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Bus 320 Assignment 2: Case Study: Michael Dell—the Man Behind Dell

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BUS 320 Assignment 2: Case Study: Michael Dell—The Man Behind Dell


Assignment 2: Case Study: Michael Dell—The Man Behind Dell Presentation (Change Management)
Michael Dell began building and selling computers from his dorm room at age 19. He dropped out of the University of Texas when his sales hit $60 million and has never looked back. Dell is said to be the fifteenth richest man in America, and the youngest CEO to make the Fortune 500. Intensely private and notoriously shy, Dell is hailed as a corporate wonder-kid. He climbed to the top by exploiting tax loopholes, outsourcing the competition, and inventing a term called “leveraged recapitalization.”
First, review the following case study:
• Michael Dell—The man behind Dell: Leading Dell into the future
Then, address the following tasks:

Leading Dell into the Future
Though Michael had a huge fan following amongst business entrepreneurs and industry observers, he had a fair amount of critics as well. Many interviewers found Michael to be an extremely private person who, unlike many famous business leaders, never spoke much about his private life nor his daily and monthly routines. Analysts commented that this prevented people from understanding and learning from his leadership skills.
More importantly, Michael was criticized for being a major reason for the lack of innovation in the PC industry. This was because the R&D budgets of all major PC makers had fallen as they raced to keep up with DELL. Michael was thus criticized for making the whole business of PC manufacturing a ‘cost game,’ and killing innovation. In the early 1990s, Michael launched a price war in the PC industry, forcing rival companies such as Compaq and IBM to develop strategies for lowering costs. In 2000, he launched another round of price wars. As a result, DELL’s market share went up by four points and Compaq lost its...


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