Intel Case Analysis

Topics: Intel 4004, Advanced Micro Devices, Intel Pages: 22 (7854 words) Published: May 13, 2011
Forty-three years ago, a vision to bring advancements on how people work and live through silicon and technology innovations was born. Intel, derived from Integrated Electronics, was founded in 1968 by Gordon E. Moore and Robert Noycee in California. By 1989, they decided to reincorporate in tax friendly Delaware. Intel has since expanded globally to levels they probably only dreamed of. They created Intel in the tough times of the late 60s and since have seen so many evolutions come about which they have been a part of or influenced it through their creations and maintaining their vision. (ie personal computer (PC), internet, the evolution of globalization and outsourcing, financial crisis’s) Intel is an accomplished award-winning organization from both a business and financial perspective. Furthermore, it incorporates into a mix of corporate responsibility, together with environmental, health, and safety (EHS) compliances. “Intel was named to Fortune's 2009 list of World's Most Admired Companies. Intel was ranked #1 in the semiconductor industry (1).” We will assess Intel by taking into account an in-depth overview within their industry from a business and financial perspective; how the internal and external environments affect Intel; and lastly, a detailed analysis of its stakeholders and recommendations on how they should approach short and long-term strategies. With its humble beginnings in the semiconductor industry, creating the first commercial microprocessor chip, the 4004 in 1971, Intel has not stopped since creating the “brains and nervous systems” of computers. By achieving goals, acquiring talent and building a lot of capital they are able to uphold three operating segments. It was not until the PC boom of the 1980’s that they had the ability to recognize the opportunity at hand and were eager to strike into this from a marketing and financial aspect in order to rise above their competitors. This lead Intel to explore various market segments such as Bluetooth and recently into mobile phone advancements where they have integrated suites of digital computing technologies. Just this year, in an article in Business Week, Intel confirmed its acquisition of security software maker McAfee, Inc. for $7.68 billion in an all-cash deal (2), which helps build up and diversify their portfolio such as Intel Capital program. “Since 1991, Intel Capital has invested more than USD 9.5 billion in over 1,050 companies in 47 countries. In that timeframe, 175 portfolio companies have gone public on various exchanges around the world and 241 were acquired or participated in a merger. In 2009, Intel Capital invested USD 327 million in 107 investments with approximately 50 percent of funds invested outside the U.S. and Canada (3).” Yet even with this mindset, Intel maintains a global uniformity in their values, goals and employee practices for which they are known. “As of December 26, 2009, we had 79,800 employees worldwide, with 55% of those employees located in the U.S (4).” According to the 2009 annual report. With sales offices, R&D and test facilities throughout the U.S., Asia, Europe, Middle-East, Russia and Latin America, it is easy to see that Intel embraces cultural diversity and world-class benefits, yet takes a risk to adapt to local laws and in some cases with a watchful eye on subcontractors. “Last year 6,000 employees took advantage of the most generous sabbatical program in American business: eight paid weeks every seven years (5).” Nature of the Business

The semiconductor industry is significantly affected by market fluctuations and during uncertain times consumers gravitate towards value for their money. The nature of the business needs to respond quickly to the demands of the market (hot electronics, so being flexible in creativity of computing systems and communications is key to achieve business and financial success). The microprocessor market is dominated by Intel, AMD, and Texas...

Cited: (23) Grant, Robert M. "Competitive Advantage in Technology-intesive Industries." Contemporary Strategy Analysis. Hoboken, NJ: John Wiley & Sons, 2010. Print.
(24) Grant, Robert M. "Procter & Gamble’s Open Innovation Initiative." Contemporary Strategy Analysis. Hoboken, NJ: John Wiley & Sons, 2010. Print.
(25) "Intel 's Big Strategy Shift and AMD 's Opportunity." Ars Technica. Web. 10 Mar. 2011. .
(Dollars in Millions) Dec. 26, 2009 Dec. 27, 2008 2 Dec. 29, 2007 2 Dec. 30, 2006 2 Dec. 31, 2005 2
Property, plant and equipment, net $ 17,225 $ 17,574 $ 16,938 $ 17,614 $ 17,114
The ratio of earnings to fixed charges for each of the five years in the period ended December 26, 2009 was as follows:
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