Tuesday, December 15, 2009, 8:20PM ET - U.S. Markets Closed.

From Silicon Alley Insider, Dec. 31, 2008:
After Dell founder Michael Dell came back as CEO in 2007, he hired former Solectron chief Michael Cannon as president of global operations and former Oracle exec Mark Jarvis as chief marketing officer.
Some $22.8 million in total compensation later, both Cannon and Jarvis will lose their jobs before 2009, the Wall Street Journal reports. Cannon will probably stay with the company in a new role. Jarvis is out.
Sources told the Journal Dell (DELL) could also soon make cuts to "its lower executive ranks."
Cannon was supposed to streamline Dell manufacturing. Jarvis's job was get customers to "lust" after Dells.
But Cannon's plan to outsource PC production took too long and besides, doesn't take advantage of his on-the-production-line cost custting prowess.
And while Jarvis saved the company lots of money when he cut relationships with some 800 agencies and formed one instead, the WSJ says " some Dell executives were unhappy about giving up relationships with other ad firms."
But here's the real reason the pair are goners: since returning to the company in early 2007, Michael Dell hasn't been able to do anything to save it.
Despite layoffs, cost-cutting, the outsourcing and the new marketing strategy, the stock is down from a high of $30 to $10.23 today. Somebody has to pay for that and clearly, Michael isn't ready to see that scapegoat in the mirror.
See Also from SAI:
Tech Loser #8 Michael Dell
I liked your article. Right to the point.
As one of the Dell beginners who was part of the old Breaker crowd. I'm glad to see them getting back to what works for Dell and get away from all the corp bureaucracy that has lead so many good companies failures. I'm sure Michael has been getting some bad advise about, if your big you have buy into all the bureaucracy. In this environment you need to be able to turn on a dime with out all corp execs trying cover their a_ _. Lean and mean........
I think a business savvy guy like Michael would just liquidate the company and give the money to the stockholders to buy Apple :)
Well, typical corporate cut and burning (been on the 'thrown out with the trash' end of things - WITHOUT the golden parachute). Mike Dell had a great thing going, but they are in a different part of their lifecycle and the era of the Mac is quickly approaching. I use a Dell, like it fine - but they are not 'special' anymore... just ordinary. No 'lust' there for me, just like. You'll find it hard to attract TOP TALENT when you treat people this way... but again, all part of the lifecycle. Mac-Attack.
It's about time someone is holding these incompetent execs accountable and firing their butts. I think most companies in the US should take a page from Dell's playbook.
Michael Dell will turn the company around. Surely this comes as terrible news to TT but grin and bear it guys.
@RLErrington, EL Stupido get over Apple Crap.
working for one of Dell's competitors... i am not surprised to see this at all...and frankly... not upset about it either :o) I don't see Michael Dell really being able to turn the company completely around... BUT stranger things have happened!! You can do ALOT better than a Dell...especially when you look at the overall service you receive...outside of the machine that you purchase. To me... service is everything....thats what determines where i buy from. The Service that Dell provides will kill their company WAY before their product will.
Sorry Lucas, but here is Michael in all his brillance: "What would I do? I'd shut it down and give the money back to the shareholders," Michael Dell said before a crowd of several thousand IT executives. (Oct 1997). Don't you find it ironic that Dell brought back Michael to save the company (ala Apple/Steve Jobs), and all Michael can do is more of the same old thing? Where is the brilliant mastermind now?
SHOULNDT HAVE OUTSOURCED SUPPORT TO THE FOREIGNERS... HOPE IT SAVED YOU A FEW BUCKS BECAUSE IT LOST YOU YOUR COMPANY. STUPID CHEAPASS DECISION.
They were heavily invested in Ireland which was their European base with about 10000 employed there, but this year announced that they are pulling out completely for an eastern european former communist country, and hiring more in asia. Moving production to a cheaper location is one thing - laptops made in asia - but I think moving to Krakow, Poland will be a disaster right now. It's a beautiful city, educated people, but the culture is much more Eastern, not western. It'll also be much harder to find talented people to move there for Polish salaries. You don't move your business intelligence from a multicultural western tiger economy to a socialist-style monocultural industrial heartland.
Dell was running the company ..he was always there at the meeting/...so he never left ...or let Ken Rollin run all the business. They no have advantage , If they were serious about the printer and storage they would of bought lexmark & EMC. They wasted a few billions on virtualizations and storage -which got them no where. Did you know .All of Dell sales and backbone is running on HP (tamdem) computer, They been trying to fix this for more than a decade and still have to paid HP for support/leasing.
25 years ago Michael Dell was assembling PCs in his dorm room and selling them at $50 over his cost. He built an empire and a long list of friends along the way. He has a lot of customer loyalty capital in the marketplace to build off of if he gets personally involved again. Who knows, he and Steve Jobs may become partners after this is all done; Dell/Apple would make an interesting combination if the technologies were co-packaged right.
Yep, I feel no lust for a Dell. That totally missed. Sounds like they got away from their business model. 800 agencies? How about none!!! Take that ad money (production, media buy, tracking, in-house mktg.) and lower the computer price and raise the quality. Not make us watch those ads. I feel the lust building...
Yep, I feel no lust for a Dell. That totally missed. Sounds like they got away from their business model. 800 agencies? How about none!!! Take that ad money (production, media buy, tracking, in-house mktg.) and lower the computer price and raise the quality. Not make us watch those ads. I feel the lust building...
Dell needs a better ad to compete with Apple for the consumer market. How about an ad that lists the top 5 reasons to buy a Mac - 1. Clicking the ‘Start’ button isn’t simple enough. 2. Your older brother uses Windows and you have middle child syndrome. 3. You saw an advertisement on TV and everyone knows people that use Mac’s are cool and those who use Windows are geeks. 4. Steve Jobs is good and Bill Gates is the devil. 5. Why buy a $499 Dell when you can buy a $1500 Mac. It comes in pink! Your Dell can come in pink too. :)
Hiring Ron Garriques from Motorola is another disaster in the making to run its consumer division. Ron Garriques is a total idiot . After inheriting a winning product Razor, all Ron did was to milk it to the bone and cut prices in an attempt to gain market share despite driving profit to zero. As soon as his mistake are beginning to show up , he jumped ship and not do the ethical thing to stay back and fix the problems he cause. Good luck Michael Dell !! Watch out for Ron. he is going to screw up at Dell too.
Someone had to be thrown under the bus and Michael Dell does not like tire tracks! In the past I have purchased only Dell products...until this year. I have purchased three laptops and a desktop this year...all HP and loving them. It has nothing to do with the latest manufacturing processes, nor the ad agencies they hire...it has to do with CUSTOMER SERVICE which has deteriorated at Dell to a point of being comical!
Had a Dell. Bought a bigger, better Gateway. Love it. Dell's quality falling fast.
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Mike - Wednesday December 31, 2008 10:08AM EST
And they totally blew their Christmas season promotions. THe laptop I ordered during the "12 days of Christmas" promotion on December 4th was delayed. Twice. And now won't ship until January 23rd. I cancelled the order, and am enjoying my new Gateway.