Chipping Away at Intel free essay sample

Changes over the first three years at Intel with CEO Barrett 1. Discuss the different changes at Intel over the first 3 years of CEO Barrett’s tenure. During Barrett’s first three years of tenure changes were made. According to Palmaer, I., Dunford, R., Akin, G., 2009, â€Å"Barrett thought Intel needed reorganizing along with making it a livelier workplace. Customers were often sold the same products from two different departments in Intel which caused complaints from frustrated customers. He also thought that reorganization was the key to make Intel responsive and delegation of decision making from upper management.† Several reorganizations occurred during Barrett’s stay at Intel. He formed a new wireless unit in December, 1999, combining Intels flash-memory business and new acquisitions, such as â€Å"DSP Communications Inc., a leading supplier of chipsets and software for digital cellular communications. In the second year, Barrett combined the manufacturing and development groups and formed the core processors from the two units into what is known as the Architecture Group. In Barrett’s third year he restructured Intel’s networking and communications businesses were merged into a new unit, and the architecture group was revamped for a second time in two years† (Palmaer, I., Dunford, R., Akin, G., 2009, para 4, pg. 72). Pressures for change faced by Intel under CEO Barrett’s leadership 2. 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 three significant environmental pressures for change faced by Intel under CEO Barrett’s leadership were fashion, market decline and reputation and credibility pressures. (Fashion Pressure) â€Å" Barrett was responsible for the irritating logo and little jingle which is heard and seem every time a PC is log on Intel† appears, and he made the decision to put the Intel logo on customers PCs to ensure Intels dominance of the market for microprocessors and other computer chips† (http://www.independent.co.uk/news/media/hes-got-the-power-to-put-intel-ahead  -539001.html). With the changes and ideas that Barrett made, he did not communicate with managers or employees about what changes, ideas that he was implementing with the different markets. Barrett fashionable ideas not only called for making chips for networking gear, cell phones, and handheld computers but also for churning out Intel hardwarenetwork servers, Web-surfing devices, and routers to guide data over networks. At the same time, Barrett tried to build a services business, with Intel running e-commerce operations for others or dishing up business software to corporate customers over the Net. During Barrett’s tenure the market declined and his invasion into new markets was even more depressing. $4 billion of Intels more than $10 billion in new investments have produced little. â€Å" Intel stopped making network servers and routers after some of its biggest chip customers, including Dell Computer Corp. Over the Web. He shut down iCat, an e-commerce and hosting service for small and midsize businesses. He reduced the information-appliance business (Web-surfing submissions) except for in Spain and this is market decline pressure. Barrett is not one to draw attention to himself; and wants’ to let Intels performance speak for itself. Barrett as the CEO, led Intel through some of its rockiest years became equal like his predecessors, in his own quiet way. Barrett’s tenure with Intel not only reinforced its dominance in the PC microprocessor business it also broadened making chips for cell phones, PDAs, and data-networking gear. Internal organizational pressure for change faced by Intel 3. Identify three significant internal organizational pressures 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). Three significant internal organizational pressures for change faced by Intel under CEO Barrett’s leadership were integration and collaboration, identity and power and political pressures. The three significant internal  organizational pressures for change faced by Intel under CEO Barrett’s leadership are growth, integration and collaboration and identity. Mr. Barrett focused more on policy issues than day-to-day management; the company killed a project to make chips for digital televisions; numerous products were delayed, including Prescott, the latest Pentium version for desktops; and Intel was defeated in the Itanium chip-design project with Hewlett Packard. Barrett moved Intel into many new markets, fracturing the company’s focus on its core business. To carry action on so many fronts, he decentralized the organization and delegated a lot decision-making. Barrett restructured the business groups at least three times just as many years he left with Intel and he shuffled executives like cards in a deck. under pressure what could have Barrett done differently 4. Evaluate CEO Barrett’s performance under these pressures and discuss what he may have done differently? Barrett’s performances under these pressures were careless, instead of reorganizing so many times; he should have consulted with the other managers, shareholders and above all the employees. CEO Barrett was lacking communication; therefore he thought that he could reorganize, spent billions of dollars and layoff staff without falling obstacles. Barrett should have brought in a consultant, had an urgency plan, had meetings with his employees to assure job security and also talk with managers to see how they feel about merging departments instead of him during the merging without getting other staff involved.