Strategic Choice and Evaluation - Essay Example

STRATEGIC CHOICE AND EVALUATION Lori L Williams University of Phoenix November 26, 2011 Strategic Choice and Evaluation Vision Statement The vision statement for AMD is to be a world class organization in the semiconductor sector, and the manufacturing of high quality and modern technology that will have a positive impact on the lives of people around the world. Mission The mission for AMD is to be a leader in the provision of technology by providing high quality digital solutions that will empower the modern businesses in addition to creating a positive impact on the political, social, and economic status of countries over the world. Summary of the SWOT analysis Strengths AMD remains the second largest organization in the semiconductor industry as well as recognized as the third largest organization in graphics. According to statistics in 2008, AMD had 15,653 employees with reported revenue of $6,013 billion dollars. Moreover, the products made at AMD are less expensive than the products produced by Intel. Furthermore, AMD has built several facilities as well as a developing and research centers. AMD’s research center is composed of associate and senior researchers who operate from the corporate offices of the organization. The researchers provide direction as well as conduct research geared towards making the organization the leading company in the semiconductor design industry. The employees and research team of AMD are talented with academic and corporate experience that enables the performance of duties in line with the requirements of future computing technologies and architectures. Additionally, AMD is the only organization that manufactures Athlon 64 x 2 microprocessors. AMD also manufactures Compaq and HP that are the preferred computers by all types of users regardless of his or her age, gender, and economic status. Consequently, the strength of the AMD organization is drawn from the automated precision manufacturing system that enables the manufacturing of high quality products within a short period. Moreover, AMD later introduced the ATI Radeon HD 5970 that has proven to be one of the fastest and most preferred graphic cards. Not only is the care preferred regionally but also worldwide. Additionally, the organization has designed the graphics card to support PC games that is in high demand on the technology market. The graphic card has resulted in good performance in gamming such as Direct X11. The AMD organization has simplified the buying procedure and experience for customers by establishing Vision Technology (AMD, 2011). Vision technology has built-in features that will communicate directly with the organization on the experience of the users concerning the computer. The organization has six core AMD Opteron processors that provide increased performance by using energy efficiently. The processor also has AMD platform technology called Dragon. Dragon is meant for personal computer systems of desktops that perform efficiently through a combination of both AMD Phenon, and the CPU of the AMD organization that performs faster in addition to the seven series chipsets. Also the products are energy efficient for example the AMD Opteron. Weakness of AMD AMD is known to have a bad reputation as a result of standing in second position in the semiconductor industry because of the maturity market. Moreover, instead of AMD obtaining an increase in revenue annually the revenue has decreased considerably. External Factors Opportunities AMD explores the low pricing strategy whereby the products which are modern but also high quality are sold at a lower price as compared to similar products from other organizations producing the same products such as Intel. Moreover, AMD has a gaming evolved program. The membership doubled and more partners joined the program two years later after the launch of the program. AMD organizes fusion development summits every year with a high attendance rate. The organization has received many awards such as: Best Choice Computex Taipei Award received in 2011, and approximately 300 awards for the best manufacturer of personal computers including Dell, Acer, HP, Toshiba, Samsung, Asus, and Sony. Also a digital platform television called AMD live. Threats The organization faces competition from Intel a dominating organization in the industry. The organization is being threatened by the current economic crisis resulting in decreased revenue for the organization because the purchasing of customers worldwide is affected, and the rising cost of raw materials. Pearce and Robinson matrix Pearce and Robinson make use of four-box matrix which aims at illustrating how to effectively manage the relationship that exists in the strategy culture. One part of the matrix is labeled as potential capability of changes with existing culture and the same part has dimensions which are labeled as low and high while the other section of the matrix is labeled as changes in the major organizational factors that are important in implementation of new strategies. Technical Environment AMD to concentrate on inventing advanced forms of technology with an aim of remaining the leading company in the semiconductor sector. Additionally, to concentrate in inventing new forms of technology that in the field of computer and the score in the strategic plan will be high. Ensures that the computers it produces are fast in times of speed and are of high quality. Natural Environment The company need to ensure that the products it produces utilizes minimal energy. Economic Environment The company should ensure that it puts in place marketing strategies that will ensure that the consumers purchase computer products despite the economic crisis being experienced by them. Demographic Environment AMD should concentrate on manufacturing and providing students around the world with modern and faster computers. The organization has also participated in training programs as well as contributing to the IT infrastructure on a global perspective, especially in Africa (Robinson, & Pearce, 2011). Cultural Environment The company should ensure that more products are produced in the months of December in nations whereby Christianity is the major religion. However, in the nations whereby Muslim is the major religion, more products should be made and sold in the month of Ramadan .cultural environment should be high in the Robinson and Pearce strategic plan Conclusion and justification of the four matrixes The four matrixes have to be used by the company in order for it to remain a leader in the semiconductor industry. In the cultural environment AMD has to employ effective marketing strategies so that it widens its marketing base. Additionally, the same will assist the company to improve its revenue and thus improve its image and production base. Moreover, concerning the technical environment, AMD should concentrate on manufacturing high quality computers that will not only serve students population but the world as a whole. Therefore, this matrix should score high in the Pearce and Robinson matrix. On the natural environmental, AMD only aims at manufacturing computer products that utilizes minimum amount of energy. Note on the strategic plans AMD needs to aim at dealing with multimedia technology in association with Qualcom. The organization should aim at expanding the gaming sector of the business because gaming is an external opportunity in the semiconductor industry. In addition, AMD should produce more core processors to maintain a high niche in the market as well as expand the market base. Moreover, the company needs to identify and apply marketing strategies that likely to make the company to be in a position to widen its marketing base and aim at being the leading company in the semiconductor industry. The company should continue using products that utilize minimum energy as this will assist it to compete with other players in the same industry. Additionally, AMD should widen its research and training sector so that it can continue manufacturing unique and quality products that will enable it to be leading company in the semiconductor industry. It should recruit talent and continue ensuring that its staff is made up of professionals only. Conclusion Based on the analysis of AMD there remains a need to combine a number of marketing strategies so the organization can continue the larger market scale. To attain the organization, AMD need to use the three Ps of services as well as the seven Ps of marketing. It remains vital that AMD appraises both the macro and micro environments and find solutions for the existing threats and weaknesses of the organization References AMD, Inc. (2011). Corporate Information. Retrieved from http://www.amd.com/us-en/Corporate/AboutAMD/0,51_52_10554,00.html Burnes, B. (2004), Managing change: a strategic approach to organizational dynamics, 4th Edition, Prentice Hall, Englewood Cliffs. Robinson, R., & Pearce, J. (2011). Strategic Management: Formulation, implememtation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin. Read More