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Chipping Away at Intel

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Chipping Away at Intel
Strayer University
22 Apr 2012

Discuss the different changes at Intel over the first 3 years of CEO Barrett’s tenure. During his first three years as CEO of Intel, Barrett made several dramatic changes to the organization, to ensure that shareholders retained their capitol and he kept his position with the organization until retirement (Palmer, Dunford & Akin, 2009). One of the changes that Barrett made included creating a new wireless unit in 1999, which combined new acquisitions such as DSP Communications Inc., with Intel’s flash memory operations (Palmer, Dunford, Akin 2009). The next change was, creating the Architecture Group. This group combined the development and manufacturing of core processors. In Barrett’s third year, he reorganized the Architecture Group and created a new unit consisting of a merger of communications and networking operations (Palmer, Dunford, Akin 2009). Unfortunately, many of his efforts were failing and Intel was in worse shape three years into his tenure than they were when he took over. Identify three significant environmental pressures for change faced by Intel under CEO Barrett’s leadership. (fashion, mandates, geopolitical, declining markets, hyper-competition and corporate reputation). The environmental pressures that Barrett and Intel faced included declining markets, the entire industry had been adversely affected by September 11, the declining economy and threat of war. Intel was also faced with hyper- competition as many of their rivals; particularly Advanced Micro Devices were producing a faster, cheaper and better quality chip. Intel’s reputation was also floundering due to product delays, recalls and shortages and worse of all, bugs in their software. Analysts were predicting that by the end of the year, Intel’s share of the PC chip market would be 9 percent worse than when Barrett had taken over three years earlier (Palmer, Dunford, Akin 2009). Identify three significant internal organizational pressure for change faced by Intel under CEO Barrett’s leadership. (growth, integration and collaboration, reestablishment of organizational identities, new broom, and power and political pressure). Barrett was forced to deal with internal pressures of growth, re-establishment of organizational identity, and integration and collaboration efforts. Barrett felt compelled to change the culture of Intel, drawing on outside consultants to assist him in the process (Palmer, Dunford, Akin 2009). He hoped to be able to increase sales by getting a jump on competitors. Evaluate CEO Barrett’s performance under these pressures and discuss what he may have done differently. Barrett felt proud that he had managed to keep his company profitable following the 2001 IT collapse (Palmer, Dunford, Akin 2009). Things hadn’t always been easy for Barrett. I can’t think of anything that CEO Barrett may have done differently. Barrett felt that in this competitive – and segmented – market, Intel needed to be reorganized to make it more nimble (Palmer, Dunford, Akin 2009). Barrett took on the many changes that Intel faced and found a way to work through them. He addressed each challenge and made Intel a productive company before moving on to be the company’s chairman.

References
Palmer, Ian, Dunford, Richard, Akin, Gib. (2009). Managing Organizational Change. A Multiple Perspectives Approach, 72-73.…...

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