Michael is 8 years old Michael makes a serious attempt to get his high school diploma early and invites a representative of the testing company to his home.
Michael is 12 years old Michael successfully implements his first business project. Having a passion for old stamps and working part-time as a water boy at a Chinese restaurant to buy them, Michael sees stamp trading as a commercial opportunity for himself and creates his own stamp auction. He does this in order to bypass the middlemen - traditional auctioneers - to learn more about the brands and, as a result, earn commissions himself. Michael convinces several people in the area to trust him with their stamps, places an ad for "Della Stamps" in a magazine Linn's Stamp Journal , prints a 12-page catalog with one finger and sends it out. As a result, Michael earns $2,000 and at an early age learns the benefits of acting directly rather than through an intermediary. He also learns that if you have good idea, the efforts to make it a reality pay off very well as a result.
Michael is 16 years old Michael gets a summer job at The Houston Post. He sells newspaper subscriptions on a commission basis and learns the power of market segmentation. The newspaper gave him a list of all new phone owners, obtained from the telephone company, and invited him to call everyone. Michael, considering this method ineffective, soon notices some pattern, analyzing responses from potential buyers he interviews. Two groups of people who almost always subscribe to Post, – newlyweds and new residents. Michael hires two of his classmates to look for such people. He also writes personalized letters to high potential buyers. As a result of these efforts, Michael earned $18,000 that year, more than his school teacher. After graduating from school, Michael went to study at the University of Texas in Austin on a new BMW , bought with the money he himself earned.
Michael is 18 years old Michael, a freshman at the University of Texas, gets his salesman's license and begins selling high-performance computers that he makes himself by upgrading standard computers. He explains to his father that he ultimately wants to compete with IBM and registers the company"PC's Limited".
Michael is 19 years old Michael starts a company"Dell Computer Corporation" with starting capital$1,000. He finishes his first year and leaves the university so that he can devote himself entirely to a new venture.
Michael is 26 years old Michael becomes the youngest in US historyCEO company included in Fortune 500.
Now known as the founder of the personal computer company Dell, Michael Dell was born on February 23, 1965 in Houston, Texas. Since childhood, he has shown considerable interest in everything related to technology and gadgets. When he turned 15, he bought one of the first Apple computers. However main goal This purchase was to disassemble an innovative invention for that time down to the very last screw in order to study the principles of operation as fully as possible. It seems that Michael Dell's success story began at that moment. In college, he began building and selling computers on his own, focusing on Special attention technical support buyers and affordable prices. Dell was able to become the largest company in the personal computer market.
Some facts for those who are always in a hurry
Full name: Michael Saul Dell.
Occupation: Founder of Dell and youngest CEO large company throughout history.
Nationality: American.
Education: University of Texas at Austin.
Net worth as of 2017: US$20.4 billion.
How it all began
Even short biography Michael Dell abounds from the start interesting facts.
Already in the 1980s, he revolutionized the computer business, creating one of the largest corporations at the moment, Dell Computer Corporation (now known as Dell Inc.). From a small operation in a dorm room at the University of Texas, it quickly grew into a huge computer company. Just 8 years after its founding, in 1992, Michael Dell’s photo spread across all popular publications. And for a reason. After all, he became the youngest CEO of a company included in the Fortune Global 500, a ranking that includes the largest (based on revenue) corporations around the world.
However, this success is not unexpected. Since childhood, Dell ignored the attempts of his parents (his mother was a stockbroker, and his father was an orthodontist) to bring his son into the world of medicine. He was attracted by technology and business.
At the age of 12, Michael Dell got a job as a dishwasher in a Chinese restaurant to use the money he received to expand his stamp collection. And after a couple of years, he successfully used his ability to “find mutual language” with data to increase the number of subscribers to the Houston Post.
Intrigued by the growing, growing world computer equipment, at the age of 15 he purchased his first computer. It was a device from Apple. From this moment the biography of businessman Michael Dell begins.
