Case Study: Chipping Away at Intel (Part 1)
I. Introduction
Intel was in the bad shape in the Barrett’s tenure and he had to implement changes to cope with internal and external pressures. The specific pressures that required Intel to change were Intel’s bad products with delays and shortages, overpricing, bugs in its system, shares going down, slowing global chip demand, slowing economy under impact of September 11, 2011 and its rivals becoming stronger... It was a really hard time for Intel and a big challenge for Barrett in order to remain the company’s reputation.
II. Analysis of the case
The changes have occurred in Intel in the Barrett’s tenure
When Barrett came in Intel three years ago, he took some bold moves. He expanded into the production of information and communication appliances as well as services related to the internet. He also reorganized internal system to avoid duplications and improve coordination within the organization. The example of duplication was that the network operations group and the communications unit sometimes were in competition with each other, selling similar products to the same customers and Barrett need reorganize them. Moreover, new business units were created to enable decentralization and delegation of decision making, which makes the company better coordinated and more nimble. Barrett also wanted to change the culture of the organization toward better customer relations and away from a perspective of being the only real competition in the marketplace.
The causes of the changes
Intel changed to respond to many external and internal pressures which caused many problems occurred as product delays and shortages, recalls, overpricing and bugs in its system. External pressures leading to the Intel’s change are Geopolitical, Declining markets and Hyper-competition. The September 11, 2011 affected every technology company and Intel’s shares going down sharply were the results of that catastrophe. The slowing economy together with this catastrophe gave bad impact
Intel was in the bad shape in the Barrett’s tenure and he had to implement changes to cope with internal and external pressures. The specific pressures that required Intel to change were Intel’s bad products with delays and shortages, overpricing, bugs in its system, shares going down, slowing global chip demand, slowing economy under impact of September 11, 2011 and its rivals becoming stronger... It was a really hard time for Intel and a big challenge for Barrett in order to remain the company’s reputation.
II. Analysis of the case
The changes have occurred in Intel in the Barrett’s tenure
When Barrett came in Intel three years ago, he took some bold moves. He expanded into the production of information and communication appliances as well as services related to the internet. He also reorganized internal system to avoid duplications and improve coordination within the organization. The example of duplication was that the network operations group and the communications unit sometimes were in competition with each other, selling similar products to the same customers and Barrett need reorganize them. Moreover, new business units were created to enable decentralization and delegation of decision making, which makes the company better coordinated and more nimble. Barrett also wanted to change the culture of the organization toward better customer relations and away from a perspective of being the only real competition in the marketplace.
The causes of the changes
Intel changed to respond to many external and internal pressures which caused many problems occurred as product delays and shortages, recalls, overpricing and bugs in its system. External pressures leading to the Intel’s change are Geopolitical, Declining markets and Hyper-competition. The September 11, 2011 affected every technology company and Intel’s shares going down sharply were the results of that catastrophe. The slowing economy together with this catastrophe gave bad impact