By the year 1990 sales had grown to more than $500 million and Dell was able to supply a number of Fortune 500 Companies. The company now had a broad product line of desktop and portable computers with Intel processors and had earned a strong reputation for quality products and service. Throughout the company’s history, a big part of Dell’s success was due to its unique and distinctive “Dell Direct Model. ” This model took efficiency to new heights by eliminating the intermediaries between maker and user of PC’s and lowered costs by eliminating inventory with the help of an efficient supply-chain management system and internet sales.
Today, as the world’s largest PC manufacturer, Dell Computer Corporation offers a great variety of computing products directly to customers, with build-to-order systems and Comprehensive services that fulfill the needs of its customers. Dell’s customers range from Major corporations to individuals all over the world. Efficient cash management has enabled Dell to have both extremely high inventory returns and a “negative cash conversion cycle. ” This cash flow system permits Dell to pass on cost savings to customers in the form of lower prices for the best technology available.
These competitive advantages have helped the company achieve a solid cash position with outstanding liquidity B.. In search of a company culture The culture at Dell had always been driven by a continuous program to drive down costs And improve the “customer experience. ” Facts were more important and more highly valued than emotions and personal feelings. As the company grew and succeeded, the company culture that pushed the drive to be number one and to make a personal fortune was based solely on economic terms.
But in the year 2000, Dell’s margins in the hardware business began to decline due to a slowing demand for PC’s and a price war with competitors. Investors were disappointed, layoffs were frequent, and employees began to wonder why they worked in a high-tech industry, and why they worked for Dell. Kevin Rollins was aware that all great companies have great cultures. They have a Purpose and a leadership model. Aware of an urgent need to define his company’s culture, he Looked for inspiration, reading books on Franklin, Jefferson, Monroe, and Washington.
He soon discovered that what the founding fathers of the United States believed in went well beyond logic. They were passionate, very idealistic, and had a vision that exceeded their personal gain and involved the risk of losing their lives. Mr. Rollins found this remarkable, and it caused him to think about the country’s soul and its leaders. He believed this was an “interesting paradigm for a company to examine, as opposed to simply adopting the business paradigm. ” With this foundation, he began to develop what became known as The Soul of Dell. C. . Key Players Michael Dell is the founder and CEO of Dell Computers.
During the past 18 years, he Has grown the company’s sales from $6 Million to $33. 7 Billion and opened sales offices Worldwide, employing more than 38,000 people around the world. In 1992, Michael Dell Became the youngest CEO of a company to be ranked as a Fortune 500 firm. He has been Honored in numerous occasions for his vision and leadership. One of the main goals for his Company is to double company profits by 2005 Kevin Rollins became Dell’s President and Chief Operating Officer in March of 2001. Before then, he was president of Dell Americas. He managed all company operations in the United States, Canada, Mexico, and Latin America.
During Mr. Rollins’ tenure at Dell, the Company has gone through a dramatic growth process increasing revenues from $5 Billion to $31 billion in just five years. Before joining the company, he functioned as vice president and Managing partner of Bain & Company Management Consultants, where he specialized in Corporate strategy and the management of high-tech companies. With his development of The Soul of Dell, he would like people to refer to Dell as a place where respect, integrity, honesty, and forthrightness are valued. Elizabeth Allen is currently the vice president of Corporate Communications at Dell.
Her Responsibilities include the direction and global management of Dell’s corporate communications functions, including media relations, employee communication, and liaison with brand and product advertising divisions. Allen has spent more 20 years of her career in corporate communications. Before joining Dell, she was vice president of corporate communications at Staples Inc. , where she expanded investor, government, community and media relations. Previously, she worked for Raytheon Company and Loral Corporation as vice president of corporate communications in each.
Allen has the responsibility of diffusing The Soul of Dell both inside the company and externally. 2. Current situation A. Vision statement It’s the way we do business. It’s the way we interact with the community. It’s the way we interpret the world around us– our customers needs, the future of technology, and the global business climate. Whatever changes the future may bring our vision — Dell Vision — will be our guiding force. So Dell needs full customer satisfaction. In order to become the most successful computer company, they need the newest technology and loyal customers. B.
Mission Statement Dell’s mission is to be the most successful Computer Company in the world at delivering the best customer experience in markets we serve. In doing so, Dell will meet customer expectations of: •Highest quality •Leading technology •Competitive pricing •Individual and company accountability •Best-in-class service and support •Flexible customization capability •Superior corporate citizenship •Financial stability 1- Customer The customer of dell according to the mission statement is the whole world because their aim is to be the most successful computer company in the world 2- Market
Due to the point that Dell wants to be the most successful computer company in the world it is automatically understood that their market is the whole world 3- Concern for profitability and growth Due to aiming to conquer the whole world their will always be a place for growth which leads to more profitability 4- Concern for employees The mission statement does not talk at all about the employees I think this is the only flaw in the mission statement but if a company has such big goals the employees must be very qualified especially in this filed. The filed of computers because it is very competitive market with the other competitors. . Philosophy: From day one, Dell has built his company up on the premise that what the customer says goes.
When he first started Dell Computer at the age of 19 in his University of Texas dorm room, Dell says his concept was simple: buy parts, assemble them, and sell the finished products directly to customers. He effectively eliminated big distributors and was able to reduce the end price he could charge. “You tell us what you want – how fast you want the programs to operate, how much memory, how expandable – and we will build it for you and ship it out, usually within three days,” he says. And if ever you have a question or a problem about your system, you call us direct. We take direct responsibility for the complete satisfaction of each and every customer. ” After his company had been in business for three years, Dell created the industry’s first on-site-service program. If there was a problem with your computer, you didn’t have to return to the store to have it looked at. You simply called Dell and a serviceman would come to your house and fix it. “That was a pretty important plus because we didn’t have any stores,” Dell jokingly recalls.
Dell claims that his company operates on a relatively simple concept: “The most important thing is to satisfy our customers,” he says. “The second most important is to be profitable. If we don’t do the first one well, the second one won’t happen. ” Thus, the focus of his company remains on concrete issues, such as improving delivery time, cutting operating costs and maintaining customer service. Dell believes in the importance of adding value “beyond the box”, looking at the customer’s total experience. To this end, he often aligns his company with complementary partners for increased efficiency.
Today, Dell builds computers only in response to orders that the company has actually received from users, either by phone or the Internet. Users are able to dictate the company’s supply, relieving Dell of the risk that comes along with trying to predict market demand in the extremely unpredictable computer industry. Because Dell customizes its products, the company is also able to provide unmatched levels of customer service. For instance, on October 27, 1997, after the Asian economic crisis overwhelmed Nasdaq’s online trading site, Nasdaq called Dell, which proceeded to build eight custom-made PowerEdge servers in just 36 hours.
Three days later, they were up and running for Nasdaq. By prioritizing his customers, Dell was rewarded with their business and loyalty. http://www. evancarmichael. com/Famous-Entrepreneurs/646/Lesson-2-Develop-a-CustomerFocused-Philosophy. html 6. Concern for public image The point that “Dell’s mission is to be the most successful Computer Company in the world” means only one thing and that is the public image for the company must be very good not only domestically but also internationally. 7. Production services
The way how dell operates is actually a very smart way to cut of cost and inventory accounting wise leading to more profit for the company also the quote “Best-in-class service and support” convinces you that any service this company does can only be the best. 8. Technology Technology plays a very important role for dell simply because of the nature of the business.