Dell Company
In college, Dell found the very niche that would bring him incredible success. The world of personal computers was just emerging at that time; there was more than enough free space on the computer market. But in order to become successful, you need to stand out in some way. After carefully analyzing all the available information, Michael Dell realized that not a single computer company was yet selling its products directly. By cutting out the middleman and the corresponding price increases, he used his $1,000 savings to start selling computers to his college friends. However, Dell's main emphasis was not so much on the quality of the equipment, but on related services: constant technical support and lower prices compared to competitors. Very soon the business expanded beyond college, and Dell focused on creating his own company.
The results were stunning. In the first year (1984), sales revenue was $6 million. By 2000, Michael Dell had become a billionaire, his company had branches in 34 countries, with a total number of employees of more than 35,000 people. In subsequent years, Dell was able to surpass Compaq, which at that time was the largest in the personal computer industry.
Over the first 20 years, Dell was able to achieve such incredible success, becoming one of the most successful enterprises on the planet, surprising even such giants as Wal-Mart and General Electric with its pace. In 1999, Michael Dell even released the book “From Dell without intermediaries. Strategies that revolutionized the computer industry,” which became a bestseller.
In 2004, Michael left his post general director, handing over the reins to Kevin Rollins. However, he continues to jealously monitor the life of the company and increase his fortune, being the chairman of the board of directors.
Awards and achievements
Of course, the founder of such a large-scale company with amazing achievements could not remain unnoticed. The following achievements are particularly noteworthy:
Already in 1991, the company received an award given to enterprises with the highest ratings among customers.
Michael Dell was named CEO of the Year three times by various American publications: in 1993, 1998 and 2001. Being the head of a large company is in itself no small achievement, but becoming “the best of the best” is worth a lot.
In 2005, he was ranked 18th (among world figures) on the Forbes list.
And in 2013, Dell, which by that time had long since significantly expanded its product range, received the Bower Prize, awarded for business leadership and significant contributions to science.
In addition to awards for his professional achievements, Dell has repeatedly received awards for his human qualities, being a well-known philanthropist.
Personal life
There are many blank spots in the biography of Michael Dell, and they are mainly related to his family. Being a modest and rather private person, Dell does not consider it necessary to devote the press to his family affairs.
In 1989, Michael married Texas native and former athlete Susan Lynn Lieberman. The couple is happy to this day. They have four children: three daughters (Alexa, Kira and Jeliet) and a son (Zachary).
It is also known that Michael Della's wife also manages fashion brand called Phi, and has been featured in Vogue and other fashion industry organizations.
Michael has younger brother Adam Dell, who is involved in venture capital investments. Adam actually began his career as a corporate attorney, working for a private firm in Texas before getting into the venture capital business. Adam is also a visiting professor at the University of Texas School of Law.
In addition to his children, Michael Dell spends a lot of time with his famous niece Krishna Tela Lakshmi-Dell - the daughter of Adam Dell and famous Indian model Padma Lakshmi.
Charity
According to friends, the incredibly shy and secretive Michael Dell was able to come out of his shell thanks to his wife Susan, whom he married in 1989.
In 1999, the couple founded the Michael and Susan Dell Foundation, a large private charity that makes millions in donations to people such as the tsunami victims in South Asia. In 2006, the foundation donated $50 million to Texas State University.
After leaving his post as CEO in 2004, Michael Dell did not go underground. He serves on the board of trustees of the World Economic Forum and the executive board of the International Business Council. He also served as a member of the US Presidential Council, responsible for Scientific research and technology development. He also served on the governing board of the School of Business in India in Hyderabad.
A few scandals
However, these years have not been without negativity. Poor computer design cost Michael Dell's company $300 million in troubleshooting costs. This unfortunate nuisance displaced Dell from its leading position in the industry. In an attempt to improve the situation, Dell returned as CEO in 2007, but the results were mixed.
In July 2010, Michael Dell made headlines by agreeing to pay more than $100 million in fines to settle charges that the company had committed financial reporting fraud by materially inflating its actual earnings, thereby misleading investors about the company's true position.
The current situation of the brainchild of Michael Dell
In an effort to help rebuild the company he founded, Michael Dell announced in February 2013 that he would once again take matters into his own hands. He reached an agreement with Silver Lake Partners, a privately held joint stock company technology company and software giant Microsoft to buy out all of Dell's shares. The deal was valued at between $23 billion and more than $24 billion, making it one of the largest share buybacks in recent history.
