Strategy Implementation of Intel Corporation

MISSION STATEMENT

To produce and offer technology solutions and service to the customer through Consumer electronics, Wireless communication and improve the health care technology.

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Vision

To win the lion share in PC manufacturing, telecommunication and healthcare technological equipments.

Objectives

Our objectives include;

Create ‘platform’ software though molding of chips in the processors hence eventually phasing out the Pentium IV.
Introduce troika of brands to the market i.e. Viiv (rhymes with ‘live’) for personal and home PCs which will generate power from the living room to the emergency room.  This will replace TiVo (TIVO) which will enable to consumer to download first-run movies, music and games.
Establish of set notebook PC chips and dual-core chips
Lowering of prices of PCs
To have a steady market growth.

Explore the prospects of developing a software chip which would be energy-efficient chips so as to conserve and preserve consumption of energy for companies fro example Google etc.
Goals

To achieve a growth rate of 10% in the next five years.

The strategic choices

These include the market areas in which the company can target so as to include them in its customer lists.  They include

a)      Chinas internet café’s

It has been estimated that there approximately over 110,000 internet cafes with each having almost 100 PC hence, the total number of PCs are approximately 11million PCs.  The internet café’s are frequented by Chinese students who play games (online games) watch movies and instant messaging.  These students always require the games and PCs to be upgraded, hence the owners replace over 2million PCs after every 2years.  It’s been estimated that there are approximately 500 people on three floors.  The introduction of a prototype program by Intel will help the café owners save time and cost maintenance by 78% and reduce soft ware upgrading by 85%.  Through the chips, the café owners will be able to reduced power consumption (which is their major expense before rent). This will be done by the local software engineers who work for Intel China.

b)      Motion industry and analysis

After, the introduction of motion analysis in Hollywood that has been used in movies like the minority report, Titanic, the development of softwares for motion analysis would be a big boom for Intel in the entertainment industry. The automobile industry e.g. Nissan are contemplating of use of software that would be put in the steering wheel which would detect  if the driver is a sleep and led to the care engine to stop reducing accidents.  It can also be used (ie motion analysis software) can be used by the advertisers to monitor and evaluate feelings and expressions of its consumers to their product especially the ones who browse.

c)      Health care industry

Through the hiring of Dr. Bern Shen (internal medicine) the company will be able to develop products for digital health, which would be extremely useful to diagnose for example Aizheimer Disease, hence the doctor can get daily reports about the patients condition, while the patients is for example at home. Through the motion analysis a surgeon can be able to assist a resident student in a distant village to perform some to the surgical procedure.

d)     Sports simulation

This software products will help the sports for example replay an soccer game; i.e. Penalty kicks instead of relying and waiting for a re-run or newscaster.

Organizational design

The articles indicate that the company is currently ran by Mr. Paul Ofellini who started working from 1974. The senior adviser is Mr. Groove to the company who the C.E.O reports to.  The company also has a chief marketing officer i.e. Mr. Eric B. Kim (former Samsung Marketer) whose main function to the company is to implement unpopular changes to the company and directly reports to the CEO, together with this, he ensures also that the employees produce products that the offer technology solutions and ease comfort of the consumer.  The company has not concentrated on hiring of engineer but has taken an ‘outside the box approach’ to hire employees for example hiring of ethnographers, sociologists, doctors etc, for example the hiring of Dr. Bern Shen.  The whole team i.e. from engineers to doctors works together with the marketing team and marketers to develop and market products to the consumer.

This approach has enabled the company to communicate more clearly on what technology can do for them instead of talking about ‘bite and bytes’ to the consumers.  There has also creation of business units for each product area including mobility and digital health, together with scattering of the processor experts to target market, products and channels.  From the articles, the company has used the approach of marketing effectiveness; rating review via.

Customers Philosophy; Does management recognize the importance of designating the company to serve the needs and wants of chosen markets?
Integrated marketing organization; Is there high-level marketing integration and control of the major marketing functions.
Adequate information;
What’s the latest research study?
Strategic orientation
Operational efficiency
The current CEO, Mr Otellini’s culture of implementation of strategies involves amore diplomatic ways whereby he uses the chief marketing officer Mr. Kim to implement the unpopular changes in the company because of his autocratic style of leadership.  He also collaborates with other PCs manufacturing companies to upgrade their processors. He also re-organized the company from top  to bottom i.e. putting the 98,000 employees to new work station, hence he created business units for each product area, including mobility and digital and scattering of the processor experts among them.  He also introduced a new marketing strategy, where the software developers, ethnographers work together with the marketing team to develop and sell the products. Mr. Otellini recruits more executives from outside so as to bring fresh ideas to the company.  E.g. Dr. Bern Sheen sees a need to offer a solution to it. for example in the case of Google (suggesting the exploration of new energy-efficient chips),Chinas internet café’s

Evaluate the relation (quez: 4)

From the articles, the company will be able to achieve its and implement the missions statement of the company. As the technology era widens intel company will continue to offer technology solutions to the consumer and communicate more clearly on what the technology can do for them. Through the recruiting of more executives from outside, the company will be able to compete effectively in the PC market and software development, as its increases its market choices to include;

Chinas internet café’s
Motion analysis industry be used in Entertainment, advertisement etc
Sports simulation
Health care industry

REFERENCES

Anonymous. (2007). Intel Corporation: adding multimedia Intel Technology Allows Nurses to Spend More Time with Patients Physician Business Week: Atlanta.

Edwards, C. (2006). Inside Intel. Business Week, New York January 9, 2006, Issue 3966.

Einhorn, B. (2006). In Chinas Net Cafes, Intel Pours it On. Business Week. New York: November 6, 2006, Issue 4008.

McConnon, A. (2007). The Mind-Bending New World of Work; Motion-capture technology burst out of Hollywood and into business from aerospace to advertising. Business Week. New York: April 02, 2007, Issue 4028, page 46.

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