Case Study: Chipping Away at Intel (Part 1) Essay

1026 Words Jan 2nd, 2012 5 Pages
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
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Even though Barrett tried to reorganize to make the company better coordinated and more nimble, his moves received the concern about Intel future from shareholders and commentators as well as the opposition from the staff. As there was so much reorganization over three years, staff could not follow well. A typical example was that chip managers were now being put in charge of new markets and products about which they knew very little. It seemed that the Intel internal sources were not efficient enough to prepare for the changes as internal sources should have been the core competence of the company so that Intel could get success in changing to adapt to the changes of external pressures . That was the main reason why Intel’s changes did not bring efficiency as Barrett expected.
III. Recommendations for Barrett for coping the change pressures
Barrett had better focus on internal change before implementing changes from the environment. What confronted Intel first were the problems such as product delays and shortages, recalls, overpricing and bugs in its system. If Barrett solved these problems well, it was easier for Intel to make any changes in the company as well as confront with the external pressures. Investing in research and development into new production technologies in order to cut chip-making costs was a good

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