Giving Credit When Credit Is Due

In: Business and Management

Submitted By gus962
Words 818
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Most CEOs success stories started with an entrepreneur, an idea, and a business loan. Michael Dell (Dell, Founder and CEO) and Andy Grove (Intel, Cofounder and CEO) success’ stories were no exception. Michael Dell launched his company in 1984 with a unique business model known as” mass customization” (Krames, 2003, p 59) or a “one-to-one” (Krames, 2003, p 59) between customers and company. The company delivered what the customers exactly want with “rock-bottom prices” (krames, 2003, p.59). With no margin paid to distributer or middleman. Dell increased customer savings while keeping a healthy profit margin. Dell’s business success continue to grow, four years later the company went public and Michael Dell at age 27 was named the “Youngest CEO” of a Fortune 500 Company.
The second CEO and cofounder of Intel Andy Grove and other two engineers launched their company in 1968 with the invention of microprocessor that revolutionized the industry. Andy Grove dominated the market with little or no competition until 1984 when a Japanese company which provided the same products took over the market by lowering their prices, after trying almost everything, Andy Grove and his top managers decided to leave of the memory chip business and switch to solely microprocessors ship. They went on to build the world’s largest chip-making business (Krames, 2003, p 135)
Along the way, both CEOs faced some challenges. In 1980 Andy Grove had to make a crucial decision when he decided it is time for the company to make drastic change by getting out of memory ship business completely and get in to microprocessors as he called it “strategic inflection Point” (Krames, 2003, p 141).
Also in 1994 when Intel’s much anticipated platinum ship has a minor design error, Andy Grove chose to replace every ship that had been made faulty, the cost was a half a billion dollars (Krames, 2003, p 141).…...

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