Intel Ceo

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Pannasastra University of Cambodia Contents I. II. III. IV. V. Intel’s background Intel’s CEOs Leadership and Management Style Visionary Visionary Paranoia in Business Compete Patiently Think Out of the Box Truth-Telling The Weaknesses of Intel & Recommendations Bibliography Intel Corporation I. Intel’s background Intel Corporation Page 1 2 3 5 5 6 8 9 10 11 13 Pannasastra University of Cambodia Intel Corporation is an American multinational corporation headquartered in Santa Clara, California. Intel Corporation is one of the world largest and highest valued semiconductor chip makers, based on revenue. It is the inventor of the x86 series of microprocessors, the processors found in most personal computers. On July 18, 1968 Intel Corporation was founded by semiconductor pioneers Robert Noyce and Gordon Moore and widely associated with the executive leadership and vision of Andrew Grove, Intel combines advanced chip design capability with a leading-edge manufacturing capability. Intel circuits, flash also makes motherboard chipsets, network memory, graphic chips, embedded interface processors and controllers and integrated other devices related to communications and computing though Intel was originally known primarily to engineers and technologists, its "Intel Inside" advertising campaign of the 1990s made it a household name, along with its Pentium processors, and it is also a portmanteau of Integrated Electronics as the fact that Intel is the term for intelligence information also made the name appropriate. Intel was an early developer of SRAM and DRAM memory chips, and this represented the majority of its business until 1981. In 1981 the American computer manufacturer International Business Machines (IBM) chose Intel’s 16-bit 8088 to be the CPU in its first mass-produced personal Intel Corporation Page 2 Pannasastra University of Cambodia computer (PC). Intel also provided its microprocessors to other manufacturers that were compatible with IBM’s product. Although Intel created the world's first commercial microprocessor chip in 1971, it was not until the success of the personal computer (PC) that this became its primary business. During the 1990s, Intel invested heavily in new microprocessor designs fostering the rapid growth of the computer industry. Intel has also begun research into electrical transmission and generation. Intel has recently introduced a 3-D transistor that improves performance and energy efficiency. Intel has begun mass-producing this 3D transistor, named the Tri-Gate transistor, with their 22 nm process, which is currently used in their 3rd generation core processors initially released on April 29, 2012. II. Intel’s CEOs According to the research, since Intel was founded on July 18, 1968, there were only three people have led Intel Corporation. The first two CEOs were company founders and the third was a participant from day one. The first one is Robert Noyce who is the founder of Intel in 1968. He was known as the Major of Silicon Valley, Younger entrepreneurs in Silicon Valley. He went off and did something wonderful mantra still graces the walls of Intel facilities today. And he also held 16 semiconductor-related patents and was awarded the National Medal of Science in 1979 and the National Medal of Technology in 1987. Robert Noyce died in 1990, served as Intel CEO from 1968 to 1975. After then Gordon Moore, the founder of Intel became the second CEO from 1975 to 1987. And he is also the author of Moore’s Law the guiding principle of the semiconductor industry for 40-plus years and counting. Moore was born in San Francisco in 1929 and he earned a bachelor’s degree in chemistry from UC Berkeley and a Ph.D. in physics and chemistry from Cal Tech. He completed post-doctoral work at Johns Hopkins University Applied Physics Laboratory before joining Shockley Labs in 1956 where he Intel Corporation Page 3 Pannasastra University of Cambodia met Robert Noyce. He was awarded the National Medal of Technology in 1990 and in 2002 the Medal of Freedom, the nation’s highest civilian honor. The third CEO is Andy Grove, Intel CEO from 1987 to 1998 that was a participant from the beginning of Intel’s co-founder with Robert Noyce and Gordon Moore. On Grove’s visionary, Intel became one of the most valuable companies in the world. Its stock price rose 31.6 percent a year and revenues grew from $1.9 billion to $25.1 billion. Most of the company’s revenues were reinvested in research, development and building new manufacturing facilities. Grove, who worked in a cubicle similar to other employees, was known for a management style that encouraged innovation, risk taking and open communication. His mantra, only the paranoid survive became the title of a best-selling management book he authored. After Andy Grove retired, Craig Barrett became fourth CEO from 1998-2005. Craig Barrett joined Intel in 1974 and built his reputation in the company’s core semiconductor manufacturing business. In the 1980s he led the implementation of the company’s strategy that called for