Category: Intel

Executive summary

Waste materials produced in the workplace pose various challenges to both organisations and the environments in which the refuse is disposed. This paper presents a discussion of the intensity of the seriousness of these problems with reference to a case study of waste management in Jones Cafe 5 and the Ronler Acres Cafe 3 workplaces.

The two workplaces are cafés owned by the Intel Corporation. They are located in Hillsboro in the State of Oregon, in the United States. Currently, the two dining facilities use pre-consumption waste management techniques, which involve measuring the pre-consumed waste in a bid to look for mechanisms of reducing the refuse.

The facilities have been successful in this effort by reducing this type of garbage by 47 % between 2009 and 2010. This reduction translates to saving of $132,000 for every $1,000,000 worth of foods produced at the workplaces.

This paper proposes a plan for increasing the savings by an additional $80,000 for every $ 1,000,000 worth of foods produced in the facilities through the adoption of post-consumption waste saving strategies such as recycling, minimisation of packaging, and conversion of refuse into inputs.

These strategies are implementable within one year. However, the strategies will use the Intel Corporation’s financial resources for the future reduction of costs associated with refuse.

Introduction

The world population is rapidly growing, thus leading to the emergence of more urban centres. As urban centres become more populated, municipal solid waste (MSW), which is one of the critical by-products of lifestyles associated with urbanisation, also increases.

According to the World Bank (2013, par. 1), ‘ten years ago there were 2.9 billion urban residents who generated about 0.64 kg of MSW per person per day (0.68 billion tons per year)’. While this population has currently grown, the waste production capacity per person has also grown. This growth is due to increased consumption of manufactured food products and other goods.

The World Bank (2013, par. 2) estimates that the world urban population currently stands at ‘about 3 billion residents generating 1.2 kg per person per day (1.3 billion tons per year)’. It also estimates that by 2025, the population will grow to 4.3 billion people generating waste amounting to 1.42 kg per individual in a day, which amounts to 2.2 billion tons of solid waste annually.

Waste management is an important issue facing various municipal councils across the globe. Gandy (1999, p.21) notes that waste management refers to ‘the collection, transportation, processing and/or disposal, managing, and monitoring of waste materials’. The word ‘waste’ covers all material emanating from people’s activities.

The aim of waste management is to mitigate the effects of the waste on the environment and people’s health (Price 2001). Considering the estimates of the Word Bank (2013) as stated above, building of municipal waste landfills emanates from individual consumers within urban centres.

Therefore, a waste management plan begins with the development of strategies of reduction of waste production at an individual or organisational level. This step precedes the development of plans for disposal of garbage at an individual or organisational level.

This paper presents a waste management plan in the workplaces for the Intel Corporation in its facilities in Oregon. Through proper management or reduction of waste at the facilities, the paper holds that municipal solid waste reduction at both Oregon and global platforms would become a reality when other organisational and individual consumers follow similar strategies for waste reduction across the globe.

Description of the workplace

Background information

Concepts of foods waste management attract attention for retails food organisations as they seek for mechanisms of handling their waste in a manner consistent with concerns of environmental suitability anchored on perspectives of social corporate responsibility.

This concern is perhaps due increasing cognitions that when foods organisations manage garbage better opportunities exists for cutting their operational cost (Pipatti & Wihersaari 2008). Indeed, this is the main driver of paying intensive consideration to garbage reduction and management at the Intel Corporation’s dining facilities.

Located in Hillsboro, in Oregon, two dining facilities (Jones Cafe 5 and Ronler Acres Cafe 3) owned by the Intel Corporation are incredibly concerned about proper waste management practices coupled with derivation of best approaches to garbage reduction.

In this effort, the facilities sought to generate data for their garbage by tracking various pre-consumer food-related wastes through the deployment of waste tracking computer-based systems coupled with software applications (Intel Corporation 2010).

The main objective of gathering this data was to provide information, which forms the basis for the creation of staff awareness on impacts of waste at the facilities, focus their behaviours towards waste minimisation, and conduct diagnosis for various causes of high wastage at the facilities.

The program was put to action in 2009 through 2010. Preliminary results of the program indicated that tracking waste at the facilities on a daily basis had the capacity to reduce pre-consumption waste by about 47 percent in terms of weight.

It could also reduce the cost of foods per meal basis by 13.2 percent (Intel Corporation 2010). The facilities also approximated that if the waste management plan worked; extending similar concepts to other foods facilities in one year would reduce emissions of green gasses by about 100 metric tons (Intel Corporation 2010).

Demographic data

Ronler Acres Cafe 3 and Jones Cafe 5 produce large amounts of garbage. At the workplaces, the amount of waste produced is not related to the floor space or the number of employees, but to the number of meals served by the two dining facilities on a daily basis. They both serve about 12,000 meals in a week, which translates to about 2900 pound of foods going into waste (Intel Corporation 2010).

Such refuses have huge implication on the operational costs at the Intel Corporation, as evidenced by data from environmental protection agency of the US. Intel Corporation (2010, p.1) posits, ‘garbage cost commercial and retail food service operations $30 billion to $ 40 billion per week’.

The two workplaces owned by the Intel Corporation have their share on this huge sum of costs, which may be considered unnecessary if proper waste management plans and practices are adopted.

Although pre-consumer wastage poses the biggest challenge to both Ronler Acres Cafe 3 and Jones Cafe 5, other materials are emitted from the workplaces as waste. These materials include post-consumer waste such as packaging materials like cartons, plastics, aluminium cans, and steel waste such as damaged cutlery among others.

Cutting on production of pre-consumer waste does not translate to reduction of some of these post-consumer wastes. The waste would end up in the incineration, recycling or landfills waste management systems in Oregon.

Packed take-away meals pose a major challenge to the two facilities. The Intel Corporation does not have a mechanism of tracking waste associated with packed take-way foods and beverages in a bid to ensure their proper management through appropriate disposal approaches depending on the type of waste.

Current waste management practices

The current waste management systems at the Intel Corporations’ Ronler Acres Cafe 3 and Jones Cafe 5 focus on reduction of pre-consumer waste. The food waste tracking system is created through financial aid from the department of environmental quality in Oregon and the Hillsboro City.

The system operates through the deployment of digital scales coupled with software to measure various quantities of the disposed foods. Intel Corporation (2010, p.2) notes that the tracking includes ‘pre-consumer foods from hot and cold production areas as well as post-consumer foods from the hot line, salad bar and other cafes and kiosks throughout facilities’.

In this sense, the system only focuses on the reduction of wastage of foods before consumption by the Intel corporation customers. It has mechanisms of reducing post-consumption waste.

The current pre-consumer waste management system at both Ronler Acres Cafe 3 and Jones Cafe 5 workplaces has proved less costly in terms of employees’ time utilised in weighing the foods thrown away as refuse. The system uses only 4 minutes within a week for every employee at the two work places.

The data collected through the system includes the food items disposed, the reason for disposal, the type of containers used in weighing, the name of the employee recording the data, and the sending station of the dining facility.

In the effort to foster productivity of the system, the Intel Corporation appointed a work team referred as ‘stop waste action team’ spearheaded by an executive chef to provide oversight and review data collection in every site. The team encouraged collective improvement in avoiding food wastage. Between 2009 and 2010, the system made it possible to reduce food waste to 1600pounds from 2900 pounds in a week.

This move saved more than 60, 000 pounds of food from going into waste annually. In terms of cost, in every $ 1, 000,000 worth of food, $132, 000 was saved through pre-consumer waste reduction. However, this saving could even increase to $ 200,000 by adopting the waste management plan proposed in this paper.

Rationale for waste assessment

The rationale for conducting waste assessment at the Intel Corporation’s Ronler Acres Cafe 3 and Jones Cafe 5 workplaces rests on the platform of the need to save costs for the organisation and mitigate health and environmental impacts of refuse. In Oregon, there is also a legislative requirement for organisations to reduce their waste materials in a bid to reduce the Municipal Solid Waste (MSW).

Failure to comply with this directive may result to legal action against an organisation. However, amid this legislative requirement, cutting environmental costs and operational costs for Intel are the most important reasons for conducting the waste assessment.

As argued before, operations in food services results in loss of $30 to$ 40 in the form of foods waste. This aspect is accounted for by between 4 and 10 percent of all foods prepared in the retail food sector that never reach the customers’ plate. Chief causes for this scenario include spoilage, overproduction, and expiration.

These wasted foods add challenges to environmental pollution by food-associated waste such as packaging for consumed food, which finds its way to landfills.

Decomposing food waste emits gases such as methane, which create greenhouse gas problems (Pipatti & Savolainen 2006; Bogner & Matthews 2003). Hence, reducing waste underscores an important aspect for conducting waste assessment in any work place.

Methodology

The first step in the development of waste management plan for Ronler Acres Cafe 3 and Jones Cafe 5 is answering the question why waste exists in the two workplaces. Responses to this question prompt the necessity of conducting interviews with the workers at the organisation coupled with the management team.

The existing waste management system provides an important source of data on the type of garbage. However, for post- consumer waste, contents of waste collection bins are used to determine the type of waste finding its way to the Oregon municipal.

Appropriate waste management techniques can only be derived after getting data pertaining to the types of waste materials involved in the process. Hence, an analysis of the waste contained in waste bins is important. A consideration is also made to study mechanisms of food processing at the two dining facilities.

This aspect helps in gathering data on waste that accompanies foods offered at both Ronler Acres Cafe 3 and Jones Cafe 5 workplaces, which may get out of the dining facilities in the form of take-away foods, later to find its way to the Oregon MSW treatment plants.

