Chipping Away at Intel Case Study Example | Topics and Well Written Essays - 750 words

Chipping Away at Intel - Case Study Example The reorganization of Architecture Group took place in the third year of Barrett’s tenure, in which a new unit consisting of networking operations and merger of communications was established. The intention behind these reorganizations was decentralization; and making decision making process stronger so that business operations would be carried out in a systematic way. In the tenure of Barrett, Intel had to face environmental pressures which disturbed company’s reputation and finances. The three most significant environmental pressures faced by Intel were competitor’s effect, economic turmoil & geopolitical factor and fall of corporate reputation. Intel went into the production of network servers and routers. This initiative was not applauded by Cisco and Dell, which were its biggest customers of chips. Intel had to eventually stop the production of network servers and routers. Advanced Micro Devices produced Athlon processor chip which was faster than Intel Pentium III chip. The political and economic situation of the region was also not promising as September, 2001 attacks brought U.S economy down. The threat of U.S troop’s invasion also into Iraq did not bring good results for the economic market of U.S. Its consequences were seen in the stock market where Intel share went down from $26 to $20 in October 2001. The 60% downfall of shares was a big concern for company’s prestige. A tremendous internal organizational pressure was recorded in the possession of CEO Craig Barrett due to his thrive for change and innovation. The objectives of Barrett were to achieve employee’s job satisfaction and better customer services, but this whole idea turned out differently. Job rotation of 80% of the Micro processing Unit staff created uncertainty in job roles and responsibilities. The idea of Barrett was that employees would know about company’s diverse operations by adapting