Strategic Plan Paper
University of Phoenix
MBA/580 – Strategies for Competitive Advantage
September 30, 2008
AMD is in a unique position in its history to undertake several initiatives to become a leaner, more efficient organization that is poised to increase its market share and become an even bigger force in the Semiconductor industry. This analysis will examine the company’s Vision and Mission Statement and see if the stated long and short-term objectives fall in line with these philosophies. Additionally, there will be an analysis of internal, industry, and remote factors to determine the feasibility of any proposed strategy. Finally, the effects of all proposed strategies will be assessing the magnitude of effect it will have on the company as a whole. Company Background
Advanced Micro Devices Inc. (AMD) is a publicly traded company in the Semiconductors and Other Electronic Components industry. AMD’s home office is located in Sunnyvale, California. In over three decades of existence, the company has earned Fortune 500 status and in 2008 ranked in the top ten in its industry. AMD’s history is marked by a commitment to innovation. By standing by that commitment to innovation is has truly been useful for the customer and the company. The philosophy of putting the real needs of the people before the technical one-upmanship has served the company well over the decades. AMD’s founder Jerry Sanders have always maintained the mind set that “Customers should come first, at every stage of a company’s activities.” (AMD.com) AMD’s current CEO, Hector de Jesus Ruiz continue the legacy and philosophy that Jerry Sanders set forth so many years ago. Hector de Jesus Ruiz continue to carry the company by saying “Customer-centric innovation is the pre-eminent value at AMD. This is the reason for being and our strategy for success.” (AMD.com) Vision
“AMD’s vision is a world where the products produced by AMD Technology will improve the quality of life for all who use them. AMD set a goal to enable affordable, accessible Internet connectivity and computing capabilities for 50 percent of the world's population by the year 2015.” (AMD.com)
AMD’s mission statement is to “Lead through innovative, customer-centric solutions that will empower businesses, also enhance the digital lifestyle, and to accelerate global digital inclusion” (AMD.com). AMD has numerous ways to fulfill its mission.
Values and Beliefs
Advanced Micro Devices Inc. culture characterized by an overwhelming will and need to succeed and to prosper in one of the most challenging industry in the world today. AMD instill within its employees that the heart of the company is the belief that people are the ultimate source of their competitive advantage. By following and implementing these core values, everyone can take part in helping them, deliver on their promises to customers, and maximize shareholder value. The values that govern AMD are Respect for People, Integrity, Our Customer’s Success, Customer-Centric Innovation, Initiative and Accountability, and last but not least Fair and Open Competition. By adhering to the above values, AMD has been successfully for over 30 years.
Internal Analysis – Strength and Weaknesses
For this analysis, the effects of AMD’s Mission and Vision Statements, and proposed strategies that can be considered for the following internal stakeholders: the stockholders, the Board of Directors and CEO, and the employees. AMD strength is that they are a strong player in microprocessors. AMD is a global semiconductor company that has established facilities located worldwide. They provide processing solutions for the computing, graphics, and the consumer electronics markets worldwide. AMD’s primary function is designing and producing a wide range of microprocessors, graphics, and media solutions. These products are used...