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A Report on Intel
Corporation
ENGN3221 Individual Assignment 2
TAHSINUR CHOWDHURY
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Overview
Intel Corporation is an American semiconductor chip maker. Intel was founded by Robert
Noyce and Gordon Moore in 1968, which later became the pioneer of semiconductor chip
and microprocessor industry (Intel Facts, 2015). Intel has established a heritage of
innovative products with the promise of improving peoples work style globally. This
technological giant having around 108,000 employees worldwide promises to utilize the
power of Moores law and effectively introduce smart devices to every person on earth
(Intel Facts, 2015). Intel is also known for helping entrepreneurs from start-ups to global
corporations through their technological expertise and business development programs
(Intel Capital, 2015). The company made net revenue of 67.99 billion AUD in 2013 (Intel
Facts, 2015) with having a market share of 16% of the of the entire semiconductor industry
(Intel: The other side of coin, 2013). Since 1968, Intel has won various prestigious awards
including Number One green power partner (EPA, 2015), worlds most ethical company 2013
etc. (ETHISPHERE, 2015).
Structure
Over the period of time, the company has experienced a huge growth. Intel has production
plants all over the globe including countries like USA, Israel, China, Vietnam, and Costa Rica.
Report shows that, in 2013 46% of the wafer fabrication was conducted in USA and the
remaining 54% of the fabrication was done outside USA (Corporate Responsibility Report
2013). The assembling process is performed in Malaysia, China, Costa Rica and Vietnam
(Corporate Responsibility Report, 2013).
The current Chairman of the Corporation is Andy D Bryant and the CEO is Brian M.Krzanich.
The executive team consists of other charismatic engineers and corporate officers.
Together, the team promises to lead in the pursuit of Moores law (Corporate Responsibility
Report, 2013).
Intel successfully combined their network of manufacturing and assembly with their global
architectural design teams. This combination helped the company to improve their
processes, quality control, product cost, production timing, performance etc. (Corporate
Responsibility Report 2013).
Activity
Intel Corporation has been operating for almost 47 years and has a lot of activities. Since the
launch of first ever microprocessor in 1971 Intel did not look back. Intel came up with new
innovations every decade. According to their official website, Intel introduced
complementary high performance metal oxide semiconductor technology in 1983. Soon
Intel became a household name, thanks to their slogan, Intel inside. In 1993 the Pentium
processor was introduced which set up the platform for the later years (Intel Timeline: A
history of Innovation 2013). The success story continues as the team came up with worlds
first Qua-Core processor in 2006 (Intel Timeline: A history of Innovation 2013). Few years
later in 2010 Intel brought the Intel Core processor into the market (Intel Timeline: A history
of Innovation 2013). Recently this company has been working with tri-gate transistors and
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450-mm wafer technology which they think will make huge success in the upcoming years
(Intel Timeline: A history of Innovation 2013).
Over the period of time Intel has partnered with various big companies including Hewlet
Placard, Lenovo, Dell, MSI, Asus, Acer, Razer Blade, Samsung, Toshiba etc. (Intel 2015).
Company Dynamics
Intel has their own Corporate Responsibility Oversight Structure which includes CEO, Board
of directors, Sustainability Committee, Management Review Committee, Business groups
and cross financial teams (Corporate Responsibility Report 2013). The Board of Directors
counsels and directs in the interest of the company. The board is actively engaged in issues
like planning, strategy, risk management and environmental decisions (Corporate
Responsibility Report 2013). The company distributes responsibility to specific business
groups according to their distributed model for managing corporate responsibilities. The
global corporate responsibility office acts as the advisor to these business groups. Intel
promises their employees to pay for performance while investing 300 million AUD for
employee training in 2013. Open Door policy of the company provides the employees the
chance to speak directly with all level of management. Intel has a different Management
Review Committees to review performance on Human Resource issues (Corporate
Responsibility Report 2013).
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Major Projects
Since the very first day of the company Intel has always been interested in technological
innovation. Consequently, the company has heaps of projects which are equally important
for the microprocessor industry. In 1969, Intel launched worlds first MOS and Random
Access Memory (RAM). Two years later, Intel launched their first microprocessor (4004),
which is still regarded as the companys most important innovation. In 2006, Intel
introduced first Quad Core Processor for faster computers and servers. Later in the decade,
Intel brought their Core processor which set the standard for the modern computing devices
(A history of innovation 2013). Currently, their Research and development team is working
on the Intel Xenon Phi Coprocessor, which the company thinks will define the new era of
high performing computers. The company also undertook a project to accelerate the
development of 450-mm wafer technology and extreme ultraviolet lithography (A history of
innovation 2013).
SWOT Analysis
Strengths
Weakness
1.
1.
2.
3.
4.
5.
6.
Globally
recognised.
Pioneer supplier
of
microprocessor
market.
Ranked 27th in
the top 500
most valuable
brands (Brand
Finance 2015).
Worlds biggest
semiconductor
chip producer,
based on
revenue.