engineers to first perfect a manufacturing process in one fabrication plant and then duplicate it in other factories, thereby avoiding inconsistencies or costly flaws in the production process. Intel continues to use the philosophy in its factories today. Barrett became CEO during a period of rapid growth and exuberance across the tech industry, when the Internet was beginning to usher in massive changes in e-commerce and consumer behavior. Networks and networking loomed large, and Intel acquired several companies to grow its business at an unprecedented pace while also moving into PC peripherals and even data hosting. With the dot-com collapse, some of those acquisitions soured, but Barrett continued investing heavily in manufacturing and process technology during the downturn. And then On May 18, 2005, Barrett handed the reins of the company over to Paul Otellini, who previously was the company president and COO and who was responsible for Intel's design win in the original IBM PC. The board of directors elected Otellini as President and CEO, and Barrett replaced Grove as Chairman of the Board. Grove stepped down as Intel Corporation Page 4 Pannasastra University of Cambodia chairman, but is retained as a special adviser. In November 2012, president and CEO Paul Otellini announced that he would step down in May 2013 at the age of 62, three years before the company's mandatory retirement age. During that time financial results revealed that the Intel's revenue increased by 55.8 percent (US$34.2 to 53.3 billion), while Intel’s net income increased by 46.7% from US$7.5 billion to 11 billion. On May 2, 2013, Executive Vice President and COO Brian Krzanich was elected as Intel's sixth CEO, a selection became effective on May 16, 2013 at the company's annual meeting. Reportedly, the board concluded that an insider could proceed with the role and exert an impact more quickly, without the need to learn Intel's processes, and Krzanich was selected on such a basis. III. Leadership and Management Style  Visionary Since the 1960s, Grove has repeatedly made fundamental contributions to semiconductor devices and technology. His early research helped create stable MOS devices, and improved the reliability of all silicon semiconductor devices, which touched off the explosion of the MOS-based IC industry. Throughout that industry's dramatic growth, Grove has demonstrated uncommon leadership and vision, especially in his many roles at the helm of the Intel Corporation. His responsibilities have ranged from overseeing technology and product development to steering Intel deftly into new areas, making it one of the largest and most successful businesses in the world. He is recognized worldwide as an expert of both technology and management. Grove has written over 40 technical papers and holds several patents on semiconductor devices and technology. His four books have all been very well received, and his 1967 Physics and Technology of Semiconductor Devices are considered the seminal work in the field. Intel Corporation Page 5 Pannasastra University of Cambodia Grove has lectured at universities all over the world, and has been a featured speaker at virtually every major electronics conference. For six years he taught a course in semiconductor device physics at the University of California, Berkeley, and he lectures currently at the Stanford University Graduate School of Business.  Paranoia in Business Grove makes a strong case for the value of paranoia in business: "Business success contains the seeds of its own destruction. The more successful you are, the more people want a chunk of your business and then another chunk and then another until there is nothing left. I believe that the prime responsibility of a manager is to guard constantly against other people's attacks and to inculcate this guardian attitude in the people under his or her management." He's not referring just to top execs, but to middle managers as well. In the revised edition of High Output Management, he stresses: "Middle managers are the muscle and bone of every sizable organization, no matter how loose or 'flattened' the hierarchy, but they are largely ignored despite their immense importance to our society and economy." He urges middle managers to think like CEOs and not wait for the principles and practices they find appealing to be imposed from the top. Grove also acknowledges the importance of another group -- professionals who may not hold supervisory positions but "who, even without strict organizational authority, affect and influence the work of others. These know-how managers are sources of knowledge, skills, and understanding to people around them in an organization." And they, too, play key roles in guarding against competitive assaults. Intel Corporation Page 6 Pannasastra University of Cambodia Creating a culture in which innovation flourishes is also an important challenge for managers at all levels. As CEO, one way that Grove does this is by encouraging experimentation -- and doing it before a strategic inflection point arrives, so that much of the spadework has been