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Case Study : Chipping away at intel I Gusti Agung Gede Subrata/13410070

Part 1
1. What were the different changes at intel over the first 3 years of baretts tenure ?

He created a new wireless unit that combined new acquisition (DSP Communication Inc.
with intels flash memory operations)
He created the architecture group that combined development and manufacturing of core
He reorganized the architecture group and created a new unit consisting of a merger of
communications and networking operations

2. Of the environmental pressures for change discussed in this chapter fashion, mandates
geopolitical declining market, hyper competition, and corporate reputation which ones
were experienced by intel ?

Mandates : every CEO have mandates from the stakeholders
Geopolitical : events of 11 September Tragedy, the potential of Iraq war
Declining market : Down of stock price, weak demand in semiconductor industry
Corporate reputation : There are credibility questions about intels CEO

3. Of the internal organizational pressures for change discussed in this chapter growth,
integration and collaboration, reestablishment of organizational identities, new broom, and
power and political pressures which ones were experienced within intel ?

Integration and collaboration : Development and manufacturing of core processors are
combined into architecture group, collaborate intels flash memory operations with DSP
New broom : The CEO turnover by Craig R. Barrett had brought many pressures into Intel,
especially in organization structural aspect and culture

4. Are there other external or internal pressures for change that you can identify ?

From internal pressure, the job cuts event had forced intel to reorganized their structure and
strategy, so it will fit with the remain workers.
From external pressure, intels products was dealing with problems such as product delays
and shortages, bugs, and overpricing

5. What overall conclusions do you draw about why barett made the changes he did ? which
issues were dominant ? why ?

Barett made these changes because of the downturn in economic conditions generally. He
wanted to expand Intels market, so that Intel wont depend on chip processing product
only. He also wanted to move the mindset of intel toward better customer relations and
away from a perspective of being the only real competition in the marketplace.
Case Study : Chipping away at intel I Gusti Agung Gede Subrata/13410070

The dominant issue that makes barett created these decisions is the economic downturn.
This issues needed to be solved because it is directly related into Intels cashcow. Barett
needs to anticipate the changes of trend before its too late for intel. So that barett created
big changes in intel to hold on to the industry.

6. What pressures for change might face barett in the future ? how do you arrive at this
assessment ?

The future pressures will come from the technology of chip processors. The demand of chip
processors for smartphone has been increasing since the last decade. This condition will
force intel to create a line up focus in smartphone market. And also the future customer will
demand a faster and cheaper chip, so that barett have to produce these chips with minimum
production cost.

7. What advice would you give barrett for how to cope with these change pressures ?

Barett should invest in research and development for smartphone chip processor or he can
acquire a potential smartphone chip company to develop intels chip. After intel is ready
with its smartphone processor, barett should start a new division or branch company to
handle this market specifically.
Part 2
8. What new pressures for change faced barrett in the last half of his tenure ?

There is a declining market in chip processor, especially in household PC Pentium 4
The trend changing for mobile phone chip processor demand a new products line up for
mobile phone.

9. How did he respond to these pressures

He responded by reorganized the company. Barett put an close relation between mobility
group with digital enterprise group, digital home group with digital health group and
channel products group. And also he created a brand new dual core architectures rather
than develop a faster chip speeds.

10. If you were paul otellini, coming in as the new CEO, would you change anything? Why ?

No, because what baretts done had accompanied the recent and future market for Intel. PC
processor still forms a cashcow for Intel. To keep the cashcow producing cash, intel need to
develop the processor over and over.
Mobile phone is the potential market for future intel. It can be seen from the growth chart
from mobile phone from the last decade. Intel just needs to find suitable processors for
trending mobile phone technology.