Committed to
invest in
research and
development
projects. Spent
13.68 billion
AUD in R&D
projects in 2013.
(CRR 2013)
Invested 300
million AUD in
employee
training and
development in
2013 (CRR
2013).
2.
3.
4.
5.
Higher retail
price compared
to competitor.
Yet to make a
mark on the
ultra-mobile
market.
Intels stock fell
1.29 billion AUD
after it lowered
1st quarter
revenue of the
company (The
Australian 2015).
Use of divisive
strategies.
Underutilised
capacity of
production due
to decline of PC
sales.
Opportunities
1.
2.
3.
4.
Intel has
introduced
450-mm
manufacturing
technology
and UAV
lithography (A
History of
Innovation
2013).
Introduction
of Xenon Phi
coprocessor
has a great
future in high
performance
computing.
Intel has the
infrastructure
to enter the
mobile phone
market.
3-D Tri-gates
of Intel
promises to
power next
generation
computers.
Threats
1.
2.
3.
4.
5.
Companies
from Asia are
coming up with
cheaper
products.
The declining
Desktop PC
market.
Users who
refuses to
upgrade their
computers
Big companies
like Facebook
and Google are
planning to
make their own
ARM based
processor for
their servers.
Outdated
business
model, smaller
companies are
offering
products with
less profit
margin.
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Achievements
According to the official website of Intel Corporation, the company has won several
prestigious awards in the field of business, engineering, innovation and corporate
environment. Some of these awards are listed below:
Top 100 Ideal Employer Ranking for Business & Engineering (Universum 2014).
Named number one Green Power Partner of US EPA (United States Environmental
Power Agency 2014).
Most Ethical Companies 2015 (Ethisphere 2015).
FORTUNE Magazine's 100 Best Companies to Work for List (Fortune 2013).
Most InDemand Employers among Software Engineers (LinkedIn 2014).
Worlds Greenest Companies list (Newsweek 2012)
Top 100 Veteran-Friendly Companies (U.S. Veterans Magazine 2014)
Top 50 Employer (Equal Opportunity Publications 2014)
Indias Best Places to Work for (The Economists 2013).
2013 Ray Anderson Radical Industrialism Award (US Green Building Council 2014)
Dependencies
Intels market and production is dependent on other big service providers such as Microsoft,
Google etc. as well as the small companies. Lion share of Intels microprocessors are being
used by desktop computers. Organizations and universities are often reluctant to replace
their existing devices which forced Intel to decrease their production. Moreover, small
business companies are not buying new Pcs as projected to replace older PCs which runs on
Windows XP (The Australian 2015).
Intel uses third party foundries to manufacture wafers for networking and communication
products. Moreover, the company uses subcontractors to produce broad level products.
They purchase these products from external companies in Asia-Pacific region (Corporate
Responsibility Report 2013).
In recent years, Intel has established plants in China for assembling and mass production.
Hence, the Socio-political relation between USA and China plays a massive role in the
companys strategies.
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Bibliography
Brand Finance, 2015, The annual report on the worlds most valuable global brands,
Available at:
http://www.brandfinance.com/images/upload/brand_finance_global_500_2015.pdf
(Accessed: 29/03/2015).
Equal Opportunity Publications, 2014, Top 50 Employers, Available
at:http://www.eop.com/awards-WD.php (Accessed: 29/03/2015).
Ethisphere, 2015, 2015 World's Most Ethical Companies, Available
at:http://ethisphere.com/worlds-most-ethical/wme-honorees/ (Accessed: 29/03/2015).
Fortune, 2013, 100 Best Companies to Work For, Available
at:http://archive.fortune.com/magazines/fortune/best-companies/2013/list/?iid=bc_sp_full
(Accessed: 29/03/2015).
Intel Capital, 2015, Intel Capital, Available at: http://www.intelcapital.com/ (Accessed:
29/03/2015).
Intel Corporation, 2013, Corporate Responsibility Report, Intel Corporation.
Intel Corporation, 2013, Intel Timeline: A History of Innovation, Available at:
http://www.intel.com/content/www/us/en/history/historic-timeline.html (Accessed:
29/03/2015).
Intel Corporation, 2015, Intel Facts, Available at:
http://www.intel.com/content/www/us/en/company-overview/company-facts.html
(Accessed: 29/03/2015).
Intel Corporation, 2015, Laptops, Available at:
http://www.intel.com/buy/us/en/catalog/laptops/all (Accessed: 29/03/2015).
ITcandor, 2012, Microprocessors Intel Leads a $94 Billion Market, Available at:
http://www.itcandor.com/microprocessor-q312/ (Accessed: 29/03/2015).
LinkedIn, 2014, North America's Most InDemand Employers: 2014, Available
at:https://www.linkedin.com/indemand/NorthAmerica/?trk=blog10.12#sw-eng (Accessed:
29/03/2015).
Michael Fu, 2013, Intel: The Other Side of the Coin, Available at:
http://seekingalpha.com/article/1297851-intel-the-other-side-of-the-coin (Accessed:
29/03/2015).
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