Introduction:

Michael Saul Dell (born February 23, 1965) is an American business magnate and the founder, chairman and chief executive officer of Dell Inc. He is the 44th richest person in the world, with a net worth of US$14.6 billion in 2011,[1] based primarily on the 243.35 million shares of Dell stock worth $3.5 billion that he owns, giving him 12% ownership of the company.[2] His remaining wealth of roughly $10 billion is invested in other companies, and managed by a firm called MSD Capital (named after Dell's initials

Early life and education:

Michael Dell was born to a well-off, Texan Jewish family, on February 23, 1965.[4] The son of an orthodontist[5] and a stockbroker, Dell attended Herod Elementary School in Houston, Texas.[6] In a bid to enter business early, he applied to take a high school equivalency exam at age eight. In his early teens, he invested his earnings from part-time jobs in stocks and precious metals.[7] Dell purchased his first calculator at age seven and encountered his first teletype machine in junior high, which he programmed after school. At age 15, after playing with computers at Radio Shack, he got his first computer, an Apple II, which he promptly disassembled to see how it worked.[8] Dell attended Memorial High School in Houston, selling subscriptions to the Houston Post in the summer. While making cold calls, Dell observed that newlyweds and people moving into new homes were most likely to buy a subscription. He targeted this demographic group by collecting names from marriage and mortgage applications. Dell earned $18,000 that year, exceeding the annual income of his history and economics teacher.[9]

Career:
While a pre-med student at the University of Texas at Austin, Dell started an informal business upgrading computers 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.[10][11][12] 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.[13][14] In 1992 at the age of 27, Dell became the youngest CEO to have his company ranked in Fortune magazine's list of the top 500 corporations.[15] 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.[16] In the first quarter of 2001, Dell Inc. reached a world market share of 12.8 percent, passing Compaq to become the world's largest PC maker. The

metric marked the first time the rankings had shifted over the previous seven years. The company's combined shipments of desktops, notebooks and servers grew 34.3 percent worldwide and 30.7 percent in the United States at a time when competitors' sales were shrinking.[17] In 1998, Dell founded MSD Capital L.P. to exclusively manage his and his family's investments. Investment activities include publicly-traded securities, private equity activities, and real estate. The firm employs 80 people and has offices in New York, Santa Monica and London. Dell is not involved in day-to-day operations.[18]

Overview
Michael Dell started his company, Dell Computer Corporation, when he was a college freshman in 1984. By the early 1990s, the company had exceeded $500 million in annual revenues, and Dell had become the youngest CEO of a Fortune 500 corporation. Although he experienced troubled times in 1993, he developed new corporate strategies, and by 1997 he was predicting that his company would lead the personal computer industry by the year 2000.

Personal Life
Dell was born in Houston, Texas, in February 1965, the son of Dr. Alexander Dell, an orthodontist, and his wife Lorraine, a stockbroker. In October 1989, Dell married Susan Lieberman, a commercial leasing agent. The couple have two children. At one point, Dell would often tell his employees that his daughters first words were a plea to beat the competition: Daddy, kill Compaq. Daddy, kill IBM. When Michael Dell was only eight years old, he sent off for information on a high-school equivalency diploma, hoping he could avoid putting in a full 12 years in school. His parents, however kept him in school and later sent him to the University of Texas at Austin, hoping he might become a doctor. With his fledgling computer company (which he operated from his dorm room) making $80,000 a month, however, he had other plans. After his freshman year, he told them he wanted to spend the summer working in his business, and if things did not work out with his venture, he would return to school. He never went back. If there is such a thing as a born entrepreneur, Dell surely is one. When he was only 12, he made $2,000 through a stamp and baseball card trading enterprise that he operated through the mail. In high school, as a newspaper delivery boy for the Houston Post, he aggressively sought out new subscribers by obtaining mailing lists of newlyweds, then sending them a trial offer of two weeks free service, which he then followed up with phone calls. The extremely enterprising

young man made over $18,000 this way, which he used to pay cash for a fully loaded BMW even though he was not yet able to drive. This period in his life is also when Michael Dell discovered computers and found that he enjoyed taking them apart and putting them back together. He soon realized that he could make money by adding components to units and selling them for a profit. Soon he started doing business through magazines, as he had earlier operated his stamp and card trading business. In college, he operated his business out of his dorm room, which irritated his roommates so much that they barricaded his door with piles of his computer equipment.

