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Dell says growth is big challenge

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Dell Inc. Chief Executive Kevin Rollins said the world's largest personal-computer maker must expand sales by at least 15 percent and add 10,000 new workers a year to meet its revenue goal of $80 billion within four years.

"Growth right now is the most significant challenge, not only just where we grow but how we grow, as the company is getting quite large," Rollins said last week at a press briefing in Toronto. "The expansion — bringing all those people in, getting them trained and not missing a beat — is the challenge."

Brigham Young University alumnus Rollins said Round Rock, Texas-based Dell will need to boost sales by 15 percent to 20 percent a year to expand to $80 billion from about $60 billion in revenue this fiscal year.

Earlier this month, Dell reported its smallest sales increase in three years at 15 percent. Revenue growth slowed after the company cut prices too much on consumer-model computers.

"The strategy is right, the capability is there, the market is there," said Rollins, 52. The challenge is "to keep the engine running smoothly, and so right now it's really built on execution."

Dell's second-quarter report, coupled with a forecast for this quarter that missed analysts' estimates, prompted a 7.4 percent drop in the company's shares on Aug. 12, the biggest one-day decline in the stock in four years.