Intel Corporation White - Research Paper Example

Intel Corporation White Paper Introduction Intel Corporation is a U.S. based Multinational Corporation that was incorporated in 1968 with the objective of designing and manufacturing integrated digital technology computers. The company’s platform consists of a microprocessor chipsets that are sold primarily to equipment manufacturers and original design manufacturers among others. The platforms manufactured by the firm are applicable in a range of applications including personal computers, data centers, tablets, and smartphones among others. In addition to the platforms, the company develops and sells software and technology integration-related services. Since its incorporation, the firm has been involved with several acquisitions and mergers that have enabled it to grow and expand its scope of operations. For instance, Intel acquired ProFUSION-Comercioe prestacao de service in 2013 while 2011 saw the firm acquire Wireless Solutions (WLS) and McAfee, Inc. these are only but a few of the acquisitions of Intel Corporation. Despite intense competition from companies such as Taiwan Semiconductor Manufacturing Company, Ltd and GlobalFoundries, and Advanced Micro Devices, it has been able to overcome the competition and maintain its dominance. Purpose This white paper on Intel Corporation has the objective of highlighting the background information of the company, its operations, products and services and establish the firm’s employment opportunities. The analysis of the firm’s performance and working environment as well as its organizational culture will indicate whether the company is a good employer or not. Background Headquartered in Santa Clara in the U.S., Intel Corporation was established in 1968 by U.S. engineers Robert Noyce and Gordon Moore. The company began its operation with a capital of $2.5 million that was obtained from Arthur Rock. The founders were experienced middle-aged technologists that had the objective of establishing a semiconductor firm. After its incorporation, the company began its operations with the new employees that included Andrew Grove, a Hungarian national. Together with Noyce and Moore, Grove served as the chair and chief executive officer of the company in succession for the first three decades of the firm’s operations. Products According to Otellini (1), the initial products that Intel Corporation developed were memory chips, that were the first oxide semiconductor. The first one was 1101 followed by 1103, which was a one kb comprising of random access memory (DRAM). The chip was largely sold across the globe thereby providing the company with more revenue. The competitive advantage for their increased sale was their cheap nature and bulk information storage. Due to the successes realized, the company was publicly listed in 1971. Additional growth saw the development of EPROM (erasable programmable read only memory), which turned to be the firm’s most successful product for sale. Since then, Intel Corporation has been able to develop many other products and services. Intel Corporation designs and manufactures computing and communication components that include microprocessors, chipsets, motherboards and provision of wireless and wired internet connectivity. While balancing improvement of the performance of its manufactured products and services and efficiency in utility of energy, Intel optimizes the operation of its products. Features of optimized performance include a high speed of processing that is accompanied by multithreading and multitasking. Company products can also improve their performance through bulk storage, enhanced security, utility, and reliability among others. The current product range has included the environmental aspect of energy efficiency that lowers power consumption in relation to capabilities of the performance. This means that the battery life of the equipment is extended while reducing heat output. The semiconductors are commonly used in PCs and other computing products. Today, Intel Corporation pursues new markets across the globe where it can sell its products. These are emerging markets such as India, Brazil and China as well as in Africa. Intel Corporation Organization Intel Corporation is organized in different departments as seen below: PC Client Group: the group is responsible for the delivery of microprocessors and related chipsets including motherboards designed specifically for notebooks and desktops. The section also manufactures products related to and provision of wireless internet connectivity. Data Center Group: the group is responsible for the delivery of microprocessors and chipsets that are related to motherboards designed for servers, workstations and storage computing. Other related segments are wireless network connectivity. Intel Mobile Communications is responsible for the delivery of mobile phone components such as base band processors and trans-receivers for radio frequency (Intel 4). Embedded and communication group is charged with the responsibility of delivering microprocessors and chipsets related to embedded applications. Netbook and table group acts as a developer of microrpocessors and chipsets for netbooks and tablets. Digital home group is responsible for the delivery of Intel architecture based products for the next generation of consumer electronic goods. The last group is the Ultra-Mobility group that is responsible for the delivery of low power Intel architecture-based goods for markets that handle next generation products. The Software and service group is split into several categories. First is McAfee that is a wholly owned subsidiary of Intel