Career Details
Soon after he left the University of Texas in the summer of 1984, Dell incorporated his company, PCs Unlimited, and began operating out of a storefront. The company marketed equipment made by such computer companies as IBM and Compaq, to which they added various features. By early 1985 it had 30 employees, and in July 1985 introduced its own model, the Turbo PC. He borrowed money from his family, but soon repaid it as his company grew to annual sales of $30 million. In 1987, PCs Unlimited became Dell Computer and in 1988, Dell began selling stock. Its sales that year reached $159 million, and by 1993, the figure was $2 billion. Then came a period of challenge and a slump in stock prices, prompting Dell to change his strategy. In 1994, the new Dell Latitude XP laptop model was launched and confidence in the company soared. From 1990 to 1997 Dells stock has increased by 20,000 percent, from $0.39 to $80.00 a share. Michael Dell has played a great deal on his image as a whiz kid, but the 1993 downturn showed the Dell Computer leadership that it was time to adopt a new corporate attitude to replace the brash image that had attended the companys beginnings. Dell was a billion-dollar company, and it had grown big and unwieldy. Before Dell suffered the fate of other pioneers who have lost control of their own companies, he brought in a number of older executives with proven records, reorganized operations, and put his CEO Mort Topfer in charge of running Dell on a day-to-day basis. Dell recognized that his own strengths lay in maintaining an eye on the companys overall vision, rather than specific details. Among the most successful strategies employed by the Dell Computer Corporation is the directsales model, which provides a made-to-order personal computer that is shipped within 36 hours. Customers can place orders by calling a toll-free number or by logging on to the companys web site, where models can be customized on-screen, priced, and ordered with a credit card. To ensure timely shipping, Dell maintains close relationships with suppliers, some of whom have built new facilities near Dell headquarters outside of Austin, Texas. According to an April 1998 article in InternetWeek, The combination of direct sales and the Internet have made Dell Computer a fierce competitor that has kept heavyweights like Compaq and IBM scurrying to keep up. Dells sales strategy has been to market to large corporations and computer enthusiasts rather than to first-time buyers, reasoning that a consumer is a first-time buyer only once. Among its largest customers are Shell Oil, Boeing, and Toyota. Another aspect of the companys business success stems from the fact it only manufactures units it has already sold. Therefore, it maintains

no inventory and is free of storage and other overhead costs associated with maintaining a large warehouse stock.

Social and Economic Impact

In 1991 Michael Dell said that he hoped to make his company a billion-dollar-a-year enterprise, a goal he has surpassed significantly. In September 1997 Andrew E. Serwer asserted in Fortune that Dell Computer has become the driving force in the PC business. By fiscal 1998 Dells revenues topped $12 billion, according to InternetWeek, which also reported the companys income at $944 million for the same period. Dell has also announced that he hopes to remain CEO for the next 60 years, and his 1993 reorganization helped to ensure that he would maintain power. Describing the position of Dell Computer in the year 2000, Dell told an InternetWeek interviewer, We dont want to be all things to all people. We only have six percent of the PC market share. Some analysts have said that by growing at 40 percent a year for five years, well have 12 percent share. That would be a good position to be in. He has said that he is not afraid of dire predictions that the personal computer market will be saturated, since his focus is on repeat rather than first-time buyers.

Chronology: Michael Dell

1965: Born. 1984: Founded Dell Computer. 1988: Took Dell Computer public. 1990: Named Entrepreneur of the Year by Inc. magazine. 1992: Became the youngest CEO ever to make the Fortune 500. 1993: CEO of the Year, Financial World magazine. The success of Dell Computer has brought numerous awards and distinctions to founder Michael Dell, including an Entrepreneur of the Year citation from Inc. magazine in 1990. In addition, he was named Man of the Year by PC magazine in 1992 and CEO of the Year by Financial World in 1993. Dell is also the richest man in Texas with earnings of up to $10 million a day. Comparing his own success with that of Dell, whose company is an important Microsoft customer, Bill Gates noted in Fortune, We have both stuck with our convictions, and learned from our mistakes Michael has the same passion for the industry I do.