done to develop alternative products and strategies. (In fact, Intel researchers and operations managers had made significant strides in the microprocessor field well before the company made the critical strategic decision in the mid-1980s to shift its emphasis from producing memory chips to producing microprocessors.) But when he talks about encouraging experimentation, Grove quickly points out that he means more than technological experimentation. "I am sufficiently removed from the real-life technology and technological innovation today that I don't think I have much influence on that anymore," he tells IW. "I think the experimentation that I am in a position to influence is business innovation -- trying to introduce certain products for which there is no market [yet], or trying to determine the market's reaction to a product." One chapter of Only the Paranoid Survive is entitled, "Let Chaos Reign." In it, Grove urges senior executives to loosen up their control of the organization and allow people to experiment with new techniques, new products, new sales channels, and new customers. "The old order," he stresses, "won't give way to the new without a phase of experimentation and chaos in between. . . . The dilemma is that you can't suddenly start experimenting when you realize you're in trouble unless you've been experimenting all along. It's too late to do it once things have changed in your core business." In his interview with IW, he stressed that his comments about permitting "chaos" were primarily directed to the difficult transition periods associated with major strategic change. "At times of uncertainty -- during times of change -- the managerial tendency will be to pull in the reins tighter, to Intel Corporation Page 7 Pannasastra University of Cambodia take control. But at times like that, the manager will know less about what he needs to know than at other times, because things are changing too fast. . . . You have to overcome the tendency to think, 'Things are changing too fast; let me pull everything in.' In reality, when things start moving too fast, you should let go of things -- but carefully watch what the hell is going on." During more normal times, some chaos and experimentation are necessary -- to allow room for "accidental discovery," he notes. But once a company has traversed a major transitional period -- Grove refers to it as the "valley of death" -- the level of chaos must be reduced in order to provide "clarity of direction." "You only get out of the valley of death," he says in his book, "by outrunning the people who are after you. And you can only outrun them if you commit yourself to a particular direction and go as fast as you can. . . . Hedging is expensive and dilutes commitment. Without exquisite focus, the resources and energy of the organization will be spread a mile wide -- and they will be an inch deep."  Compete Patiently As Intel’s brand is internationally recognized, many people wonder whether it might face pressure from antitrust regulators. In many ways, its market dominance is the same as another IT giant that had prospered with the proliferation of personal computers, Microsoft. To be sure, from time to time Intel did face antitrust inquiries, but these never assumed the enormous proportions faced by Microsoft. Grove was aware of this potential danger. When the company was planning to introduce the 386 microprocessor, the executives in Intel’s legal department say to him that Intel might potentially be heading into a monopoly situation. Grove and his colleagues had two examples before them of the consequences of antitrust actions. The first example was AT&T, and this was two or three years after the Intel Corporation Page 8 Pannasastra University of Cambodia modified final judgment that close the company. The second was IBM, which had been in litigation forever. Grove decided the way Intel would approach the issue was not pushing it to the line. That meant that even though they may be in trouble, they could avoid going down the AT&T path. Andy Grove knew that one reason why Microsoft in 2004 faced antitrust problems in Europe was because of its decision to bundle software for audio and video formats with its Windows operating system. Intel, however, under Grove’s direction, resisted going down that path. “We left a lot of money on the table,” Grove says. “Generally, we are very conservative in our business philosophy. We never push it to that last ounce. That philosophy continues.” Grove’s guarded approach to the antitrust issue explains in part why Intel, while it was blasted in the media during the Pentium crisis, still has generally not faced the kind of hostility that has hounded Microsoft. It also says a lot about Grove’s attitude toward managing risk. “I am a very cautious risk taker,” Grove says. “And I mitigate. I push, but I mitigate the risk by over-preparation. Push, but mitigate. It’s like trust, but verify. I am comfortable with risks that I am prepared for.” Andy grove believed that patience and carefulness are keys to build a sustainable Intel in the very competitive market.  