Intel Corporation’s Change Pressures and Challenges Case Study

Changes at Intel in the first three years of Barrett’s tenure

The changes made by Barrett included entering into new markets like production of information and communication appliances and production of networks servers and routers but withdrew when he realised of competing with prime customers of chips, Cisco and Dell. Another change is that Barrett closed down ICat, an e-commerce segment for small business in his first three years as Intel CEO. Further, he created a wireless unit, created the Architecture group in the second year and in his third year; he reorganised the Architecture Group further by merging communications and networking sections of Intel.

Environmental Pressures for change experienced by Intel

Fashion was one of the pressures experienced by Intel due to the need by the customers to have fast modem connections rather than the speed of computer chips, which were Intel’s specialization. The other pressure for change at Intel was hyper-competition from Advanced Micro Devices and other chip producers, hence the need to change to ensure Intel’s profitability and relevance. The declining market was also another change pressure at Intel due to the slow economic business condition. The geopolitical pressure for change at Intel came in the form of the impending war with Iraq requiring the making of changes at Intel. The mandate was also another change pressure where Intel aimed at making profits by overpricing instead of improving customer experience to create a strong reputation with clients for continued customer allegiance.

Internal organisational pressures experienced at Intel.

The reorganisation of organisational identity due to the need to change Intel’s culture, integration, and collaboration pressure, where the company had to avoid some segments competing against each other. Growth necessity of Intel and requirement of a new broom to make changes at Intel, this was for the drive of Intel’s growth despite challenges. These are the internal organisational pressures for change faced by Intel.

Other external and internal pressures for change

The need for improved innovativeness and efficiency is the other pressure for change faced by Intel during Barrett’s tenure as the CEO.

Conclusions on change, dominant forces, and their reasoning

From my assessment, the changes instituted by Barrett were necessary to keep Intel profitable and competitive in the market. Overall, the need for change at Intel was urgent to overcome challenges arising from dominant forces affecting the company. The dominant forces included avoidance of self-competition by the company segments, especially networking and communication, change of culture from profit-oriented to customer satisfaction and overcoming competition. The need to be relevant in the changing environment, slow economic growth, and reduced demand were other dominant factors facing Intel. These issues were dominant as they affected the profitability and the reputation of the company in the market.

Future pressures for change and the assessment criteria

A change in the market needs for various products offered by Intel is another change pressure in the future of Intel. The need for electronic commerce for the success of the company is another change pressure that can arise. The assessment criterion is the requisition by customers for faster modem connections, which means a high number of online hours, and high data flow. The ability to purchase online will increase, forcing the company to implement an e-commerce platform. The other assessment criterion is the need for customers to have fast modem connection yet Intel produced fast chips.

How to cope with change pressures

Advice to Barrett is to be vigilant to changes in customer needs and ensure the company aims at meeting these changes by innovative production. The other way to cope with the change is ensuring clear coordination between the different departments and the human resource at Intel.

Pressures for change faced by Barrett in the last 2 years of his tenure

Some of the pressures for change experienced by Barrett included; a change in market expectations and demand from the projected high usage of Intel’s Itanium processor and the need to fulfil customer requirements. High competition is another change pressure faced by Barrett in his last two years as Intel CEO.

How Barrett responded to the above challenges

Barrett responded to the above challenges by expanding the company’s expertise in making mobile communication chips increasing market for its products in the face of competition. He also shifted from producing faster chips to dual-core architecture for increased customer satisfaction. Putting up new business units was the other way, Barrett responded to the pressures for change facing Intel.

If there would be changes or not and the reason

There is a change than can be made by Paul Otellini, the new Intel CEO, which is the creation of a robust human resource team at Intel. The need for this change is the increased business units pioneered by Barrett in the last two years of his tenure, which require a vigorous human resource to ensure a clear coordination of functions for the profitability of Intel. This will help the CEO ensure collaboration and integration of the various business units and aid in avoiding competition between the several business units within Intel.