell Computer Corporation is not the largest personal computer company but it is the fastest growing.22.54 Long-Term Debt to Equity 66.5% • Stock price has shown a 79.22 Total Debt to Total Capital 43.99 Capital Structure Total Debt to Total Equity 77.57 Total Debt to Total Assets 15. Dell’s accomplishments in 1998 include: • Return on invested capital was 192. compared to a 25% increase for its nearest competitor. Compaq.9% return on investment • Makes each machine to order for each customer • Since 1997 has reduced inventory from 11 days to 6 days • Streamlined production to pass on savings to customers .
Most business analysts attribute Dell Computer Corporation’s success to the direct business model. Its youth as a corporation also has been a factor. . environmentally sound atmosphere and be an active participant in community affairs. Mission Statement The employees of Dell developed the Vision Statements listed below. customer and supplier relationships. However. CUSTOMER SATISFACTION We are an established company striving to satisfy customers by meeting their demands of quality. COMMUNITY SATISFACTION We will provide jobs in a clean. can bend with the winds of change more easily than companies that are set in their ways. Younger companies. Each customer is #1. responsiveness. TEAM SATISFACTION Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done. The owners of Dell fully support them. and competitive pricing. employee. just like young trees. as well as a finely-tuned awareness of future trends and technology have contributed substantially to the company’s efficiency and effectiveness in the marketplace. In this paper I will demonstrate how Dell’s internal communications. This information will be presented through the use of a new business model for the innovative enterprise called the Quantum Model. a model alone does not guarantee success. safe.
_____________________________________________________________________________________________ __ The main objectives of our company are to make sure that: The products that we produce shall meet all customer requirements. Fiscal Year 2010 View Report (PDF format) . CSR:(corporate social Responcibility) Company Reports for Dell Inc. Our response time to our customers’ inquires and requirements shall meet our customer’s needs. 2011 Corporate Responsibility Report View Report (PDF format) Corporate Responsibility Summary Report. We shall maintain sufficient profits.
Fiscal Year 2007 in Review View Report (PDF format) .Corporate Responsibility Report. Fiscal Year 2008 View Report (PDF format) Dell Sustainability Report. Fiscal Year 2009 View Report (PDF format) Dell Corporate Responsibility Report.
Fiscal Year 2006 in Review View Report (PDF format) Dell Sustainability Report. Fiscal Year 2005 in Review View Report (PDF format) Dell Sustainability Report.Dell Sustainability Report. Fiscal Year 2004 in Review View Report (PDF format) Dell’s Corporate Social Responsibility Recommendations Presentation Transcript: .
Trade-offs of the HIV/AIDS Initiative 9. Recommendations for Environmental Initiatives 15. supplier partners and communities where we live and work . we will obtain a competitive edge and regain market share . Environmentalism: A Key Principle in Dell’s Business Model “ Dell's vision is to create a company culture where environmental excellence is second nature because the principles of environmentalism . Recommendations for HIV/AIDS Initiative 10.” . 4. Evaluation of Environmental Initiatives o Plant a Tree for Me Offsetting CO 2 emissions o Dell Earth Games Employee Team Building (Global) Inspiring employees to live an environmentally friendly life 13. 6. Trade-offs of Environmental Initiatives 14.org. According to Advert.align with the principles of our direct business model .Milton Friedman 3. Three Focuses on Community Engagement o Community Growth Dell TechKnow (6. Is Social Responsibility our Business? “ The business of business is business. CSR Initiatives: Status Report and Assessment Corporate Accountability Environmental Responsibility Community Engagement Corporate Accountability Community Engagement Environmental Responsibility 5. 11.Sustainability Report 2007 12.1. customers. 16. Jacob Aryeh Robert Gee Dhruva Kaul Diana Shen Erica Swallow Enhancing the Dell Experience with CSR 2.efficiency eliminates waste .2 million people are currently living with HIV/AIDS 7. Evaluation of HIV/AIDS Prevention Program o Provide employees with benefits o Publish educational information o Offer onsite health screenings o Hold HIV/AIDS employee conferences 8.efficiency delivers customer value . HIV/AIDS Affects our Stakeholders The HIV/AIDS pandemic affects Dell employees.900 students) International Learning Centers o Employee Volunteerism 40% employee volunteer rate $13 million contributions o Community Foundations Health Grants .” . approximately 33. Our Vision for Dell’s CSR By partnering with our customers to focus on strategic CSR initiatives and aligning these initiatives with our business strategy.
