Organizing Paper

Organizing Paper

In 1983, Michael Dell, a freshman attending the University of Texas, purchased some computer RAM chips and disk drives. (Microsoft Corporation, 2008) He sold the chips and drives for well under retail prices and by 1984 he was earning around $80,000 a month. (Microsoft Corporation, 2008) Michael Dell dropped out of college to form a company called PC's Limited. (Microsoft Corporation, 2008) Later, that same year, he registered the company as Dell Computer Corporation. In 2003, the name was officially changed from Dell Computer Corporation to Dell Inc. (Dell Inc., 2007) The concept behind Dell was very simple; build and sell affordable computers directly to the consumer. (Dell Inc., 2007) Before Michael Dell began selling computers directly to the consumer; companies would mass produce computers, place them in retail stores and expect the consumer to buy them. The consumer had little, if any input into any components he or she wanted in a computer.

Monetary

By using the concept of direct sales, Dell was able to sell computers at a much lower price than other computer manufacturers. Dell became the fastest growing computer maker in the world. By the end of the first year, the company earned nearly $6 million and by the end of the second year, the company earned $34 million. (Microsoft Corporation, 2008) Dell computers were sold through magazine advertisements and catalog sales. (Microsoft Corporation, 2008) In 1986, the company began selling computers on the internet. (Dell Inc., 2007) Dell became a Fortune 500 company in 1992, and by 2004, sales had jumped to more than $44 billion. (1000 Ventures, 2007) Michael Dell believes in listening to the consumer and building computers to the consumer's specifications. He set up 3 golden rules for Dell to abide by:

* Disdain Inventory (1000 Ventures, 2007)

* Always listen to the consumer (1000 Ventures, 2007)

* Never sell direct (1000 Ventures, 2007)

Michael Dell's three golden rules are one of the main reasons Dell Inc. is a successful company. In 2007, Frost and Sullivan, an independent research company, named Dell Inc. the recipient of their "Choice Award for Overall Best Laptop Personal Computer." (Frost & Sullivan, 2007)

Technology

Dell Inc. makes computers to the consumer's specifications selecting components from the company's supply chain. The consumer starts by selecting a basic model then adding components until the consumer has the computer he or she wants. At times, purchasing products for computers from the company's supply chain can cause problems. Such was the case in 2005, when reports were received concerning 3 laptop batteries overheating. Although no injuries were reported, Dell instituted an immediate recall of approximately 22,000 batteries. (U.S. Consumer Product Safety Commission, 2005)

Dell believes in listening to the consumer regarding feedback on products. When the LCC flat panel displays were introduced, the consumers complained the displays had too many cables and connectors. Consumers also wanted the high quality "all-digital display" (Dell Inc., 2007) without the expensive price tag. The company immediately put a team of highly trained engineers, designers, and product specialists from around the world to work solving the problem. As a result, Dell introduced "The DisplayPort digital display interface." (Dell Inc., 2007) This interface is endorsed by the Video Electronics Standards Association (VESA.) (Dell Inc., 2007) The display monitor offers several advantages:

* Fewer display inputs for more compact, sleeker display designs (Dell Inc., 2007)

* Twice the scalable performance of DVI for higher resolutions and color depths (Dell Inc., 2007)

* Two-way capability for simpler, single-cable connectivity to multiple peripherals (Dell Inc., 2007)

* Micro-packet architecture for capabilities such as network routing and display daisy-chaining (Dell Inc., 2007)

* Scalable display lanes for improved interoperability, reducing EMI (electromagnetic interference) and the number of wires required within a display cable (Dell Inc., 2007)

* Simple adapter capability, offering support for HDMI (high-definition multimedia interface) and DVI (. Digital visual interface) via a DisplayPort cable (Dell Inc., 2007)

The new DisplayPort was implemented by VESA as the new industry standard for personal computers, manufacturers of graphics hardware and LCD (liquid-crystal display) monitors worldwide. (Dell Inc., 2007)

According to Forbes, Dell Inc. is the "First IT Company" (Forbes, 2007) to require the company's suppliers to begin monitoring CO2 emissions. Dell Inc. joined the Carbon Disclosure Supply Chain Leadership Collaboration this year. Dell plans on neutralizing the carbon impact of the company's supply chain by 2008. (Forbes, 2007)

Dell Inc. keeps very little inventory on hand. According to Inventory Management Review, studies by Dell showed whenever inventory sits for longer than a week, the inventory soon becomes outdated. In 1993, the average inventory on hand was 11 weeks. By 2001, the average inventory had dropped to