Case Analysis A Latin American Factory Start-Up: Intel in Costa Rica Amy Ramirez University of La Verne Graduate School of Business BUS 685 – Global Business Management Dr. Omid E. Furutan Synopsis Intel has a long history and a great reputation of designing and manufacturing microprocessors. Intel also designs and manufactures hardware and software for cell phones. Intel’s mission is to be the leading provider of microprocessors to the world. To achieve this goal, it is critical for the company to stay competitive, significantly increase production and keep costs low. Building a factory in locations like Costa Rica will ensure overhead costs are low and will provide brand name presence by placing factories in different parts around the world. Intel has a results oriented culture that is focused on structured problem solving. Employees must maintain a high work ethic, be attentive to details, and provide thorough follow-up on project status. Quality is very important and weighted heavily on performance appraisals. The company strives for Operational Excellence and rewards employees who push themselves individually to achieve extraordinary results. Intel is in the process of expanding its business and is ready to start up an assembly and test factory in Costa Rica. Similar factories have been built in Malaysia and the Philippines and have proven to be very successful. The employees and management are excited to start
The iC2it program is a motivational performance program that establishes cultural beliefs which will lead to key results in employee behavior (Marie 2015). Those cultural beliefs focused on are actions of: patient first, be one, align priorities, embrace decisions, be accountable, and live it. These beliefs will impact the desired key result of: workforce commitment, number of persons served, and cash flow. An observing employee, or employees who have been the recipient of another employee’s behavior displaying and living these cultural beliefs, can provide recognition to the employee exemplifying this action of this cultural belief and that action will have an effect on the key results.
Intel operates in an industry, which is comprised of products involving high research and development costs, continuous product improvement and new innovations. The companies in the industry are having high economies of scale and are knowledge based. It helps both the service and manufacturing sectors in the growth process. Intel is positioned as a leading company with its ability to adapt to technological changes and its strong relations with other businesses who are major buyers of integrated circuits. The industry in which it operates is very competitive and comes with high risks as
Culture and Employee skills: Deep rooted quality consciousness and team spirit. Highly skilled staff and high morale. Good labor elation with effective policies leading to high level of empowerment.
marketplace whims and creating an environment that celebrates individualism while at the same time wholly supportive of teamwork; 2. Supporting Teamwork-through this strategy, the company will manage to avoid traditional weaknesses that have plague many companies and develop a collaborative workplace that allow either individualism or consensus building to be taken to extreme; 3. Developing cross-functional individual – most companies tend to recruit, train, and promote people with in
Dalian in China is the most attractive site for Intel to locate Assembly and Test plant in terms of its low-costed workforce and high labor productivity with skilled workers, reliable and qualified power infrastructure, as well as a relatively open environment and the increasingly mature law and regulation.
Another way of achieving the profit of the added value is investment in software development to leverage the advantage of the high performance processors. And that was achieved by development of complementors, although Intel had a relationship with Microsoft, but it was enough, since it required Microsoft years to develop the software, were Intel is moving faster, by adopting the strategy of complementors, Intel build its capital. Intel strategy was to invest in companies that fit strategically into Intel’s business strategy as well as offered a financial return.
Intel excels at top-down innovation, where highly differentiated components and electronics command a high gross margin relative to competitors, enabling faster design wins with Original Equipment Manufacturers (OEMs) and development partners. This top-down innovation flow within Intel is so dominant, that the product design teams are significantly more productive than even the most advanced business process management teams (Segerstrom, 2007). Microprocessors and the follow-on Internet, networking, security and integrated motherboard products are all predicated on this top-down innovation cycle that leads to product line proliferation in Intel (Zimmerman, 2010). DRAMS were undifferentiated in structure, lacked industry standards that could create differentiated performance or compatibility based on adherence or alignment to standards or customer requirements (Nicholson, 1997). Intel chose to compete on the only other area of their core strength as a company, which is quality management and yield levels (Clark, Walz, Turner, Miszuk, 1993). Getting the yields for DRAMS to 60%, which for a brief period of time lead the global industry, only served to accelerate a very high level of commoditization in the industry (Voss, 1998).
Intel began supplying microprocessor to IBM. To meet the demand, Intel licensed to as many as 12 other companies to produce 8086 chips, which left Intel with just 30% of the total revenues and profits for that product. Gradually, they reduced the number of licensee to only IBM. Thus they retained the “profits pool” within their value chain.
The purpose of this report is to investigate the team cultures and performance management factors that have lead to the creation of this situation and to provide solutions; to resolve the issues on the Shield Project and for future Infotech projects. In undertaking this report the macro and micro cultures of the industry and organisations have been reviewed, however research material was limited to the Instead case study (Selhat, 2005).
The problem being addressed in this proposal should be a serious concern to you and the shareholders of Intel. Numerous competitors have entered the market over the last decade that have been profiting on the cheap labor tactics found in Asia. In order for Intel to remain an industry leader in the future, innovative supply chain solutions need to be made. The first step to innovating Intel’s supply chain starts with RFID technology.
This report discusses the case study ‘Intel Research: Exploring the Future [1], published in 2005 by the Harvard Business School. The discussion is divided into three different sections: overview, analysis and conclusion.
Although the Silicon Valley is not limited to the production of cell phones, many of the components of cell phones are manufactured by workers in the Silicon Valley. Several corporations that manufacture cell phones or the components of cell phones have their plants located in the Silicon Valley. Some corporations include Intel, Altera, 3com, Applied Materials, Agilent Technologies, Juniper Networks, Linear Technologies, National Semiconductors, and Xilinx (“Silicon Valley Companies”).
As a global leader in the PC market, Lenovo’s success rests on its ability to deliver consumer centric innovations in products that deliver a blend of mobility, performance and price. Design is an infrastructural element that helps define every aspect of a company, including Web site, stores, customer support, packaging, and messaging as well as its products. Lenovo has a well-earned industry reputation for delivering superior quality products. Quality is a fundamental component and commitment to customer satisfaction by delivering products that are of superior quality to comparable offerings from their competitors is the key to Lenovo’s success. In recent years, Lenovo relies heavily on local manufacturing strategies to shorten
Internal teams in Apple software and hardware development have contributed their effort and shared their finding contributing for such a qualified product produced in Apple. Having a better internal environment always help organization in achieving many endeavors. Internal team discussions and sharing knowledge across teams in organization.
Thirty-three years ago, the founder of Lenovo founded the company with only 33,231 USD (converted from 20,000 CNY). 2 Nevertheless, Lenovo has become one of the Fortune 500 companies, and it is one of the largest PC manufacturers in the world, with a more than 20% market share, and around 43 billion revenues in 2016. 3 Over the past three decades, Lenovo has implemented numerous strategies to achieve such accomplishments. Since multinational enterprises often involve in