Description of waste generating processes

With the new system of waste management in place, Ronler Acres Cafe 3 and Jones Cafe 5 have been in a position to reduce their pre-consumption wastage by more than 47 percent. The main processes through which waste materials are produced include trim wastage, expiration, spoiled foods, and over production. These processes are illustrated in the circle graph shown in fig. 1 below.

Fig.1 waste production process at Ronler Acres Cafe 3 and Jones Cafe 5

Source: Intel Corporation (2010, p.7)

The processes for producing food in the facilities consume a lot of water, land resources, and more importantly, energy. Affluent water constitutes some of the principle waste produced by the facilities. Waste materials at the facilities are also produced through food processing activities such as transportation, storage, and processing.

Waste materials composition includes biodegradable waste and non-biodegradable waste such as plastics and aluminium cans. Waste materials are normally collected in wastes bins before being hauled to the Oregon’s waste treatment plants.

Efforts to reduce waste production at both Corporation’s Ronler Acres Cafe 3 and Jones Cafe 5 has seen the Intel Corporation appoint waste administration personnel within its facilities headed by a senior chef. Under the new system, the organisation does not hire from outside its existing labour resources. The existing workforce takes individual responsibility to measure and record waste materials before disposal.

From the paradigms of labour costs, Intel Corporation (2010, p.5) notes that ‘in hypothetical operations at an hourly rate of $ 10, total labour cost in the waste reduction would be less than $30 per week’.

However, the system works without any additional dollars or even working hours for the existing employees. Instead of increasing labour, the waste management systems reduce labour requirements in the two dining facilities through the reduction of overproduction.

Results from the waste assessment

An interview with the workers and the management team provided important information on waste generation processes. An interview with the senior chefs at both Ronler Acres Cafe 3 and Jones Cafe 5 revealed that forecasting of menus to cut down waste is a major problem.

In particular, the chef for Ronler Acres Cafe 3 admitted that even in the light of the new system of waste management at his work place, low production forecasting is a major challenge. It may lead to failure of the facility to meet the orders of the day.

Jones Cafe 5 senior chef admitted the incompleteness of the waste management system to address challenges of management of some waste materials such as refuse vegetable oils, empty cans, and other packaging materials such as containers for hot beverages.

At both facilities, the management cited the problem of menu sophistication in contributing to the challenges of accurate forecasting of the raw material requirements to avoid waste production. The facilities kept on altering their menus to incorporate more of local and sustainable foods, which are highly perishable.

This move led to the production of more green waste. The pie-chart (circle graph) shown in fig. 2 below shows most discarded waste in the two dining facilities

Fig. 2: Pie chart showing most discarded waste at Ronler Acres Cafe 3 and the Jones Cafe 5

Source: Intel Corporation (2010, p.7)

Through the new pre-consumption waste management system, Ronler Acres Cafe 3 and Jones Cafe 5 have been in a position to reduce their waste production levels tremendously as shown in table 1 below.

Table 1: Waste reduction rate at Ronler Acres Cafe 3 and Jones Cafe 5

Source: Intel Corporation (2010, p.6)

Analyses of results

Amid the efforts of the Intel Corporation to minimise production of pre-consumer waste, both Ronler Acres Cafe 3 and Jones Cafe 5 still produce other forms of waste materials. Effective management of such waste can lead to immense reduction of costs of running the facilities.

One of the waste minimisation opportunities is to encourage customers to come with their hot beverages travel mugs. This move can help in reducing the amount of waste materials used for packaging hot beverages. The cost of each hot beverage-packing container is about 11% of the total cost each container of hot beverage served at the facilities.

By offering 10 % discount on equal quantities, of beverage served to customers having their own hot beverage travel mugs, will increase profit levels of the beverages by 1% while reducing the amount of plastic waste drastically.

This cost-saving and waste-reduction opportunity also includes additional saving on minimisation of transportation costs and the carbon dioxide emissions associated with transportation of the packaging containers to the facilities. Encouraging customers to come with their own travel mugs can assist in putting two trucks for hot beverage packaging containers out of the roads per week.

Both Ronler Acres Cafe 3 and Jones Cafe 5 discard many used vegetable oils. Instead of incurring costs levied on proper disposal of oil refuse from restaurants in Oregon, Ronler Acres Cafe 3 and Jones Cafe 5 can utilise the waste vegetable oil as cost-saving and waste-reduction opportunity.

Vegetable oils can be deployed in the production of electricity to supplement the Oregon’s State grid supply to the Ronler Acres Cafe 3 and Jones Cafe 5, and in the production of energy required in heating water. The utilisation of refuse vegetable oil in the production of electricity requires waste oil generator such as Vegawatt vegetable oil generator.

The generator can produce hot water from refuse vegetable oil at a capacity of 120 gallons in a week (Kaplan 2012). Picture 1 below shows an example of Vegawatt generator, which can be installed in a restaurant

Picture 1: Vegawatt waste vegetable oil generator

Source: Kaplan (2012, p.25)

Apart from the minimisation of energy consumption from the Oregon State’s grid, the generator does not introduce significant costs in terms of space utilisation. It is the size of two-door Samsung freezers sold in the commercial market. Its break-even time is four or even two years with a cost saving of $7,000 annually for smaller versions and $25, 000 for larger versions (Kaplan 2012).

Considering that Oregon’s department for environmental quality and the city of Hillsboro have high interest on giving incentives to organisations seeking to install systems for waste reduction and proper waste management, with such incentives, the payback period for Vegawatt waste oil vegetable generator can be reduced even to 6 months.

Waste recycling especially steel waste, plastic waste, and aluminium cans underscores another important cost-saving waste reduction opportunity. For effective implementation of this strategy, awareness on the need to dispose these waste materials appropriately is important. Consequently, Ronler Acres Cafe 3 and Jones Cafe 5 need to sensitise their consumers on the importance of proper waste disposal.

This goal can be achieved through the provision of waste bins for each type of waste at the exit of the facilities accompanied by signboards instructing customers to ‘put waste materials in their correct places.’ This move helps in reducing costs associated with sorting out waste materials.

From the cost-saving analysis, the general perception is that recyclable waste materials call for collection, sorting out, and then transportation to the manufactures of the products and then delivered back to Ronler Acres Cafe 3 and Jones Cafe 5 at reduced costs.

However, from a wider perspective, reducing the amount of virgin raw material required in the production of the materials translates in to reduced costs of production due to easiness of accessing cheaper raw materials (Myllymaa et al. 2005; Jenkins et al. 2003). Hence, the cost of repurchasing the products made from 100% recycled material also reduces at the two facilities.

Recommendations for waste minimisation

Ronler Acres Cafe 3 and Jones Cafe 5 should specifically aim at reducing post- consumption waste having successfully already minimised pre-consumption waste.

This strategy can help the two workplaces to save costs for running the facilities by an additional $80,000 per $1,000,000 worth of food produced as compared to the already achieved cost saving of $132, 000 per 1,000,000 worth of food produced through pre-consumption waste reduction strategies.

Future wastage minimisation strategies should focus on recycling, use of waste to produce inputs required in running the facilities such as power by making use of waste vegetables oil generators, and reduction of the amount of take-away foods and beverages packaging using containers, which cannot be reused to repackage without going through the recycling processes.

Implementation of the above-recommended practices requires the commitment of organisational resources in purchasing the required equipments and machineries such as Vegawatt generators and waste collection bins. Short-term strategies such as encouraging customers to come in with their packaging such as travel mugs require no resource planning and time. They are implementable immediately.

Recycling requires good administration of the waste collection process coupled with acquiring of waste collection bins. This recommendation is implementable within one year. Through funds obtained from the Oregon department for environmental quality and city of Hillsboro, purchasing of Vegawatt generators can be accomplished within the next six months.

Reference List

Bogner, J & Matthews, E 2003, ‘Global methane emissions from landfills: New methodology and annual estimates 1980-1996’, Global Biogeochemical Cycles, vol.17 no.11, pp. 34-48.

Gandy, M 1999, Recycling and the Politics of Urban Waste, Prentice Hall, London. Intel Corporation: Food Wastes Prevention 2011, Intel Corporation, Oregon.

Jenkins, R, Martinez, K, Palmer, K & Podolsky, M 2003, ‘The determinants of household recycling: a material-specific analysis of recycling program features and unit pricing’, Journal of Environmental Economics and Management, vol.45 no.2, pp. 294-318.

Kaplan, M 2012, ‘Restaurants Use Waste Oil for Power Generation’, Smart Planet, vol.11, no.7, pp. 21-34.

Myllymaa, H, Dahlbo, M & Ollikainen, S 2005, ‘A method for implementing life cycle surveys of waste management alternatives: environmental and cost effects’, Resources, Conservation, and Recycling, vol. 7 no.50, pp. 108-121.

Pipatti, R & Savolainen, I 2006, ‘Role of energy production in the control of greenhouse gas emissions from waste management’, Energy Conservation Management, vol.37 no.6, pp. 1105-1110.

Pipatti, R & Wihersaari, M 2008, ‘Cost-effectiveness of alternative strategies in mitigating the greenhouse impact of waste management in three communities of different size’, Mitigation and Adaption Strategies for Global Change, vol.2 no.1, pp. 337-358.

Price, J, 2001. ‘The landfill directive and the challenge ahead: demands and pressures on the UK householder’, Resources, Conservation, and Recycling, vol. 32 no.13, pp. 333-348.

World Bank: What a Waste – A Global Review of Solid Waste Management 2013. Web.

The collaboration between Microsoft and Intel is one of the most lucrative business partnerships in the last twenty years. The relationship between the two companies was very convenient because of the type of products that the companies produce (Ungson, 2008). Microsoft is the largest producer of computer software while Intel is one of the largest manufacturers of computer CPUs and electronic chips (Rainer, 2010).

