Personal Computer and Michael Dell
-------------------------------------------------
-------------------------------------------------
AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH * Course Name * Introduction to Business * Course Code * 01412 * Prepared For * Tasnuva Farin * Section
A5
* * Prepared By ID No. * Sarkar Shila 13-23378-1
No. | Case Name | Page No. | 1.1 | Dell Computer Corporation : An Example of Free Enterprise | 03 - 08 | 2.2 | Esprit is No Longer ‘Little Utopia’ | 09 - 15 |
CASE 1.1
DELL COMPUTER CORPORATION
AN EXAMPLE OF FREE ENTERPRISE
Questions for Discussion
* Question 1: How does an entrepreneur like Michael Dell view profit? From the point of view of an economist or from a business perspective? Explain.
Answer:
Dell Computer Corporation is the world’s largest direct computer system company, with revenues of $25.3 billion for the fiscal year ended January 28, 2000. Dell Computer Corporation, originally known as PC’s Limited, an international computer firm headquartered in Austin, Texas, designs, manufactures, sells, and services IBM-compatible personal computers.
Michael Dell profit view was about logical theory. One day Dell asked himself. Did the owner add any equipment to the value? And he found the answer negative. So he came up with a new idea.
He sold computers directly to the customers. He used direct advertising, telemarketing, salespeople. By selling product directly to customers, any Company could efficiently understand and satisfy the exact needs of customers. If an entrepreneur thinks like Michael Dell he will be able to get profit from his business.
Economic profit is a measure of cost beyond accounting profit. What remain after the expenses and opportunity costs are subtracted from income and all costs of
-------------------------------------------------
AMERICAN INTERNATIONAL UNIVERSITY – BANGLADESH * Course Name * Introduction to Business * Course Code * 01412 * Prepared For * Tasnuva Farin * Section
A5
* * Prepared By ID No. * Sarkar Shila 13-23378-1
No. | Case Name | Page No. | 1.1 | Dell Computer Corporation : An Example of Free Enterprise | 03 - 08 | 2.2 | Esprit is No Longer ‘Little Utopia’ | 09 - 15 |
CASE 1.1
DELL COMPUTER CORPORATION
AN EXAMPLE OF FREE ENTERPRISE
Questions for Discussion
* Question 1: How does an entrepreneur like Michael Dell view profit? From the point of view of an economist or from a business perspective? Explain.
Answer:
Dell Computer Corporation is the world’s largest direct computer system company, with revenues of $25.3 billion for the fiscal year ended January 28, 2000. Dell Computer Corporation, originally known as PC’s Limited, an international computer firm headquartered in Austin, Texas, designs, manufactures, sells, and services IBM-compatible personal computers.
Michael Dell profit view was about logical theory. One day Dell asked himself. Did the owner add any equipment to the value? And he found the answer negative. So he came up with a new idea.
He sold computers directly to the customers. He used direct advertising, telemarketing, salespeople. By selling product directly to customers, any Company could efficiently understand and satisfy the exact needs of customers. If an entrepreneur thinks like Michael Dell he will be able to get profit from his business.
Economic profit is a measure of cost beyond accounting profit. What remain after the expenses and opportunity costs are subtracted from income and all costs of