In 2005 Dell, Inc. has become one of the most viewed. On February 2005, Dell appeared in first place in the order of "most proud of Companies" by Fortune magazine.
Origins and Evolution
Michael Dell, who was studying at the University of Texas, Austin in 1984 founded a company PC's Limited with an initial capital of $ 1000.
Company that was originally run from outside the campus area precisely in a dorm room at Dobie Center, the seller has the original purpose as IBM-compatible computers are assembled from components that have been provided.
Michael Dell started trading in the belief that selling computers directly to customers, PC's Limited could better understand customers' needs and provide effective solutions to meet those needs. Michael Dell dropped out of school in order to more memfocuskan themselves against the growing business.
In 1985, the company produces (in Zimbabwe) first computer which was named "Turbo PC". The computer that is the result of his own design using the Intel 8088-compatible processor running at a speed of 8MHz. Computer systems are offered through a national computer magazines for sale directly to consumers.
Although not the first company to use this model, PC's Limited became one of the first companies to succeed with the business. The company grossed more than $ 73 million in the first year.
In 1989, PC's Limited operates the program on-site-service (service in place) the first time instead of the usual service provided by local retailers.
Also in 1987, the company began operating in the UK, followed by 11 other countries in the period of 4 years. In 1989, the estimated market capitalization grew from $ 30 million to $ 80 million from its initial public stock offering (initial public offering) of 3.5 million shares at a price of $ 8.50 per share.
Then in 1988 the company changed its name to "Dell Computer Corporation" In 1990, Dell Computer Corporation tried selling its products indirectly through warehouse-clubs and computer-superstores, but obtained unsatisfactory results, and re-focus on business models selling products directly to consumers. In 1992, Fortune magazine included Dell Computer Corporation in its list of world's 500 largest companies.
In 1996, Dell began selling products over the internet.
In 1999, Dell took over Compaq Personal Computer and became the biggest seller in the United States with revenues of $ 25 billion according to a report in January 2000. To complement the expansion beyond computers, the shareholders agreed to change its corporate name to "Dell Inc.." the company's annual meeting in 2003.
In March 2002, Dell tried to enter the multimedia market and home-entertainment with the introduction of televisions, handhelds, and digital audio players. Dell has also produced Dell printer for home users and small offices.
Michael Dell stepped down as CEO on July 16, 2004, but retained his position as Chairman of the Board of Commissioners. Kevin Rollins, who has held various executive positions at Dell company, was appointed as the new CEO.
On December 22, 2004, the company announced it would build a new assembly in the Winston-Salem, North Carolina; the city and county to provide an incentive package of $ 37.2 million for Dell; the United States provides $ 250 million in incentives and tax reductions.
In January 2005, the contribution of sales from international markets in the second quarter of fiscal 2005 increased, according to the announcement that the company disclosed.
In February 2005, Dell appeared first in the list of "Most Respected Companies" issued by Fortune Magazine.
In November 2005, the magazine BusinessWeek issue's article "It's Bad to Worse at Dell" which contains about the inability of Dell in meeting the target estimate of revenue and sales are worse than expected on the financial performance of the third quarter, a bad sign for a company that always appreciate low revenues.
Dell acknowledged that faulty capacitors on the motherboards of the Optiplex GX270 and GX280 had already cost the company $ 300 million. CEO Kevin Rollins partially blamed the poor performance of the company's focus on low-end PC.
On March 23, 2006, Dell purchased the computer hardware manufacturer Alienware. The plan, Alienware continuing to operate independently under its existing management. Alienware expected to benefit from Dell's efficient manufacturing process.
On January 31, 2007, Kevin Rollins, CEO mejabat company since 2004, resigned as CEO and Director of the sudden. Michael Dell back in as CEO of the company. Investors and many shareholders had called for Rollins' resignation because of poor company performance.
At the same time, the company announced for the fourth time in five quarters, earnings would fail to achieve a predetermined analyst forecasts.
In February 2007, Dell became the subject of formal investigations by the U.S. SEC and U.S. Attorney General of the Southern District of New York. The Company has not formally filed financial reports on the third or fourth quarter of fiscal year 2006, and some action lawsuits that are the result of (poor) performance of the recent fiscal (2007).
The lack of formal financial statements could result in a company excluded from the list of NASDAQ, but Dell is responding to the possibility that stock trading can probably continue to do normally.
On March 1, 2007, Dell issued a preliminary quarterly earnings report which showed gross sales of $ 14.4 billion, down 5% from the previous year, and net income of $ 687 million (30 cents per share), down 33%.
