...(Place the Customer at the Epicenter of the Business Model) and chapter 5 (Prepare the Organization for Drastic Change), we can see a totally different leadership style, challenges they faced, how they were able to overcome them, and their contributions to assuring the viability of their respective organizations by Michael Dell and Andy Grove. Michael Dell, the founder and Chief Executive officer of Dell Computers believed that it is very important to work closely with the customers so that their individual needs are identified upfront. Andy Grove, another computer industry giant, a cofounder and former Chief Executive officer of Intel believed in his mantra that “only the paranoid survive” (Krames, 2003, p. 135) which according to Krames, gave him the foresight to build his company and have a lucrative career because of his skepticism about competitors. Comparison of Michael Dell of Dell Computers and Andy Grove of Intel Michael Dell as a young man has thought of himself as an entrepreneur and learned that in order to build a successful business; you must develop a strong and “direct relationship with the customer” (p. 58). According to Mr. Dell, “From the start, our entire business from design to manufacturing to sales was oriented around listening to the customer, responding to the customer, and delivering what the customer wanted” (p. 59) is of great importance because that contributed immensely to his success because his primary focus was directed towards his...
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...Comparison and Contrast of the Professional Stories of Michael Dell and Andy Grove Melissa A. Honea Northcentral University ABSTRACT Michael Dell and Andy Grove were both successful businessmen who use different approaches to their businesses. Both men had success and failures that shaped their business into the successful company’s they are today. Michael Dell tried a new approach to his business that he quickly saw was a failure. He realized that the approach he currently uses is the most successful for his company. Andy Grove made his company successful twice. While in the memory business he had 100 percent of the market share. He learned a hard lesson when his company was pushed out of its market share by competitors. The company had to quickly find a new niche. After three years, the company was successful again. Comparison and Contrast of the Professional Stories of Michael Dell and Andy Grove Michael Dell Michael Dell became an entrepreneur at the age of 12 when he advertised his business “Dell Stamps” in a local trade journal. While in college, Dell turned his dorm room into a personal computer laboratory and started selling them. In 1984, Dell started Dell Computer Corporation. In 1988, the company went public raising $30 million at its initial public offering (Krames, 2003a). Dell’s philosophy is to put the customer at the center of his business. All computers are custom ordered by the customer. The production process does...
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...Michael Dell and Andy Grove 1 Comparison and contrasting of two industry legends: Michael Dell and Andy Grove James K. Gornto Northcentral University TWO INDUSTRY LEGENDS: MICHAEL DELL AND ANDY GROVE 2 Abstract Dell and Grove are two computer industry legends and both experienced the ultra highs of being the head of companies that were industry leaders and the gut wrenching lows of managing those same companies through periods of crisis that could have lead to destruction. Michael Dell from his beginning of making and selling computers from his college dorm room directly to becoming CEO of Intel , the number one computer selling market share position company worldwide, always placed the customer at the epicenter of his business model. Andy Grove at one point in time was CEO of Intel, which had a 100% market share of the world’s computer memory business and he witnessed that position erode to the brink of corporate bankruptcy. Grove utilized the outside approach to develop the business strategy that would twice save Intel from disaster. TWO INDUSTRY LEGENDS: MICHAEL DELL AND ANDY GROVE 3 Comparison and contrasting of two industry legends: Michael Dell and Andy Grove ...
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...pre-med student at the University of Texas, Dell started an informal business putting together and selling upgrade kits for personal computers[10] in Room 2713 of the Dobie Center residential building. He then applied for a vendor license to bid on contracts for the State of Texas, winning bids by not having the overhead of a computer store.[11][12][13] In January 1984, Dell banked on his conviction that the potential cost savings of a manufacturer selling PCs directly had enormous advantages over the conventional indirect retail channel. In January 1984, Dell registered his company as "PC's Limited". Operating out of a condominium, the business sold between $50,000 and $80,000 in upgraded PCs, kits, and add-on components. In May, Dell incorporated the company as "Dell Computer Corporation" and relocated it to a business center in North Austin. The company employed a few order takers, a few more people to fulfill them, and, as Dell recalled, a manufacturing staff "consisting of three guys with screwdrivers sitting at six-foot tables". The venture's capitalization cost was $1,000.[14][15] In 1992, aged 27, he became the youngest CEO of a company ranked in Fortune magazine's list of the top 500 corporations.[16] In 1996, Dell started selling computers over the Web, the same year his company launched its first servers. Dell Inc. soon reported about $1 million in sales per day from dell.com.[17] In the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent...
