Strategic Management of C5 Intel - Research Paper Example

 Strategic Management – C5 Intel Table of Contents I. Introduction ………………………………………………………………. 3 II. New Mission ……………………………………………………………... 3 III. Vision ……………………………………………………………………… 3 IV. Organizational Goals ……………………………………………………. 3 V. Business Objectives ……………………………………………………... 4 VI. Past and Present Strategic Choices …………………………………… 4 a. Past Strategies ………………………………………………… 4 a.1 Product ………………………………………………… 4 a.2 Entering New Markets ……………………………….. 4 b. Present Strategies ……………………………………………. 4 b.1 Product ………………………………………………… 4 b.2 Entering New Markets ……………………………….. 5 VII. Organizational Design ………………………………………………….. 6 VIII. Strategic Controls ……………………………………………………….. 6 IX. Culture Formed by Mr. Otellini when Implementing Strategies …… 7 X. Discussion ………………………………………………………………… 7 XI. Conclusion ………………………………………………………………… 8 References ………………………………………………………………………… 9 Introduction As the company’s fifth CEO of Intel, Paul S. Otellini became the next CEO after Craig R. Barrett. (Intel, 2008b) Under the leadership of Otellini, the company has gone through a major transformation in terms of changing the organizational goal of the company as well as restructuring the entire workforce. (Edwards, 2006) For this study, the researcher will identify new mission, vision, organizational goals, and business objectives including some of the past and present strategic choices. The researcher will also identify and discuss the organizational design, strategic controls and the culture that Mr. Otellini is using when implementing strategies. Prior to the conclusion, the researcher will discuss the evaluation whether the new mission, selected strategies, and implementation of these strategies is fit. New Mission “Unveil new business strategies and new products to increase Intel’s profitability” (Edwards, 2006) Vision To “position Intel brand a synonymous with innovation for the foreseeable future.” (Fraser, 2007) Organizational Goals Incorporate Intel values of risk-taking, discipline, and results orientation to achieve a better performance. Make use of each employee’s diverse talents to attain the company’s new organizational goal. Hire the best talents away from other electronic companies to increase the company’s competitive advantages. Business Objective(s) 1. To create a new look for Intel. 2. Reposition Intel’s technological products in the global market. 3. Target consumers of electronics, wireless communications, and healthcare. Past and Present Strategic Choices Past Strategies The past strategies of Intel under Grove’s leadership include the following: Product Concentrates more on the production of microprocessors that power personal computers (PC). The problem with concentrating only in the production of microprocessors for PC is the fact that it limits Intel’s business opportunities in the field of technology. Entering New Markets Under the leadership of Craig R. Barrett – the chairman of the Board of Intel Corporation (Intel, 2008), the company failed to enter new markets caused by failure to detract from manufacturing core processor for PC (Edwards, 2006). Present Strategies The present strategies of Intel under Otellini’s leadership include the following: Product Moving away from microprocessors of PCs to other key technology in consumer electronics, wireless communications, and health care. Development of simple yet powerful technology. Since demand for PC been declining for the past few years and competition for other electronic devices such as cell phones and handheld computers is very tight (Edwards, 2006), diversification of products becomes necessary since it will create a bigger opportunity for Intel in terms of increasing its profitability and shares in the market. Intel today is not only focused on developing new technology for electronics, wireless communications, and healthcare use but also developing mobile products that gives consumers the benefit of new security features as well as a higher level of energy efficiency. (Fraser, 2007; Edwards, 2006) Entering New Markets Introduction of New Corporate Logo. Spending US$2.5 billion on advertisements and marketing events. Reorganized the company from top to bottom. Under the leadership of Otellini, it is easier for Intel to penetrate new markets by reorganizing the old personnel and adding new talents into the group. In the process of reorganizing the team members, Otellini re-assigned its 98,000 employees with new jobs under separate units known as: product area, mobility and digital health as the new leader scattered the processor experts to handle each unit. (Edwards, 2006) In order to achieve the company’s goal of launching more new products in 2006, the company hired additional 20,000 employees to join the team. (Edwards, 2006) In line with this