Juchtz

Name: Juchtz Michael M. Concha Date: December 3, 2015

4HRMB

Chipping away at Intel

1. What are the different changes at Intel at Intel over the first three years of Barett’s tenure?

Barret took the ideology of Gordon E. Moore which he replaced, which was doubling the microprocessor performance every eight months but making it cheaper. Barett also took Intel beyond its chip making into producing communication appliances and information as well as services that is related to the Internet. Intel withdrew from the production of network servers and routers after muddling through condemnation from Dell and CISCO that were its biggest customers for its chips, for directly competing with them in these other markets. Further, iCat was also closed down that was an e-commerce service for small businesses, that lead to Web broadcasting of shareholder meetings, and cutting back on Web-surfing applications worldwide except in Spain. There were also weak demand and overcapacity in the semiconductor industry with some researchers expecting a 34 percent fall in global sales of chips. Moreover, long-time rival Advanced Micro Devices had produced its Athlon processor chip, which turned out to be faster than Intel's Pentium III chip. At the same time, people seemed to be more interested in how fast their modem connection was than in the speed of their computer chip. And September 11, 2001, hadn't helped; before this catastrophe Intel's shares, at $26, were down 60 percent compared to their highest over the previous year. After September 11 they fell further-by October they were only $20.

Barrett engaged in a series of reorganizations during his first three years. He created a new wireless unit that combined new acquisitions such as DSP Communications Inc. that is a chipset supplier for digital communications, with Intel's flash memory operations. In his second year, Barrett created the Architecture Group, which combined development and manufacturing of core processors...