According to news reports, Michael Dell believes that this operation will begin a new chapter for the company, customers and employees. Many analysts share Dell's enthusiasm, but believe that the company is still not doing well. However, in recent years, Dell has once again demonstrated its talents by releasing quite competitive models into the tablet and smartphone market.
Founder is among the richest entrepreneurs on the planet famous brand in the IT industry Michael Dell. Quotes from this talented businessman have become the favorite theses of many of those who have taken the path of free activity. Therefore, it makes sense to study the success story of such an outstanding personality.
A brand that everyone knows
Michael Dell - this name should be known to everyone who has at least once set out to buy a good laptop or, in extreme cases, a monitor. Dell Computer Company occupies one of the leading positions in the production of computer equipment. But she was not always famous. Back in 1984, when everything was just beginning, the company's capital was only $1,000. In other words, it all started more than modestly.
Over 20 years of persistent and competent development of his brainchild, Michael Dells was able to bring the company’s assets to a level significantly exceeding the several billion mark. Definitely, this result deserves attention.
Where it all began
Michael Dell, whose biography is replete with interesting facts, was born in 1965 in the picturesque city of Houston. The parents of the future billionaire did not experience financial difficulties, since his father worked as a stockbroker, and his mother had a practice as a dentist. Thanks to this, the boy's childhood was prosperous.
However, the growing Michael was not spoiled with toys, which he, of course, wanted to have. This fact prompted him to independently raise funds for organizing entertainment. At the age of 12, the boy discovered his passion for philately and active trading and exchanging stamps at special auctions. At this stage, Michael had his first idea for a business. It's about about creating your own auction for selling stamps. Young Dell was able to convince several philatelist acquaintances to trust him with their resources and put them up for auction. As a result, with the help of advertising, the aspiring entrepreneur was able to earn $2 thousand.
Later, Dell showed himself again, but this time while fishing. While everyone else was fishing with regular gear, Michael decided to connect several hooks using special weaving and thereby increase the likelihood of a catch. According to the results of the fishing, his catch was the largest. This approach formed the following position in the future owner of a multibillion-dollar company: if you think that an idea is good, be sure to try it in practice.
Formation of an entrepreneur
Michael Dell, sensing the opportunities that smart sales offered, decided to continue earning money while in high school. The city newspaper helped him in this, allowing him to sell subscriptions. This is exactly what young Dell did.
However, he did not use the classic method of walking from door to door. Instead, he decided to take a step aside team game. It looked like this: Michael identified as his target audience newlyweds and hired acquaintances whose duties included delivering the addresses of representatives of the target audience. Next, the aspiring entrepreneur formed a database of contacts and began sending personalized letters to the newlyweds with an offer to receive a two-week subscription to the newspaper as a wedding gift. The result was $18,000 earned.
With these funds, Michael Dell, whose success story was close to a meteoric breakthrough, bought himself a BMW and was able to enjoy driving the legendary car at the age of 17.
But Michael’s parents did not appreciate such a bright entrepreneurial gift and continued to hope that their son would enter a medical university. The influence of his father and mother bore fruit, and after graduation Dell became a student at Texas State University.
Becoming a large-scale business
Studying could not become a worthy alternative to the desire for entrepreneurship, and soon Michael began upgrading computers, increasing their productivity for his own needs. Soon there were customers who also wanted to improve their PCs.
The fashion for personal computers was typical at that time, as a result of which all students wanted to get such equipment. But due to the high cost, they could not afford such luxury. And here came Michael Dell with his ability to see needs and fill them in the most optimal way.
The essence of Dell's idea was to purchase excess components from IBM dealers and subsequently use them to assemble full-fledged computers. Which is what he was doing in his student dorm room.
As you would expect, Michael did not limit himself to the student clientele and placed advertisements in the newspaper. This advertisement offered potential customers the opportunity to purchase computers that were optimized for the user, and, moreover, cheaper by 15% compared to the prices of official dealers. The result was predictable: doctors law firms and businessmen began ordering computers from Michael Dell. The result of this activity was the founding of PC’s Limited. Soon things went so well that Michael left the student path and devoted himself entirely to business. As a result, in 1984 the company was renamed Dell Computer, a brand known throughout the world.
