Internal And External Environmental Factors Of Operations Management

1522 Words7 Pages
Intel’s operations strategies are comprised of both internal and external environmental factors. Externally, Intel’s operations managers must choose “Cost-optimal distances from target markets, suppliers and resources” (Lombardo 2017). Intel’s operations managers must also consider its entire supply chain when creating operations strategies. Intel’s “supply chain is automated to maximize efficiency. For example, the company has computer systems and databases for monitoring and determining areas that need immediate adjustment. In addition, Intel’s operations management efforts influence suppliers through policies that extend to their business activities. For instance, the company develops and implements policies to improve the…show more content…
However, customers are not the only group that affect Intel’s quest towards higher energy efficiency and increased revenues. Intel has a number of competitors in each product division. In terms of microprocessor chipsets for PCs, Intel’s main competitor is NVIDIA. For personal processor computers, it’s AMD, and for microchips, it’s MCHP. Such companies have forced Intel to remain competitive within the microprocessor chip industry, but have also somewhat prematurely pushed Intel into the realm of mobile technology, where it competes with Apple, Samsung, and other Android chip manufacturers. Previously, Intel’s “Intel’s growth and profitability [were] significantly dependent on the sales of Windows systems” (Lombardo 2017). The company had partners with Microsoft to make sure Intel chips were used with the Windows operating system, and are now partnering with Microsoft in cloud computing. Partnerships allow for Intel to stay competitive within the marketplace, and also allow for Intel to gain and share knowledge with other companies. Currently, Intel partners with Apple to make chips for Mac computers, which were previously made by IBM. Intel also partners with Dell to make chips for Dell computers,
Open Document