7/22/2014

Angely Alba
Anna Glowa
Carmen Lewis
Joanna Noel
Class Assignment

Case Study: Chipping Away at Intel (Ian Palmer 72)

1. What were the different changes at Intel over the first three years of Barrett's tenure?
The different changes at Intel over the first three years of Barrett’s tenure was that he was the fourth CEO of Intel, and was going to retire in just three more years due to mandatory requirements. He began his journey when Andrew S. Grove the chairman of Intel at the time had started to shape the major global technology company. Andrew replaced Gordon E., doubled the microprocessor performance, and made it cheaper. Barrett made a great impact in the company by making the PCs production of information and communication appliances related to the internet. Another change was ploughing money into new markets but then had to withdraw from that plan.
2. Of the environmental pressures for change discussed in this chapter—fashion, mandates geopolitical, declining markets, hypercompetition, and corporate reputation— which ones were experienced by Intel?
Intel experienced a combination of decline in the market, geopolitical and hyper-competition issues coupled with corporate reputation resulting from the effects of the events associated with September 11, 2001. Not only was this event crippling the economy but there was also the potential for “war with Iraq”, (Palmer, Dunford, Akin, 2009). Intel’s stocks had fallen 60% below what it was the previous year and their reputation as a leading competitor against Dell and Cisco was negatively impacted.
3. Of the internal organizational pressures for change discussed in this chapter that are associated with organizational change—growth, integration and collaboration, reestablishment of organizational identities, new broom, and power and political pressures—which ones were experienced within Intel? The first internal organizational pressures for changes that the company experienced were integration and collaboration. This pressure for change comes from the company combining different departments so that similar operations would work in the same division. The second pressure for change, and probably the biggest pressure, is reestablishment of organizational identities. The company does seem to know what exactly they are in business for. It is time for Barrett and other executives to pull back and reevaluate which products identify the company and the industry the company operates in.
4. Are there other external or internal pressures for change that you can identify?
Yes, there were external and internal pressures. External pressures were the slowing of the economy after September 11, 2001, potential thread of war from Iraq. Internal pressures were delays and shortages of recalls, overpricing and bugs in its systems. In addition there were too many changes of executives in a too fast of a pace.
5. What overall conclusions do you draw about why Barrett made the changes he did? Which issues were dominant? Why?
Barrett was mostly proactive in doing the changes he did in the company because he knew he was going to retired in a short period of time, therefore he wanted to make sure he did his best while being in charged.
6. What pressures for change might face Barrett in the future? How do you arrive at this assessment?
Barrett will still continue to experience internal and external pressures as is evident in the comments from both inside current employers