Net earnings would have declined even more if not for the elimination of employee bonuses, which accounted for 6 cents per share. NASDAQ has extended the deadline for filing financials to May 4.
Dell and AMD
On August 17, 2006, Dell released to the press that began in September 2006, Dell Dimension desktop computers will use processors from AMD and at the end of the year Dell would release a two-socket, multi-processor server with AMD Opteron processor, the processor switches from Intel as usual Dell in previous years.
CNet News.com on August 17, 2006 suggests that Dell CEO Kevin Rollins, Dell is the man behind the move to AMD processor technology to achieve cost effectiveness. Senior VP of AMD's commercial business, Marty Seyer mengantakan "Step Dell offers products that are based on AMD processor is a win for Dell, the industry and more importantly for Dell customers."
On October 23, 2006, Dell announced two new servers berbasikan AMD - the PowerEdge 6950 and PowerEdge SC1435 - as a sign of berbasikan AMD entered the server market.
On 1 November 2006, Dell began offering Website notebooks with AMD processors (the Inspiron 1501 with a 15.4 ") with a choice of single-core MK-36 processor, dual-core Turion X2 chips atao Mobile Sempron.
Dell and Linux
On February 26, 2007, Dell announced it has initiated a program to sell and distribute computers with Linux pre-installed first. Dell indicated that Novell's SUSE Linux to be used first. However the, on February 27, 2007 Dell said it had no plans to sell computers with Linux teristall associated with the announcement that had been previously announced. On March 28, 2007, Dell announced it would begin marketing a desktop and laptop computers with Linux preinstalled, but no definite clues about the distribution of Linux or which hardware to use.
According to our institution Dell, founder of Dell, Michael Dell uses GNU / Linux distribution Ubuntu 7.04 Feisty Fawn on his laptop. On 1 May 2007, Dell announced it will market products that use the Linux distribution Ubuntu. On 24 May 2007, Dell began selling laptop computers economic class, and upper-class PC running Linux Ubuntu 7.04
The return of Michael Dell
As the title above, Michael Dell returned as CEO on January 31, 2007. As Chairman of the Board of Commissioners, Michael Dell has provided significant input into the company's operations when Rollins was still serving as CEO. The return of Michael Dell as CEO to bring immediate changes to the company's operations, the departure of several senior vice-president and the influx of new people into the company. List of leaders who had left the company:
Kevin Rollins, CEO
James Schneider, CFO
John Medica, senior vice president, consumer products
Joe Marengi, senior vice president, Americas
John Hamlin, senior vice president, worldwide operations online
Paul McKinnon, senior vice president, human resources
Rosenda Parra, senior vice president / general manager, home and small business group
Glenn E. Neland, senior vice president, procurement
The new leadership of the entry list:
Michael Dell, CEO (Chairman of the Board of Commissioners)
Don Carty, CFO (Board of Commissioners)
Michael R. Cannon, former CEO of Solectron, as president for global operational
Ron Garriques, former head of Motorola's mobile phone unit, as president, consumer product design
Stephen F. Schuckenbrock, integration and consulting business on a large scale
Michael Dell announced a number of policies and plans (part of the initiative "Dell 2.0") in order to increase the company's financial performance. Among them include:
The elimination of 2006 bonuses for employees and replace them with awards given at the discretion
Reducing the number of managers who report directly to Michael Dell from 20 to 12 people
Of important note previous year, "build, partner and buy" to improve service
Reduction of bureaucracy.
Dell Inc. seems more focused on efforts to reduce costs rather than issue a new innovation. This is consistent with the history of the company in marketing the units with minimum cost through direct sales to consumers. In an interview with Business Week, Mr. Dell said, "This company knows how to do something never done before as well."
Products
Dell's market specific brands to different consumer groups. Typically, brand Optiplex, Latitude and Precision business aimed at the puffy and large-scale, where advertising companies place more emphasis on long life, reliability and ability to continue to operate.
Brand Dimension, Inspiron and XPS is more oriented toward consumers, students and home-office environment on a small scale, emphasis on price, performance and ability to be further developed. In 2005, Dell introduced the Dell XPS re-brand aimed at the gamer market that can bring many advantages. XPS desktop systems use silver rather than black for the color of the casing as it is commonly found in Dell PC outputs the latest. Dell also adds to the diversity of its product range includes USB Keydrives, LCD Televisions and printers.
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