Scaling activities
Michael Dell, whose photo is familiar to anyone interested in business giants, developed his company with rather modest resources. At first he hired just one employee. His responsibilities included financial control and administration. The founder himself was busy modernizing and preparing them for sale.
Thanks to an individual approach to the client’s needs and affordable prices for the final product, the company’s turnover already in the first month of active activity reached $180 thousand, and after two months it exceeded this level by more than one and a half times.
Michael soon realized that the real financial heights lay in creating production of products under his own brand. It was just released at this time new technology, which made it possible to significantly simplify the production process. Having hired one of the IBM engineers for $2,000 for a week and a half, Michael received the first powerful computer, which was released under the Dell brand. Already in 1992, the company's sales level amounted to $2 billion.
Personal life
Dell took a step towards family in 1989 by marrying Susan, who helped him get rid of excessive modesty. Michael Dell received four children as a gift from his wife.
She also participated in the decision-making regarding the founding of a charitable organization, which began its activities in 1999. This initiative has resulted in tens of millions of dollars being donated to various disaster relief efforts.
Conclusion
To sum it up, it’s worth quoting Michael Dell: “The customer cannot simply be satisfied. The client must be satisfied."
The example of this outstanding entrepreneur proves: if you guess the client’s needs and fill them competently, then the financial success of the business will not take long to arrive.
Michael Dell is considered one of the computer industry's legendary heroes, "the exemplar of the American entrepreneur" and "the decade's premier innovator in the computer trade." In 1992, at age 27, Michael Dell became the youngest president of a Fortune 500 company and, by age 31, a billionaire. From a chubby teenager with glasses, by the age of 35, Michael Dell had turned into a physically developed, attractive man wearing contact lenses, preferring healthy food and living in a three-story mansion with an area of almost 300 square meters. meters on his own estate of 24 hectares near Austin, Texas. At the beginning of 2000, Michael Dell owned 14% of Dell Computer common stock worth $12 billion. Company office - modern building made of glass and concrete - located in the suburbs of Austin, in the Round Rock area. Inside you could see unpretentious modest furniture, abstract paintings, diplomas from Michael Dell, stands with magazines dedicated to the company and Dell personally, company awards for his contribution to the development of the computer industry, copies of the company's patents made in bronze, as well as a copy of the first hand-built Delt computer .
In the early days of the company, Michael spent a lot of time with his engineers. They said that he was very shy, and colleagues who knew him closely described him as a pleasant young man who easily got along with people. This is how Michael himself describes the beginning of his activities.
At school and university we were not taught how to start and run a business, so I had to learn a lot on my own. I went by trial and error. The first thing I realized was the connection between the number of mistakes and experience - the more mistakes I made, the faster I learned.
I tried to surround myself with smart advisers and not repeat mistakes. ... Because we were developing very quickly, the situation was constantly changing. We kept asking the question: “What is the best way to do this or that?” and definitely found the answer. For some time, the solution found had an effect, then it became outdated and required adjustments or the search for new approaches.... All our work was one big experiment.