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...I will discuss the similarities and differences between Michael Dell and Andy Grove. Both are CEOs of fortune 500 hundred companies. Michael Dell is the Founder of the Dell Computer Corporation while Andy Grove is a co-founder and former CEO of Intel. The purpose of this paper is to discuss, dissect and explore the business style of these two CEO and the contributions they made to their organizations and the business community. The source of my information will come from the book What the Best CEOs Know, 7 Exceptional Leaders and their Lessons for Transforming any Business. (Kames, 2003) Michael Dell, who at the age of 12, started his entrepreneurship by placing ads for Dell Stamps in the local trade journal. Later while in college, Michal turned his dorm room into a computer making business where he made and sold computers. Remembering a lesson he learned earlier in life; take your product directly to the consumer. Michael used a direct model approach. By eliminating middlemen and intermediaries, Dell created a one on one relationship with the customer and the company which led to a very successful organization. (Kames, 2003, P.59) The Dell Corporation was created in 1984. Formed in the 1968, Andy Grove was co-founder, served as president, chairman and CEO of Intel from 1979 to 1998. Under Grove’s leadership and guidance Intel became the largest computer chipmaker in the world. Considered a legend in his field by many of his peers, he coined the phrase Strategic Inflection...
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...(Krames, 2003). Chapters two and five cover Michael Dell from Dell Computer Corp and Andy Grove from Intel Corp, respectively. We will look at five topics including their main contributions, resistance encountered, similarities, differences, and significant factors. Michael Dell knew as a young man it was critical to focus on customer needs. His concept of cutting out the “middleman” to improve information flow was genius and not common to the computer industry (Krames, p. 58). Dell’s strategy of listening, responding, and delivering on customer needs proved very successful. The CEO talked to customers as often as possible and used technology to his benefit (Krames, p. 61). The Internet was used extensively to reach customers globally for ordering, demand forecasting, and to gain product feedback. Dell’s efficient use of technology and the direct marketing model minimized overhead. The cost efficiencies gained were passed on to the consumer and helped quickly differentiate Dell from its competitors (Krames, p. 62). These concepts also helped Dell remain responsive and agile as they grew exponentially. The CEO was successful at inspiring his workforce and organizing around the customer (Krames, pp. 68-70). As an example, the Small Business Sector was originally established to cater to the small business and small office markets. As these grew they eventually split. Because Dell stayed laser focused on customer needs, his company ...
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...The Differences and Similarities of Two CEO’s There are many computer companies in the world. Two men who have made contributions to the field are Michael Dell and Andy Grove. Michael Dell is the founder and CEO of Dell Computers. Andy Grove the former CEO and cofounder of Intel. How these two men got started in their perspective fields and the obstacles they have overcame to make their companies on the Fortune 500 list. We will compare their styles, changes they made, and how they kept their companies on top of their perspective fields. Michael Dell started his computer company in college dorm room (Krames,2003). He spent most of his high school years hanging out at the Radio Shack and piecing computers together for fun(Krames, 2003). He began selling the computers he built in 1984 and three years later started Dell Computers. He makes computers based on what the customer orders, builds the machine, and then delivers it to the customer (Krames, 2003). Andy Grove is a cofounder and former CEO of Intel (Krames., 2003). He started making memory chips and then decided to reinvent the company into microprocessors, the thinking chips, to keep up with changing times (Krames, 2003). Andy Grove and the Intel group wanted to make a chip that could increase the function but not increase the cost (Krames, 2003). They did well until the Japanese started doing it better and cheaper (Krames, 2003 They had to readjust their thinking. They started making the...