Think Out of the Box During his period, Andy Grove has achieved a lot of things throw out the difficulty and drastic change. He understands the necessity of the creating enterprise that was strong enough and resilient enough to be able to recover after the downturns of the company. His perspective is that “only the paranoid survive”. He explained that "Success breeds complacency. Complacency breeds failure” Also, Andy Grove is the thought leader who can outthink and outsmart with the competitors through his persistent and innovative ideas. He looks at problem from different angles to solve the Intel Corporation Page 9 Pannasastra University of Cambodia problem in the company. In the early 1980s, Intel meet a serious problem what they call “Intel gets beaten at its own game” because of new competitor, Japanese, can produce the chips that were not only superior in quality, but also lower in cost. The company was losing money hand over fist as demand for Intel’s memory chips was in free fall. Andy Grove discusses with his coworker and asks him that “If we got kicked out and the board brought in a new CEO, what do you think he would do?” The problem put a lot pressure on Grove, but he never give up. He is the thought leader that can thing out of the box. Finally, Grove made hardest decisions to change his main business from memory chips to the microprocessor. He put much of the resources into a new technology: microprocessors. He thought that memory chips just only stored memory but microprocessors were the thinking part of a computer which is the part that actually performed calculations.  Truth-Telling In 1994, when Intel faced with the biggest challenge at that time called “The Pentium Flaw Debacle” which according to Grove, the design error “caused a rounding error in division once every nine billion times.” This meant “that an average spreadsheet user would run into the problem only once every 27,000 years of spreadsheet use.” At that time, starting from online discussion through media like CNN, and spreading to other publication in U.S including The New Times also mentioned about this matter, Grove took into action by set the record straight. He wrote a memo and posted it on the internet, identifying himself as the CEO of Intel, and pointing out that while the floating-point unit did have an error. Conversely, much to his amazement, not only did people pooh-pooh his argument about the Pentium flaw, but they also did not believe that he had written it. IV. The Weaknesses of Intel & Recommendations Intel Corporation Page 10 Pannasastra University of Cambodia Although Intel has shown their solid strengths in modern technologies industry, it still left out some weaknesses behind including internal and external ones. Among those, Competition has been one of the threats that made some impacts in Intel business. To be considered as the leader of the industry, Intel has faced a never-ending battle of other competitors trying to take its spot at the top. Competition is only going to get fiercer especially in the microprocessor market. In the memory market, companies like Samsung have overtaken Intel in some product categories like flash memory. For this point, some researchers have made a similar Recommendation: Since AMD has no longer played catch-up to Intel. Instead with the release of the 64-bit processor, AMD has put Intel in a defensive position. The future of Intel depends on how it reacts to these challenges. Besides this, Instability of the Industry has also been countered as another weakness for Intel group. Having known that the PC industry overall is very cyclical. The general shape of the economy dictates demand for PC components. An unexpected recession could have extremely negative effects on Intel if the company does not position itself well. To response to this point, one of the potential Recommendations states that: Intel need to strengthen their position stability in the globe market especially be prepared for the next unexpected recession. Moreover, Loss of Focus has been seen as a concern points for the management team. As Intel tries to expand its customer base by venturing into other products like wireless chipsets and communications, it is important for the company to remain focused. Most of Intel’s revenue still comes from microprocessor and motherboard products. However, related Recommendation is also raised up for feedback by saying that the company must avoid overextending itself over too many products markets. Furthermore, another bad image behind the success of Intel, Downside trends of PC sales is functionally pointed as a failure of this microprocessor company. It has been illustrated that Intel's major weakness is shortcoming trends of PC sales in the recent years and this weakness is irreparable. The company expects that PC shipments will decline slightly in 2014. But, we still have a suitable Recommendation regarding to this Intel Corporation Page 11 Pannasastra University of Cambodia downstream point by: To reduce the impact of the slowdown in the PC market, Intel needs to enter and expand into adjacent