The operating system from Microsoft has been instrumental in enhancing a low cost of computation. Microsoft had to find a business partner that would help in realizing its vision of providing people with a low cost of computation. Intel is widely known for producing affordable computer hardware and therefore the company became an ideal partner for Microsoft (Ungson, 2008).

The partnership between Microsoft and Intel has been very successful because of the products that the two companies produce. The products produced by the two companies complement each other because they are sold as single package. Intel produces CPUs and other computer hardware while Microsoft produces the software that is needed to run the hardware (Schooley, 2007).

Computer hardware can not work without software and vice versa. This paper will discuss the rationale behind inter-organizational partnerships in industry information systems and how the systems are used to define and support partnerships.

Microsoft has the highest stake in its partnership with Intel and it is estimated that the partnership has a market capitalization of $400 billion (Ungson, 2008). It is this successful partnership that attracted IBM to choose the two companies when it launched its first personal computer. This is not to mean that there were no other companies that would have provided the much needed software and CPUs.

Microsoft has been facing a lot of competition from the Digital Research Company for a very long time. Microsoft and Intel have continued to dominate their respective industries as a result of their association with IBM (Ungson, 2008). The need to dominate the computer industry was the rationale behind the partnership between Microsoft and Intel.

The partnership between Microsoft and Intel has been experiencing some challenges in recent years because customers have been reluctant in accepting Microsoft products (Ungson, 2008). The two companies started with some weak technologies but got stronger after the partnerships. Microsoft has for many years been criticized for its offensive business tactics.

There are accusations from different quarters that Microsoft has been abusing its monopoly power (Waters, 2007). The partnership between Microsoft and Intel was commonly referred to as Wintel since Windows could only run Intel CPUs. It is this kind of monopoly that enabled the two companies to enjoy a lot of profits (Waters, 2007). The users had no option but to purchase computer products produced by the two companies.

It is this kind of benefits that made this partnership to be successful. The two companies collaborate in terms of sales, services and engineering systems which make it necessary for the companies to have an inter-organizational partnership in industry information systems (Truman, 2000).

Microsoft and Intel collaborate to provide IT solutions to their customers. The companies have joint roadmaps and other integrated features that justify their need to partner in industry information systems (Truman, 2000).

Microsoft and Intel have an objective of providing the most relevant and effective IT infrastructure for users (Truman, 2000). This can not be achieved without having a partnership in industry information systems. The need to provide fast and efficient software to customers is the reason behind Microsoft’s decision to partner with Intel especially when it comes to industry information systems (Schooley, 2007).

Inter-organizational partnerships in industry information systems have become very essential in modern business. Microsoft operates in a very competitive environment that requires companies to have reliable, flexible and efficient information systems (Ungson, 2008).

Organizations that are in a business partnership need to relate in a way that benefits customers and the companies involved (Murphy, 2008). This can only be achieved through an inter-organizational system. The partnership between Microsoft and Intel has been defined and supported in a great way by the inter-organizational system.

Microsoft and Intel are linked in the market because they depend on each other to sell their products (Truman, 2000). Microsoft and Intel have benefited in a great way through the inter-organizational system because the partnership improved communication between the two companies.

The companies are able to give the best services to their clients and customers because of the efficiency introduced by the inter-organizational system (Waters, 2007).

Inter-organizational systems are very instrumental in supporting business partnerships between two organizations (Murphy, 2008). The partnership between Microsoft and Intel has been the most lucrative one in recent years because of an inter-organizational system. An inter-organizational system improves supply chain management which is very critical in any kind of business partnership.

Businesses that are in a partnership require an efficient communication network that ensures that clients and customers get products and services within the required time. The delivery of products and services to customers by two businesses that are in a partnership requires an interconnected communication network (Khosrowpour, 2006).

Automation is one the key elements of an inter-organizational system that ensures fast and efficient service delivery. Apart from making profits, the other objective of the partnership between Microsoft and Intel is quality service delivery. An inter-organizational information system brings efficiency in supply chain management (Jones, 1998).

Inter-organizational systems facilitate an exchange of technology between two companies (Dye, 2008). This is inevitable because an inter-organizational system can not be run without technology. Computer programs and the internet are normally used to facilitate communication between two companies.

Data storage and interpretation is part of a business partnership and can only be efficient through the use of modern information systems (Dye, 2004). The process of sending and receiving messages is very important in a business partnership and therefore the use of intelligent technologies benefits both companies. Microsoft and Intel use new technologies in their inter-organizational systems which are of great benefit to both companies.

The discoveries made by one company in an inter-organizational system are normally shared by partners and this encourages the designers in both companies to come up with new technologies that can make the system better (Frambach, 2002).

The technologies used in inter-organizational systems define and support business partnerships (Frambach, 2002). Microsoft and Intel have benefited in a great way from their partnership because of a wide range of technologies that the two companies share in their inter-organizational system.

Inter-organizational systems bring the power of numbers that makes organizations within a business partnership to be very competitive (Eom, 2005). Every market requires a healthy competition and inter-organizational systems that provide the much needed competitiveness.

Business partnerships with effective inter-organizational systems are very efficient when it comes to service delivery and supply chain management (Dye, 2008). The many advantages that are offered by inter-organizational systems encourage other organizations to form such partnerships (Eom, 2005). In order for the general public to enjoy better services and prices, the market must have a healthy competition.

Companies can only come up with better products and services if there is competition within the market (Dye, 2008). The partnership between Microsoft and Intel enabled the companies to remain relevant in a very competitive market for a very long time.

Companies such as Motorola, Linux, and Digital Research were forced to enter into inter-organizational system partnerships for them to catch up with Microsoft and Intel (D’Amours, 1999).

Global communication is very essential in modern business partnerships and this can only be facilitated by inter-organizational system partnerships (Chwelos, 2001).

Microsoft and Intel have an inter-organizational system at the global level that enables them to increase their productivity because they learn new tactics from each other. An inter-organizational system with a wider communication network has the capacity to provide services and products to customers across the world (Chandrashekar, 1999).

A global communication network requires a lot of resources to be implemented and only stable companies like Microsoft and Intel are in a good position to do that. Inter-organizational systems enable the companies involved to reduce their business risks. An inter-organizational system has the capacity to monitor all business aspects which ensures that operational, financial and safety risks are at a minimum level (Damsgaard, 2004).

Business partnerships are defined and supported by accountability that can be a great challenge without an inter-organizational system in place. Inter-organizational systems reduce the time taken to complete a business transaction because it compresses operational time cycles (Damsgaard, 2004).

It has been proven that business partnerships with an inter-organizational system record low operational costs because of minimum routines. Inter-organizational systems eliminate manual processes that are normally responsible for the many errors in business transactions. Clients and customers find it easy to access valuable information from business partnerships with an inter-organizational system (Angeles, 2000).

The process of planning and implementing an inter-organizational system has got some success factors that need to be considered (Angeles, 2000). To begin with, the system should facilitate information flow in all the companies involved in a business partnership (Ungson, 2008). The other success factor of inter-organizational systems is cost reduction.

Companies in a business partnership share some of the operational costs through an inter-organizational system (Ungson, 2008). It is important to consider the cost factor at the planning stage as a way of minimizing any kind of financial risks. An inter-organizational system should enable companies to deliver products and services to all customers wherever they are regardless of distance (Ungson, 2008).

The communication and delivery network in an inter-organizational system should be able to cover the majority of areas with potential clients and customers. Global coverage is a common trend with multinational companies (Waters, 2007). It is important to note that an inter-organizational system should enhance operational and transactional efficiency for it to be considered successful (Waters, 2007).

The people in charge of planning and executing an inter-organizational system should ensure that all the technologies used to build the system are efficient and of high quality (Waters, 2007). An effective system eliminates all the errors that are associated with information flow. Successful inter-organizational systems should enable users to process and transfer information without any difficulty (Waters, 2007).

System users should access and operate it without much struggle. It is important to ensure that all the components of an inter-organizational system which include, messaging systems, shared databases, extranets and electronic data interchange systems are properly secured (Truman, 2000). All security measures should be put in place during the planning and execution of such an important project to guarantee success.

The data interchange and messaging systems carry very sensitive information that should only be accessed by authorized people (Waters, 2007). An inter-organizational system brings a lot of positive changes to an organization and therefore all the critical success factors should be considered in the planning and execution of such an important project (Truman, 2000).

There are some lessons that one can learn from the implementation of Microsoft’s inter-organizational project (Tuite, 2007). The first lesson is that such a project has got its benefits and disadvantages. Some of the benefits include an increase in sales and operational efficiency while some of the advantages include the high cost of setting up the system and customization of standards (Waters, 2007).

Inter-organizational systems can not succeed if there is no trust between or among partners. Trust is the most fundamental aspect of any kind of partnership. Observing all the contractual agreements is a sign of faithfulness in a business partnership (Tuite, 2007). The other vital lesson learnt from this project is the importance of having all the necessary checks and balances that can be used to prevent any kind of mischief.

Companies should not stop improving and marketing their products just because of an inter-organizational system (Waters, 2007). The modern business world is very competitive and the ability of a company to come up with quality products and services is what guarantees success. An inter-organizational system is only meant to provide the right platform for a company to sell its products (Eom, 2005).

The other lesson to be noted is that an organization should not enter into any partnership that can not improve its current situation (Eom, 2005). Organizations whose products and systems are compatible form the best partnerships like the Microsoft and Intel case.

