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2015

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).

Market and Customers


Intel Promises to make the best silicon products available in the market. They have a unique
business model that creates value for Intel and the customers. The primary customers of
Intel are Original Equipment Manufacturers and Original Design Manufacturers (Corporate
Responsibility Report 2013). According to their annual report, the company also sells
products to the communication industry. Moreover, people who buy separate PC
components are also included in their customer list. In the year of 2013 Hewlet Placard, Dell
Inc. and Lenovo group were accounted for 17%, 15% and 12% of Intels revenue respectively
(Corporate Responsibility Report 2013). The tech giant has received 91% delighted score in
their online based customer survey in 2013 (Corporate Responsibility Report 2013), which
portrays their excellence in production and meeting customer requirements.
In 2012, Intel had 57.1% market share of the whole microprocessor industry (ITcandor
2012). The company had a net revenue of 67.99 billion AUD in 2013 with a net income of 13
billion AUD (Corporate responsibility Report 2013). According to The Australian, the worlds
leading chip maker has reported that revenue for the 4th quarter and the 2014 fiscal year
had increased by 6% over previous years. Intel is projecting a 1st quarter revenue of AUD
16.13 billion (The Australian 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)

Research and Development


The Research and Development model of Intel emphasizes on identifying, developing and
accelerating the process of adapting new technologies. The team promises to invest in
world class technology development in integrated circuit designs. According to the Annual
report, the company has invested 13.68 billion AUD in this sector (Corporate Responsibility
Report 2013). Intel expands the reach of R&D teams by affiliating with companies and
entering into agreements with organizations that have similar research focus areas
(Corporate Responsibility Report 2013).

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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Ethics and Sustainability


Intel has an Ethics and Compliance Oversight Committee which works to maintain a culture
of business ethics and ensure compliance programs for applicable laws. The corporate ethics
program assures to inspire and support ethical barriers and increases awareness of Intels
code of conducts (Corporate Responsibility Report 2013). The group also implements Intels
anti-corruption, anti-trust programs through which the committee establishes legal policies,
processes and procedures (Corporate Responsibility Report 2013). Intel runs training
programs for the employees on their Code of Conduct. Certain employees are assigned
more in-depth ethics and compliance training courses depending on their roles. These codes
directs employees to consider impacts on the environment and the community while
making any decisions (Corporate Responsibility Report 2013). As a result the company
earned a place on Ethisphere Institutes Worlds Most Ethical Companies list in 2015
(Ethisphere 2015).
Intel promises to improve energy efficiency, reduce emissions and conserve resources. The
company focuses on improving the energy efficient performance of the products and came
up with innovative ideas to tackle sustainability challenges. Since 2008, Intel has been the
largest voluntary purchaser of Green Power in USA (Corporate Responsibility Report 2013).
According the annual report, Intel has saved over 215 million AUD due to their investment
in energy conservation (Corporate Responsibility Report 2013). Intel has been working with
original equipment manufacturers and governments to promote responsible recycling. Intel
has been maintaining a third party verified ISO 14001 registration for more than 10 years
which proves the effectiveness of the companys environmental management systems
(Corporate Responsibility Report 2013). However, most components produced by Intel are
not recyclable or bio-degradable. Hence, Intel has been working to make the products as
environment friendly as possible. For instance, the industrys move form 200-mm
semiconductor to 300-mm semiconductor has effectively increased the manufacturing
energy efficiency by 20%. Intel is recently working on 450-mm wafers, which will ensure
more energy efficiency in the near future (Corporate Responsibility Report 2013).

Intel Support Service


Intel has a dedicated website to ensure customer support. The company also provides
several training programs for the original device manufactures. The support team includes
Online help, 24/7 hotline and self-troubleshooting. The dedicated site has helpful videos to
guide the users. These services that Intel provides reduces the cost of the customer and
ensures customer satisfaction.

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Forecast and Summary


Intel has over 40 years of experience in the industry. It has enabled the company to develop
world class innovations and communication system. Moreover, Intel has an excellent
corporate team and business model which ensure proper value for the products. In recent
years, the company has been going through a crucial phase as their primary market is
evolving and Intel was flexible to reshape their business model accordingly. This award
winning corporation has gifted several innovations to the community and promises to
continue the work with the help of their excellent Research and Develop team. From the
business point of view, Intel is offering products with better brand value, which will be an
important advantage for an original device manufacturer like ours. Consequently, our
company can take advantage of Intels market share by using their components in our
devices. In terms of customer services, Intel provides comprehensive services ensuring
benefit of its customers.
Intel is a reputed company which provides specialised products for variety of engineering
and technological firms. A successful partnership with Intel will guide our company to a
better future.

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Bibliography
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at:http://www.newsweek.com/2012/10/22/newsweek-green-rankings-2012-global-500list.html (Accessed: 29/03/2015).
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