matter, Bern Shen who is a doctor practicing medicine for 15 years was hired by Intel to share his experiences and help innovate new competitive technologies for the promotion of digital health. Introducing a new corporate logo to the public such as “replacing Intel inside logo with an updated Intel logo that has a swirl around it that signifies movement” (Edwards, 2006) is a good strategic move since it could represent the company’s shift from manufacturing solely microprocessors for PC into a more diversed technological product. Thus, ensuring its prospective clients with a more powerful technology. Aiming to sell new technological products in the market, Otellini’s present marketing team is composed of chip engineers, software developers, marketers, and market specialists in order to form a stronger marketing arm for Intel. The company also build a good business relationship with Google in order to learn more about facts behind Google’s energy efficiency. (Edwards, 2006) Organizational Design Given that Otellini strongly believes that each individual has their own set of knowledge and talents which can be useful in achieving the new business strategic goals, Otellini made sure that new employees which will be hired have a wide knowledge and experiences on different areas related to software development, importance of sociology, ethnography, economics, and medicine. (Edwards, 2006) By integrating the talents of each employee, it will be much easier for Intel to market their new technological products using simple communication techniques as much as possible. Strategic Controls Otellini did not only hired Eric B. Kim as the new Chief Marketing Officer because of his wide experiences related to Samsung’s marketing but also as a trusted individual who will be assigned to report directly to the CEO with regards to some internal issues that is going on within the organization. (Edwards, 2006) Culture Formed by Mr. Otellini when Implementing Strategies To make the implementation of new business strategies work, Mr. Otellini replaced the old culture of “constructive confrontation” approach with a new “diplomatic approach”. In a constructive confrontation, previous leaders such as Grove and Barrett considered a public confrontation1 with employees as a normal working attitude. This approach may not be effective in the long-run since it could result to de-motivating and making employees feel unworthy for their job. In order to motivate each employee to work and participate actively on Otellini’s new business strategic plans, the leader established a new organizational culture wherein employees will be “praised in public for their outstanding performance and criticize their work in private.” (Edwards, 2006) Discussion The new mission, vision, selected strategies, and implementation of these strategies introduced by Otellini is ‘fit’. In general, upon setting a new organizational mission and vision, the CEO should also develop new business strategies that will make the organizational goal more realistic and achievable. In line with implementing organizational change, it is necessary for Otellini to reorganize the entire group of employees in order to remove individuals who are not comfortable with change. Given that the old group of employees is knowledgeable only with the production and selling of microprocessor for PC, it becomes an important step for the new CEO to hire new people with a more diverse set of skills. Failure to do so will only serves as a bottle-neck for the entire workforce to move into a more promising direction that will enable them to achieve the new organizational goals. Changing the company’s logo is a very good strategic move in terms of reminding Intel’s customers as well as the end-consumers with regards to the company’s plan to move away from being focused in developing microprocessors for PC to a more diverse technology. Conclusion As an effective corporate leader, Intel’s CEO Mr. Otellini implemented a new business strategic move that many people have considered reasonable and achievable. Upon designing a new organizational mission, vision, and goal, the CEO made a good strategic move on how he could convince Intel’s group of employees to follow and work for the success of his vision. *** End *** References: Edwards, C. (2006). Inside Intel. New York: Business Week. Fraser, D. (2007). University of California - Berkeley. Retrieved May 29, 2008, from The Quiet Revolutionary: CEO Paul Otellini, MBA 74, Sets a New Direction at Intel: http://www.haas.berkeley.edu/groups/pubs/calbusiness/winter2007/cover.html Intel. (2008). Retrieved May 29, 2008, from Craig R. Barrett: http://www.intel.com/pressroom/kits/bios/barrett.htm Intel. (2008b). Retrieved May 29, 2008, from Paul S. Otellini: http://www.intel.com/pressroom/kits/bios/otellini.htm Read More