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BIS 402 Busniess Analysis Case Study 2021

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Intel: Business Analytics Tyler Coloma BIS 402: Analysis & Decision Making Professor FoxCASE ANALYSIS 2 The history of Intel Corporation according to this article, “Intel was founded in Mountain View, California in 1968 by Robert Noyce and Gordon Moore, two physicists who worked at San Jose-based Fairchild Semiconductor. Intel was originally called NM company began producing semiconductors and created the first commercially available dynamic random access memory (DRAM) chip in 1970” (Alcacer & Herman, 2013). Over the next few year, Intel’s development and growth of the company produced the first commercially available microprocessor, moved its headquarters to Santa Clara, California, and went public, raising $6.8 million. “In 1972, Intel opened an assembly plant in Malaysia, their first operations outside of the U.S. In 1979, Andy Grove, who had been with the company since its founding, was named president and by 1983, the company recorded $1 billion in annual revenue. In 1987 Grove was named CEO; he held the post until 1997. Intel’s famous “Intel Inside” marketing campaign debuted in 1991, firmly embedding the Intel brand name in the popular conscience. Under Grove’s leadership, the company’s revenue grew by more than sevenfold and its stock appreciated more than 1,600%. Craig Barrett was named CEO in May 1998. In 2005 Barrett became chairman of the board and Paul Ottelini was named CEO” (Alcacer & Herman, 2013). “By 2005, Intel was the largest semiconductor manufacturer in the world.8 Intel supplied about 80% of the central processing units (CPUs) used in PCs, workstations and servers; these accounted for about 90% of Intel’s gross profits.9 PC chipsets and NOR flash memory were also important products; flash memory products, used primarily in cell phones, constituted about 7% of sales.10 Intel’s largest customers were Dell and Hewlett-Packard (HP), which accounted for 19% and 16%, respectively, of total sales in 2004 (no other customer accounted for more than 10% of total revenues)” (Alcacer & Herman, 2013). Intel had research labs and innovationCASE ANALYSIS 3 centers located strategically around the globe. Along with its research labs in Berkeley and Santa Clara, California; Pittsburgh, Pennsylvania; Hillsboro, Oregon and Seattle, Washington, Intel Labs were located in Beijing, China; Europe (16 sites); Bangalore, India; Guadalajara, Mexico; and St. Petersburg, Russia. Intel had four innovation centers, one each in Dubai; Ireland; Russia and Turkey. (Exhibit 2 shows Intel’s geographic footprint in 2005, Exhibit 3 provides financial information.)

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