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...and Failures of Two Professionals Michael Dell is the founder and CEO of Dell Computer, and by the age of 27 he was the youngest CEO of a fortune 500 company. When Michael Dell first started out with Dell Computers his focus was with the sale of personal computers (Krames, 2003). Dell later began to manufacture other computer products. Dell believed that taking care of the customer should be the primary focus and he worked hard to ensure that plenty of input came from them. He always felt that there was no need for a middle man, which is what help him to make his relationship personal with his customers. By developing a personal relationship with his customers he was able to easily develop products customizing them to order (Krames, 2003). Another way that Dell was able to maintain its success was through price. Dell learned early on that in order to maintain a profitable competitive advantage was to make quality products and to be able to sell them at a low price (Krames, 2003). Dell’s company learned to forecast its products which helped them to limit waste and capitalize better profits for their products. By customizing products to order and eliminating the middle man it allowed Dell to reap even higher profits even though he was selling his products at a low competitive price (Krames, 2003). Some resistance that Dell felt was from its competitors for having such a low price. Some of Dell’s competitors believed that Dell was starting a price war. Other resistance factors...
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...Krames (2003) is very enlightening an intuitive. Michael Dell according to Krames (2003) believes in the power of the customer, be it their positive or negative feedback, but especially in what the customer wants from a product (p. 56). Michael Dell birth a business model based solely on a one-on-one relationship with customers is the foundation of his company the Dell Corporation. Andy Grove’s model mandates protection or maximization of sales opportunities so to be prepared for all possibilities of success or failure which he based on Time magazine’s 1997 person of the year Andras Grof paranoid perspective (Only the paranoid survive) (Krames 2003, pp. 66-67). Business partner Moore’s metaphorically likened their organization to that of a three legged stool, if one leg is off balance so is the entire organization (Krames 2003, pp. 137-139). Lastly, Grove named the fear of an organization being on the brink of total failure as a “strategic inflection point” (SIP) which he describes as an organizations face-to-face with massive must change events even to a point of complete organizational failure (Krames, 2003, p. 141). Resistance Comparison Michael Dell organization encountered near death when the brilliance of his technical engineering team and himself put together a massive computer (The Olympic) that customers had no real need for, which in-turn caused a huge financial loss to the Dell corporation. Michael Dell went back to basics which involved customers from the beginning...
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...to look at are, Michael Dell and Andy Grove. Comparing people’s contribution to the information technology filed, along with identifying resistance each encountered, will help understand how they promoted their research, ideas, or programs. Noting any similarities between these two professionals will help point out their differences they may have. It will be helpful to look at their environmental, professional, and personal factors, which may have affected their success. Contributions to the field Michael Dell’s contribution to field was consistently shaping customer value. The business community defines customer value, as customer satisfaction and repeat customers. Product planning is important to the overall success of any business because it allows you to understand your customers’ needs and wants. Potential customers are just as important as current customers in any successful business in order to stay ahead of the competitive edge (Krames, A.J. 2003). Andy Grove’s contribution to the field was far different from Michael Dell’s. Grove’s contribution was to develop the outsider perspective. An outsider perspective is defined by studying your organization as a competitor and looking at your company as an outsider would. This concept was used by Grove to help turn Intel’s downward spiral around. The Foreign competition was able to create the same product with better quality and lower cost (Krames, A.J. 2003). The Resistance Grove may have felt resistance...
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...stories started with an entrepreneur, an idea, and a business loan. Michael Dell (Dell, Founder and CEO) and Andy Grove (Intel, Cofounder and CEO) success’ stories were no exception. Michael Dell launched his company in 1984 with a unique business model known as” mass customization” (Krames, 2003, p 59) or a “one-to-one” (Krames, 2003, p 59) between customers and company. The company delivered what the customers exactly want with “rock-bottom prices” (krames, 2003, p.59). With no margin paid to distributer or middleman. Dell increased customer savings while keeping a healthy profit margin. Dell’s business success continue to grow, four years later the company went public and Michael Dell at age 27 was named the “Youngest CEO” of a Fortune 500 Company. The second CEO and cofounder of Intel Andy Grove and other two engineers launched their company in 1968 with the invention of microprocessor that revolutionized the industry. Andy Grove dominated the market with little or no competition until 1984 when a Japanese company which provided the same products took over the market by lowering their prices, after trying almost everything, Andy Grove and his top managers decided to leave of the memory chip business and switch to solely microprocessors ship. They went on to build the world’s largest chip-making business (Krames, 2003, p 135) Along the way, both CEOs faced some challenges. In 1980 Andy Grove had to make a crucial decision when he decided it is time for the company to make...
