Intel Corporation Business Capstone - Essay Prowess

Intel Corporation Business Capstone

$5.99

Kindly ADD to CART and Purchase an Editable Word Document at $5.99 ONLY

Intel Corporation Business Capstone

Introduction

Intel Corporation is a company that has specialized in manufacturing, designing, and selling various digital technology products worldwide. This corporation was started in 1968 by Gordon Moore and Bob Noyce, and it`s headquarter is located in Santa Clara, California (Intel, 2010). Currently, this corporation has have numerous operating segments including software and services, personal computer client group, Intel architecture, data center group, and others. in addition, the corporation`s platforms are used in numerous computing applications including servers, medical devices, desktops, tablets, automated factory systems, smart-phones among others. The core products of Intel include microprocessors, mobile phone products, storage devices, NAND flash memory products, and network connectivity products (Intel, 2010). Additionally, this corporation has a wide range of customers such as Original Equipment Manufacturers (OEMs), Original Design Manufacturers (ODMs), retailers, resellers, distributors, and others.

The impact of the company’s mission, vision, and primary stakeholders on its overall success

The mission, vision, and primary stakeholders of Intel Corporation have a great impact to its overall success. For example, the mission of this company focuses on delivering happiness to employees, customers, and shareholders by producing technological platforms that enhance both their living and working ways (Intel Corporation, 2014). This statement shows that the corporation concentrates more on users and buyers of its products than on its technologies. A mission geared towards the users constantly sensitizes the managers of this corporation to not only maintaining high quality of its products, but also to providing high quality customer service. By placing first priority to its customers (whether PC customers or major manufacturers), this corporation has managed to build a positive reputation with all users of its products.

Moreover, the vision of Intel aims at creating and extending the computing technology to is to create and extend the computing technology globally, so as to improve and enrich people`s lives. Apparently, the company accomplishes this vision through concentrating on its strategic objectives. These includes: the expansion of data center and personal computer businesses; intensive production of technological solutions to its adjacent market segments; and providing care to both the existing population and the environment, and to the future generation. This vision has made the corporation to embrace numerous technological innovations, which do not only enhance and enrich individuals` lives, but also enable the corporation to compete adequately in the technology industry (Intel Corporation, 2014).

Consecutively, Intel`s good relationship with its primary stakeholders (such as customers, employees, suppliers, and shareholders) have positively influenced its success. For example, the Corporation upholds human capital management, and this makes employees feel as valued assets of this Corporation. This has resulted to lower rates of employee turnover, attraction of highly talented employees (especially those who run away from the other competing companies), and the realization of high returns (Intel Corporation, 2014). Precisely, this corporation has been named as one of the 100 fortune companies in the United States. Consecutively, Intel`s approach to its suppliers and investors is based on the principle of transparency and trust, and this has made these shareholders to develop a strong loyalty with the company.

The five (5) forces of competition and the way they impact Intel Corporation

The competitive advantage of any firm are mostly established through the use of five forces of competition, which includes; threat of entry, bargaining power of buyers, threat of substitute products or services, bargaining power of suppliers, and rivalry among existing competitors (Henry, 2008). However, depending on the type of industry, some forces hold greater importance than others. for example, capital intensive industries usually considers the threat of entry as their most importance forces, while software industries may focus on operational efficiency and cost reduction as a basis of reducing competition. Intel considers the threat of entry and substitute as its powerful forces of competition.

The threat of entry refers to the reaction of incumbent firms in order to prevent the entrance of new firms in a particular industry.  However, the threat of entry to an industry is influenced by the reaction that new firms expect from the existing ones, and the height of entry barriers that have been put in place. For example, the threat of entry is high when entrants anticipate little retaliation from the incumbents, and when entry barriers are low. Nevertheless, Intel Corporation is positively affected by the entry barriers that exist in the micro-processor industry (Henry, 2008). For example, Intel produces microchips in large scale, and this makes it to enjoy economies of scale.  In addition, Intel has a developed a brand image of perceived quality, and invests highly on research and development. This makes it difficult for new microprocessor firms to compete with this corporation.

Secondly, the threat of substitute products refers to the changes that occur to the performance of an existing firm when a new firm introduces a substitute of the existing firm`s product. Generally, the threat of substitute product limits another firm`s profitability potential. For this reason, Intel had to differentiate its chips through marketing channels and capabilities (Henry, 2008). For example, this corporation established a brand and a perceived quality to the end user through naming its micro-chips as Pentium or Celeron.

