Intel

QUESTION 2

Of the environmental pressure for change discussed in this chapter (fashion, mandates, geopolitical, declining markets, hyper competition and corporate reputation) which ones were experienced by Intel.

Environmental pressure often occur where an organization’s resource base decreases as a result of reduced demand for products and sales, decreases in market share and bad investment decisions. Organizational change is design to turn around negative cash flow and avoid bankruptcy and ‘organizational death’. Under Environmental pressure there are six types of pressure which are fashion pressure, pressure that are forced or mandated on the organization from outside agencies, geopolitical pressure, pressure that associated with declining market, hypercompetition business pressure and the pressure to maintain corporate reputation and credibility.

In this case study what we can see there are many change that have been made by Barret the fourth CEO of Intel. The change that he made in the Intel company is related to the environmental pressure which is from the six environmental pressure that we have there are about two from them is the environmental pressure that result to this change.

The environmental pressure that we detect that involves in this case study is the ‘Reputation and credibility pressure’. Change is associated with maintaining proper corporate government mechanisms to ensure a positive corporate reputation. Corporate reputation can be defines as ‘a collective representation of a firm’s past actions and results that describes the firm’s ability to deliver valued outcomes to multiple stakeholders’ is an intangible but important corporate asset, being positively correlated with organizational performance. Maintaining and enhancing corporate reputation is therefore important part of managing firm survival. However, sometimes strategies changes are made to signal that an organization is taking steps to ‘put its house in order’. One common...