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... Introduction This research identifies two business professionals, Michael Dell and Andy Grove; their main contributions to their fields; the resistance that each encountered in presenting and furthering their programs; the similarities and differences in their stories; and finally, the factors that may have impacted their success. Michael Dell Michael Dell is founder and CEO of Dell Corporation, a fortune 500 company which was the number one stock of the 1990s, soaring almost 90,000 percent (Krames, 2003, p. 58-59). Dell discovered his entrepreneurial abilities early in life when at 12 years, he issued his first product catalog, the Dell Stamps (Krames, 2003, p. 58). Dell has contributed positively to the technological industry by not only building computers, but also showcasing his outstanding entrepreneurial abilities. Through mass customization, Dell revolutionized the industry. According to Draft (2013), “mass customization refers to using mass-production technology to quickly and cost-effectively assemble goods that are uniquely designed to fit the demands of individual customers” (p. 31). Mass customization enabled Dell to achieve significant savings by eliminating intermediaries. Through customer segmentation, Dell was able to determine the needs and specifications of customers, while forecasting the demand. What is unique about this strategy is that, Dell was able to prove that, companies can be successful with mass customization only when the...
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...Michael Dell and Andy Grove are two of America’s leading CEOs. The nature of this paper is to compare and contrast these individuals on several elements such as their similarities, resistance and contribution to their respective organizations, and to discuss what factors impacted their success. Contributions to the field At a young age Michael Dell showed his entrepreneurial skills by starting a stamp catalogue business and again in college by starting a computer business from his dorm room. This led him to become the youngest CEO of a Fortune 500 company in the early 1990s. Michael Dell was instrumental in getting his organization to use the direct model of “mass customization” (Krames, 200, p. 59) thus giving the customer what they wanted, not what they think they wanted. Along with the revolution of the internet Michael Dell used that medium to his organization’s advantage and did so with great success to this day. Andy Grove at a tender age turned out to be an exceptional individual, and he overcame several factors outside of his control and was still able to become one of America’s most successful immigrants. His contribution to his organization still continues to evolve and grow especially his vision of continuous change. Andy Grove’s definition of a Strategic Inflection Point (Krames, 2003, p. 140) is change so big that no one knows what the change is, but the organization had to adapt to this change. Encountering resistance In 1989, Michael Dell met with...
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...Comparison of Michael Dell and Andy Grove as successful entrepreneur Michael Dell in his early life thought himself as an entrepreneur and realized that the key to build a successful business is to develop a strong and “direct relationship with the customer” (p. 58). He executed his first business lesson about developing a direct relationship with the customer when he issued his first product catalog at the age of 12 and advertised that in local trade journal. In 1984, he started his own business and started selling his personal computers. His main focus was to reduce any intermediaries and to satisfy customers’ expectation by placing “the customer at the epicenter” (p. 55). He used the leverage of the power of the internet, email, phone calls and faxes to gather all the information regarding customer choice and preference. Dell experimented once by trying to sell his products with an indirect approach but soon learned his lesson and promised not to steer away from the company’s original vision. The company’s strategic approach to success was to use a ‘bottom-up’ tactic instead of ‘mass customization’ based on customers’ demand. Dell manufactured products after they had received the order from their customer. This strategy gave them a competitive advantage over other companies on determining their customers’ wants and preferences. In addition to their competitive advantage, the strategy also helped the company with inventory backlogs and cash flow problems. Hence the childhood...
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...Comparison and Contrast of Two Innovative Business Professionals and Their Models: Customer Epicenter versus Paranoia Survival Jules Prendergast North Central University BTM7101-8 Activity 3 Author Note This developmental paper is being submitted on May 26, 2013 for Professor Cozine’s BTM7101-8 class. The contents of this paper reflect the author’s perspective on relevant information provided through articles Abstract The main emphasis of this paper is two fold. First, the content is used to express the author’s perception through use of the compare and contrast writing methodology between two key businesses professional and their impact on the business practices. This is accomplished by preparing a summary of their professional contributions, discussion of their encounter and subsequent success from specific challenges, as well as a discussion of their similarities. The final portion of this paper emphasizes distinct differences between each and concludes with the key factors, which impacted their individual successes. The second key part of this paper is to address the learning and follow on use of appropriate APA (American Psychology Association) formatting and correct usage of paraphrasing. Keywords: customer, leadership, and APA format Comparison and Contrast of Two Innovative Business Professionals and Their Models The world is built around sociological implementation of economic...
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