Table 6.2. Summary of financial condition Dell Computer, 1995-2000 ($millions, excluding per share data)
| | 28.01.2000 | 29.01.1999 | 01.02.1998 | 02.02.1997 | 28.01.1996 | 29.01.1995 |
| Financial performance indicators | | | | | | |
| Revenue (net) from product sales | 25265 | 18243 | 12327 | 7759 | 5296 | 3475 |
| Gross profit | 5218 | 4106 | 2722 | 1666 | 1067 | 738 |
| Production profit | 2263 | 2046 | 1316 | 714 | 377 | 249 |
| Net income less special | 1666 | 1460 | 0644 | 0531 | 0272 | 0149 |
| expenses | | | | | | |
| Net profit | 1666 | 1460 | 0644 | 0531 | 0272 | 0149 |
| Earnings per share* less special items" | | | | | |
|
| regular | 0,66 | 0,58 | 0,36 | 0,19 | 0,09 | 0,06 |
| additional | 0,61 | 0,53 | 0,32 | 0,17 | 0,08 | 0,05 |
| Weighted average number of shares outstanding* | | | | | |
|
| ordinary | 2536 | 2531 | 2631 | 2838 | 2263 | 2473 |
| additional | 2728 | 2772 | 2952 | 3126 | 3158 | 3000 |
| Balance data | | | | | | |
| Working capital | - | 2644 | 1215 | 1089 | 1018 | 718 |
| Total Asset Value | 11471 | 6877 | 4268 | 2993 | 2148 | 1594 |
| Amount of long-term debt | 508 | 512 | 17 | 18 | 113 | 113 |
| Total share capital | 5308 | 2321 | 1293 | 806 | 973 | 652 |
* All data on shares and data per share are based on the exchange of old shares for new ones at a cost ratio of 2:1. ** Less special items of 0.01 per common share as of fiscal 1997 end.
Source. Dell Computer Annual Report 2000.
|table(G;G"arch^
28.01.2000 29.01.1399
Assets
Working capital
| Cash and their equivalents | 3809 | 1726 |
| Short-term financial investments | 323 | 923 |
| Net accounts receivable | 2608 | 2094 |
| Reserves | 391 | 273 |
| Other current assets | 550 | 791 |
| Total current assets | 7681 | 5807 |
| Net value of non-current assets (fixed assets) | 765 | 523 |
| Other non-current assets | 3205 | 547 |
| Total assets Liabilities and share capital Current responsibility | 11471 | 6877 |
| Accounts payable | 3538 | 2397 |
| Accrued and other liabilities | 1654 | 1298 |
| Total for current liabilities | 5192 | 3695 |
| long term duties | 508 | 512 |
| Other obligations | 463 | 349 |
| Securing future expenses and payments | - | - |
| Total liabilities Share capital | 6163 | 4556 |
| Capital on preferred shares with a par value above $0.01; shares issued and in circulation: no | - | |
| Capital on common shares with a par value greater than $0.01; shares issued and in circulation: 2543 and 2575, respectively | | 1781 |
| retained earnings | | 606 |
| Other borrowed funds | | -66 |
| Total share capital | 5308 | 2321 |
| Total liabilities and share capital | 11471 | 6877 |
Source. Dell Computer Corporation Annual Report 2000
From the very beginning, we tried to approach everything from a purely practical point of view. I kept asking, “How can I do this or that as efficiently as possible?” As a result, we eradicated the beginnings of bureaucracy in the bud, and this also helped us gain experience.
Constant rethinking of traditional stereotypes has become part of the corporate thinking of our company, and the rapid pace of its development has instilled in our employees a spirit of camaraderie and the ability to overcome difficulties.
We constantly set ourselves difficult tasks, tried to surpass ourselves and better satisfy the needs of our customers; whenever she appeared ahead new goal, we had no doubt that we would achieve it. Victory gave brief moment respites and celebrations, we congratulated each other and again rushed into battle - this time for new goals.
In 1986, when the company began to lack management and financial experience, Michael Dell brought in 51-year-old Lee Walker, who had extensive experience with risky investments, as president. Lee Walker was a father figure to all the company's employees, knew everyone by name and provided brilliant internal support for Michael Dell's ideas for the development of the company. Mr. Walker became Michael's mentor, instilling in him self-confidence and management skills, teaching him to transform his intuitive entrepreneurial instincts into effective business plans and activities, and finally, he made Dell a strong and skillful manager. Under the leadership of Lee Walker, Michael Dell successfully learned all the intricacies of business, overcame his natural timidity, perfectly comprehended the science of managing a rapidly growing enterprise and turned into a charismatic leader who knows how to convince, inspire and lead, to achieve recognition and respect. After the company was transformed into a public company in 1988 Joint-Stock Company the same Lee Walker helped Michael Dell select outstanding and experienced specialists for the Board of Directors. However, in 1990, Mr. Walker had to leave the company due to deteriorating health, and Michael Dell turned to Morton Meyerson, the former chief executive of the corporation and head of Electronic Data Systems, for help. M. Meyerson's sound advice helped Michael transform Dell Computer, a fast-growing midsize company, into a multibillion-dollar powerhouse.
