Intel Case Study

730 words - 3 pages

Part 1
Principle of Barrett: Doubling micro-processor performance every 18 months while at the same time making it progressively cheaper.
Problems that Intel had (because of the September 11):
- product delays
- shortages (escassez)
- recalls (devoluções)
- overpricing (preços excessivos)
- bugs in the systems (erros no Sistema)
- advanced Micro Devices (competitor) had produced its Athlon processor chip (faster than Intel’s Pentium III chip)
With these problems, analysts predict that Intel’s share of market would be 9% worse than 3 years later.
- The downturn (crise) in economic conditions;
- Weak demand (fraca procura) and over-capacity ...view middle of the document...

- He want to change the culture in order to improve the relations with the costumers;
- He invest in research and development into new production technologies in order to cut chip-making costs.

1) In the first 3 years Barrett wanted to reorganize Intel to make it more nimble (ágil), to avoid duplication, to create better coordination and to enable (possibilitar) decentralization and delegation of decision making.
To that happen:
1) He created a new wireless unit (1999);
2) He created the Architecture Group (2000);
3) He reorganized the Architecture Group and created a new unit consisting of a merger of communications and network operations (2001).

2) Geopolitical – The September 11;
- The downturn (crise) in economic conditions;
- Weak demand (fraca procura) and over-capacity (supercapacidade) originate a fall in global sales of chips. – Market decline
Those are the macroeconomic changes (or crises) that place pressure on Intel to change the way it operate.

Hypercompetition - Advanced Micro Devices (competitor) had produced its Athlon processor chip (faster than Intel’s Pentium III chip) and that rapid response by this competitor produce pressure for change at the organizational level.

Reputation and credibility – The consequences of the Barrett’s reorganizations were in one way a “scandal” because people star to say that Intel was “shuffling execs like cards in a deck” and was “dabbling in everything and overwhelming nothing”. That increased...

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