Case Study to Dell Leadership Style
Michael Dell, a gifted entrepreneur at the age of 13 began a quest to make money through stamp collecting and trading then expanded to a national catalog business that earned him close to $2000 per month. Not knowing at that time that by 1984 he would be starting his own company with as little as $1000 in startup capital and would go on to grow his own business with a gross profit of $11,671 million as of February 2008.
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In 1984 Michael Dell founded his company on a simple concept of selling computer systems directly to the customers, he felt that he could best understand the needs and provide the most effective computing solutions to meet those needs. He registered first started his business under the name of PC’s Unlimited, a company first in the industry to sell custom-built computers directly to the customers. With Dell’s first computer system of its own design in 1985 and by offering risk-free returns and next-day, at home product assistance, Dell was ableMichael Dell has done in as the company CEO and, more recently as Chairman?
What grade would you give him for his leadership of the company over the past 20 years? Has he done a good job performing the five strategy-making/strategy-executing tasks described in chapter 2? I was impressed with what Michael Dell has done for the company. Dells first company, PC’s Ltd. had a strategy of selling PC computers which mimicked IBM, except for a few minor components, were being sold to price conscientious consumers, about 40 percent below the price of the best selling IBM.
By selling the computers below market price, and generate rapid revenue growth for Dell. Michael Dell put tremendous effort into his company, working 18 hour days, and employing more than 40 people. I found it astonishing that at the end of that year, sales had reached 33 million. He later renamed the company in 1987, Dell, Inc. while seeking to refine the company’s business model, and production compactly, while focusing on…