Assignment #1 – Case Study: Chipping Away at Intel

789 Words4 Pages
Assignment #1 – Case Study: Chipping Away at Intel 1. Discuss the different changes at Intel over the first 3 years of CEO Barrett’s tenure. Craig Barrett made several changes within the first three years of his tenure as the CEO of Intel. Barrett sought to diversify Intel by expanding into arenas outside of chip manufacturing, expanding into Internet related services and into production of information and communication appliances. In 1999, he created a new wireless unit that combined new acquisition such as DSP Communications Inc. with Intel’s flash memory operations (Palmer, Dunford, and Akins, 2009). He poured money into new markets looking for ways to expand his brand, he also sought to make Intel more flexible and attempted to reorganize the company and avoid duplicated responsibilities. Unfortunately, many of his efforts were failing and Intel was in worse shape three years into his tenure than they were when he took over. 2. Identify three significant environmental pressures for change faced by Intel under CEO Barrett’s leadership. Environmental pressures often occurs when an organizations resource base decreases as a result of reduced demand for products and sales, decrease in market and bad investment decisions (Palmer et. al, 2009). The environment pressures that Barrett and Intel faced included declining markets, at the entire industry had been adversely affected by September 11, the declining economy and threat of war. Declining market in global sales of chips were expected by 34 percent fall and people seemed to be more interested in how fast their modem connection than in the speed of their computer chip. Intel was also faced with hyper competition as many of their rivals; particularly Advanced Micro Devices were producing a faster, cheaper and better quality chip. Intel’s reputation was also floundering due to product

More about Assignment #1 – Case Study: Chipping Away at Intel

Open Document