Michael Dell, although he sometimes gave the impression of being an impatient man, always spoke in a quiet, thoughtful voice and looked like a wise man and a mature leader beyond his years. His strong point was not a brilliant technical education, but a successful combination of entrepreneurial instinct, good technical knowledge and marketing flair. By the late 1990s, he had become a sought-after speaker at industry and corporate conferences. (In 1997, he received 100 invitations to such events, in 1998 - 800, and in 1999 - over 1200.) Michael Dell is considered an experienced speaker, and captains of the computer business listened to his opinion on the future of the computer industry, the development of the Internet and e-commerce , and business leaders around the world. Usually his speeches contain a lot useful information about the Dell Computer business and the benefits of using electronic technologies to conduct business. One USA Today article even called Dell the "e-business guru" as CEOs around the world watch with bated breath as he harnesses the power of the Internet and improves Dell Computer's efficiency by integrating e-commerce into the company's daily operations.
Michael Dell is considered a very successful leader and an excellent example for aspiring managers, since he achieved everything that many of them strive for. He willingly delegates authority to subordinates, believing that the best results are obtained when “talented people who can be relied on have enough freedom to carry out their duties.” Business partners They consider Michael an energetic leader who knows how to take risks and plays the game on the brink of a foul. In addition, Dell selects people of approximately the same type into its company, who form an active, committed spirit competition, bright corporate culture Dell, imbued with an awareness of the company's mission and goals. Employees especially appreciate Michael Dell for his constant and vigilant attention to all details - this quality is called by the company employees with the humorous term “Michael management”.
Business philosophy according to Michael Dell. Over the years since the founding of the company, Michael Dell has fully developed an understanding of the principles of managing a company in a rapidly changing and rapidly developing market. His experience at Dell Computer and working with customers and suppliers helped him develop his own leadership style. The following statements give an idea of his theory and business practice.
Believe in your business. If you have truly valuable ideas, don't listen to those who predict their failure, and surround yourself with people who support your views.
It is very important to know what to do, but it is equally important to know what not to do.
We have introduced profit and loss based management practices. By requiring detailed profit and loss statements from each division, we gain invaluable information needed to manage such a complex business. As a company grows, it becomes increasingly dependent on reliable information, including profit and loss information. Information is the key to almost everything we do.
Growth for us means finding ways to combine our signature informal style and “do what you want” approach with the requirement to “do the best we can”; It is precisely this combination, in our opinion, that ensures the growth and development of our company. This means incorporating the lessons we learn from analyzing profit and loss data into our daily operations. This means that all our employees must embrace the shareholders' perspective. This means following Dell's three core rules: don't stockpile, always listen to the consumer, and don't sell through middlemen.
I have always strived to surround myself with talented people. The head of a company, regardless of its size, cannot do everything himself. But the more smart people you have at your disposal, the more productive both you and your company will be.
The success of a company is always determined by strategy and ideas, and it should not depend on the capabilities of the people leading it. ...Developing new business, rely on the knowledge of people who already have experience in such matters: they know a lot of things that you don’t even suspect.
The key to the success of any company is the correct distribution of forces. The focus needs to be not on achieving power - because your personal power has nothing to do with the interests of shareholders and consumers - but on achieving strategic goals. An atmosphere of mutual respect should reign in the company, and communication between employees should be close enough so that there is complete unity of views on the company's key issues.
I have twice deliberately reduced my field of activity. The first time was in 1993-1994, when I realized that there was too much work and too many opportunities for me to cope with everything alone.... This is one of the reasons why I invited Mort Toepfer to the position of vice president companies. ... The company was growing, and I again felt it was time to redistribute responsibilities. In 1997, we promoted Kevin Rollins to the post of chairman of the company, who had previously been one of the leading managers of our team for a year. The three of us run the company.