There is no organization that is self sufficient when it comes to operational resources and therefore inter-organizational systems are vital for any organization that wants to be successful (Eom, 2005). Organizations in a business partnership should be flexible enough to shift their strategies incase an inter-organizational system does not bring the expected results.

The other vital lesson from this project is that too much interdependence between organizations in a business partnership is not good for their future development (Chwelos, 2001). The power of big organizations can be limited because the interdependence in inter-organizational systems affects the power structure.

The design management plays a very important role in the organizational changes that are brought about by the implementation of an inter-organizational system (Chwelos, 2001). The design management ensures that an IT infrastructure is put in place to support an inter-organizational system. The Design management plays a critical role in securing all the systems.

The changes that are brought about by inter-organizational systems are supposed to be managed in the best way possible for them to have an impact on the organization (Jones, 1998). The design management evaluates user needs to ensure that the system to be put in place is functional and efficient (Tuite, 2007).

The design management prepares the budget for information systems implementation by ensuring the systems are cost-effective. The design management has to plan and schedule all the necessary upgrades that are required to facilitate an inter-organizational system.

The design management provides the support advisory services to the implementation team (Jones, 1998). The other role of design management is to ensure that a company adheres to all software licensing laws and specifications. The design management is supposed to solve all the problems that arise during system implementation (Rainer, 2010).

In conclusion, inter-organizational systems are very important in improving efficiency in service delivery. Organizations that are in a business partnership need to relate in an organized way to ensure that customers receive quality services (Eom, 2005). The partnership between Microsoft and Intel is a perfect example of how an inter-organizational system can benefit organizations.

Inter-organizational systems are very instrumental in supporting business partnerships between two organizations (Eom, 2005). An inter-organizational system with a wider communication network has the capacity to offer services and products to customers across the world.

Businesses that are in a partnership require an efficient communication network that ensures that clients and customers get products and services within the required time (Rainer, 2010). Business partnerships are defined and supported by accountability that can be a great challenge without an inter-organizational system.

It is important to note that an inter-organizational system should enhance operational and transactional efficiency for it to be considered successful (Handfield, 2002). It is important to ensure that all the components of an inter-organizational system which include messaging systems, shared databases, extranets and electronic data interchange systems are secured.

References

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Introduction

Modern businesses lay stress on their environmental and social responsibility in order to attract clients who nowadays set higher standards for corporate performance. Additionally, many enterprises publish their sustainability reports, and one should be able to analyze them critically (Morhardt, 2005).

Moreover, these public policies can be related to the four elements of the marketing mix; in particular, one should speak about product, place, price, and promotion. This issue can be better discussed by examining the sustainability reports issued by such companies as Intel, Walt Disney, and ConAgra Foods. These cases will demonstrate how these organizations may try to change the attitudes of potential clients and other stakeholders.

Information provided by the companies

Product

The management of ConAgra Foods fully discloses information about the main ingredients included in their products (ConAgra Foods, Inc., 2013, p. 10). This approach to labeling is particularly important for food companies that must help customers make informed purchasing decisions.

Additionally, according to the report, issued by this organization, this producer uses only recyclable materials for packaging (ConAgra Foods, Inc., 2013, p. 11). This strategy is also critical because modern consumers pay more attention to the environmental practices of competing enterprise. Moreover, the organization claims to protect animal which are vital for the production of goods sold by the company. This issue is also of great concern to buyers.

In turn, Intel Corporation also focuses on various attributes of its products. In particular, this management speaks about the energy efficiency of the technologies that they offer to clients (Intel Corporation, 2013, p. 16). Additionally, the corporation focuses on the life-cycle of its products. In particular, they eliminate the hazardous materials that can pose a great threat to users as well as environment (Intel Corporation, 2013, p 47). These are some of the main details that should be considered.

Walt Disney Company also pays close attention to the packaging of their products. In particular, they advocate the use of paper packaging (Walt Disney Company, 2013, p. 24). Furthermore, they use paper products that were manufactured without chlorine. They provide this information since modern clients are more concerned about the effects of people’s consumption on the environment.

Additionally, the company tries to market only those food products that do not pose a threat to the health of buyers; for instance, one can mention low-fat diary or vegetables (Walt Disney Company, 2013, p. 34). Overall, by focusing on the sustainability of their products, Wald Disney Company tries to address the concerns of many clients.

Promotion

While developing its promotional strategies, ConAgra Foods attaches importance to transparence. As it has been said before, this organization identified each of the ingredients involved in the production of the food. This openness is one of the attributes that can appeal to buyers (ConAgra Foods, Inc., 2013, p. 10).

Additionally, this company pays attention to such an issue as advertising to children. In particular, they encourage children to make healthy food choices (ConAgra Foods, Inc., 2013, p. 42). To a great extent, this strategy is of great importance to parents who want to shield their children from the risks of obesity. Moreover, the PR campaigns of this business lay stress on the on the responsible behavior of the company.

While speaking about the promotional activities of Intel Corporation, one should mention the public campaigns of this corporation. The management focuses on the wide range of practices that are supposed to benefit the community and environment.

For instance, they increase the awareness of consumers about their waste and water management, the promotion of employee health, energy efficiency, or the use of information technologies in order to support sound environmental practices (Intel Corporation, 2013). Finally, this organization increases the use of recyclable materials.

Walt Disney Company also applies the principles of environmental and social responsibility to their promotional activities. For example, the management focuses on the marketing communications that are conveyed to children (Walt Disney Company, 2013, p. 32). In particular, they are based on nutritional guidelines that are important for the proper physical development of children. Additionally, this organization focuses on public relations. For instance, the management highlights the effort of the company to preserve the environment. These are the main details that should be considered.

Place

Place is another element of the marketing mix. In particular, producers should make sure a product can be easily accessible to consumers. This element can also be related to the social and environmental responsibility. For instance, the management of ConAgra Foods notes that the company reduces CO2 emissions that result from the transportation of goods (ConAgra Foods, Inc., 2013). By focusing on this point, the management shows that the principles of corporate responsibility are imbedded in their marketing strategies.

Transportation of goods is of great concern to the management of Intel Corporation; in particular, this organization procures vehicles with hybrid engines to reduce the emission of greenhouse gases (Intel Corporation, 2013, p. 97). In other words, this company tries to show that the distribution of its products does not pose any threats to the environment as well the community. Additionally, this business wants to makes sure that the distributors comply with current environmental standards (Intel Corporation, 2013).

In turn, Walt Disney Company attaches importance to its parks where clients can receive products and services. For example, children and parents, who visit such parks, can take part in educational programs showing how people can preserve nature (Walt Disney Company, 2013, p. 32).

In turn, the organization tries to reduce energy consumption which is needed for the transportation of food products. Moreover, this corporation attaches importance to the policies adopted by affiliated retailers. These are the main aspects that can be distinguished.

Price

Price is also a critical component of the marketing mix. In turn, the senior executives of ConAgra Foods point out that the pricing policies of the company can support the most vulnerable groups of people. For instance, they can set lower prices for low-income students (ConAgra Foods, Inc., 2013, p. 70).

Moreover, the management mentions that the savings achieved by the company can be applied for the adoption of sustainable technologies. In other words, this corporation tries to show that its pricing policies can benefit various stakeholders.

The management of Intel Corporation claims that the company tries to make their product more affordable (Intel Corporation, 2013). In their opinion, this policy is not driven only by competition. It can also contribute to the development of the economy on the worldwide scale.

Apart from that, this company emphasizes the point that these savings were achieved through the adoption of energy-efficient technologies. In other words, the examples provided by this organization shows that environmental sustainability can be important for cost-cutting and making products more accessible.

In turn, Walt Disney Company attaches importance to the costs associated with its products and services. In particular, the company notes that its pricing policies are supposed to benefit some low-income clients. Apart from that, the corporation covers the transportation costs in order to help many children visit the parks maintained by this organization (Walt Disney Company, 2013, p. 43). This discount policy is supposed to increase the social benefits brought by this business.

Similarities and differences

Product

While discussing product as an element of the marketing mix, one should mention that Walt Disney and ConAgra Foods focus on transparency. In other words, they openly state what kind of ingredients or components were involved in production. Additionally, each of the three enterprises attaches importance to the role of recyclable packaging.

In contrast, the management of Intel places more emphasis on the energy efficiency of their products. Moreover, this corporation focuses on the life-cycle of products. Overall, these variations can be partly explained by the fact that the businesses represent different industries.

Promotion

It is possible to mention that each of the three companies attach importance to the integrity of their marketing messages. In particular, they focus on the need to provide accurate information to clients. Additionally, ConAgra Foods and Walt Disney Company pay attention to the ethical responsibilities of advertisers. This argument is particularly relevant if one speaks about the commercials targeted to children. In contrast, Intel Corporation concentrates on PR campaigns that can be useful for creating the positive image of this corporation.

Place

Furthermore, it is important to mention that each of the three businesses tries to reduce the negative externalities caused by the transportation of their products. In this case, one should speak about the air pollution. Thus, environmental sustainability of their supply chain is supposed to appeal to buyers.

However, one should keep in mind that Walt Disney Company pays more attention to the environmental sustainability of their entertainment parks that should be effectively incorporated into the environment. This strategy is important for the efficiency of the company’s operations.

Price

Finally, each of the three corporations attempts to make their products and services more affordable to clients. In this way, they can bring benefit consumers. Walt Disney Company and ConAgra Foods try to assist people whose purchasing power may not be very high. Yet, Intel Corporation notes that their pricing policies can contribute the development of the economy in various countries. Moreover, the management of this corporation mentions that the cost savings and discounts can be achieved by using sustainable technologies.

