Strategic Management: Strategy Implementation
Under the term of Paul Otellini as the new CEO of Intel Corporation, he plans to make Intel toss out its focus on the production of microprocessor chips that has been extensively being use by many personal computer manufacturers around the globe and concentrate on the key technological role of Intel to consumer electronics, wireless communications, and health care. The predecessor of Paul Otellini, Andrew Grove, centered more his strategies and actions on the narrowing of Intel’s focus, specializing in microprocessors, in order to narrow down the competition on their side thereby having less uncertainty on the operation of the company.
With the new orientation of Intel on Otellini’s term, risk taking, discipline, and results orientation, the said company is trying to cope up with the present generation. Paul Otellini is trying to expand the potentials of Intel and wants Intel to drop its Pentium brand, its three decade loge, and it’s “Intel Inside” to support the major transformation that he plans to make on Intel’s product lines (Edwards, 2006a). Paul Otellini also want Intel to expand its microchip processors and start developing new software for the IT industry around the globe to boost the market status of Intel in the international market.
As for the new vision of Intel, it wants to make technology to be more powerful and simpler to make things to make the lives of many people easier and more comfortable. In this regard, it is therefore clear that Intel is providing premium focus on the satisfaction of their customers. Moreover, Intel is trying to do a great job for its employees and shareholders through expanding its horizon since the PC industry starting to reach its saturation in the international market while cell phones and handheld devices continues to dominate in to many people’s lives.
Paul Otellini wants Intel to utilize the growing market for cell phones and handheld devices to sustain the impressive growth of Intel for the past years of its operation in the market. Strategic Choices In order to support the transformation process of Intel, Paul Otellini start putting most of its employees, around 98,000, to new job positions and created business units for each product area together with mobility and digital health.
Paul Otellini also scattered Intel’s processor experts among the business units that he created in order to secure the quality and high development rate of Intel’s product lines. Furthermore, Otellini also added around 20,000 more people on this workforce. As a result of this strategic choices of Paul Otellini regarding the workforce and production area of Intel, the said company was about to launch more products in 2006 than at any time in its history.
With the growing competition in the IT industry around the globe, having able to develop more products in the market provides Intel with a better market position in the IT industry for many consumers nowadays prefers innovative and more developed products in the market. Many IT companies gain tremendous amount of profit due to extensive research and development of their product lines in the market and this is what Paul Otellini wants Intel to achieve during his term as its CEO.
Paul Otellini even sends researchers to find more potential market or Intel like for the case of internet cafe industry in China which provides tremendous amount of potential market of the said company (Einhorn, 2006). Under the term of Otellini, Intel was able to develop new manufacturing technique that provided them with cost advantage over their main competitor – Advanced Micro Devices [AMD], thereby making Intel’s products become more preferable on the eyes of its target market (Edwards, 2006b).
In other words, through the development of new techniques, products, and market expansion, Intel has been able to gain back its losses from the recent past caused by tight market competition. These strategic choices of Otellini enabled Intel to gain back its losses for the past recent years and experience better market position in the IT industry by developing new products, techniques, and expanding the market of Intel. Organization Design, Strategic Controls, and Culture
As already mentioned above, to support the transformation of Intel’s priorities and strategies as part of the program of Paul Otellini as the new CEO of Intel, he decided to assign his 98,000 employees to new job position in the market with an additional of 20,000 workers to intensify the workforce of Intel in developing new product lines to be launched in the market after a year. Furthermore, Paul Otellini also created business units for each product area with the distribution of Intel’s processor experts on every business units in order to secure the quality and standard of all the products that they will develop.
With this major changes on the organizational structure of Intel, especially in the number of employees working on various areas of the said company, Intel has been able to develop new products at a much higher rate compared to the previous year. Being concerned with the future of Intel on the IT industry in the next couple of years, Paul Otellini used these development of new product lines, expansion of product lines, and intensifies the workforce of Intel in order to gain sustainable competitive advantage over their competitors in the market.
In other words, this new organizational structure of Intel provided it with allot of benefits in the form of greater market preferability to consumers. Paul Otellini wants to instill the value of producing high quality products in the market and provides premium attention on the satisfaction that their customers receive from consuming their product lines.
Since high product quality and high customer satisfaction are directly related to one another, Paul Otellini focused more his actions and strategies on developing, expanding, and creating new products lines for Intel to cater the growing needs of its target market in handheld devices, wireless communications, and consumer electronics. Paul Otellini also wants to develop the value of risk taking, discipline and result oriented workforce and these values supports the initial venture of Intel to motion capture industry which provides risky effects yet offers high gains if things work out perfectly for Intel (McConnon, 2007).
Evaluation of Fitness of Intel’s New Mission, Strategies, and Implementation Based from the already identified new mission of Intel, which is to provide higher quality products into their target customers in the form of wider product lines and higher product quality and provide higher gain to its stakeholders as well as employees, it is enough to say that Intel’s mission is aligned with the strategies and implementation processes conducted by Otellini’s regime.
The development of new manufacturing techniques that would allow Intel to minimize their operation cost supports their mission to provide higher customer satisfaction by allowing it to offer their products at a much cheaper price compared to its competitors. The formation of new business units and new job positions for around 98,000 employees of Intel provides enough room for the said company to secure the quality and standard of all the products that they develop, especially new product lines of Intel.
In addition to this, the hiring of an additional 20,000 workers to intensify the workforce of Intel serve as an avenue towards the development more product lines in the market within a year that allows Intel’s target customers to become attracted on Intel’s products in the market. The expansion of product lines of Intel such as: motion capture, all kinds of chips, and software, will allow Intel to cater to a wider range of customer segment thereby boosting the growth rate of the company that later on will provide higher ROI to its shareholders.
In this regard, it is therefore clear and constructively argued that Intel successfully aligned its new mission on its strategies and implementation. The innovative perspective of Paul Otellini allows Intel to easily attain impressive company growth due to the utilization and taking advantage of various potential market ventures that Intel has yet to explore since its establishment.
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