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Michael Dell

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  1. Michael Dell Founder, Chairman and CEO of Dell Computer Corporation Created by Alex Moore COMP 1631 Winter 2011

  2. A Look at the Life of aSuccessful Entreprenuer • Born February 23, 1965 in Houston, Texas • Growing up in Texas he was very independent at an early age, straying away from what other people wanted for him and leading his own path towards a career in the computer industry • He would later on become one of the wealthiest men in the world, the founder , chairman and CEO of Dell Computer Corporation; a multi-billion dollar company

  3. Early History • Age 12 he begins his first part time job working at a Chinese restaurant • At this time he began a stamp collection, he sold this in order to save up for an Apple IIE • At 16 with his Apple IIE Dell worked at selling subscriptions online • His interest in business was evident at an early age This is a photo of an Apple IIE

  4. Early history continued… • Dells parents had a strong desire for him to become a doctor • He was enrolled in premedical courses at the University of Texas • On the side during school Dell bought IBM and clone computers from dealers, he would then upgrade and sell them, this all took place in his college dorm room • Influenced by his parents requests he put his business on hold until the end of his first school year, he continued in the summer and did so well he never returned to school

  5. The beginning years • The following August after his first year of school Dell began his business again,he had sold $180,000 worth of PCS by this time • In 1984 Dell establishes “PC Limited” • At the end of the following year Dell had earned an estimated amount of $6 million One of these original computers are now showcased in the Smithsonian Institution’s National Museum of American History

  6. The beginning years continued… • First starting out people believed buyers of expensive items(PCS) would not buy until hands on inspection • This is a feature Dell did not provide as he made customers purchase computers through toll-free phone numbers(all advertising was done through computer trade magazines) • Dell combated this in 1987 by promising next day on site service for problems not handled over the phone • He was now recognized for offering superlative technical support

  7. Taking a big step • In 1989 Dell married Susan Lieberman a former commercial leasing agent • By 1990 Dell brought his company to an international level opening a plant in Limerick, Ireland (Forbes 2004) • His revenue had increased to $546 million, his earning sitting at an ultimate high of $27 million

  8. Strategy and Rejuvenation • Dell then went on to pioneer “direct selling”, with no third parties involved • He believed selling computers through “middlemen” was unwise • In 1988 Dell renamed “PC Limited” to “Dell Computer Corporation”

  9. The Crash • As soon as Dell’s company was beginning to rise he came crashing down - in 1993 after 14 successful quarters he ran into trouble • Dell had grown too large too fast, this causing inventory management, accounting and product forecasting problems • Dells ultimate mistake was not understanding the rapidly developing laptop computer market

  10. “One of the things that is confusing and almost intoxicating when growing a business is that you really have little way of determining what the problems are” -Michael Dell (Fortune 1995)

  11. Implementation • In 1993 Dell introduced two experienced managers • Mort Topfer(former Motorola executive), introduced as Vice Chairman • John Medica(former apple powerbook designer), introduced as head of Dells laptop division

  12. The Rebirth of Dell • In the final two quarters of 1993 Dell returned to black holding its yearly loss to $36 million • In 1994 Dell introduced the Latitude Series(improved laptop-computer line) • They announced a healthy $149 million that year • From 1995-1998 Dells growth resumed, the companies revenue grew 50 percent per year indicating earnings between 80 and 90 percent a year • Dell had captured 5 percent of the worldwide market

  13. The Rebirth of Dell Continued… • In 1996 the third assembly plant was built in Penang, Malaysia • At the end of 1997 Dell posted there annual revenues at $12.33 billion, up to 59 percent from previous year • At this point they had done very well in sales over the Internet, something pushed by Michael Dell himself • Dell entered the lucrative market for workstations and servers

  14. “Dell cited market research showing it had moved into the number one position in the United States in desktop computer sales, and number two place overall, behind Compass Computer but ahead of IBM and Hewlett Packard” -Lawrence M Fisher(New York Times 1998)

  15. Charity • In 1999 Susan and Michael Dell set up a foundation in their name • The “Michael and Susan Dell Foundation” is committed to improving the lives of children • $650 million has been given to childrens charities all over the world as of 2010 • Visit www.msdf.org for more details

  16. Recent history • In 1999 Dell published his partly autobiographical book “Direct from Dell: Strategies That Revolutionized an Industry” • In 2004 Dell stepped down from his role as CEO • He still remains the Chairman of the Board

  17. Major Achievements • 1992 he was listed on Fortune 500, this making Dell the youngest CEO to lead a Fortune 500 company • Entrepreneur of the year at the age of 24 (Inc. magazine) • Top CEO in American Business (Worth Magazine)

  18. Contributions • Dell serves on the following currently: • Foundation Board of World Economics Forum • Executive committee of International Business Council • U.S Business Council • Governing board of Indian School of Business in Hyderabad, India

  19. Contributions continued… • Dell previously served on the following board: • Member of the U.S Presidents Council of Advisors on Science and Technology

  20. Michael Dell’s family lives in one of the largest houses in Austin It has been reported as the 15th largest house in the world

  21. To this day Michael Dell owns 16 percent of Dell’s stock • He is a multibillionaire, known as the richest man in Texas • As of 2010, Forbes estimates Dell’s net worth at 13.5 billion His legacy lives on…

  22. References • Michael Dell.” Wikipedia. 2010. Wikimedia Foundation Inc,..30 February 2011 • Gale Encyclopedia of E-Commerce, Gale Group, 2002.Print. • Dell, Michael; Catherine Fredman (1999). Direct From Dell: Strategies that Revolutionized an Industry. New York, New York: HarperColins Publishers. ISBN0-88-730914-3. • Business Leader Profiles for Students, Vol. 1, Gale Research, 1999. Print.