Overall assessment

Overall, it seems that ConAgra Foods is more willing to improve the sustainability of its operations. The management of this corporation tries to minimize the negative impacts of its activities on various stakeholders. Moreover, the corporation accepts duties that are not required by the law.

In particular, one should speak about their commercials. Furthermore, this corporation tries to incorporate the principles of sustainability into different elements of the marketing mix. In contrast, Walt Disney Company has the least intensive responsibility.

The problem is that it does not directly take part in the production of the products that they offer. Finally, Intel Corporation tries to maximize the benefits to the community and the environment. Nevertheless, the reports of this corporation lay stress on the idea that these sustainability practices are consistent with the interest of stockholders.

Reference List

ConAgra Foods, Inc. (2013). 2013 Citizenship Report. Omaha, NE: ConAgra Foods, Inc.

Intel Corporation. (2013). 2013 Corporate Responsibility Report. Santa Clara, Cal: Intel corporation.

Morhardt, E. (2005). Pacific Sustainability Index. Milwaukee, WI: ASQ Quality Press.

Walt Disney Company. (2013). 2013 Performance Summary.

Opportunities

Despite Intel taking the leading positions on the market, there are several opportunities it can utilize to improve its performance. Intel can establish green partnerships with other companies to address the issue of environmental sustainability. According to Sadovnikova and Pujari, such coalitions have and can accrue positive returns in a year (252). Additionally, the company can take advantage of brand loyalty by introducing new products with no fear of losing money. As stated by Pappu and Quester, innovations can positively affect a company’s performance because of brand loyalty (18). The innovation strategy can be further transformed into diversification to improve market penetration.

Diversification is an opportunity to improve a company’s performance by covering new segments of the market. Intel can invest more in research and development to create a semiconductor product and enter the household appliance market (Ferguson). Moreover, the acquisition is also a viable option for diversification for Intel. In 2017, Intel completed a $15 billion purchase of Mobileye, which allowed Intel to improve its position in the development of autonomous vehicles (Krzanich). The company can continue looking for further acquisitions to diversify its product lines.

The company can also focus more on their customers and make alterations in business processes to become more client-oriented. First, Intel can improve its presence on social media, which is the most convenient way for the customers to reach the company. Second, Intel can enhance its productivity to meet the customers’ demand and lower the prices. Third, the company can improve its presence in the mobile phone market, as loyal customers are willing to buy mobile devices with Intel processors (Ferguson). In short, even though the company is quite prosperous, there are steps to be made to improve its value and performance.

Competitive Analysis

Samsung

Intel is the global leader in making chipsets; however, its leadership is in danger. Samsung is expected to overtake the leading position as the largest chipmaker in the nearest future (Bhasin). The primary reason is that Intel produces processors mostly for PCs and laptops. However, today people prefer buying mobile devices, where Samsung is a clear leader (Bhasin). Therefore, Intel is to consider strategies for better penetration into the mobile market.

IBM

IBM is known and valued for the quality of its products and innovations. IBM is behind many modern world inventions that have revolutionized everyday life, including floppy disks, ATMs, hard disks, the PC, and magnetic stripe cards (Bhasin). The company specializes in computer software, hardware, and middleware. Intel is to invest more in research and development to compete with IBM.

AMD

Advanced Micro Devices (AMD) is a producer of servers, motherboards, and embedded processors. It is Intel’s most significant rival when it comes to the manufacture of x86 microprocessors (Bhasin). Since the acquisition of ATI Technologies in 2006, AMD acquired a dominant position in Graphics Processing Unit (GPU) production (Bhasin). Intel is to improve its presence in the GPU market to save its leading place in the production of microprocessors.

Nvidia

Nvidia is associated with gaming and cryptocurrencies in the technology industry. In 2014, the company stated its four strategic areas of development, including data centers, gaming, auto, and professional visualization, with its latest focus coming in the form of artificial intelligence (Bhasin). The company has also reached the automobile entertainment and navigation systems market and mobile phone processor market by creating Tegra (Bhasin). As in the case with AMD, Intel is to aim at strengthening its market position.

Qualcomm

Qualcomm is a US-based telecommunication and semiconductor producer with an increasing presence on the market. While traditionally being treated as a minor threat, the company’s total assets of 52.35 billion dollars show that it is Intel’s fierce competitor. The company is popular in the smartphone industry, where Intel has relatively weak positions. Therefore, Intel should develop adequate mobile processing units to compete with Qualcomm effectively.

Works Cited

Bhasin, Hitesh. “Top 5 Intel Competitors.” Marketing91. Web.

Ferguson, Edward. “Intel Corporation’s SWOT Analysis & Recommendations.” Panmore. 2017. Web.

Krzanich, Brian. “Safety Is Why Intel Bought Mobileye.” Intel Newsroom. 2018. Web.

Pappu, Ravi, and Pascale G. Quester. “How Does Brand Innovativeness Affect Brand Loyalty?” European Journal of Marketing, vol. 50, no. 1/2, 2016, pp. 2-28. Web.

Sadovnikova, Anna, and Ashish Pujari. “The Effect of Green Partnerships on Firm Value.” Journal of the Academy of Marketing Science, vol. 45, no. 2, 2016, pp. 251-267. Web.

Introduction

Intel Corporation is one of the largest semiconductor companies in the world and is the inventor of x86 processor, the processors used in most personal computers today. It was founded on July 18^th 1968 by Robert Noyce and Gordon Moore. The period from 1990 saw its largest unprecedented growth as the primary and also the most profitable hardware supplier to the personal computer (PC) industry. Today Intel Corporation, which has its headquarters in Santa Clara, California and is incorporated in Mobile, Alabama, still maintains its reputation as a global giant in the semiconductor industry and also cuts a niche for itself as a business success.

Intel’s products include microprocessors, flash memory, motherboard chipsets, and Bluetooth chipsets. The company boasts of annual revenue of $38.3 billion USD (2007), an operating income of $8.2 billion USD. Its net income is estimated to be in the regions of $7.0 billion USD. It also boasts of a work force of 86,300 employees (Business Week, July 31, 2006)

Intel’s current CEO is Paul S. Otellini, the first non-engineer CEO in the company. Otellini studied economics in college at the University of San Francisco and then joined Intel in 1974. From 1998 to 2002, he was executive vice president and general manager of the Intel Architecture Group, a group responsible for microprocessor and chipset businesses for desktop, mobile and enterprise computing. He also served as executive vice president of sales and marketing from 1996 to 1998, and as senior vice president and general manager of sales and marketing from 1994 to 1996. During his tenure as general manager of the Microprocessor Products Group, he led to the introduction of the Pentium microprocessor that followed in 1993. He was also charged with managing Intel’s business with IBM Corporation.

Otellini was appointed as vice president in 1988, elected as an Intel corporate officer in 1991, made senior vice president in 1993, and promoted to executive vice president in 1996. In 2002, he was elected to the board of directors and became President and Chief Operating Officer at the company. He was elected as CEO on May 18, 2005 to replaced Craig Barrett. He becomes the 5th CEO of Intel (McConnon, 2007).

New Mission, Vision, Goals, and Objectives

When Otellini took over the leadership of Intel, the strategic plan encompassing the mission, the vision and the objectives/ goals of the company was that: the company will engage in research, development, and manufacture and sales of integrated electronic structures to fulfill the needs of electronic systems manufacturers………. A variety of processes will be established, both at a laboratory and production level……. Products may include dioded transistors……. Principal customers for these products are expected to be the manufacturers of advanced electronic systems….. It is anticipated that many of these customers will be located outsideCalifornia (McConnon, 2007). He has however transformed the company’s core mission and pushed the values of values of risk-taking, discipline, and results orientation a notch higher. Some of the new goals he has brought to the company include: pushing Intel to play a key technological role in many other fields, including consumer electronics, wireless communications, and health care rather than focusing on just PCs.

He also intends to progressively phase out the famous Pentium brand. Also in his management overhaul portfolio is the plan to shake things up throughout the company by making big changes in the way products are developed this will shift development from engineers-base to a team based approach. This development team includes: chip engineers, software developers, marketers, and market specialists who all work together (McConnon, 2007).

Otellini unveiled his new strategies and products on Jan. 5, of 2006 at the Consumer Electronics Show in Las Vegas. Among the things he unveiled were a new corporate logo and a $2.5 billion USD advertising and marketing blitz.

Strategic Choices

Some of the strategic choices which have been taken by Otellini and his team of administrators have done more to improve the reputation of the company. For example one of Otellini’s key steps in restructuring Intel’s management hiring Eric B. Kim away from Samsung Group. Kim had led Samsung’s marketing since 1999 and helped build Samsung into a global brand. He also being the first non-engineer to run the company, he has brought with him many new employees who aren’t typical Intel hires. They include software developers, sociologists, ethnographers, even doctors to help develop products. He lays particular emphasis on marketing expertise because he thinks the only way Intel can succeed in new markets is by developing products which make it easy for technology to work for people.

Otellini also has done a lot to win over Steve Jobs, whose company Apple, is way ahead in innovation in the PC industry. Consequently, the two companies announced that Apple would begin shipping Macs and other products with Intel chips inside. Otellini aims to use the Apple relationship to force PC makers to step up their innovation so as to “drive a trend toward smaller, cheaper, cooler PC.”(Business Week, January 9, 2006).

Intel executives also seem to be looking ahead and looking for other partners in the OS production a trend they weren’t used to. Before Otellini’s take over, Intel was synonymous with Microsoft however the giant PC maker is now opening the doors to machines with the Linux open-source operating system or even Apple’s. They expect some PC companies to ship some microprocessors, without Microsoft’s Windows.

