Intel What Were the Different Thesis

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Mr. Barrett specifically focused on how to create greater meaning for the company by concentrating on taking its core engineering strengths and applying it to wireless communications and networking products (Varney, 2009).

What overall conclusions do you draw about why Barrett made the changes he did? Which issues were dominant? Why?

Craig Barrett realized that Moore's Law would support the company only so long, and that given the economic and competitive trends impacting Intel, there would be significant change needed in order to stay competitive. Barrett knew he would need to be an aggressive change agent to get the company on a profitable path to growth in new businesses (Greenemeier, 2004). The greatest issue was that of product strategy and the fact that microprocessors were becoming commoditized. AMD's ascension as a serious competitor for design wins with key OEM accounts, as can be inferred from the case study, was cause of major concern for Intel executives. The design cycles for PCS with the Intel microprocessor provided a long-term, forecast-driven stream of revenue. AMD getting a design win with the Athlon would be difficult to recover from. Mr. Barrett also realized that moving into higher growth markets including networking and telecommunications would give the company an opportunity to complete for higher margins. This was thwarted by long-standing Intel customers Cisco and Dell who eventually pressured Intel to leave these markets.
Finally the issue of reorganizing the company to make it more decentralized and accountable for performance, and more fundamentally, to change its culture to being more customer-focused was critical.

What pressures for change might face Barrett in the future? How do you arrive at this assessment?

The pressure from competitors in the microprocessor market is going to intensify. AMD will be successful with design wins in the laptop and netbook markets as their pricing and royalties are much more affordable than Intel. There is also going to be major pressure to get focused on the networking and Internet device market, yet it will be difficult for Intel to navigate these decisions given their reliance on major customers including Cisco and Dell. Third, the organization will continue to be in a state of flux as customer demands change and the organization needs to focus on creating greater differentiation in new services and products. All of these will need to be supported with a vision of Intel as a thought leader who is also customer-centered. Leadership is the act of making meaning and giving employees a vision to identify with, see their role, and internalize (Varney, 2009). In the past Intel has been successful with this and will have to aspire to accomplish this again......

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"Intel What Were The Different" (2010, January 16) Retrieved May 18, 2025, from
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