?? Michael Dell and Andy Grove's Contribution to Computer

Topic: BusinessMarketing
Sample donated:
Last updated: March 12, 2019

Management style was examined in the manner two industry leaders run a company that competes against each other, Michael Dell, founder of Dell Computer Corporation and Andy Grove, co founder of Intel Corporation. (Krames, J. A.

2003). This paper studies both leaders’ unique contribution to the computer technology industry and the contrasted personal beliefs and leadership styles they exhibited on their way to success. Dell‘s high performance management predominantly lies in customizing consumer’s needs.Intel’s Andy Grove on the other hand is known for his common sense wisdom capitalizing on strategic approach. After comparing and contrasting the leadership pattern of Dell and Gove, factors contributing to one’s success suggest that outcomes may differ or vary depending on the management strategy one employs to gain success. Who are Michael Dell and Andy Grove and what did they do? Michael Saul Dell was born in Houston, Texas with middle class parents. His father was an orthodontist while his mother was involved in stock trading and consulting.

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His early business acumen started during his college days selling computer drives in his dorm customizing these to the customer specifications. Before long, he registered his small business with an initial capitalization of $1,000 and soon embarked in supplying custom made PCs. He would purchase unsold IBM PCs; improve the memory drives, and turnaround selling them at a cost below his competitors. He took his company public in 1988 with $30 million initial public offering. His business soon reached global market and by 1992, at age 27, he became the youngest CEO to be included in the Fortune 500.His wealth is estimated at $15. 5 billion.

Andy Grove. Born a Hungarian Jew as Andras Istvan Grof, Andy fled to the United States at age 20 to escape the Nazis in World War II. He worked his way to college and finished an Engineering degree at the University of California.

He cofounded a small high-tech computer company, Intel. Over his three-decade career, his ideas and innovation fueled the birth of micro chips and micro processors which later on became part of the IBM computers and those of IBM competitors.For his invaluable contribution in pioneering an integral part of the semiconductor industry, CEO Magazine named him the CEO of the Year in 1997 (Tedlow, R. S. 2006) and Time magazine named him Man of the Year for creating innovative potential of micro chips (Krames, J. A. 2003). Resistance in the process of managing the establishment In the process of climbing back to their success, Dell and Grove experienced “strategic inflection points” (Krames, J.

A. 2003) where their businesses have to make major changes to survive in a competitive environment.With Dell, it was a change in customer preference but still maintaining a personal customer service approach. With Grove, it was a change in business strategy which became a laborious and expensive approach due to the unpredictability of market acceptance of a new product. Similarities and differences in management style and philosophy Similarities. Both were enigmatic business leaders and risk takers defying conventional business practices with their fascinating methods of turning around a falling company into a successful one.As entrepreneurs in a highly technical business, they were both fascinated with computers and went on to pioneer special segments of the computer industry leaving a legacy and enormous contribution to the evolution of computers we have today. Differences.

Dell is focused on customer added value, constantly maintaining contact, customer needs to the extent of personalizing his marketing service. He concentrated on building a company that caters to custom made PCs rather than over the counter computers and direct sales rather than going through the middlemen.He made use of internet marketing. He also practiced Deming’s “just-in-time” operations with practically zero inventory level giving him an edge over his competitors over keeping a low overhead. Grove’s market approach was leveraging on executing a carefully laid out plan and strategizing product or market changes. He believes in creating a superior product that would change as technology changes. He believes that the foundation of Intel’s success is built on technology, manufacturing, and marketing, a strategy he named three-legged stool.His mantra is instilling a dose of paranoia to keep employees on their toes.

Grove asked his business partners, “What would another CEO do if he were to walk into this organization? ” (Krames, J. A. 2003). It is about the insight of a person’s view looking in to get an independent perspective of Intel. This proved to be one of Grove’s most successful decisions although at the same time a difficult one as it would have meant abandoning their premier product and introducing a new one. Concluding DiscussionFactors that may have impacted their success……….

Make critical decision and start the process of transformation; three-legged stool equally grounded; technology, manufacturing, and marketing – should have incorporated research Grove References Academy of Achievement.


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