Comparison of Business Professionals’ Philosophies

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The assignment focuses on comparing Chapter 2 and 5 of J.A. Krames’ article, What the Best CEOs know: 7 Exceptional Leaders and Their Lessons for Transforming Any Business (2003). The activity contrasts the similarities and differences between the business philosophies and innovations of Michael Dell of Dell Computers, Inc. and Andy Grove of Intel, Inc. It describes the business innovators, their contributions to their field and industry, the resistance encountered in furthering their ideas and programs, and the factors that influenced their success. Chapter 2 focuses on the Dell Computer founder and CEO, Michael Dell. Dell’s contributions to the field of business include the direct model of mass customization and direct distribution model. Mass customization is a “one-to-one relationship between the company and the customer” which leaves out the intermediary (Krames, 2003, p. 59). Dell’s direct distribution model eliminates dealers, inventories, and institutes cost-cutting measures by cutting out the intermediaries. Deleting players from the distribution chain can be risky, but results in a reduction in operating costs and improved margins (Strickland, 1999). Dell’s focus is listening to the customer and providing a service that provides the needs and wants of the customer. Michael Dell encountered resistance in his management teams. The management teams forced their views and opposed to listening to what the customer wanted and needed (Krames, 2003, p. 59). Dell survived the technology bust of 2001, and improved the company’s market share by providing a better-quality product and beat the competitors through quick delivery and meeting the customer needs (Krames, 2003, p. 63). Chapter 5 focuses on Intel co-founder and former CEO, Andy Grove. One of Grove’s contributions to the business field is his philosophies and strategies for change management. Grove

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