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Hi-ho revenues Dell's success is amazing by any measure - even more so when you consider the company is only 16 years old. Michael Dell started the company in his University of Texas dorm room in 1984, and dropped out of school making more than $80,000 a month. Based in Austin, Texas, Dell Computer Corporation is now the leading direct seller of computers in the world. As recently as 1992, sales were under $1 billion annually; its revenues for 1999 exceeded $25 billion. Dell started out making desktops and now manufactures a line of desktop computers, notebooks, workstations, and servers. Desktops and notebooks account for 80 percent of this rapidly growing company's business. Dell sells primarily to medium- and large-sized businesses and government agencies, though increasingly the company is targeting the consumer market. The company derives nearly two-thirds of its business from large businesses and government entities. Corporate customers include Ford Motor Company, Boeing, and international giant Deutsche Bank. The Dell Direct Business Model: a perfect fit The business model is relatively simple. Dell takes orders over the phone and through its web site. Though Dell assembles a computer specifically for each order, making and shipping a PC usually only takes Dell 36 hours. Dell can assemble computers in its OptiPlex line in under five hours, and is working on an automatic installation system that will cut that time down to 20 minutes. In the early 1990s, Dell entered the retail market by striking deals with retail chains to sell its computers at mail-order prices. Though many were skeptical when the company began selling computers online, it now sells $40 million worth of equipment on the Web daily. Dell prides itself on its customer service. Custom-building computers according to each order means Dell can respond rapidly to the changing needs of the marketplace. Dell was the first PC maker to offer direct, toll-free technical phone support and next-day, on-site service. Stocks on steroids Michael Dell, the founder and namesake of the company, is the richest man in Texas. It's no wonder - the company's stock performance will go down in the history books. Dell's stock has risen faster than that of Coca-Cola, Intel, or Microsoft. The company is also hiring like gangbusters - from 1998 to 1999, the company nearly doubled its workforce. An aggressive foreign policy Recently, Dell has been increasing its presence outside the U.S., particularly in Asia and Latin America. While major U.S. high-tech companies have been scaling back their investments in these two volatile regions, Dell has been aggressively pushing forward. The company opened new plants in China and Brazil, increasing its total to 15 worldwide. Surging ahead In 1999, Dell struck an agreement with IBM to use $16 billion worth of IBM technology in its computers - the largest deal of its type ever. Also in 1999, Dell reaffirmed its e-commerce savvy by opening www.gigabuys.com, its online electronics superstore, which resells everything from software to printers and digital cameras. To help boost already explosive sales, Dell quit its stubborn holdout from the sub-$1,000 PC market and announced that it would offer a Dimension PC at $999. Dell also bought a stake in Red Hat, a leading distributor of Linux software, and will offer installation of the Windows competitor in its server and workstation PCs. Growing out of the box Dell has been working hard at distancing itself from the traditional gray boxes, and is branching out with new products, services, and investments. The company announced numerous new programs such as auction sites for used computers and accessories, and has a new division called Office by Dell which sells office equipment ranging from chalkboards to leather chairs. Several existing services were combined under the Dell E Works program, which offers Internet access and web design services. Dell Ventures, the investment arm of the company formed in 1999, has already pumped $70 million into more than 80 companies. Services revenues reached $1.8 billion in 1999, thanks in large part to DellPlus, which enables businesses to custom-configure systems with whatever software or operating system they want, and Dell Proof of Concept, which provides facilities for software implementation. Simplicity is a beautiful thing The introduction of Apple's iMac in 1998 led computer makers to realize that style is becoming increasingly important as costs and abilities are becoming equalized. As consumers now want a machine that gets them on the Web and are less concerned with the technological aspects of their computers, Dell launched a new family of sleek, easy-to-use PCs. The new PCs lack features that add cost and complexity, and are adorned only with multiple USB ports for peripherals. Dell claims its computers can be unpacked, plugged in, and online in 10 minutes. The WebPC, which Dell introduced to the market with great enthusiasm in November 1999, however, did not fare well. After only seven months, the company halted sales of the product when component problems and a price that was higher than those of competitive models resulted in slow sales.
Visit the "Careers" section of Dell's web site at http://dellapp.us.dell.com/careers/index.asp to submit resumes online or check job listings. According to insiders, most positions at Dell require three interview sessions. The first session serves "mainly to see if you are the right kind of person and have the relevant experience to perform the position." This interview will be with a human resources recruiter. The following interviews will be with managers or subject experts (depending on the field). Remember that they are looking for "the right people technically as well as socially." "The biggest function of the interview is to try to determine if you would fit in to the culture," says one insider. "With the fast pace and multitasking required, we need team players that are also self-starters." While Dell reportedly does not use brainteaser questions like Microsoft, applicants should be familiar with the Dell Direct Business Model. The Dell model means low inventory, just-in-time manufacturing, built-to-order products, and direct customer relationship with manufacturer. There are many benefits to this system. By cutting out the middleman, Dell can afford to sell its products well below retail. Since Dell builds a computer only when it gets an order, it keeps very low inventories, allowing the company to switch to the latest technologies faster than firms with pre-built stocks in warehouses.
Tip: Bring an extinguisher to work Dell prides itself on a "flat" corporate structure that encourages each worker to contribute "innovative" ideas, and its employees say they appreciate this "openness" and "absence of hierarchy." This "unstructured," "decentralized" environment allows Dell's "young," "energetic" employees to "gain responsibilities quickly and get a chance to prove yourself." "Managers that respect you" establish good relations. "There is much less corporate politics than in many other environments, which is a refreshing change," says one MBA intern. Dell is not a company for those who like to take things slowly, because "everything moves quickly." "Working at Dell is like jumping out of an airplane with your hair on fire," says one employee. "Everything about Dell is fast. We call it Dell-ocity," explains another. All is swell Combined with Dell's "explosive" growth, the "meritocratic" promotion policy enables "talented management" to "rise rapidly." "There are some tremendous opportunities if you want to work hard and think 'out of the box,'" says one insider. Employees say they are generally satisfied with their compensation packages, adding "the pay is fair, the perks (401(k)/employee stock purchase plan) are swell." A profit-sharing plan "comes out to about an extra 8 percent of your base pay per year," according to one insider. Other perks employees mention include discounts on computers and various establishments in Austin (including rent in some apartment complexes). Laid-back and diverse environs Employees also like the casual, "family-like" atmosphere, which includes a "lax" dress code. While dress codes differ by department, some employees can come to work in shorts and sandals while others go with "business casual dress." "There are even a couple of people with purple hair," says one. Insiders say there are "many minority employees, especially Asians and Asian-Americans." One technical support worker in Austin says "women are given opportunities that I did not see at my former employer." All agree that "performance" and "not gender or skin color" moves employees up the career ladder. "For what it's worth, I'm gay, and I felt relatively comfortable interacting with the folks at Dell," says one employee. "The EEOC could take lessons from Dell," says another. Superfierce loyalty The overall level of employee satisfaction is astonishing. Numerous insiders say exactly the same thing: "Dell is the best job I've ever had." Most had "absolutely no complaints," but obviously no company is perfect. As one technician says, "The only bad thing is that there are some 'Dell ways' of doing things. Since a lot of areas are new, when you hit those new areas, things can slow down." Minor criticisms aside, when employees say things like, "I have found the place I intend to retire from. The only way I'll leave is kicking and scratching," it must be a pretty good place to work.
Human Resources
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