Intel--Reinventing the company

Essay by msbonnielaneUniversity, Master'sB+, July 2007

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When you thought they had hit their threshold, here comes Intel again recreating the wheel! Andy Grove was Intel's actual forth employee when it was founded in 1968. So you can pretty much say he has seen the company from the ground up, running it from the early 80's until the late 90's. In the beginning Intel was considered a fierce contender in the semiconductor industry, but now is a primary manufactory of microprocessors (which were coincidentally invented by four Intel engineers.) Opening up Intel's proverbial umbrella to cover a variety of avenues was a smart idea and shows that the company is confident about the strides it wants to make.

One of the biggest challenges the company faces (besides the daunting task of reinventing its self to the world) is reinventing its self within its own employees. By nature alone, people don't like change. This statement is especially true for employees who have only seen their company at number one.

For the majority of the employees of huge (major) companies like Intel, they are secure in their job because the primary fact that the company a) is a Fortune 500 listee and b) is a top contender in their industry. They stick with the mindset that they have been "doing it this way" for almost 40 years. So why fix something that is not broken? What they don't see is the financial management aspect of it all. Forecasting shows that with revenue falling it would only be a matter of time before the competition swallowed them up. This is exactly what happened in 2006 when their rival, Advanced Micro Devices Inc., (AMD) took over the number one spot. (Edwards, 2006) But, as expected, within a year Intel had regrouped, redesigned the business plan as well as their...