Dell scrambles to find enough workers to fuel growth; PC maker also rewards managers for breaking up their divisions
Article Abstract:
Dell Computer faces an ongoing problem involving personnel. Dell's sales continue to skyrocket, but at the same time, the company must continually scramble to find and train enough people to keep up with new orders. Between mid-1997 and mid-1998, Dell's employment increased 56%, to 20,800, and during summer 1998, the company has been adding about 225 people a week. Responding to this challenge, Dell has adopted innovative strategies. For example, contrary to the traditional notion that executives' importance is measured by the number of people working for them and the amount of revenue they manage, Dell is rewarding managers whose divisions are broken into smaller units. A Dell executive is now seen as successful when part of a business he has built up is taken away from him, leaving him to take what remains and build it up again.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Dell Computer posts 54% gain in profit; revenue increases by 51%; company cites strategy of direct customer sales
Article Abstract:
Dell Computer reported a fiscal 1st qtr 1998 profit of $305 million, believing it has passed IBM as the No. 2 PC seller worldwide behind only Compaq. The Round Rock, TX-based company traces its 54% profit surge and 51% revenue jump to dealing directly with customers. Dell says its practice of limiting PC construction to these specific orders has lowered parts inventories and minimized devaluation costs. Profits of 44 cents a diluted share exceeded the combined PC earnings of IBM, Compaq, HP and Gateway. By comparison, a First Call poll of analysts anticipated 42 cents a share. Dell's 1st qtr 1997 performance consisted of $198 million, or 27 cents a diluted share. Revenue surged from $2.59 billion in the 1st qtr 1997 to $3.92 billion in the 1st qtr 1998.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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