Organizational Strategies, Strategic Controls and Culture

Organization design can be looked at in the broad sense as the process of synchronizing the structures of an organization’s so that they meet its mission. This means looking at the relationship between tasks, workflow, responsibility and authority, and making sure all these support the objectives of the business. Strategic control can be said to be the critical evaluation of plans, activities, and results, thereby providing information for the future actions. Organization culture is the organization’s tradition, or leaning towards the handling of organizations decisions and resolutions.

Intel’s core values of risk-taking, discipline, and results orientation can best be seen in Otellini’s management team. To start with, due to his management shift from being a primary PC hardware maker to an all round consumer electronics maker he has had to employ more people. It is estimated that he has employed about 20,000 new people and also laid off about 10,000 people. His employ also takes into consideration the marketing and likely effect of the introduction of the products to the consumers. His typical employ includes software developers, sociologists, ethnographers, even doctors to help develop products.

Otellini’s administration has also brought about a change in the products development process. Before, it was primarily the chip designers and engineers who initiated the development process. But when Otellini took over, the first job he did was to stop the engineers who were working on the remodeling of Pentium 4 processor. He argues that the development process should be consumer oriented in that the process should be due to consumer demand and not engineer oriented approach which may unveil products that an average consumer may not appreciate. A case in time is the development of PCs for the Chinese over 100,000 cyber cafés which was as a result of surveying the China’s cyber cafés.

There is a definite fit in Otellini’s approach to how he aims to tackle his new mission, strategy and implementation. In changing his strategies from production oriented to marketing oriented. He knows he needs marketing gurus so he gets Eric B. Kim. Kim is credited for having sold Samsung to the world. Otellini also has tried to woo Apple’s Steve Jobs, whose company is a forerunner in the PC industry. This is in aims with Otellini’s mission of making Intel a choice of most consumers due to its innovative products that cuts across all consumer needs from gamming to public health electronics. Ottelini says it like this “All of us want [technology] to be more powerful and to be simpler, to do stuff for us without us having to think about it.”

Some of the organizations achievements that bear testimony to the synchronization of implementation and mission include the striking of the biggest content deal to date with major players in Hollywood and music services by Intel’s Digital Home team. This is to entice both customers and consumers to the Viiv platform (the new Intel product). It also has unveiled a $2billion USD worth of advertisement which will be done together with partners like Sony and Philips Electronics (PHG) salivating (Business Week, January 9, 2006).

References

Anonymous. (2007). Intel Corporation: ADDING MULTIMEDIA Intel Technology Allows Nurses to Spend More Time with Patients Physician Business Week: Atlanta: page 110.

Edwards, C. (2006). Inside Intel. Business Week, New York, Issue 3966, page 46.

McConnon, A. (2007). The Mind-Bending New World of Work; Motion-capture technology burst out of Hollywood and into business from aerospace to advertising. Business Week. New York: Issue 4028, page 46. s.

Edwards, C. (2006). Intel sharpens its offensive. Business Week. New York, Issue 3995, page 60.

Introduction

Intel is among the leading producers of computer chips and microprocessor.

Paul Otellin is the company’s CEO. The task ahead of him is tough to see Intel take back its position as the leading microprocessor and chips manufacturing company in the world. The Intel Company had stayed for a long period of time without updating its microprocessor. This made it to loose its market greatly. Gordon Moor one of the predecessors of Paul Otellin contributed to this problem when he advocated for the doubling of the numbers of transistors after every 18 months. This made the engineers to be at their toes to design on how to increase the speed of the microprocessors by doubling the number of transistors.

The Intel Company focused only the speed of its microprocessors. In this way, Intel lost its way as it failed to update the design of its microprocessors to address the prevailing customers demand. The company also failed to expand to other regions to boost its market. Therefore the task that was ahead of Paul Otellin as the new CEO of Intel Company was big. (Einhorn2006)

Intel’s Vision

Paul Otellin had worked for a long time in Intel Company. He joined the company in 1974 after graduating with a degree in economics from San Francisco University. He was well suited as the CEO due to his passion for technology and vast experience in the company. When he was chief operating officer of the company, he had been involved in many successful projects in the company. Such projects included the designing of new chips that were to be used in Chinas net cafes. These new chips were successful in cutting down the maintainace cost in the cafes by 78% and software upgrade by 85%.

Therefore the Intel Company needed a person with such a mind to transform the operation of the company. The vision Otellin had for the company was to transform Intel to produce products such that users will use centrino laptops to watch live TV on the subway. He longed for the time when Intel Company will produce products that will allow children to download games such as spider 3 the same day they are loaded in the worldwide web. According to him, he believes that if the world buys his ideas all industries from the health care, media and entrainment will advance greatly. His vision for Intel is when the company’s technology will enable doctors to diagnose and treat patients remotely. (Edwards2006)

Intel’s Goal

The goal that the CEO Paul Otellin has for the Intel Company is great. His plan is to diversify the line of production. This will allow the company to produce many more products apart from the computer chips. His goal for the company will be realized when Intel will be able to produce everything ranging from laptops, entertainments PCs to Cell phone and hospitals electronics that will use software which are very advanced and user friendly. (McConnon2007)

Intel’s Strategy

Paul Otellin realized the task that was ahead of him of transforming Intel, as the leading company was tuff. Therefore he hired Kim from Samsung group to help him achieve this goal. The hiring of Kim was a very strategic move for Intel to realizing its mission. This is because Kim had the required experience on electronics. He had served as the leading marketer in Samsung Company since 1999. During this period he helped in building Korea electronics consumers ranging from cell phones to computer chips. The changes that Otellin wanted to be done on the company required someone like Kim who could push on, for some of the unpopular changes that Otellin wanted done in the company.

This is because not all people were happy with the changes that Otellin wanted to implement on the method of working. Most of the workers and especially the chips developers preferred the old system, which guaranteed them their status quo. Otellin on the other hand had a new approach to working procedures. He advocated for collaboration working where all professionals were involved. (Edwards2006)

Intel’s Challenges

The challenge that was being faced by Intel was big. This is because it was its first time to produce new products that were not on its line of specialization. The company in the past had produced only computer chips. Therefore its venture into new products had made the performance of Intel to greatly decline. This made their rival companies such as Advanced Micro Inc advance on Intel performances closely. The AMD were successful in 2003 in launching a new chip that was selling well than the Intel’s chip. The AMD new chip operated at more less power than the Intel’s chips. In the cell phone markets, Texas was also doing well than the Intel Company. (Edwards2006)

Intel’s Success

The greatest victory of Intel Company was its ability to identify its problems and put strategic mechanism to control these crises. According to Russ Bodoff Intel’s major breakthrough was its ability to identify its vision. Under the leadership of Mr Paul Otellin the Intel Company was for the first time able to update it’s inside logo to a new one with a swirl around it signifying movement. The Intel Company was also able to develop chips that were able to download first run movies, music, and games then shift them around the homes. The company was still able to produce notebooks PC chips. These notebooks used the core chips.

The core chips were produced to supplement those products that could not meet the Intel’s new chips specifications. The ability of the Intel Company to produce a WiFi wireless network technology that enabled people to access Internet without the use of the physical medium (wires) was a great innovation for Intel Company. The revenue generated by these new innovations enabled the company to finance its high costly projects. (Edwards2006)

Conclusion

The Intel’s new vision and strategies are very compliant with the organizations designs and controls. This is because the decision of Otellin to diverse the production line of Intel Company has enabled the company not to be phased out of business, by the highly shrinking PCs business. The strategic change of the method of operation in the company from individualized to collaboration working is also very positive. This is because it has lead to innovation such as the WiFi network that has greatly boosted the Intel Company. (Anonymous2007).

References

Anonymous. (2007). Intel Corporation: ADDING MULTIMEDIA Intel Technology.

Business Week. New York: 2007, Issue 4028, page 46.

Edwards, C. (2006). Inside Intel. Business Week, New York, Issue 3966, page 46.

Edwards, C. (2006). Intel sharpens its offensive. Business Week. New York, Issue 3995, page 60.

Einhorn, B. (2006). In China’s Net Cafes, Intel Pours it On. Business Week. New York: Issue 4008, page 52

Einhorn, B. (2006). In China’s Net Cafes, Intel Pours it On. Business Week. New York: Issue 4008, page 52.

McConnon, A. (2007). The Mind-Bending New World of Work; Motion-capture technology burst out of Holywood and into business from aerospace to advertising.

Introduction

Intel Corporation (Intel) is a semiconductor computer circuits manufacturer based in the United States. Intel, also known as “Integrated electronics,”- the company’s name, is headquartered in Santa Clara, California. The company operates through segments such as The Internet of Things Group (IOTG) and Mobileye (Hall, 2021). It sells platform goods, including chipsets and the central processor units and system-on-a-chip and multichip packages. In addition, the company offers high-performance computing solutions for embedded and vertical applications in the retail, industrial, and healthcare markets, as well as solutions for assisted and autonomous driving that include computer vision. It also provides platforms that optimized workload and related solutions to cloud service providers, business and government customers, and communications service providers. Cloud services providers, original design, and equipment manufacturers are all served by the firm. Intel Corporation has formed a strategic agreement to utilize and develop artificial intelligence approaches for improving drug discovery. The paper describes the Supply Chain ESG as how Intel corporation creates a positive impact on the global environment.

Intel Code of Conduct (COC)

The Code of Conduct establishes the company’s standards for how it coordinates its activities to create and deliver products, protects the value of Intel and its subsidiaries, and interacts with customers, suppliers, and distributors. When performing Intel-related business, it is the obligation of every individual at Intel to follow the code, the employment guidelines, and other applicable regulations. The company does business with unwavering ethical standards and honesty, treating distributors, suppliers, customers, fairness, respect, and honesty in all business interactions.

