Dell Computer Corp. Essay, Research Paper
DELL COMPUTER CORP.
Dell Computer Corp. was founded in 1984 by Michael S. Dell. Four old ages subsequently in 1988, Dell became a publically traded company with 3.5 million portions at $ 8.50 each. Four more old ages subsequently, Dell was ranked in the Fortune 500 roll with Michael Dell as the youngest Chief executive officer to be ranked on this list. In 1996 Dell? s stock raises to about $ 100 per portion pre-split. One twelvemonth later this figure is multiplied by 10 and stock is up to a galvanizing $ 1000 a portion pre-split.
Date Event Per-Share Price Presplit Stock Price
June 22, 1988 Initial Public Offering $ 8.50 & # 8212 ;
April 9, 1992 Three-for-Two Split 25.81 38.72
Oct. 27, 1995 Two-for-One Split 45.00 135.00
Dec. 6, 1996 Two-for-One Split 56.75 340.50
July 25, 1997 Two-for-One Split 81.50 978.00
March 6, 1998 Two-for-One Split 69.25 1,662.00
Sept. 4, 1998 Two-for-One Split 54.75 2,628.00
March 5, 1999 Two-for-One Split 43.03 4,131.00
Jan. 28, 2000 Close of Last Quarter 37.25 3,576.00
Besides in 1997, Internet gross revenues reached $ 1 million per twenty-four hours. In 1999, a mere 15 old ages since the start of this company, Internet gross revenues reach $ 35 million per twenty-four hours. Dell Computer Corp. is ranked No, 4 in the Fortune 500 ranking, and Wall Street named it the No. 1 return in entire return investors over the past three, five, and ten old ages. Besides in the past 15 old ages Dell Computers? entire gross revenues have grown from $ 6 million to $ 23.6 billion!
Since 1995 Dell stock has had a slow but steady addition:
The top six rivals to Dell are Compaq Computer Corp. , Gateway Inc. , Apple Computer Inc. , Micron Electronics Inc. , Bitwise Designs Inc. , Paravant Inc. , and Hertz Technology Group. Dell Computer Corp. is deserving about four times the sum of its closest rival, Compaq Computer Corp.
Company Name Symbol Mkt Cap ( 000 & # 8217 ; s )
DELL COMPUTER CORP DELL $ 120,402,198
COMPAQ COMPUTER CORP CPQ $ 44,785,125
GATEWAY INC GTW $ 20,594,558
APPLE COMPUTER INC AAPL $ 19,722,642
MICRON ELECTRONICS INC MUEI $ 1,709,236
BITWISE DESIGNS INC BTWS $ 188,291
PARAVANT INC PVAT $ 57,077
HERTZ TECHNOLOGY GROUP HERZ $ 13,439
The undermentioned graph is a graph of Dell Computers and its prima rivals:
The CEO of Dell Computer Corp. is of class Michael Dell. He started the company with a mere $ 1000 and has turned it into a multi-billion dollar computing machine giant. Mr. Dell attended The University of Texas at Austin. In 1999, Mr. Dell wrote the bestselling book Direct From Dell: Schemes That Revolutionized an Industry, his narrative of the rise of Dell Computer Corporation and the schemes he has refined that apply to all concerns. He is a member of the Board of Directors of the United States Chamber of Commerce, the World Economic Forum, and the Computerworld/Smithsonian Awards. Mr. Dell serves on the nominating commission for the National Technology Medal of Honor, and is a member of The Business Council. He is besides a member of the Computer Systems Policy Project.
Kevin B. Rollins serves as frailty president for Dell Computer Corporation. He is responsible for world-wide gross revenues, selling and service and for supervising Dell & # 8217 ; s Worldwide Home and Small Business Group, European operations, and the Personal Systems Group. Mr. Rollins earned his maestro & # 8217 ; s of concern disposal and unmarried man & # 8217 ; s grades from Brigham Young University.