Thirdly, the power of suppliers refers to the impact that suppliers of raw materials can have to the profitability of a firm. For example, powerful suppliers may charge high values for their resources or even provide low quality resources, all which have negative consequences to the firm. Fourth, the power of buyers refers the influence that buyers (customers) may have to the profit margin of a firm. These two forces are less important in the microprocessor industry since competition exists at both levels. Since Intel develops new technology almost after every month, it cannot be an overwhelmingly powerful buyer (Henry, 2008).

Lastly, since this corporation is among the three major firms in the microprocessor industry, rivalry in the industry is not intensive. The other two competitors are the Advanced Micro Devices (AMD) and Texas instruments (Henry, 2008). Though there are small firms that exist in the industry, they tend to either specialize in one specific product, or compete within a niche environment.

SWOT analysis for Intel Corporation

This refers to the process of uncovering strengths, weaknesses, opportunities, and threats of a company.

Strength

The core strength of Intel Corporation is its strong brand name, which appears on various cell phones, hard drives, computers, i-pods, among others. This corporation has patented its own unique transistors and micro-chip processors. This has made the corporation to secure a large and loyal base of customers. In addition, Intel has invested heavily on research and development, and this have enabled it to develop products that meets customer`s expectations (Riaz, 2014).

Weaknesses

Intel`s weakness is on its safety record, that has decreased from 92% incident free record to 81 %. This has been contributed by a myriad of factors such as chemical spills, transistor malfunctions, and employee injuries, among others. In addition, the sales of personal computers (PC) have recorded a decreasing trend in the recent past (Riaz, 2014). Another weakness entails underutilized capacity, especially after the continuous decline of PC sales.

Opportunities

The presence of underutilized capacity is a potential opportunity for Intel. Utilizing the corporation`s excess capacity would not only challenge other companies, but also reap substantial returns. In addition, Intel has the potential of innovating many new product technologies that would enable it to compete in new markets (Riaz, 2014).

Threats

Intel is facing stiff competition from large and minor competitors such as AMD, Texas Instruments, Dell, IBM, and others, making it hard for it to maintain its market share (Riaz, 2014). Consecutively, customer`s taste and preferences may shift to other competitive products in the market, since they are cheap.

A strategy for Intel Corporation to capitalize on its strengths and opportunities, and minimize its weaknesses and threats

The core issue that this corporation faces involves its potential of maintaining the position of being the best company in the microprocessor industry, despite the increasing number of competitors. This corporation can achieve this primarily through more concentration on its strengths and opportunities, and minimization of its weaknesses and threats. Intel needs to invest heavily on research and development, in order to enhance the potential of coming up with new and improved technological innovations. This may not only enable the company to produce new high quality products, but also contribute to lower production costs of the existing products, and this would in the long run enable it to set a lower marked price for its products (Riaz, 2014).  Consecutively, Intel should maximize the utilization of its excess capacity in not only increasing the production of PC computers, but also entering and expanding adjacent market segments such as tablets and smart phones.

Levels and types of strategies Intel may use to maximize its competitiveness and profitability

There are two levels of strategies for that a firm can employ in order to maximize its competitiveness and profitability. These include; business and corporate level strategies.

Business level strategies

These strategies focus on ways of enhancing customers` satisfaction or preferences in order to increase returns of a firm. Intel Corporation may implement numerous business level strategies such as product development and strategic alliances. Product development involves either modifying existing products or developing new but related products that can be marketed to current customers through the already established channels. Intel may modify its existing products through the addition of more qualities, or modify their production process in such a way that the same products can be produced at a lower cost (Business Plan Hut, 2009). Intel may also form strategic alliances with other corporations in the technology industry, such as Apple computers.

Corporate level strategies

These strategies focus on the overall strategic scope of an enterprise. The core type of corporate level strategy that Intel Corporation can use is concentric diversification (acquiring other businesses that whose products, distribution channels, markets, and technologies are similar but not identical with the acquiring firm). For example, Intel can acquire computer companies such as HP and Dell in order to increase the sale of its processors (Business Plan Hut, 2009).