Intel and its subsidiaries require all employees to comply fully with internal investigations, comprising the provision of truthful information, except where the act would result in disclosing the participation of the in concerted activity under the National Labor Relations Act of the United States. Staff who fail to do so may face disciplinary action, comprising termination, depending on the applicable local legislation (Hall, 2021). Employee involvement in inquiries into suspected violations of the United States National Labor Relations Act is voluntary, albeit encouraged.

Corporate Social Responsibility (CSR)

Intel’s dedication to sustainability leadership and corporate responsibility is firmly ingrained in the company’s culture. The company does not create an encompassing and positive work environment where every staff feels like they have a sense of belonging and a voice. Still, it is also proactive in its initiatives to minimize its environmental impact by using natural materials and resources efficiently and responsibly. The company also wants to use its leading position in the global digital ecosystem to assist the industry and company in achieving more progress in corporate responsibility, including governance, social impact, and environmental sustainability. Intel’s 2030 “RISE” strategy aims to utilize the company’s leading position in the global technology ecosystem to build a more inclusive, sustainable, and responsible society, powered by technology and employees’ skills and enthusiasm (Ganusov, Iyer, Cheng, & Meisler, 2020). It aims to double the number of females and the minority groups underrepresented in higher employment ranks over the following decade.

Supply chain responsibility

Effectively controlling and enhancing performance throughout the company’s supply chain lowers risks, enhances product quality, and aids the staff in meeting the social and environmental objectives of the company. This adds value to the business and its consumers. Intel has several rigorous initiatives to educate and educate the suppliers that support the company’s worldwide manufacturing activities to guarantee that the supply chain is accountable, respectful of human rights, and resilient.

The company’s accelerating responsible standards and accountability across sectors via leadership and partnership with suppliers. Intel’s worldwide strategy of supply chain aims to establish a responsible, robust, and varied supply chain that allows customers to generate data-driven technological solutions, suppliers, stakeholders, consortia, and fellow travelers (Bowersox, 2019). Intel functions with approximately 9,000 tier-one suppliers in 89 states to deliver direct production materials, intellectual property, manufacturing equipment, machinery, delivery, and travel services, packing services, office supplies, and software (Ganusov et al., 2020). Other companies produce, assemble, and test some of the corporation’s products and components.

Environmental Sustainability

Intel has developed technology critical to tackling the world’s sustainability issues. The business is always looking for innovative methods to improve energy management and reduce emissions, including conservation, efficient building design, renewable energy, and other initiatives (Bowersox, 2019). The company considers key issues such as smart energy efficiency regulations, policies geared towards managing chemicals, and climate change solutions.

Chemical Management Policies

Chemicals are critical to semiconductor industry innovation. Intel is dedicated to chemical management that protects its employees and the environment. The company’s chemical policy is in line with the protection of the environment, chemical safety, and technological innovation in the United States. Advances in chemistry and materials science enable Intel’s technical innovation. Intel’s manufacturing competitiveness depends on the chemical suppliers’ ability to get novel chemicals authorized quickly, assure the continuity of supply of current chemicals, and safeguard their intellectual property.

Solutions to Enable Climate Change

Information and communications technology (ICT) devices powered by Intel silicon chips can help drive end-use energy efficiency advancements, resulting in considerable reductions in greenhouse gas emissions. The company’s technology enables others to lessen their footprint, which the firm refers to as the effect of the “Handprint.” Government policy should acknowledge and encourage the ICT industry to play a larger role in developing climate change adaptation and mitigation strategies.

Intel’s corporate responsibility goals comprise a total dependence on renewable energy and producing zero trash by 2030. According to the company reports, many of the corporation’s 2020 goals were also met. It recycles over 90% of its garbage and sends virtually no hazardous material to landfills. According to the Intel code of conduct report (2021), the quantity of greenhouse gases it emits has decreased by around 30% since 2010. Yet, yearly emissions have increased somewhat since 2016 as the company has grown. According to the business, it reduced its water use by 38%, saving 44 billion gallons over the last decade (Intel code of conduct report, 2021). It will be a larger struggle to reduce those emissions, which Intel claims it is doing by attempting to make its devices more energy efficient.

Efficiency Regulations of Smart Energy

In regulating the energy efficiency of ICT devices, the company suggests that the governments categorize devices properly to compare related items and avoid imposing ‘one-size-fits-all’ rules on distinct classes of products. Consumer preferences should be respected, and the device’s functionality should not be restricted. For example, idle power limitations applied to ICT equipment and data centers might limit the functionality that gives the most advantages. Such limitations may have a particularly negative impact on the fast-expanding adoption of Internet of Things technology.

Social Sustainability

Intel is dedicated to improving the world through the strength of its technology and the passion of its employees. Around the globe, the corporation delivers high-paying professions multiple high-skill that influence local economies. Intel also thinks that helping and cooperating with the company’s communities expands opportunities and inspires the next generation of innovators. The company empowers human potential by igniting positive change; by bringing people, relationships, and charity together, the company equips society and children with the skills and confidence they need to climb, advance, and thrive. The organization focuses on using Intel workers’ enthusiasm and expertise, raising the bar for collaborative relationships that maximize shared value, and generating meaningful outcomes via long-term investments and impact. In addition to that, the company has been involved in several social aids and supports within the society, for instance, responding to crises donating towards COVID-19 relief.

Governance

The directors’ principal role is to utilize their expertise acumen to act in the corporation’s best interests and follow their fiduciary obligations. Directors may ask questions and perform whatever investigations they feel necessary to meet that role. They might put their faith in the information provided by the management of the corporation auditors and independent experts. In the interest of and for the advantage of the company’s investors, the Board of Directors offers supervision, guidance, and direction to the management.

Conclusion

Intel’s mission is to develop game-changing technology that benefits everyone on the planet as a reason that shows its dedication to corporate social responsibility. Intel and its stakeholders benefit from this obligation, built on a firm foundation of respect for human rights, governance, ethics, and transparency. This has always helped in risk mitigation, reduction costs, building brand value, and identifying new market opportunities to apply technology to help address society’s most complex issues. Intel has achieved real outcomes and challenged itself to reach better performance levels over time by focusing long-term on enhancing transparency and incorporating corporate social responsibility throughout all elements of Intel corporation.

References

Bowersox, D. (2019). Supply chain logistics management (5^th ed). McGraw-Hill Higher Education.

Ganusov, I. K., Iyer, M. A., Cheng, N., & Meisler, A. (2020). Agilex™ generation of Intel® FPGAs. In 2020 IEEE Hot Chips 32 Symposium (HCS) (pp. 1-26). IEEE Computer Society. Web.

Hall, M. (2021). Intel.Encyclopedia Britannica. Web.

Report on Intel code of conduct. (2021). Web.

Market competition is the key concept that enables fair operation of companies of any size producing similar products or offering the same services. It is beneficial not only for smaller enterprises that otherwise would not be able to survive in the industry but also for the customers who have a broader choice of options. In this case, Intel company attempted to make HP company buy their commodities (chips) instead of purchasing the competitor’s (AMD) ones. Loyalty payment was made to HP to set this agreement. However, AMD sued Intel under the antitrust laws, leading to Intel settling the case by paying $1.25 billion to AMD. This work will examine the conflict in this case to reveal the incentive for the decision and what act’s regulations and advice were ignored.

There are regulations applied to this case, which service the basis for AMD suing Intel. Based on the antitrust laws, businesses practices intended to form relationships restricting trade, attempt monopolization, fix prices, divide markets, or rig bids are considered violations of the Sherman Act, and therefore, are illegal (Federal Trade Commission, 2017). This act prohibits restraints of trade considered unreasonable, such as a contract between two individuals. Moreover, there is the Clayton Act that addresses specific practices, including acquisitions intended to lessen competition or to create a monopoly, which is ground under this case. The conflict arose from attempting to benefit from an illegal agreement in this situation.

The wrong decision was made by Intel, who, while being aware of the Sherman Act and the Antitrust Laws, tried to manipulate their potential buyer’s decision restricting their close competitor from participating in commodities offering and selling (Federal Trade Commission, 2017). The information Intel had was complete and clear, making it evident that the violation of the Sherman Act was done intentionally. The incentive for Intel to attempt such bribery was a desire to outperform their competitor (AMD) and gain financial benefit.

By this loyalty payment, a competitive injury occurred in the secondary line, which implies “when favored customers of a supplier are given a price advantage over competing customers” (Federal Trade Commission, 2017, para. 4). Intel violated Robinson-Patman Act by ignoring its advice either not to manipulate prices or not favoring customers to maintain fair competition on the market. Intel attempted to make a company that purchases chips to buy mostly Intel’s commodities by loyalty payment that is considered a bribe and the injury to competition.

Reference

Federal Trade Commission. (2017). Price discrimination: Robinson-Patman Violations. Federal Trade Commission. FTC.gov.

Summary of the case study

By 2005,Intel had been in the process of identifying a location to site its Assembly and Test plant. The plant was to be the biggest for the company, helping it to enhance its efficiency. Consequently, the company had to evaluate different countries putting into consideration both the global relations, dynamics and strategic operations in order to come up with the most appropriate location for the plant.

Operation costs in the majority of the South East Asian and Asian countries were the lowest globally, making these countries the most appropriate to build the plant. All the sites were evaluated based on necessities like reliability, safety, environmental health, availability of utility, rates, and human resources, among others (Alcacer and Herman 2-10).