Background:
Mr. Michael S. Dell is the Founded MSD Capital, L.P. in 1998. Mr. Dell Founded Dell Inc. in 1984 and has been its Chairman since 1984 and Chief Executive Officer since January 31, 2007. Mr. Dell Founded Dell Singapore Pte. Ltd. in 1984 and serves as its Chairman and Chief Executive Officer. He has been an Executive Officer of Compellent Technologies, Inc. since February 22, 2011. He served as Chairman and Chief Executive Officer of Dell Ventures. He served as Chief Executive Officer of Dell Inc. from 1984 to July 2004. Mr. Dell served as a Partner at SkyBridge Capital LLC. He serves as a Director of the United States Chamber of Commerce and the Computerworld /Smithsonian Awards. Mr. Dell serves as a Board Member elect of Catalyst. He has been a Director of Startup America Partnership since August 23, 2011 and Dell Inc. since 1984. Mr. Dell serves as the President of The Michael and Susan Dell Foundation which established in 1999. He serves as a Member of the International Business Council and U.S. Business Council. He is also a Member of the Computer Systems Policy Project. He serves as Director of The Michael and Susan Dell Foundation. He is a Member of Foundation Board at World Economic Forum. Mr. Dell also serves on the U.S. President's Council of Advisors on Science and Technology Chief Executive Officer Council and Member of the Governing Board of the Indian School of Business in Hyderabad, India. Since 1992, he has been the youngest Chief Executive Officer of a company ever to earn a ranking on the Fortune 500. Mr. Dell has been honored many times for his visionary leadership, earning the titles Entrepreneur of the Year from Inc. magazine, Man of the Year by PC Magazine, Top Chief Executive Officer in American Business from Worth Magazine and Chief Executive Officer of the Year by Financial World and Industry Week magazines. In 1997, 1998, and 1999, he was included in Business Week's list of The Top 25 Managers of the Year. In addition, executive search firm Heidrick and Struggles named Mr. Dell their High Impact Chief Executive Officer for 1996 and 1997. In 1999, he wrote the best-selling book Direct From Dell: Strategies That Revolutionized an Industry, his story of the rise of Dell Computer Corporation and the strategies he has refined that apply to all businesses. He attended The University of Texas at Austin. Overview Profile News Charts Financials Filings Picks Hulbert Insiders After Hours --Quotes are delayed by 20 min Oct 14, 2011 7:04 p.m. $ 16.72 +0.10 +0.60% Historical Quotes Analyst Estimates Options SEC

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Company Description
Dell, Inc. is a holding company that conducts its business worldwide through its subsidiaries. It designs, develops, manufactures, markets, sells and supports a wide range of products which are customized to individual customer requirements which include mobility products, desktop personal computers...

Valuation
P/E Current 12.31

P/E Ratio (with extraordinary items) 8.68 P/E Ratio (without extraordinary items) 9.74 Price to Sales Ratio 0.42 Price to Book Ratio 3.25 Price to Cash Flow Ratio 6.48 Enterprise Value to EBITDA 4.16 Enterprise Value to Sales 0.31 Total Debt to Enterprise Value 0.35

Efficiency
Revenue/Employee 0.60 Income Per Employee 0.03 Receivables Turnover 6.60

Total Asset Turnover 1.71

Liquidity
Current Ratio 1.49 Quick Ratio 1.42 Cash Ratio 0.74

Profitability
Gross Margin 18.84 Operating Margin 6.03 Pretax Margin 5.44 Net Margin 4.28 Return on Assets 7.29 Return on Equity 39.31 Return on Total Capital

22.44 Return on Invested Capital 23.99

Capital Structure
Total Debt to Total Equity 77.22 Total Debt to Total Capital 43.57 Total Debt to Total Assets 15.54 Long-Term Debt to Equity 66.26 Long-Term Debt to Total Capital 37.39

DELL COMPUTER CORPORATION: A MODEL FOR INNOVATION Diane Hanson Creative Resource Development Dell Computer Corporation is not the largest personal computer company but it is the fastest growing. In 1997 Dells unit sales rose 67% over the previous year, compared to a 25% increase for its nearest competitor, Compaq. Dells accomplishments in 1998 include: Return on invested capital was 192.5% Stock price has shown a 79.9% return on investment Makes each machine to order for each customer Since 1997 has reduced inventory from 11 days to 6 days Streamlined production to pass on savings to customers

Most business analysts attribute Dell Computer Corporations success to the direct business model. However, a model alone does not guarantee success. In this paper I will demonstrate how Dells internal communications, employee, customer and supplier relationships, as well as a finely-tuned awareness of future trends and technology have contributed substantially to the companys efficiency and effectiveness in the marketplace. Its youth as a corporation also has been a factor. Younger companies, just like young trees, can bend with the winds of change more easily than companies that are set in their ways. This information will be presented through the use of a new business model for the innovative enterprise called the Quantum Model.

Mission Statement
The employees of Dell developed the Vision Statements listed below. The owners of Dell fully support them.

CUSTOMER SATISFACTION We are an established company striving to satisfy customers by meeting their demands of quality, responsiveness, and competitive pricing. Each customer is #1.

