Case Discussion – Assignment Questions
Thursday, February 17, 2011
Case (6): Dell Inc in 2008
1. What is your evaluation of Michael Dell’s performance in his roles as Dell’s CEO and Chairman? How well has he performed the five tasks of crafting and executing strategy that were discussed 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 building a deeper management staff and corporate infrastructure, while trying to obtain the same low cost. I was also impressed with the financials of the company during it first years at Dell, Inc. The company started selling to large companies, along with government agencies, and became a public company, raising $34.2 million in its first offering of common stock. In 1990 is had sales of $388 million. I strongly believe Michael Dell embraced his vision of trying to become one of the top tree PC companies. Dell found a niche and was able to run with it. I would give Dell an “A” considering posted revenues for 2008 were $61.1 billion, showed a profit of almost $3 billion. I think that Dell’s decision of bringing in Lee Walker proved that Dell wanted and knew what was best for the company, and provided it. I view Michael Dell as a very involved and well rounded CEO, while focusing on implementing the five strategy-making/strategy- executing tasks....
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