Simply attracting and satisfying the client is not enough; try to give the client more than he expects - and not just once, but again and again. I spend approximately 40% of my time around consumers. ... Clients know that I don’t expect false enthusiasm or assurances of our superiority from them. By the amount of time I spend with them and the questions I ask, they know that I only want to know the truth. They understand that my goal is to get new ideas from them that will make our collaboration with them even more meaningful.... If you constantly offer best products and services and create a deep sense of satisfaction in your customers, you gain their respect and loyalty. By doing more for your customers than they expect (consistently!) and improving the quality of your products and service, you create strong brand loyalty. But you can go further and give the customer an unforgettable overall experience, and then you will win them forever. Our daily goal is for every customer to say: “Yes, you should only buy computers from DelP.”
Today, life requires quick decision-making and does not leave time for long thoughts. And although we always try to do right choice, I believe that it is better to be the first, risking being wrong, than to be completely sure that you are right a couple of years later. However, it is impossible to quickly make the right decision without information. Information is the basis of any competitive advantage, however, it does not appear by itself. We have to hunt for her. I do this all the time. I don't like planned responses, I prefer spontaneous reactions and comments.... I like to be next to an employee who is stumped by a customer's question and help with the answer (if I have one).... To communicate with people, I show up at the factory unannounced, I communicate with customers in trading floors, I have to see everything with my own eyes. Two or three times a month I meet with employees at their workplaces during lunch breaks, I communicate with all categories of company employees. Dell Michael Saul
Michael Saul Dell, also known as Michael Dell- American businessman, founder and permanent leader of Dell Corporation. Born February 23, 1965 in Houston, Texas (USA).
Biography
Michael Dell was born into an Orthodox Jewish family on February 23, 1965. The family was prosperous, if not wealthy. Michael's father, Alexander Dell, worked as an orthodontist, while his mother, Lorraine, was a good broker. Professionalism and some life skills of his parents allowed Michael's family to rise to the very upper limit of the middle class. This gave the Dells every reason to believe that their life path model was a win-win, and they persistently advised their son to go into the medical field. It is strange that Lorraine shared her husband’s opinion, because even as a child Michael showed independence of thought, perseverance and entrepreneurial acumen.
At age 8, he decided to skip high school high school– there are, they say, enough important things in life – and he applied for a document on correspondence complete secondary education. An equally amazing story happened with 12-year-old Dell while fishing. While the elders were busy fishing, Michael sat on the shore and patiently weaved intricate gear from the line, capable of carrying dozens of hooks at once. Wise adults laughed at him, saying: “Why are you doing nonsense, we didn’t come to work, but to relax, and anyway nothing will work out.” Stubborn Michael believed that he knew better. He finished only by lunchtime. However, when it was time to leave, it turned out that he had caught more fish than all the others combined. Since then, in any life circumstances, Dell has followed the rule: “If you think an idea is good, be sure to try it in practice.”
A few years later, Michael had another good idea - to trade stamps by placing advertisements in philatelic magazines. Very quickly he earned $2 thousand and bought his first computer, which he immediately took apart to see how it worked.
Later, grown up Dell, a high school student, decided to earn extra money by selling subscriptions to the city newspaper Houston Post. By that time, he, apparently, had already quite clearly formulated his life credo: “It’s not so important what you sell, but rather how you do it.” He didn't go door to door. It occurred to him that the newlyweds were an ideal target for his direct marketing. With his own money, he hired friends who got him the names and addresses of newly engaged people. Michael entered them into his computer and sent each couple a personal, not standard letter, offering a free two-week subscription as a wedding gift. This time Dell earned $18 thousand and bought a BMW. The car salesman was almost speechless when the 17-year-old boy pulled the entire amount of cash out of his pocket.
