A name, a concept
I) Who is Michael Dell, his background, his first company
II) Dell Inc, an extraordinary success
III) The last recent problem
IV) Michael Dell’s foundation
Michael Dell was born in Houston, Texas, on February, 23rd 1965. Dell is the son of an orthodontist and grew up in a well-to-do Jewish family.
He went to Herod Elementary. He had his first encounter with a computer at the age of 15 when he broke down a brand new Apple II computer and rebuilt it, just to see if he could.
Dell attended Memorial High School in Houston, Texas, where he did not excel scholastically. Reportedly one of his teachers, still currently teaching there, commented to him that he "would probably never go anywhere in life“.
After graduating high school, he attended the University of Texas at Austin intending to become a physician.
While at the university, he started a computer company called PC's Limited in his room in Jester Hall.
From his on-campus dorm room, the start-up aimed to sell IBM-compatible computers built from stock components.
Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PC's Limited could better understand customers' needs and provide the most effective computing solutions to meet those needs.
In 1985, the company produced the first computer of its own design.
This, offered buyers prices lower than those of retail brands, but with greater convenience than assembling the components themselves. Although not the first company to use this model, PC's Limited became one of the first to succeed with it.
Michael Dell dropped out of school to run the business full-time. The company grossed more than $6 million in its first year.
In 1987, PC's Limited set up its first on-site-service programs in order to compensate for the lack of local retailers prepared to act as service centers. Also in 1987, the company set up its first operations in the United Kingdom; eleven more international operations followed within the next four years. In 1988, Dell's market capitalization grew by $30 million to $80 million on its initial public offering day.
The company changed its name to "Dell Computer Corporation" in 1988.
In 1992, Fortune magazine included Dell Computer Corporation in its list of the world's 500 largest companies.
In 1999, Dell overtook Compaq to become the largest seller of personal computers in the USA.
To recognize the company's expansion beyond computers, the stockholders approved changing the company name to "Dell Inc." at the annual company meeting in 2003.
In February 2005, Dell appeared in first place in a ranking of the "Most Admired Companies" published by Fortune magazine.
Dell sells all its products both to consumers and corporate customers, using a direct-sales model via the Internet and the telephone network. Dell maintains a negative cash conversion cycle through use of this model: in other words, Dell Inc. receives payment for the products before it has to pay for the materials. The Internet has significantly enhanced Dell’s business model, making it easier for customers to contact Dell directly. Other computer manufacturers, including Gateway and Compaq, have attempted to adapt this same business model, but due to timing and/or retail-channel pressures they have not achieved the same results as Dell.
In the second quarter of 2006, Dell had between 18% and 19% share of the worldwide personal-computer market, compared to Hewlett-Packard with roughly 15%. By leveraging its business model, Dell attempts to undercut competitors and offer consumers a more attractive choice of personal computers and other equipment.
On July 26 2006 Dell Inc opened a full store in Northpark Mall in Dallas, Texas.
It planned to operate the 3,000-square-foot Dallas outlet seven days a week and to display about 36 models, including PCs and televisions. But customers cannot walk out of this store with products. Instead, they order online or by telephone from the store and await delivery. Dell Inc plans to use the Dallas store to house about three times as many products as it displays in more than 160 kiosks in malls and airports in the United States of America. In addition to showcasing products, the store also supports onsite warranties or non warranty service. Services offered include repairing computer video-cards and removing spyware from harddrives.
Michael Dell was declared: "Entrepreneur of the Year" from Inc. magazine; "Man of the Year" from PC Magazine; "Top CEO in American Business" from Worth Magazine; "CEO of the Year" from Financial World and Industry Week magazines.
Also Dell revenue’s are $55.908 Billion and Net income $3.572 Billion, there are 65,200 employees and Michael is actually the chairman, earning $3.4 million per year and a fortune of $17.1 billion.
On August 14, 2006, Dell and Sony admitted to major flaws in several Sony- manufactured batteries that could result in the battery overheating and catching fire.
As a result they recalled over 4.2 million laptop batteries. Dell and Sony will share the costs involved in this recall. In response to this, Japan's Ministry of Economy has ordered Dell and Sony to investigate the incidents that led to the recall, and to report their findings and future plans of prevention. If not, they could face charges involving fines under Japan's consumer-safety laws. Subsequent announcements by Apple, Lenovo, Toshiba and Fujitsu led to a recall of nearly 7 million Sony-manufactured batteries and "major embarrassment" for Sony. Also Dell Inc. and the U.S. Consumer Products Safety Commission (CPSC) have announced a recall of about 35,000 notebook batteries that could potentially pose a fire risk.
Established in 1999 with a gift from Michael and Susan Dell, the Foundation has an endowment of more than $1 billion. The foundation funds initiatives and programs that improve the outcomes for children living in urban poverty, with a primary focus on enhancing the quality of public education and children's health.
Within its first seven years, the Dell family foundation has committed more than $300 million to global children’s issues and Central Texas community initiatives.
The goal of MSDF is to improve outcomes for children around the world in a measurable way. In addition, the Foundation selectively funds short-term projects that tend to have a positive and immediate effect on children.
On May 15, 2006, The University of Texas at Austin announced a $50 million grant from the Michael and Susan Dell Foundation to "bring excellence in children's health and education to Austin".
The grant will enable the construction of 3 new facilities at the university:
The first is the Dell Pediatric Research Institute which is expected to complement the new Dell Children's Medical Center nearby.
The second is a new computer science building on the UT campus named Dell Computer Science Hall.
The third is the Michael and Susan Dell Center for Advancement of Healthy Living, which is intended to address issues that affect healthy childhood development.