In the end, Intel decided to locate its Assembly and Test plant in Saigon Hi-Tech Park, in Vietnam. Political instability in India made the company refrain from establishing its plant in the country. Vietnam was selected because it had low propensity to natural disasters. In addition, the cost of water and power was low, in addition to the fact that the country was civilized.

Vision, mission and value of Intel

Based on the effort that Intel exerts to ensure that it reaches all its target clients and that it offers quality products, it is evident that the company has the sole mission of offering quality products to all its clients. According to Intel Global Citizenship Report, Intel’s mission is to, “do a fantastic job for our customers, employees, and stakeholders by being the preeminent building block supplier to the world wide internet economy” (10).

The company’s vision is, “to create a continuum of personal computing experiences based on Intel architecture” (Intel Global Citizenship Report 10). The company observes a number of values, which add to its success. The values include customer orientation, risk-taking, discipline, quality, results oriented, and quality working environment.

About Intel

Noyce and Moore founded the company in 1968. Initially, the company was called NM Electronics. Later, they changed the company’s name to the current name (Integrated Electronics) or in short, Intel. The company began by manufacturing semiconductors, and later, it made a breakthrough in the manufacture of dynamic random access memory (DRAM) chip.

Soon after, the company came up with the first microprocessor. In 1972, Intel embarked on expanding it operations by establishing branches in foreign countries. Its first foreign operation was in Malaysia. In 1991, the company came up with the infamous “Intel Inside” marketing slogan (Alcacer and Herman 4-6).

The slogan facilitated to entrench the company’s brand in the mind of most computer users. Andy Grove, the longest serving employer, was made the chief executive officer of the company. Under his stewardship, the company’s income grew by over sevenfold, and the value of its shares grew by 1600 percent.

In 2005, Intel was the global manufacturer of semiconductors, delivering over 80 percent of the central processing units installed in workstations, personal computers, and servers. According to Alcacer and Herman, “… the central processing units (CPUs) accounted for 90 percent of the company’s total profit” (6).

Apart from the CPUs, the company also manufactured flash memory and chipsets for personal computers. Its principal customers were Hewlett-Packard (HP) and Dell. In 2004, the company sold 19 percent and 16 percent of its products to Dell and HP respectively.

Alcacer and Herman posit, “In 2005, the semiconductor industry generated approximately $226 billion in revenue worldwide” (2). Today, Intel has research laboratories in strategic countries across the globe. The laboratories help the company in coming up with superior specifications for its microprocessors and semiconductors.

This triggered the company’s desire to establish numerous branches across the globe to facilitate in the exploitation of the semiconductor industry. The company continues to open branches in countries, it perceives to be strategic, having a wide consumer base.

SWOT analysis

Strengths

• Intel has a superior brand, and it enjoys the biggest market share globally.
• Intel Company has a stronger market position relative to its rivals.
• Intel offers the state-of-art products that meet the changing technological needs.
• Majority of the computers use Intel’s microprocessors
• Intel enjoys over 80 percent of the market share, making it almost a monopoly in the industry.
• Intel has numerous branches across the global, which allow it to reach a wide customer base.

Weaknesses

• Intel has neglected the mobile market, which is anticipated to have a significant influence in the internet in future
• Because Intel sells its products at low prices, it does not benefit from economies of scale
• Intel has a wide market; nonetheless, it pays limited attention to its customers
• At times, Intel is unable to face technical challenges brought about by its competitors

Opportunities

• Intel can benefit from partnership, alliances, and relations it establishes with other companies
• Intel is targeting the emerging markets
• Intel can cut down on production cost by embracing forward and backward inclusion
• Intel can merge with other brands to consolidate its market share

Threats

• Changes in consumer taste might lead to Intel losing customers to rival companies
• International Business Machine (IBM) and Dell continue waging stiff competition
• New companies are making it hard for Intel to maintain its market share

SWOT matrix

Source:Chapman

Current and future strategy

Initially, Intel focused on selling its brand across the globe. This underlines the reason why the company opened numerous branches across the world. Currently, the company focuses on a strategy that aims at increasing and sustaining its consumer base. Intel has moved from business marketing to consumer marketing.

The company has realized that the majority of the young adults do not take long to purchase a new computer once their computers break. Hence, the company now focuses on generation Y, which comprises the biggest portion of Intel’s target market (Norris 14-19). Moreover, the company hires staff with diverse skills. The staff works together to come up with products that meet all the consumer needs.

Establishing new markets and coming up with new products are some of the Intel’s future strategies. Recently, the company has announced that it would collaborate with Google to introduce new capabilities in the market. The company seeks to enhance user experience, and at the same time, to introduce novel products in the market. For instance, in collaboration with Google, Intel Corporation intends to develop Chrome operating system and Ultrabook system, which will enhance computing (Norris 20-24).

Conclusion and recommendation

Since its initiation, Intel Corporation has managed to come up with startling innovations in the computing world, leading to its current success. For instance, its success in semiconductor and microprocessor fields is unparalleled until today.

Despite the immense success, other companies are emerging, posing a threat to Intel’s market share. Companies like IBM and Dell are enjoying positive reception in the market. In the process, Intel is losing some of its customers to these companies. This underlines why Intel Corporation has embarked on a strategy to consolidate its market share.

Rather than selling the brand, the company now targets its consumers. Intel intends to convince the consumers about the quality of its products, therefore, wining their trust. To continue enjoying the current success, Intel ought to identify new markets and establish its operations there. Besides, the company ought to focus on the mobile market, as the market will have a significant influence in the future.

Works Cited

Alcacer, Juan and Herman Kerry. Intel: strategic decisions in locating a new assembly and test plant. 2012. Web.

Chapman, Alan. SWOT analysis method and examples, with free SWOT template 2012. Web.

Intel Global Citizenship Report. Vision & Values. PDF file. 2011. Web.

Norris, Donald G. ““Intel Inside” Branding a component in a business market.” Journal of Business & Industrial Marketing 8.1 (2008): 14-24. Print.

Changes at Intel in the first three years of Barrett’s tenure

The changes made by Barrett included entering into new markets like production of information and communication appliances and production of networks servers and routers but withdrew when he realised of competing with prime customers of chips, Cisco and Dell. Another change is that Barrett closed down ICat, an e-commerce segment for small business in his first three years as Intel CEO. Further, he created a wireless unit, created the Architecture group in the second year and in his third year; he reorganised the Architecture Group further by merging communications and networking sections of Intel.

Environmental Pressures for change experienced by Intel

Fashion was one of the pressures experienced by Intel due to the need by the customers to have fast modem connections rather than the speed of computer chips, which were Intel’s specialization. The other pressure for change at Intel was hyper-competition from Advanced Micro Devices and other chip producers, hence the need to change to ensure Intel’s profitability and relevance. The declining market was also another change pressure at Intel due to the slow economic business condition. The geopolitical pressure for change at Intel came in the form of the impending war with Iraq requiring the making of changes at Intel. The mandate was also another change pressure where Intel aimed at making profits by overpricing instead of improving customer experience to create a strong reputation with clients for continued customer allegiance.

Internal organisational pressures experienced at Intel.

The reorganisation of organisational identity due to the need to change Intel’s culture, integration, and collaboration pressure, where the company had to avoid some segments competing against each other. Growth necessity of Intel and requirement of a new broom to make changes at Intel, this was for the drive of Intel’s growth despite challenges. These are the internal organisational pressures for change faced by Intel.

Other external and internal pressures for change

The need for improved innovativeness and efficiency is the other pressure for change faced by Intel during Barrett’s tenure as the CEO.

Conclusions on change, dominant forces, and their reasoning

From my assessment, the changes instituted by Barrett were necessary to keep Intel profitable and competitive in the market. Overall, the need for change at Intel was urgent to overcome challenges arising from dominant forces affecting the company. The dominant forces included avoidance of self-competition by the company segments, especially networking and communication, change of culture from profit-oriented to customer satisfaction and overcoming competition. The need to be relevant in the changing environment, slow economic growth, and reduced demand were other dominant factors facing Intel. These issues were dominant as they affected the profitability and the reputation of the company in the market.

Future pressures for change and the assessment criteria

A change in the market needs for various products offered by Intel is another change pressure in the future of Intel. The need for electronic commerce for the success of the company is another change pressure that can arise. The assessment criterion is the requisition by customers for faster modem connections, which means a high number of online hours, and high data flow. The ability to purchase online will increase, forcing the company to implement an e-commerce platform. The other assessment criterion is the need for customers to have fast modem connection yet Intel produced fast chips.

How to cope with change pressures

Advice to Barrett is to be vigilant to changes in customer needs and ensure the company aims at meeting these changes by innovative production. The other way to cope with the change is ensuring clear coordination between the different departments and the human resource at Intel.

Pressures for change faced by Barrett in the last 2 years of his tenure

Some of the pressures for change experienced by Barrett included; a change in market expectations and demand from the projected high usage of Intel’s Itanium processor and the need to fulfil customer requirements. High competition is another change pressure faced by Barrett in his last two years as Intel CEO.

How Barrett responded to the above challenges

Barrett responded to the above challenges by expanding the company’s expertise in making mobile communication chips increasing market for its products in the face of competition. He also shifted from producing faster chips to dual-core architecture for increased customer satisfaction. Putting up new business units was the other way, Barrett responded to the pressures for change facing Intel.

If there would be changes or not and the reason

There is a change than can be made by Paul Otellini, the new Intel CEO, which is the creation of a robust human resource team at Intel. The need for this change is the increased business units pioneered by Barrett in the last two years of his tenure, which require a vigorous human resource to ensure a clear coordination of functions for the profitability of Intel. This will help the CEO ensure collaboration and integration of the various business units and aid in avoiding competition between the several business units within Intel.