To: Mohan Marette who wrote (114410 ) 4/6/1999 10:45:00 AM From: Neville H. J. Gorman Read Replies (4) | Respond to
To Mohan and all Dellheads:Die Welt : Microsoft has just announced an extensive restructuring in order to be prepared for the next decade. Is Dell planning similar moves?Michael Dell (MD) : There is no perfect organizational structure which is valid infinitely. Our organization is subject to constant reconsideration. In 1998 Dell had revenues of $18 billion, this year it will be about 24 to 25 billion according to analysts. It seems that we found the right concept - we are orientating according to our customers. That is exactly what Microsoft is planning presently. We're ahead of them a few years.Die Welt : You are constantly saying that you want to become the number one. When will you achieve this goal?MD : If you look at profitability we're already number one. The same is true for return on investment, customer satisfaction and growth rates. In terms of market share not yet. But that day will come. We're, however, more interested in balancing all these things out. If we were number one in market share but in return not profitable, we wouldn't be successful.Die Welt : You've just reached an agreement with IBM according to which you will purchase components worth $16 billion. Many observers say: That is only the first step...MD : There are no specific plans. But Dell will continue to be aggressive with regard to growth, products, services and geographical presence. We will continue this course. It is likely that there are more deals with IBM to follow.Die Welt : On average you are hiring 225 employees every week. How difficult is it to find employees given the rate of unemployment in Texas of under 3%?MD : Last year we created 9000 new jobs in our facilities in Texas, Ireland, Malaysia and China. In China of course it's not that difficult to find people; in the US this is much more complicated. That is the reason why we are building our new facility in Tennessee instead of Texas. The centers of Federal Express, UPS and Airborne are all within 100 miles.Die Welt : What are you offering given the competition among employers in the US?MD : We are offering opportunities; the company is growing, everyone can take over responsibility and implement ideas. Last but not least every employee can become an owner of the company. We're paying our employees according to their performance, capabilities and responsibility. This is independent of how long someone is working for us, the age and whom you know. We're orientating on the results and are moving in a new and exciting industry. The company is growing and is built on a solid financial foundation. That's the reason why we're an attractive employer.Die Welt : How many employees are also shareholders?MD : Everyone has stock or options.Die Welt : Allegedly there are about 3000 Dell millionaires working at your company....MD : That wouldn't surprise me.Die Welt : Almost every day new mergers are announced. The name Dell is never mentioned. Why not?MD : We do things differently than the others. Just because it is popular it mustn't be correct. We are taking the opposite path. For example we repurchased about one third of our shares. The insight we arrived at is the following: In every new business we started we didn't have to take over any other company. We were able to grow organically and that is the approach that appeals to us much more. As long as we're growing at three to four times the industry we're not considering takeovers. Alliances and partnership are more important.Die Welt : Dell is focusing on the sophisticated buyer who knows what he wants. Due to the price erosion in the PC sector below $500 there are buyers that Dell doesn't address. Aren't you missing out on something?MD : We're now having PCs for $800. That is, however, excluding the monitor and the speakers as the other manufacturers also do. Our share of that market will rise. Originally we intended to only address the sophisticated user, but in future we'll have a broader customer base.Die Welt : What do you expect in 1999?MD : 1998 we grew at 48%, in the fourth quarter we grew at 38%. Earnings per share were up 55%. This year we will once again grow much faster than the industry. Our growth rate will, however, most likely be below 50%.