Corporation and is responsible for the manufacture and delivery of all software products for endpoint security. Next is the Wind River Software Group that is responsible for the manufacture and delivery of device software optimization products for markets dealing in embedded handheld devises. The Software and Service Group delivers is responsible for the promotion of software development through manufacture and development of products and services that support the platform. Other platforms of Intel Corporation are the non-volatile memory solutions that deal with the development of flash memory products and the corporate group that deals in revenue collection, expenses and charges. Some of these include a portion of profit dependent compensation and other expenses that are not located to the opening groups. In addition, it includes divested businesses and results of seed businesses supporting the company’s processes (Intel 5). Corporate Structure Intel Corporation has adopted a hierarchical organizational structure with the top management receiving reports from their juniors. The hierarchical structure is good for the organization, although it is characterized with a lot of bureaucracy. The structure of Intel is illustrated below. Management of Intel Corporation The top management of Intel is called the executive office and is comprised of the chair of the board, Andy Bryant, the chief Executive Officer, Brian Krzanich and Renee James who serves in the capacity of the company’s president. Other executive vice presidents follow as stipulated in the table below. Name Title Andy Bryant Chairman of the Board Brian Krzanich CEO Renee James President William Holt Exec VP. General manager, Technology and manu. Group Thomas Kilroy Exec VP. GM, Sales and Marketing Group Stacy Smith Exec VP. CFO Arvid Sodhani Exec VP. President, Intel Capital Sohail Ahmed Sen. VP. Director Logic technology dev. Diane Bryant Sen. VP. GM. Data center Shmuel Eden Sen. VP. GM perceptual computing president, Intel Israel A. Douglas Melamed Sen. VP. General Counsel Kirk Skaugen Sen. VP. GM. PC client Group Richard Taylor Sen. VP. Director, Human resources Corporate Vice Presidents Biographies Andy Bryant: He works in the company as the chair of the board. He joined the firm in 1981 as the controller of the commercial memory systems operations of Intel Corporation and became the system’s controller in 1983. 1987 saw him being promoted to the director of finance and thereafter appointed the vice president and director of the Intel Products Group in 1990. According to Intel Corporation, “Bryant became CFO in February 1994, and was promoted to senior vice president in January 1999. Bryant expanded his role to Chief Financial and Enterprise Services Officer in December 1999. In October 2007, Bryant was named Chief Administrative Officer.” The responsibilities of Bryant expanded to include the Technology and Manufacturing Group in 2009. He was later named a director and vice chair of Intels Board of Directors in July 2011 and chairman of the Board in May 2012 (“Biographies.”). Brian Krzanich, CEO After his appointment as the CEO of the company, he was elected the member of the board of directors in May 2013. He is the 6th CEO of Intel Corporation and he succeeded Paul Otellini. Before his appointment, he worked in different capacities at Intel such as the COO (chief operating officer). Brian is open minded and often listens to the issues of clients in order to draw any meaningful decision. Through his leadership, the company has managed to extend its products and technology leadership thereby creating billions in terms of value for the company. He participated in Intel’s factories’ transformation in 2006 that was accompanied by the changes in the firm’s supply chain. The outcome was improvement of factory velocity by 60% while the responsiveness to the customer doubled. His experience in other positions in the company could be attributed to his good leadership skills (Intel 6). Renee James (President at Intel Corporation) She works closely with the company’s CEO and the board Chair as the executive office of Intel Corporation. She endowed with a vast knowledge in computing, spanning hardware, software devices, she has actively participated in production through the firm’s R&D leadership positions. She also acts as Intel’s chair for its software subsidiaries (Havok, McAfee and Wind River). She developed her career at Intel Corporation as she has served the company for at least 25 years. Through her career development, she spearheaded the firm’s strategic expansion in provision of proprietary and open source software and service applications. Others include cloud computing and smartphone applications. A part from serving in the firm, she is part of President Obama’s National Security Telecommunications advisory committee even as she serves as a non-executive director of Vodafone Group. Her vast experiences have equipped her with the best leadership skills to apply in the organization. Marketing Plan Marketing is a significant aspect of Intel Corporation because it helps the company attain its sales targets. Intel utilizes integrated marketing communication with the firm advertising its products and services in all media platforms. According to Burkitt (1), the current marketing strategy of Intel Corporation focuses on “young, hip adults”. The strategy is a multi-year, international marketing program whose design indicates the use of technology, art, film and music. Through the program, the company collaborated with the Montreal based magazine the Vice to create a website, The creatorsproject.com that promotes different events. The drive