Essay on Case Study: Chipping Away at Intel (Part 1)

Decent Essays
I. Introduction
Intel was in the bad shape in the Barrett’s tenure and he had to implement changes to cope with internal and external pressures. The specific pressures that required Intel to change were Intel’s bad products with delays and shortages, overpricing, bugs in its system, shares going down, slowing global chip demand, slowing economy under impact of September 11, 2011 and its rivals becoming stronger... It was a really hard time for Intel and a big challenge for Barrett in order to remain the company’s reputation.
II. Analysis of the case
The changes have occurred in Intel in the Barrett’s tenure
When Barrett came in Intel three years ago, he took some bold moves. He expanded into the production of information and
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The rapid pace of change in the technology industry also brought hyper- competitive pressures in Intel’s markets. They withdrew from the production of network servers when they had to compete with Cisco, a major client in the chip market. Moreover, other rival Advanced Micro devices had produced its Athlon processor chip, which turned out faster than Intel chip.
Beside external pressures, internal pressures also gave big impacts on Intel’s change. Barrett saw the duplication and bad coordination among Intel’s units and he decided to solve these problems by reorganizing of the business units and acquisitions of other companies. From his activities, integration and collaboration pressures became prominent, which was expected to make the company more nimble.
The result of the changes
Although a lot of Barrett’ strategies were applied for three years in his tenure , most of his efforts were failing and Intel was in worse shape. His changes did not bring many improvements for Intel as he expected. His changes were even considered by a former general manger as “dabbling in everything and overwhelming nothing” and job cuts, with 5,000 jobs lost also hampered Intel’s reputation.
Barrett made the changes at Intel due to the external pressures and reorganized internal forces to cope with these pressures. However, the internal pressures
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