TEAM SATISFACTION Management and employees are committed to cooperating as a team for the purpose of profitability and gratification of a job well done.

COMMUNITY SATISFACTION We will provide jobs in a clean, safe, environmentally sound atmosphere and be an active participant in community affairs.

_____________________________________________________________________________________________ __

The main objectives of our company are to make sure that:

The products that we produce shall meet all customer requirements. Our response time to our customers inquires and requirements shall meet our customers needs. We shall maintain sufficient profits.

CSR:(corporate social Responcibility)

Company Reports for Dell Inc. 2011 Corporate Responsibility Report View Report (PDF format)

Corporate Responsibility Summary Report. Fiscal Year 2010 View Report (PDF format)

Corporate Responsibility Report. Fiscal Year 2009 View Report (PDF format)

Dell Corporate Responsibility Report. Fiscal Year 2008 View Report (PDF format)

Dell Sustainability Report. Fiscal Year 2007 in Review View Report (PDF format)

Dell Sustainability Report. Fiscal Year 2006 in Review View Report (PDF format)

Dell Sustainability Report. Fiscal Year 2005 in Review View Report (PDF format)

Dell Sustainability Report. Fiscal Year 2004 in Review View Report (PDF format)

Dells Corporate Social Responsibility Recommendations Presentation Transcript:

1. Jacob Aryeh Robert Gee Dhruva Kaul Diana Shen Erica Swallow Enhancing the Dell Experience with CSR 2. Is Social Responsibility our Business? The business of business is business. - Milton Friedman 3. Our Vision for Dells CSR By partnering with our customers to focus on strategic CSR initiatives and aligning these initiatives with our business strategy, we will obtain a competitive edge and regain market share . 4. CSR Initiatives: Status Report and Assessment Corporate Accountability Environmental Responsibility Community Engagement Corporate Accountability Community Engagement Environmental Responsibility 5. 6. HIV/AIDS Affects our Stakeholders The HIV/AIDS pandemic affects Dell employees, customers, supplier partners and communities where we live and work . According to Advert.org, approximately 33.2 million people are currently living with HIV/AIDS 7. Evaluation of HIV/AIDS Prevention Program o Provide employees with benefits o Publish educational information o Offer onsite health screenings o Hold HIV/AIDS employee conferences 8. Trade-offs of the HIV/AIDS Initiative 9. Recommendations for HIV/AIDS Initiative 10. 11. Environmentalism: A Key Principle in Dells Business Model Dell's vision is to create a company culture where environmental excellence is second nature because the principles of environmentalism - efficiency eliminates waste - align with the principles of our direct business model - efficiency delivers customer value . - Sustainability Report 2007 12. Evaluation of Environmental Initiatives o Plant a Tree for Me Offsetting CO 2 emissions o Dell Earth Games Employee Team Building (Global) Inspiring employees to live an environmentally friendly life 13. Trade-offs of Environmental Initiatives 14. Recommendations for Environmental Initiatives 15. 16. Three Focuses on Community Engagement o Community Growth Dell TechKnow (6,900 students) International Learning Centers o Employee Volunteerism 40% employee volunteer rate $13 million contributions o Community Foundations Health Grants

17. Dell TechKnow Generates Tech Savvy Middle School Students Fayette County Public School Dell TechKnow Graduate Showcases her PC Skills At the end of the program, students took their computers home, along with one year of free Internet access. Now, they can do research at home an impossibility before TechKnow . - Neil McAlpine, Principal, General Wolfe Junior High, Winnipeg, Manitoba 18. Trade-offs of Community Engagement 19. Recommendations for Community Engagement Initiatives 20. 21. Movement Towards Complete Alignment: Competencies &CSR 22. CSR Initiatives: Status Report and Assessment Corporate Accountability Environmental Responsibility Community Engagement Corporate Accountability Community Engagement Environmental Responsibility 23. Our Vision for Dells CSR By partnering with our customers to focus on strategic CSR initiatives and aligning these initiatives with our business strategy, we will obtain a competitive edge and regain market share . 24. We Want Your Input! 25. Learning Centers in China and Brazil Train Students in Technical Fields Location Participants Learned Skills Shanghai Changlin School 1,000 children from migrant families o Latest PC technology o Educational programs o Life skills development Dell Brazils Digital Citizen Project 5,900 students from low-income families Digital literacy Business skills Advanced PC studies in two Technical Laboratories 26. Dell TechKnow Generates Tech Savvy Middle School Students 1. Disassemble refurbished PC Fayette County Public School Dell TechKnow Graduate Showcases her PC Skills 2. Reassemble PC 3. Load software 4. Perform Hardware upgrades 5. Develop internet know-how 6. Take PC home .
o o o

