Dell Computers CEO talks on taking care of business

It was standing room only yesterday for a lecture by Michael Dell, the 32-year-old CEO of Dell Computers. The audience of hundreds overflowed onto the stage of Stemmler Hall's Dunlop Auditorium to hear Dell talk as part of the Wharton School's Zweig Executive Lecture Series. Dell, the fifth lecturer in the series, even had to wait 15 minutes before everyone could file in. Dell, who started with an innovative idea and $1,000 at just 19 years of age, has built the largest direct-sales computer systems company in the world. Gasps of awe arose from the audience as Dell quoted the company's first month's profit -- an astonishingly high $180,000, more than a decade ago. Today the company -- which is expected to reach the $10 billion sales mark later this year -- sells many of its computers over the Internet and as special orders, in addition to traditional retail offerings. Dell noted that the company brings in $3 million daily in Internet revenue. Much to the chagrin of his parents, who expected him to become a doctor, Dell left college after only one year to pursue what most considered only a dream. That dream turned into $33 million at the end of the first year. "After about six months of business, my parents finally decided that it was OK," Dell said. "And about two years later, I finally forgave them." Giving a brief history of his company, Dell highlighted the increasing effects of the Internet and technology on the computer sales business. Most of the session, however, was devoted to a question and answer period, allowing students the chance to interact with one of the world's top business leaders. In response to one question regarding the company's recent technological advances, Dell emphasized the importance of useful, customer-oriented services. The company, for example, created a World Wide Web site where customers who are having problems with their computers can call up troubleshooting techniques. "The key for us is the relevance of technology -- if you have something that's really innovative but not useful, we're not interested," he said. "Our goal is to match the emerging technology to the customers' needs." In between his quirky references to Apple Computer Inc. as "our fruity friends" and other entertaining remarks, Dell spoke, often humorously, about his experiences as a young CEO. "I've learned by making a lot of mistakes, and luckily none of them were fatal," he noted. "I've tried not to repeat my mistakes, at least not the key ones." Discussing the company's structure, Dell said he initially saw no need to establish a hierarchy. But as the company grew, he quickly discovered the necessity for more order. To raucous applause, he shared an experience when the company was only 6 months old and an employee came into his office saying, "I lost a quarter in the Coke machine." Dell joked, "I'm trying to figure out how to grow this company, and he lost a quarter in the Coke machine." Dell -- who was introduced as "one of the most successful CEOs in corporate America today" -- also discussed the future of his company, announcing plans to open new foreign markets in China, Brazil, India and Indonesia. "Our goal is absolutely to be No. 1 and to gain share and be significantly larger than No. 2," he said. "We don't intend to get to No. 1 and then stop." He emphasized, however, that his aim is not necessarily the acquisition of competing companies. Instead, he stressed Dell's need for internal growth and the acquisition of its own talent -- not the takeover of other businesses.