Intel Case Analysis

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Register to read the introduction… “Usually we bring the site manager in after the plant is built,” Trendler explained, “but having someone experienced with Asia on the ground in this instance moved things along much more smoothly.” Howarth and his team ran into some unexpected challenges once site planning and construction got underway, including live munitions left over from the war. Howarth recalled. “This was a new one for us. We had to set up procedures on how to disarm unexploded ordinances.” Other unexpected challenges included the blatant corruption present to conduct business; “The surprise was how openly and in-your-face it was,” said Howarth. The work force, long under a Soviet and Russian influence, had little experience interacting with each other, asking questions, or working in teams. “This was very difficult for us as a high-tech company,” Howarth added. Additional hidden costs came to light as well, such as regulations requiring a doctor be on-site in the plant clinic given the size of its work force. And as the team tried to hire women to maintain Intel’s commitment to diversity, they ran into cultural issues that constrained women from working 12-hour shifts or working at …show more content…
Intel took an aggressive approach in terms of grants and incentives, but the site hosts benefitted as well. Within six months of Intel signing onto the site, the technology park went from 10% to 80% occupancy to 80%, with Dell and several other large technology players moving in. Krzanich noted, “There’s been huge follow on investment.” By 2011, there were 58 projects at the SHTP, with a total capitalization of $2.03 billion.2 Annual export figures for 2011 were estimated at $756.3 million, of which $500 million was contributed by Intel’s project. An aggregated $1.72 billion in total export value was reported since the park began export. Annual production value of the park’s businesses in 2011 was an estimated $766.38 million (aggregated production value was pegged at $1.74 billion). By 2012, the second adjacent technology park was full. Clearly a win for Vietnam, the site was a great fit for Intel as well; Krzanich noted, “It was the most cost-effective, best decision we’ve ever

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