Case Study: Chipping Away at Intel
MGT351: Organizational Change & Innovation
Colorado State University Global Campus
January 16, 2011
1. What were the different changes at Intel of the first three years of Barrett’s tenure?
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. 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. Of the environmental pressures for change discussed in this chapter – fashion, mandates, geopolitical, declining markets, hyper competition, and corporate reputation – which ones were experienced by Intel?
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. 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 delays, recalls and shortages and worse of all, bugs in their software. 3. Of the internal organizational pressures for change discussed in this chapter that are associated with organizational change – growth, integration and collaboration, re-establishment of organizational identities, new broom, and power and political pressures – which ones were experienced within Intel?
It would appear from this case study that Barrett was forced to deal with internal pressures of growth, re-establishment of organizational identity and integration and collaboration efforts. Barrett felt compelled to continuously re-shuffle the deck with this
Colorado State University Global Campus
January 16, 2011
1. What were the different changes at Intel of the first three years of Barrett’s tenure?
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. 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. Of the environmental pressures for change discussed in this chapter – fashion, mandates, geopolitical, declining markets, hyper competition, and corporate reputation – which ones were experienced by Intel?
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. 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 delays, recalls and shortages and worse of all, bugs in their software. 3. Of the internal organizational pressures for change discussed in this chapter that are associated with organizational change – growth, integration and collaboration, re-establishment of organizational identities, new broom, and power and political pressures – which ones were experienced within Intel?
It would appear from this case study that Barrett was forced to deal with internal pressures of growth, re-establishment of organizational identity and integration and collaboration efforts. Barrett felt compelled to continuously re-shuffle the deck with this