Strategy Implementation of Intel Company - Essay Example

of the of the Supervisor] Strategy Implementation: A Case Study of Intel Introduction Strategy implementation activities generally are played out over longer periods of time than the formulation of plans. Strategy formulation is usually more time bound and focused than implementation of the plans generated, the former lasting weeks or months but the latter often lasting years. The longer the time period, the more it is likely that competitors' actions and unforeseen factors ("noise") come into play and must be handled. What drove Intel Craig Barrett, appointed executive vice president in January 1990, believes that "the world changes and the centre of gravity shifts. We need to shift with it and we implement every strategy with result-oriented mindset" (Ambrosini, pp. 123-126). McConnon (pp. 46-51) mentions that Intel recognizes the need for continually analyzing and reviewing its strategies in order to meet the changes and challenges that come from the external environments so as to meet the stakeholders' expectations. Intel strives for business renewal and revitalization as a way of dealing effectively with the impact of the information society on today's dynamic industry. This paper discusses Strategy Implementation in the context of the case study of Intel in a concise and comprehensive way. Strategy Implementation: A Case Study of Intel Intel is an innovation-driven organization that strongly believes that competitive advantage can be achieved by choosing the right option at the right time so as to create value to Intel's key stakeholders: its customers. To achieve this Intel uses the following key drivers: *Market leadership and Innovation *Research and Development *Strategic Alliances *Good Human Resource Management *Benchmarking *Branding According to Edwards (pp. 46-47) due to Intel's successful early days into the semiconductor industry, Intel established itself as one of the leading brands in the hi-tech sector. Intel managed to create and develop such an established and well recognized brand by being able to launch new products as well as being able to reinvent itself (e.g. moving from semiconductor memories to microprocessors). In other words, management created a dynamic internal environment where people were encouraged to accept 'change' as part of Intel's corporate culture. This was achieved through designing a matrix structure that favored and facilitated the flow of information and knowledge across the organization. Intel managed to create an internal environment that requires employees to deal with challenging corporate goals (i.e. result orientated) and beliefs (i.e. attention to details/quality, professionalism, etc) in a team-based and open-minded workplace. Given the dynamic industry Intel is operating in, innovation can be obtained through investing heavily in Research and Development (R&D). All the above-mentioned strengths may only feature in an organization that has great managerial vision; in other words, Intel's management was able to analyze the changing patterns of the industry, make choices (see the "buying options") and implement them quickly (i.e. strategic flexibility) in order to achieve competitiveness. Finally, another major strength may be identified: Intel believes that listening to its customers and working close with its business partners is a pivotal factor in the search for competitive advantage and, indeed, corporate success (Einhorn, pp. 52-53). Culture was of great importance to Intel. The 2-in-a-box management philosophy enabled top management to form a complementary and well-balanced team by combining philosophical and pragmatic skills. The 2-in-a-box philosophy reflects Intel's culture: it requires both strong personalities (egos) and teamwork (a philosophical dichotomy). Intel's culture is focused on being aggressive and direct, as suggested by Bob Noyce (1988) "people get respected or get ahead because of their abilities, not their position. You can always tell the boss he's wrong". Being a knowledge-based organization, people are valued as Intel's critical factor in the successful application of such beliefs in its culture. In such a dynamic and ever changing environment, people are required to be good at coping with change. The extent to which an organization succeeds to adopt a "ready-to-change" type of attitude/culture depends on the structure that is in place. In order to effectively cope with a so-called "action orientated" environment required Intel to adopt a flexible and matrix-type of organization structure where particular attention needed to be paid to its communication system (Edwards, pp. 46-47). New Mission, Strategies and Implementation: A Present and Futuristic Look Intel began its core business in memory, Intel then moved from semiconductors to the microprocessor business. The company was able to change its core business but not without difficulties (the so-called "semiconductor bloodbath"). The rise of the Internet and the growing ties between the entertainment and telecommunication industries represents the future for the hi-tech sector. For instance, Microsoft is no longer focused on software alone; thanks to its experience and knowledge base, Microsoft has challenged Sony's PlayStation with its X-Box in the gaming industry. Microsoft is also planning to enter the mobile phone market (Microsoft has teamed up with Motorola and developed smart phones and other wireless devices) (Einhorn, pp. 52-53). The widening application of internet-related technologies and digital technologies will definitely play a big part in Intel's future. In fact, Intel will soon launch "the next generation of Intel XScale technology based processors to be used in mobile phones, PDAs and other wireless devices". More particularly, those new developments will enable mobile phones to dramatically improve the way cell phone and PC users gain access to the Internet and avail of mobile phone-related applications (i.e. digital pictures and video clips). Therefore, the focus is now on wireless mobility products that combine communication itself, technology and entertainment. The case of the successful implementation of strategies is due to the fact that they were constantly inventive with their management structure, such as the two in a box idea where two differently qualified experts worked closely together with one objective. They operated in a very flexible manner using matrices that allowed for permeable membranes, essential in this competitive industry. They paid special attention to the staff, constantly motivating them with bonus incentives and sabbatical opportunities, while constantly encouraging innovation. The early informal human management structure was replaced by a more formal one, which constantly worked at getting the best from the staff. When job cuts were being made across the industry, Intel devised the "125%" plan where staff worked an extra 10 hours a week for no extra pay and thus all jobs were saved (Einhorn, pp. 52-53). Intel's history was one of pursuing alternative technologies, including microprocessors, other chips, flash memories and personal computers. Intel became pioneers of both old and new industries through revamping products and creating new product sectors. The result being that Intel for many early years held the advantage above all competitors. This and other factors lead to more than thirty-five years of success, which even saw a ten-year period of 30% per annum compound growth. A major factor for this success was their ability to identify the core competences that reside within the company and utilize them in the most effective way. Conclusion . Models of implementation, accordingly, must be eclectic or integrative in order to capture the complexity of the implementation task for practitioners and researchers alike. Besides being integrative, models of strategy implementation must be useful, satisfying the related criteria of logic, action, contingent prescription, parsimony, cognitive manageability, and efficiency. Einhorn (pp. 52) mentions that models of implementation must meet both general and specific criteria if they are too useful for these purposes. General criteria are criteria relevant to all usable models, and include the criteria of logic, action, parsimony, and contingent prescription. Specific criteria are particular to the content of the model being developed. Probably Intel's greatest core competency is its ability to constantly produce innovative products when they are needed. The company was created on the strength of a technological innovation, replacing magnetic-core computer memory with semi-conductor memories. The products Intel were producing had a relatively short shelf life in so far as, once released competitors had access to the new technology and it wasn't long before similar competitor products were available. In an industry such as this, to have the ability to be consistently innovative is a core competency, and Intel for a spell of close on 35 years now, has that advantage. Works Cited Edwards, C., Inside Intel. Business Week, New York January 9, 2006, Issue 3966, 2006, pp. 46-47. Einhorn, B., In China's Net Cafes, Intel Pours it On. Business Week. New York: November 6, 2006, Issue 4008, pp. 52-53. McConnon, A., The Mind-Bending New World of Work; Motion-capture technology burst out of Holywood and into business from aerospace to advertising. Business Week. New York: April 02, 2007, Issue 4028, pp. 46-51. Einhorn, B., In China's Net Cafes, Intel Pours it On. Business Week. New York: November 6, 2006, Issue 4008, pp. 52. Ambrosini, V. (1998). Exploring Techniques of Analysis and Evaluation in Strategic Management, Prentice Hall Europe, 1998, pp. 123-126. Appendix Strategy Implementation at Intel: Pictorial Presentation Read More