Intel Corporation’s Strategies and Organizational Design

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Table of Contents

Introduction
Intel’s Vision
Intel’s Goal
Intel’s Strategy
Intel’s Challenges
Intel’s Success
Conclusion
References

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.

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