In this paper I will be comparing and contrasting the contributions of two successful business professionals: Michael Dell, founder and CEO of Dell Computer Corporation, and Andy Grove, co-founder and former CEO of Intel. I will identify each business professional, expound on major contributions each person performed to create successful companies, identify any resistances encountered, list similarities and differences between them both and in conclusion explain what factors I think may have impacted their successes. The book, What the Best CEOs Know – 7 Exceptional Leaders and Their Lessons for Transforming Any Business (Krames, 2003), will be utilized as the informational basis for this paper.
Introduction of Professional and Their Contributions
Michael Dell is the founder and CEO of Dell Computer Corporation. His entrepreneurship and fascination with computers can be traced back as far to his early adolescent years. This simple interest he had in computers shortly became the startup for Dell Computer Corporation in 1984. With his stock increasing near the peaks of 90,000 percent, rating it the number one stock in the 1990’s; it’s no wonder how he became the youngest CEO of a Fortune 500 Company at the tender age of 27. Mr. Dell believed that ‘by placing the customer at the epicenter’ and creating a strategic concept ‘based on customers’ needs and preferences’ would be the key to a successful company. (Krames, 2003, p. 59) Having a direct model ‘based on a one-to-one relationship between the company and the customer’ was how he made Dell so successful with ”no intermediaries, no middlemen’. (Krames, 2003, p. 59)
Andy Grove is the co-founder and former CEO of Intel. The company he co-founded in the 1960’s success can be contributed to his suspicious mentality of ‘only the paranoid survive.’ (Krames, 2003, p. 135) This man was considered as a legend of this industry by many and built Intel into the biggest computer chipmaker in the world at that time. Mr. Grove was credited for ‘his role in fueling the computer revolution’ by being named Person of the Year in 1997 by Time magazine. (Krames, 2003, p. 135) Mr. Grove’s three-legged stool metaphor outlined how equal levels of execution and strategy in technology, manufacturing and marketing were the foundation for Intel’s success. Also, he was influential in coining the phrase Strategic Inflection Point (SIP), which can be described as ‘-a point at which a company comes face to face with a massive change, one that is powerful enough to threaten the life of the enterprise.’ (Krames, 2003, p. 141)
Resistance Encountered
As the founder of the company, Michael Dell encountered very minimal resistance to his ideas; primarily because he was so instrumental in establishing such a successful corporation and business model. Some of the employees resisted when he implemented his idea that every possible member of the company should be involved in satisfying the customer. This idea may have been unappealing to employees such engineers, technicians or research and development personnel, because it was a significant change outside of their comfort zone.
Andy Grove encountered substantial resistance to his ideas. Japanese competitors removed Intel’s hold on the memory market by producing superior quality computer memory chips at a lower in price. Intel’s hardships lead to Grove’s decision to abandon the memory market and to focus the company’s remaining resources in a risky, new market, microprocessor technology. This resulted in a three year journey ‘filled with pain, plant closings, and layoffs’ totaling one-third of the company. (Krames, 2003, p. 137-139) Grove experienced additional resistance when discovery of a minor design flaw in their latest generation microprocessor created a frenzy of anxiety in the business community. Consequently, IBM ceased shipment of all Pentium based computer units requiring that chip and Intel was forced to replace about a half a billion dollars worth of processor chips to every customer.
Similarities among Professionals
Dell and Grove were both CEOs and founders of vastly successful computer technology based corporations. Dell’s daily internet sales were between $60 and $70 million and prior to Grove’s departure from the company Intel grossed annual profits of over $6 billion. Also, both sought initiatives to create high quality products at reasonable prices for the consumer. Both professionals overcame company inflicted misfortunes and challenges. Additionally, both believed in the magnitude of being prepared for anything, while ensuring that complacency didn’t become a part of their enterprise’s daily business practices.
Differences between Professionals
Dell’s company, Dell Computer Corporation, was geared towards computer technology development, sales, and restoration unlike Intel who developed computer memory chips and microprocessors. Dell structured his organization around accumulating vital information to accommodate the needs and preferences of its customers. Intel business strategy encompassed frequent experimentation with various aspects of the enterprise and incorporating it into their everyday business. Also, Dell did not have to endure as many corporate crises as Grove encountered, due to maintaining a guaranteed direct business model.
Factors Impacting Their Success
I believe the factor that most impacted Michael Dell’s success was personal. As a teenage entrepreneur he learned how imperative ‘developing a direct relationship with the customer’ translated into establishing a successful business. (Krames, 2003, p. 58) He ensured that his entire business was centered on listening to, responding to, and delivering exactly what the customer wanted. (Krames, 2003, p. 58)
In regards to Grove, I believe that the most influential factor was environmental. The adversities and hardships Grove had to tolerate birthed his paranoid persona which aided him in sustaining a prosperous career regardless of the challenges he faced in the business arena.