Chipping Away at Intel

RUNNING HEAD: Chipping Away at Intel 1

Chipping Away at Intel

Managing Organizational Change

HRM 560

Professor Brett Gordon

Strayer University

January 23, 2012

RUNNING HEAD: Chipping Away at Intel 2

Abstract

There were two executives from a company named Fairchild Semiconductor who started Intel Corporation. Their names are Robert Noyce and Gordon Moore. Fairchild Semiconductor was not only the main enterpriser in the south, (later be known as Silicon Valley), of San Francisco, but a leading company in the world of semiconductors. Robert Noyce and Gordon Moore were two of the eight founders of Fairchild Semiconductor. Noyce and More decided that the management practices were too obligatory within Intel Corporation. After a long period of consideration, the two executives started their company and name it NM Electronics. The company's name was changed when the rights were purchased to rename the company Intel. The purchase was from a company called Intelco. The goal for Intel was to develop a plan to manufacture silicon based integrated circuit. The purpose of the circuit would be to function as a memory device, speeding up computers while increasing their power. The process would allow the expansion of the applications while shrinking in size. Schotky 3101 bipolar random access memory (RAM) was the first production within Intel, taking place in 1969. AMD was licensed to produce clones of the 286 PC, which turned out to be an unfavorable move for Intel. Why? AMD later took over Intel by capturing 52% of the market shares in 1987. The takeover lasted two years. Intel was forced to file a suit against AMD for breach of contract, which was settled by a compromise. The suit followed a retaliation act by Intel, taking extra security measures around its 386 and 486 chips. The road to success has never been a walk in the park for Intel. Their dominance in the market today is never safe. Intel have merged and participated in team efforts several times.

RUNNING HEAD: Chipping Away at Intel 3

Discuss the different changes at Intel over the first 3 years of CEO Barrett's tenure.

Intel was not in the greatest shape during Barrett's tenure. When Barrett became CEO of Intel, he recognized immediately changes had to take place, so he made bold moves in his efforts to maintain the company's reputation. These were hard times for Intel and the challenge was going to be very difficult. Changes needed to be made in order to manage the daily internal and external pressures. Intel's products were bad. Why? There were delays, shortages, overpricing, bugs in its system, shares going down, slowing global chip demand, slowing economy under impact of September 11, 2011 and its rivals were becoming stronger.

The changes which took place at Intel by Barrett were the expansion of production of information and communication appliances as well as services related to the internet. There was a reorganization of the internal system. Reorganization of the internal system made it possible not to duplicate the network operations group and communications units, while improving coordination within the organization. Networking and communication units were competing with each other by selling similar products to the same customers. Barrett's changes also included spending money by creating new business units. The new units enabled decentralization and delegation of decision making, enabling the company to better coordinated tasking. There was a need for improvement in customer service relations. The culture within the organization attitude was Intel was the only real competition in the marketplace. He had to improve Intel's brand, and by making these changes, Barrett was sure success would follow easily. Palmer, Dunford, and Akin states that a director's image is based on an image of management as control and of change outcomes as being achievable (Managing Organizational Change, 2009).

RUNNING HEAD: Chipping Away at Intel 4

Identify three significant environmental pressures for change faced by Intel under CEO Barrett's leadership, (fashion, mandates, geopolitical, declining markets, hyper-competition and corporate reputation).

September 11, 2001 directly affected the environmental pressures that Intel faced under Barrett leadership. The significant three environment pressures were the declining markets, the declining economy and threat of war. Advanced Micro Devices (AMD), one of their competitor rivals, was another environmental