February 01, 2007

Turnaround time for Michael Dell

According to CNET News.com,”This Wednesday the latest Dell executive,Kevin Rollins, to leave as a result of Michael Dell’s housecleaning was the man perhaps second-most responsible for the company’s once-remarkable success.”

Richard Shim, an analyst with IDC,pointed out that:

“The usual bag of tricks-leveraging the supply chain and their economies of scale-hasn’t worked,” said after Dell announced the departure of Rollins.(Source:http://articles.techrepublic.com.com/2100-10878_11-6155260.html?tag=nl.e019)

In my point of view,as a leader, he/she has to be more sensitive to the changes of the business environment,for he/she is responsible for the company’s shareholders.The reason for the resignation of Dell’s CEO is that the changes of the PC industry are so fast that if the Dell is still stick to its coral business and would not make any changes to meet the customers’ expectations.He is bound to lose the market share in PC industry.Nowadays consumers are looking for a better look and also forming a trend to get used to use Laptop to replace with the Desktop. Thus the Dell may not just focus on Lower price PC market.(BTO or customersized PC) It is better to do some changes than do nothing. Therefore a big challenge for the leader as a CEO in a company is when is about time to change to make it more successful again.Now the founder of Dell,Michael Dell,came back again to serve as CEO and start to begin with “Dell 2.0” era.

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