Communication plan that Intel can use to make these strategies be known by all its stakeholders

Intel Corporation can use numerous means of communicating these strategies to its shareholders, customer, suppliers, employees, board of directors, investors, and others. For example, Intel can use social media platforms such a facebook page, website, or twitter to inform its customers and employees concerning its decision of adopting these strategies. In addition, the corporation can inform its suppliers, shareholders, partners, and other stakeholders during its annual general meeting. Consecutively, the corporation can publish brochures, annual reports, and internal memos to inform its employees, customers, and suppliers (Intel, 2010).

Corporate governance mechanisms used by Intel Corporation

For a corporation to set and accomplish its strategic goals, it must implement an effective governance structure. Intel`s governance structure entails a combination of various mechanisms such as internal and (external) independent governance mechanisms. The internal corporate governance mechanism monitors daily operations and progress of this corporation, and provides corrective measures when deviations occur. This corporation`s internal governance mechanism ensures maximum performance of managers and employees in order to ensure its success. In 2010, Intel received Corporate Governance Award for its excellent performance (Intel, 2010).

The external Corporate governance mechanism for Intel is made up of independent directors who are responsible for the assessment and reporting of the company`s responsibility and sustainability performance. The independent directors overseen the company`s compliance to regulations such as environment, antitrust issues, debt management, among others (Intel, 2014).

Effectiveness of leadership of Intel Corporation

The manner in which Intel treats its employees, customers, suppliers, other stakeholders, as well as its overall performance can support the idea that its leadership if effective. For example, Intel upholds human capital management, which makes employees feel as valuable assets of the organization. Through the various training programs for the employees, as well as the diversity during recruitment, enhances innovative ideas in the technology industry. In addition, the company rewards employees for their good performances and provides them with maternal or any other leaf if need be. Proper treatment of the corporation`s workforce have resulted to lower rates of employee turnover in the last one decade (Intel, 2014). The corporation has also developed numerous tools, processes, and platforms that ease communication between the management and the employees, customers, and the neighboring communities. Consecutively, the corporation`s financial performance have greatly improved, to the extent of being ranked as one of the best 100 companies in the US.

Though Intel upholds workforce diversity, it needs to consider gender equality. Almost 70 percent of the total employees are male. This shows that less women are absorbed compared to their male counterparts. I think balancing the number of employees in terms of gender basis can enhance also enhance more productivity.

Efforts of Intel Corporation to be a responsible (ethical) corporate citizen

Intel Corporation has been involved with various activities that portray it as a responsible corporate citizen. For example, the company has a code of conduct through which it seeks to uphold honesty and ethical conduct of its internal stakeholders prevent wrongdoing, and to enhance compliance with the laid laws and regulations. In addition, Intel mandates its employees with in-depth ethics and compliance training programs such as import-export compliance, antitrust, insider trading, anti-corruption among others. In addition, Intel compiles and publishes annual reports that express its commitment to in upholding human rights and responsible labor practices. Moreover, Intel maintains robust avenues for reporting any misconduct from employees, including online channels. The company also strives to maintain a healthy environment through promoting and funding programs of reducing air and water pollution (Intel Corporation, 2014).

These efforts have numerous impacts to this corporation. For example, educating and training employees on the observance of the code of conduct helps in creating a culture that is free from unethical practices, especially to the customers and the neighboring communities. This maintains and enhances customers and investors loyalty to the company. Consecutively, these efforts enable the company to reap maximum returns since expenses, such as those involved in dealing with lawsuits or compensations from environmental pollution, are not incurred.

References

Intel, (2010). Corporate Responsibility Report Year 2010. Retrieved from http://csrreportbuilder.Intel.com/PDFFiles/CSR_2010_Full-Report.pdf

Business Plan Hut, (2009). Competitive Strategies to Increase Sales and Profits. Retrieved from, http://www.businessplanhut.com/competitive-strategies-increase-sales-and-profits

Henry, A. (2008). Understanding strategic management. Oxford: Oxford University Press.

Intel Corporation, (2014). Corporate Responsibility Report year 2013. Retrieved from, http://csrreportbuilder.Intel.com/PDFFiles/CSR_2013_Full-Report.pdf

Riaz A., (2014). A SWOT Analysis Of Intel Corp. retrieved from, http://seekingalpha.com/article/2235253-a-swot-analysis-of-Intel