market segments, such as smart-phones and tablets. However, the success into new markets depends upon several factors, such as the introduction of new products, distribution and marketing strategies, and competition. The company can only succeed in new markets by differentiating itself in technology and cost. In addition to the previous bad impacts of Intel, Underutilized capacity also affects the productive chain in this industry. Due to the declining PC sales, the company has not been manufacturing much as in the past, and it has left them with a lot of capacity that is wasted spaced. One considerably Recommendation from outside sources state that Intel has to invest for the large amount of fixed cost that could be split up among more products if they had been manufacturing more products. If they had done this, they could have improved the bottom line and been a more profitable company. Then, Lack of directive strategic plans is also an unbelievable factor that people never thought that would have happened in this well-known company. There is still a lack of directive strategic plans in company where employees make their own strategies to work, which do not always bear successful results. Thus, another suggested Recommendation is: Besides strategic plans, technical problems occasionally have found within the products launched, so they need more careful consideration in processing the supply chain because it can weakly derive the customers’ acceptance. The last but not lease fragile thing in Intel Corporation is the gap between the working life and social life. It has been said that there is lot of workload and burdens on the employees so they could not poise work life simultaneously with social life. Moreover, the management also prefers those who do a lot of work rather than those who are creative and competent. After all, there are some issues which can be stated as Intel weaknesses as follows: 1. Intel sometime used divisive strategies in defense of its market position against its competitors. 2. After year 2000, Intel’s leading position in its core business was greatly lessened. Intel Corporation Page 12 Pannasastra University of Cambodia 3. By the end of the 2006, Intel proclaimed a reform that resulted in the dismissal of 10,500 employees or near 10 percent of its labor force by July 2006. 4. The company faced decreasing revenue in financial year 2008. 5. Intel has not achieved economies of scale and economies of scope throughout the long history. 6. Retail prices are higher as compared to the prices of competitors. V. Bibliography Andrew Grove. (2014, October 11). In Wikipedia, The Free Encyclopedia. Retrieved 18:41, October 27, 2014, from http://en.wikipedia.org/w/index.php?title=Andrew_Grove&oldid=629150282 Essays, UK. (November 2013). Company Analysis Of Intel Marketing Essay. Retrieved from http://www.ukessays.com/essays/marketing/company-analysis-of-intel-marketing-essay.php? cref=1 Hell, M. (2013, November 6). Intel corporation. Retrieved from http://www.britannica.com/EBchecked/topic/289747/Intel-Corporation IEEE Honors Ceremony Brochure. (2000). IEEE computer society awards: Andrew S. Grove1997 Computer Entrepreneur Award Recipient. Retrieved from http://www.computer.org/portal/web/awards/grove Intel. (2014, October 27). In Wikipedia, The Free Encyclopedia. Retrieved from http://en.wikipedia.org/w/index.php?title=Intel&oldid=631287406 Intel Free Press Tech News. (2013, March 20). Intel CEOs: A look back. Retrieved from http://krypton.mnsu.edu/~uw9842qe/sciviol1.html Pandya, M., Brown, J., Junnarkar, S., Shell, R., & Warner, S. (2004, December 10). Best of the best: inside Andy Grove's leadership at intel. Retrieved from http://www.mkgandhi.org/mgmnt.htm#science Santa Clara Valley Historical Association. (2008) Intel corporation. http://teachinghistory.org/history-content/beyond-the-textbook/25484 Retrieved from Sheridan, H.J., (1997). 1997 Technology leader of the year: Andy Grove – building an information age legacy. Retrieved from http://www.industryweek.com/companies-amp-executives/1997technology-leader-yearandy-grove-building-information-age-legacy?page=5 Grove created a culture within Intel that allowed innovation to flourish. As CEO, he wanted his managers to always encourage experimentation and prepare for changes, making a case for the value of paranoia in business. He became known for his guiding motto: "Only the paranoid survive," and wrote a management book with the same title.[12]According to Grove, "Business success contains the seeds of its own destruction,"[9] explaining that "Success breeds complacency. Complacency breeds failure. Only the paranoid survive."[12] As a result, he urges senior executives to allow people to test Intel Corporation Page 13 Pannasastra University of Cambodia new techniques, new products, new sales channels, and new customers, to be ready for unexpected shifts in business or technology.[9] Biographer Jeremy Byman observes that Grove "was the one person at Intel who refused to let the company rest on its laurels."[13] Grove explains his reasoning: Intel Corporation Page 14