A few pundits called for the firing of Kevin Rollins.900 students from low-income families Digital literacy Business skills Advanced PC studies in two Technical Laboratories 26. Manitoba 18.profits down 51% from a year earlier . ("Kevin 'Exploding Battery' Rollins. Recommendations for Community Engagement Initiatives 20. Dell TechKnow Generates Tech Savvy Middle School Students Fayette County Public School Dell TechKnow Graduate Showcases her PC Skills “ At the end of the program. Principal. fell further." Jim Cramer called him on CNBC. Dell Inc. Trade-offs of Community Engagement 19. along with one year of free Internet access. .Neil McAlpine. recalled 4.and disclosed that the SEC has launched an informal investigation of its accounting. Dell TechKnow Generates Tech Savvy Middle School Students 1. we will obtain a competitive edge and regain market share . CSR Initiatives: Status Report and Assessment Corporate Accountability Environmental Responsibility Community Engagement Corporate Accountability Community Engagement Environmental Responsibility 23. o o o Problem faced and Successfully came out: (FORTUNE Magazine) -. Now. Disassemble refurbished PC Fayette County Public School Dell TechKnow Graduate Showcases her PC Skills 2. Develop internet know-how 6. General Wolfe Junior High. announced a shockingly bad quarter . Our Vision for Dell’s CSR By partnering with our customers to focus on strategic CSR initiatives and aligning these initiatives with our business strategy. they can do research at home — an impossibility before TechKnow . 21. We Want Your Input! 25. Michael Dell's longtime right-hand man and handpicked successor as CEO. Load software 4. 24.000 children from migrant families o Latest PC technology o Educational programs o Life skills development Dell Brazil’s Digital Citizen Project 5. students took their computers home. Perform Hardware upgrades 5. already down 25% for the year. In close succession.17.August was the cruelest month for the computer company Michael Dell founded in his University of Texas dorm room 22 years ago. Winnipeg. Reassemble PC 3. then cued a .1 million laptop batteries because of fears they might ignite. Take PC home . Movement Towards Complete Alignment: Competencies &CSR 22. Learning Centers in China and Brazil Train Students in Technical Fields Location Participants Learned Skills Shanghai Changlin School 1. The company's stock.
while HP's stock (yellow) has surged 32 percent in the last year." 'Dell is in the penalty box' admits founder Michael Dell. Dell shares (blue) have skidded 39 percent.) A front-page headline in the Wall Street Journal trumpeted that Dell was being "left behind. More from Fortune Where will Occupy Wall Street take us? Clouds gather over OpenSkies Noah Wyle: "I would give my eye teeth" to play Jobs again FORTUNE 500 Current Issue Subscribe to Fortune Full list: 100 Fastest-Growing Fast-growing in your state Best stock returns • Best profit • Top sales growth growth • Fortune 500 • Small giants companies .recording of boos.
some focus . Recalls 4. a 51 8/17 percent decline from the same period a year ago. (more) Putting the fire out at Dell Shares have slumped nearly 40 percent in the past year. MORE ON DELL Dell earnings take a big dip No.1 million batteries with cells manufactured by 8/14Sony. 1 PC maker reports news of SEC inquiry and earnings that meet lowered expectations. Reports second-quarter net income of $502 million. Analysts at Goldman Sachs 8/18and UBS downgrade the stock. but for all the wrong reasons.Related stories: • 10 big stocks: Playing with fire • What about Apple and Google? • 5 companies that keep on growing • Dell in the penalty box • Michael Dell: 'This has been a wake-up call' Dell in the doghouse The company has been in the news. What will it take to get the PC maker back on track? (more) Dell losing support on Wall Street Filings show major shareholders trimming stake in No. saying the batteries could overheat and cause a risk of fire. Below is a timeline of the latest events to befall the PC maker. 1 PC maker as analysts downgrade recommendation.
presenting a big opportunity for growth.S.and many of which." Tenacious is a good word to describe Michael Dell and the company he created." service problems. Dell is now simply too large for that. But to rise to the next level and really boost its growth. (more) (Charts) than most of the media coverage would lead you to Dell cutting rebates to streamline suspect. . it may have to find a little more heart.face some real and serious long-term challenges. a longtime PC industry expert at consulting firm Creative Strategies: "I talk to Dell's competitors. Most obviously." Dell's overall PC market share is 33% in the U. with 16% worldwide market share (according to International Data Corp.S." and "just plain wrong" . Product design too. much of it the result of past moves No. As more people worldwide connect to the Internet. As one marketer from outside the computer business told me.). but only HP. but only about 12. (more) says. which has 19%.its sales soared from $546 million in fiscal 1991 to $32 billion in 2001. Key rivals HewlettPackard (Charts) and Lenovo (the Chinese company that bought IBM's PC business) have improved their games. Branding matters. he buying easier. An even bigger issue is that the low-cost. low-style approach that shot Dell to the top seems out of place in today's computer market. The SEC inquiry. Dell does . 25 on this year's FORTUNE 500. is a wildcard but not an unusual one in modern corporate America. Meanwhile Dell remains the dominant PC maker. And tenacity and efficiency will be enough to keep Dell in the game. there's no reason Dell's direct-sales model can't succeed in newer markets. the company will never replicate the stunning growth surge it experienced in the 1990s . have been corrected. tries to make "nonsense. hurt by customer that Michael Dell himself variously describes as "stupid. Those haven't been Dell's strengths.5% in the rest of the world. The company's recent run of bad news appears to pricing be a lagging indicator.make no mistake about it . With revenue of $56 billion. especially in the U. Says Tim Bajarin.This rhetoric is overblown. about which Dell has disclosed little. More is going right at Dell criticism on CEO. No. Dell's brand consists of "a man and a business model. and they're concerned that when it does actually come back it will be even more tenacious. 1 PC maker. is in the same league with Dell.