Problem faced and Successfully came out:

(FORTUNE Magazine) -- August was the cruelest month for the computer company Michael Dell founded in his University of Texas dorm room 22 years ago. In close succession, Dell Inc. recalled 4.1 million laptop batteries because of fears they might ignite, announced a shockingly bad quarter - profits down 51% from a year earlier - and disclosed that the SEC has launched an informal investigation of its accounting. The company's stock, already down 25% for the year, fell further. A few pundits called for the firing of Kevin Rollins, Michael Dell's longtime right-hand man and handpicked successor as CEO. ("Kevin 'Exploding Battery' Rollins," Jim Cramer called him on CNBC, then cued a

recording of boos.) A front-page headline in the Wall Street Journal trumpeted that Dell was being "left behind."

'Dell is in the penalty box' admits founder Michael Dell.

Dell shares (blue) have skidded 39 percent, while HP's stock (yellow) has surged 32 percent in the last year. More from Fortune Where will Occupy Wall Street take us? Clouds gather over OpenSkies Noah Wyle: "I would give my eye teeth" to play Jobs again FORTUNE 500 Current Issue Subscribe to Fortune

Full list: 100 Fastest-Growing Fast-growing in your state Best stock returns Best profit Top sales growth growth Fortune 500 Small giants companies

Related stories: 10 big stocks: Playing with fire What about Apple and Google? 5 companies that keep on growing Dell in the penalty box Michael Dell: 'This has been a wake-up call' Dell in the doghouse The company has been in the news, but for all the wrong reasons. Below is a timeline of the latest events to befall the PC maker. Recalls 4.1 million batteries with cells manufactured by 8/14Sony, saying the batteries could overheat and cause a risk of fire. Reports second-quarter net income of $502 million, a 51 8/17 percent decline from the same period a year ago. Analysts at Goldman Sachs 8/18and UBS downgrade the stock. MORE ON DELL Dell earnings take a big dip No. 1 PC maker reports news of SEC inquiry and earnings that meet lowered expectations. (more) Putting the fire out at Dell Shares have slumped nearly 40 percent in the past year. What will it take to get the PC maker back on track? (more) Dell losing support on Wall Street Filings show major shareholders trimming stake in No. 1 PC maker as analysts downgrade recommendation; some focus

This rhetoric is overblown. More is going right at Dell criticism on CEO. (more) (Charts) than most of the media coverage would lead you to Dell cutting rebates to streamline suspect. The company's recent run of bad news appears to pricing be a lagging indicator, much of it the result of past moves No. 1 PC maker, hurt by customer that Michael Dell himself variously describes as "stupid," service problems, tries to make "nonsense," and "just plain wrong" - and many of which, he buying easier. (more) says, have been corrected. The SEC inquiry, about which Dell has disclosed little, is a wildcard but not an unusual one in modern corporate America. Meanwhile Dell remains the dominant PC maker, especially in the U.S. Key rivals HewlettPackard (Charts) and Lenovo (the Chinese company that bought IBM's PC business) have improved their games, but only HP, with 16% worldwide market share (according to International Data Corp.), is in the same league with Dell, which has 19%. Dell does - make no mistake about it - face some real and serious long-term challenges. Most obviously, the company will never replicate the stunning growth surge it experienced in the 1990s - its sales soared from $546 million in fiscal 1991 to $32 billion in 2001. With revenue of $56 billion, No. 25 on this year's FORTUNE 500, Dell is now simply too large for that. An even bigger issue is that the low-cost, low-style approach that shot Dell to the top seems out of place in today's computer market. Branding matters. Product design too. Those haven't been Dell's strengths. As one marketer from outside the computer business told me, Dell's brand consists of "a man and a business model." Dell's overall PC market share is 33% in the U.S. but only about 12.5% in the rest of the world, presenting a big opportunity for growth. As more people worldwide connect to the Internet, there's no reason Dell's direct-sales model can't succeed in newer markets. Says Tim Bajarin, a longtime PC industry expert at consulting firm Creative Strategies: "I talk to Dell's competitors, and they're concerned that when it does actually come back it will be even more tenacious." Tenacious is a good word to describe Michael Dell and the company he created. And tenacity and efficiency will be enough to keep Dell in the game. But to rise to the next level and really boost its growth, it may have to find a little more heart.