Business concept
The company's first employee, besides Dell himself, was a manager who handled finance and administration. Undoubtedly, the company needed advertising. Dell made his first sketch of the Dell Computer on an empty pizza box. A friend copied it onto paper and took it to the newspaper. Dell continued to specialize in direct marketing of IBM PCs, to which he added the bells and whistles that were fashionable among users on the market. this moment. Dell's philosophy has already been established: "Sell the user not what is lying around in the warehouse, but what he needs. And cheaper than others." Thus, if Dell did not cross out from production process the concept of “warehouse”, then transferred it from a key position to a tertiary one. As orders came in, Dell looked for the right parts to equip each specific machine. As a result, in the first month of operation, sales reached $180 thousand, in the second - already $265 thousand. None of the “whales” of the computer business paid attention to the revolutionary nature of the self-taught entrepreneur’s methods. Meanwhile, a year later, Dell is already selling a thousand PCs a month, hiring more and more employees, but components are still ordered as needed, and the profit margin is growing. Thus, a new model for efficient production structure appeared on the American market. And it wasn’t just the “lightweight” warehouse and low price: it wasn’t a task to figure that out. Dell Computer was a small company and, if only for that reason, it should have loved its users more than the “whales” with billions in turnover. Dell decided to “heat up” the love for the user to an unusually high degree for that time - and not lower it any further.
First, unlike other manufacturers of the time, Dell gave its customers a money-back guarantee. Secondly, he understood that a computer is not a luxury, but a “means of transportation”, so in case of a breakdown, he guaranteed instant service the next day, and later introduced a 24-hour toll-free line for users so that they could talk directly to computer specialists (90 percent " breakdowns,” according to Dell, are eliminated after a five-minute telephone consultation with a knowledgeable person). Thirdly, constant telephone contact did not allow Dell to break away from the aspirations of a simple user. “My competitors developed products and then told users what they needed, instead of first understanding what the market needed and then producing” - this is how the head of Dell Computer Corporation, third in the world ranking of manufacturers, denounces the bad “whales” computers (after IBM and Compaq). On the day Michael Dell would have graduated from college, his company's worldwide sales grew to $70 million a year. Dell stopped selling computers from other manufacturers and began to “promote” its own brand. However, at some point, life proved to Michael Dell that a corresponding diploma is not a useless thing. He turned out to be overly talented as an entrepreneur and “grew” so quickly that he “hit his head on the ceiling,” and quite painfully, and the company he created, not cemented by experienced, certified managers, suddenly began to crumble before his eyes under its own weight. The stock price, which jumped from 23 cents in 1990 to $40 in 1992, fell several times. For some time, Dell was simply in a panic: “Every day I heard bad news, I expected the next one to be even worse.” However, the talented businessman quickly pulled himself together, remembering what he knew, and, firstly, immediately curtailed sales through stores: “Our business is to sell cheap and high-quality computers directly into the hands of the buyer,” and secondly, lured several leading managers of the “whales” of the global computer industry (Apple, Motorola, IBM, Tricord). After which he came out to the public and declared: “We are not just going to survive in computer wars. We are going to thrive.” And he turned out to be right.
Other activities
Dell, who chose his own independent path, was able to earn a fortune equal to 12.3 billion US dollars. These data are correct as of early 2009 and are provided to Forbes readers. However, Dell's interests are not limited to just making money and dispersing computer hardware around the world. In particular, in 2005, the Dells donated 250 thousand US dollars ( maximum amount subsidies) for the second inauguration of President George W. Bush. Like most wealthy Westerners, Dell donates a lot to charity. For example, the Dells donated $50 million to the University of Texas (the same one that Michael Dell never graduated from) in May 2006. This grant allowed the organization and construction of three new faculties with additional buildings and extensions.
Family
Michael Dell still lives in Austin, Texas (USA), where he was born. This person is distinguished by amazing constancy. Dell is still married to one woman - Susan. They have four daughters: Kira, Alexa, Zachary and Juliet.
Michael Dell and his wife Susan
- Being a “true American” brand, Dell tries to maintain the brand using the most radical methods. In particular, Michael Dell has an irreconcilable feud with the famous Steve Jobs. Both CEOs, during serious interviews or events, try to stick the needle into a competitor. The first to start the war was Jobs, who condemned Dell for the same type of boring cases that come with the solutions of the famous brand. In response to this, M. Dell, when asked by journalists what he would do first if Apple belonged to him, answered with characteristic sarcasm: “First of all, I would close it and distribute the money to shareholders.”
- At the age of 19, Michael Dell felt that college was interfering with his computer business, dropped out and concentrated on developing his company. By the time Michael Dell would have graduated from college, his company's worldwide sales had grown to $70 million a year.
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