behind the new marketing strategy is the need to tap into the new market of young adults that technology conscious and do not hesitate to purchase emerging technology. Latest News Latest news regarding Intel Corporation relate to several activities and fields. First is investor information that relates to the level of investment returns that investors should receive. The company announced quarterly dividends to its investors on March 19, this year with the investors receiving 22.5 cents for every share, which translates to an annual return of about 90 cents per share. The company will make payments for the dividends on 1 June this year. The declaration of dividends is important for the company as it indicates profitability. On 1 April, the CEO of Intel announced new opportunities in computing, investment and collaboration in China. The company is seeking to venture in China in order to capitalize on the vast market in the country. The other recent news is the chip shot news where the company has been cleared to optimize communication together with availability of gateway solutions for IoT (Mani 1). Problem Statement The latest issues that Intel experienced is transition from the previous executive office to the new manager. The company experienced management issues at first as the new office sought to acclimatize to the company employees. However, the issue was solved and the management issues ended with the executives’ leadership style improving customer stability/loyalty. Another issue that Intel is facing is high competition from other competitors in the industry. The main competitors of the company are Sony, Lenovo, IBM, Samsung, Apple and Sun Microsystems among others. The high competition has seen the company reduce its market over time, although it retains a significant share of the global market in the industry. The company is focused to achieve its goal of becoming a global leader offering the best quality products and services although it has failed to obtain this and becoming transfixed on market share growth. Focus on constant communication with customers and provision of quality service and support to integration of the mission statement (Intel 7). Intel’s Financial Analysis The financial performance of Intel Corporation has been stable as the company has registered profits for several years consecutively. However, the gross margin that the company registered in the 2013 financial period was slightly lower than that of 2012. It was 59.8% as compared to 2012’s 62.1%. This reduced the net margin of the company from 20.63% in 2012 to 18.25% in 2013. The overall financial of the company is illustrated in the figures below. Source: Otellini (1) Jobs Intel Corporation offers many different job opportunities to different people. The recruitment process is fair and allows participation of job seeks from diverse backgrounds with diverse qualifications. For instance, the company offers employment opportunities for people from the military including fresh graduates from college. Employment opportunities are announced from the firm’s human resources with applicants being able to create their online profiles and updating them over time. Evaluation Intel Corporation is a good employer and provides employees with good working conditions. A part from a good payment package, the company offers its employees other benefits. First is the health benefit that the company provides quality health care services and comprehensive coverage. With the health benefits websites, employees are able to enroll for health benefits the firm provides. “The Health for Life Centers are full-service primary care facilities designed to provide you and your family a unique, personalized health care experience. Each center is staffed with experienced physicians, nurse practitioners, registered nurses, physical therapists and other support medical staff.” The company’s website has been developed in such a way that employees are able to access other benefits online rather than visiting the office physically. For instance, employees seeking to advance their studies are able to access any educational help online with other financial issues being handled online as well. Direct contacts allow employees to access responsible individuals in the company directly. Such working conditions motivate employees to work harder and improve their performance. This could be one of the reasons for the firm’s good performance. The good financial performance of the company indicates the ability of the firm to pay its employees even in future, as there is no possibility of becoming insolvent. Conclusion This paper has analyzed the employment possibilities of Intel Corporation. The study focused on the ability of the company to become a good employer. From the analysis, it is clear that Intel is a good employer because of a number of factors. First is the firm’s corporate management that is well structured with a defined chain of command. This is coupled with management endowed with good leadership skills. The good financial performance ensures the stability of the company and its ability to provide good financial benefits to its employees. In addition, the company advertises many positions that are filled by diverse number of employees with various backgrounds. Works Cited “Biographies.” 2014. Web. 2 April 2014. Burkitt, Laurie. “Inside Intels Marketing Strategy.” 2010. Web. Intel. “Intel Employee HR Services and Benefits.” 2014. Web. 2 April 2014. Mani. “Shake-Up At Intel Corporation: Changes Occurring Quickly Under The Helm Of Krzanich.” May 2013. Web. 2 April 2014. Otellini, Paul. Financial results. March 2014. Web. 2 April 2014. Read More