THE INGREDIENTS FOR SUCCESS: DELL CORPORATION

THE INGREDIENTS FOR SUCCESS: DELL CORPORATION
When Michael Dell began selling computers directly out of his University of Texas dorm room in the early 1980s, he had the right idea at the right time. Quality, convenience and low cost were the right idea, and the early 1980s was the right time -- the purchase and use of personal computers was growing at an exponential rate. In those early years, Michael Dell financed his operations by borrowing money from friends and by using credit cards. Then, as a means of raising funds to promote company growth, Dell sold stock to the public in 1988. Thirteen years later, Dell Corporation had annual sales of over $32 billion and profit of more than $2 billion.
How does a company like Dell Computers succeed and grow where so many others fail? Well, part of the answer lies in having the right idea at the right time. But there is another part of the answer and it is the theme of this book. In this book, we emphasize that effective use of a company’s accounting data is critical to making sound business decisions, and sound business decisions are vital to a company’s growth. In today’s global marketplace, growth is essential to a company’s success -- a company either grows or it dies.
Michael Dell made excellent use of accounting data. He recognized that by having customers order their computers over the Internet and phone, he could cut costs by eliminating the necessity of opening retail outlets. In addition, having customers pay with credit cards would simplify much of the record keeping. Dell realized that by streamlining his business (i.e., cutting out middlemen) he could operate more efficiently and achieve the same results with less costs.
Michael Dell had the right idea at the right time, and he uses accounting information to make sound business decisions. As a result, his company is well-prepared for the challenges of the new century. And, at the age of 40, he can choose to retire as a multi-millionaire.

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