James T. Vanderslice, Ph.D. , serves as frailty president of Dell Computer Corporation. He portions the Office of the Chief Executive Officer with Michael S. Dell, president and CEO, and Kevin B. Rollins, frailty president.
Prior to being
elected to his current place in December 1999, Dr. Vanderslice, 59, served as senior frailty president and group executive for IBM’s Technology Group. During his 33-year calling with IBM, Dr. Vanderslice led assorted planetary concerns for IBM, including its communications-products division, fabrication and development for the company’s Asia Pacific Group, and the computer-products division.
The employees of Dell Computer Corp. are really good educated and have to hold much experience in their peculiar field of employment to even be considered for the place. Here are two illustrations:
Major Histories Director:
This place requires a Bachelor & # 8217 ; s degree or equivalent with a lower limit of 8-9 old ages or related experience in the Personal computer industry and 5 old ages experience in Gross saless and Marketing with a good apprehension of Dell merchandises and services. This place requires 2-3 old ages of selling to histories in the K-12 market section. Proven experience selling into major histories, and history direction proficiency, is required
Advocate:
This place requires a JD grade and at least one province saloon admittance. A lower limit of 7 old ages related experience in jurisprudence house or corporate legal environment, with a focal point on federal authorities contracts is preferred. Some direction experience is besides preferred. The campaigner must hold a strong working cognition of the demands for selling commercial merchandises to the federal authorities, every bit good as some experience in being familiar with the legal issues associated with selling commercial merchandises to province and local authoritiess. Person who understands these legal issues from the commercial position in add-on to the governmental position is preferred. The campaigner must hold first-class communicating accomplishments, both written and spoken, and be a squad participant. The ideal campaigner will be a self-starter, with strong communicationskills, and be able to efficaciously interact with a high-energy client base
Analysts rate Dell Computers at a really strong bargain. If you have the money this would apprently be a good pick.
Analyst Ratings Today 1 month ago 2 months ago 3 months ago
1=Strong Buy 14 14 14 13
2=Buy 18 18 17 14
3=Hold 3 4 5 7
4=Sell 0 0 0 0
5=Strong Sell 0 0 0 0
Consensus ( mean ) ( strong bargain ) 1 & # 8211 ; 5 ( strong sell ) 1.63 1.68 1.69 1.78
Besides, Analysts predicate good luck for Dell every bit good. The stock has been traveling up and they predicte it will go on to travel up and up as shown by the undermentioned charts:
Consensus EPS Estimate ThisQtr04/2000 NextQtr07/2000 This FiscalYear01/2001 Next FiscalYear01/2002
Avg Estimate ( mean ) $ 0.17 $ 0.21 $ 0.92 $ 1.21
# of Estimates 19 18 29 15
Low Estimate $ 0.15 $ 0.18 $ 0.85 $ 1.05
High Estimate $ 0.21 $ 0.23 $ 1.04 $ 1.40
Year Ago EPS $ 0.16 $ 0.19 $ 0.68 $ 0.92
EPS Growth 5.9 % 9.4 % 35.6 % 31.3 %
Net incomes Growth Last 5 old ages Last Fiscal Year This Fiscal Year Ave Est Next 5 old ages P/E ( FY 2001 ) PEG ratio
DELLIndustry Rank: 2 of 6 68.0 % 35.6 % ( 01/2000 ) 31.3 % ( 01/2001 ) 33.7 % 51.01 1.51
Long-run Growth Avg Est Low Est High Est Estimates
DELL 33.7 % 17.0 % 50.0 % 25
So all in all, Dell is a really strong company even though it is merely 15 old ages old. It was started by one adult male with $ 1000 and is now the figure two computing machine company in the universe and the figure one computing machine company in the United States. Over that short 15 old ages, Dell has increased its gross revenues by 40 times! And it is non halting at that place. The company is go oning to turn and the stock monetary values are turning with it.
Beginnings:
hypertext transfer protocol: //www.dell.com
hypertext transfer protocol: //www.quicken.com/investments/quotes/ ? symbol=dell
