Case Study: Chipping Away at Intel Essay examples

Describe the characteristics of the industry in which Intel operates. How is Intel positioned in the industry?

Revenues are recognized in a net basis and only commissions they retain from each sale are reflected under the company’s financial statements.

Led the PC microprocessor market and ousted competition through sole licensor decision: Post losing a contract to supply microprocessors to Apple, in early 1980s, Intel won a contract to provide the same to IBM for its PCs. IBM PCs were a huge success and catapulted Intel to gain market leadership. IBM initially forced Intel to license its product to other players to secure adequate supplies reducing Intel’s potential

Cisco was able to recognize that a centralized and functional structure was necessary in order to avoid product and resource redundancies; however by doing so, Cisco also risked losing its customer-centricity focus that had set it apart in the market for years. To help mitigate these risks as well as encourage and ease the change transition, Chambers decided to implement a cross-functional system of executive level councils.

Another way of achieving the profit of the added value is investment in software development to leverage the advantage of the high performance processors. And that was achieved by development of complementors, although Intel had a relationship with Microsoft, but it was enough, since it required Microsoft years to develop the software, were Intel is moving faster, by adopting the strategy of complementors, Intel build its capital. Intel strategy was to invest in companies that fit strategically into Intel’s business strategy as well as offered a financial return.

This report discusses the case study ‘Intel Research: Exploring the Future [1], published in 2005 by the Harvard Business School. The discussion is divided into three different sections: overview, analysis and conclusion.

Synopsis: Doug Aiken took over Tech Depot and replaced the symbolic leader who founded the company, when Aiken took charge he immediately introduced a new management plan, measuring everything from sales of products to employees. He saw himself as the omnipotent leader (mgt p39) Sales dropped after two years and everything Aiken was working for diminished. He did not gets the results that were expected by the company. Many of the staff expressed dissatisfaction with their jobs The board decided they were in need of a new CEO, so they hired

3. How concerned should amd be about intel’s imminent new product plan? will they hamper

Issue 01: Steve Jobs is now gone - can they do it without him in the long term?

IBM needs to grow revenue and stay competitive in the dynamically changing computer marketplace of the 1990’s by maintaining technological leadership and accepting the organizational transformation which needs to be undertaken for them to excel. IBM needs to recapture their previously held powerful position in the personal computer and microprocessor markets and regain value in the company which will increase its stock value and competitive advantage in the marketplace.

First, Apple introduced a new OS in 2001. Second, Apple shifted to Intel chips and by the following year all Macintosh line ran on Intel making laptops run faster for less power. The third strategy was the development of proprietary set of applications. The fourth strategy in becoming the “digital hub” was to come up with a new distribution strategy: the Apple retail store, where customers can have a direct use and experience of Apple’s product and software.

In 1997, Steve Jobs returned to Apple as an advisory and with the purposes of reshaping the product line. The changes made by Jobs resulted in increased sales and $309 million in profits. Job changed the mindset of Apples management and development team. He encourage them to have the “think different” management style that promotes the development of products that are ahead of the technology and design curve, and a creative retail strategy. It is this strategy that would eventually make Apple the best-selling company in the PC industry.

The team shall lead a class discussion for Intel Corporation 2010, with an analysis of Intel’s profitability. In addition to the presentation, a written report will be submitted onto Blackboard by May 2, 2011. The report shall contain the answers to the questions in the project handout.

1. How difficult was the task facing Immelt assuming the CEO role in 2001? What imperatives where there to change? What incentives to maintain the past?

Intel, also known as Integrated Electronics, is a company that manufactures and sells various types of electronic equipment and hardware. It was founded by Gordon Moore and Robert Noyce in 1968 and has since grown to be a commonly used consumer brand. Intel must ensure that its products are consistently well-made, especially when its products affect the consumer’s experience with the technology he or she is using. Because Intel must implement quality in a wide variety of products, the best practice for the company is to have a physical separation between its departments and to focus on the quality of each individual aspect of its product creation; this will allow each department to specialize in their work functions and allow the company to separate each task effectively.