Intel Ceo Craig Barrett example essay topic

Introduction This analysis of Intel Corporation is to educate the investor about the company and provide them with useful information that will enable them to make a decision as to whether they should invest in the company. Intel primarily manufactures semiconductors or integrated circuits containing silicon that are used in computers as computer chips. The purpose of this paper is to provide the investor with facts regarding the company profile, global presence, environmental policies, competitors, and stock performance. After review of the analysis the investor should be able to determine if Intel is a profitable investment.

This analysis has been gathered through the use of primary and secondary resources. The primary resources used are mainly interviews with Intel CEO, Craig Barrett. Secondary resources have been the main source through articles that have been gathered using online sources and journals. Background In 1968 Bob Noyce, Gordon Moore and Andy Grove founded a new company that built semiconductor memory products, named NM Electronics Inc.

Moore and Noyce had problems with the copyright of the company's name as it already belonged to a hotel chain. Noyce, Moore and Grove then changed the name to Intel Corporation, short for Integrated Electronics. The small startup company was founded in Santa Clara, California with $500,000 and funds from investors. In 1971 they introduced the world's first microprocessor, which revolutionized the computer industry. Moore sensed the impending growth of the semiconductor computer chip industry and predicted that the amount of transistors on a single computer chip would double every year.

This fact held's true and has been coined as "Moore's Law". Intel's mission is to be the preeminent building block supplier to the Internet economy. According to the North American Industry Classification System, Intel is classified as a semiconductor and related device manufacturer. This industry comprises establishments primarily engaged in manufacturing semiconductors and related solid-state devices. Examples of products are integrated circuits, memory chips, microprocessors, diodes, transistors, solar cells and other optoelectronic devices. Intel Corporation designs, develops, manufactures and markets its own products.

Intel is subdivided into three product lines: Intel Architecture, Intel Communications Group, and Wireless Communications and Computing Group. Intel Architecture is involved with the design and fabrication of microchips, chip sets and motherboards. These products are used by computers and are sold to computer manufacturers and to individuals. Products like the celer on processor and the pentium processor have been key products. These are all components that when integrated create central processing units to be used in computers and other devices. Intel Communications Group makes products that help with wireless and land area networks.

Intel's newest wireless land area networking technology is called centring mobile technology and is used in laptops. The Wireless Communications and Computing Group focuses on developing products that can be used with wireless handheld devices and cellular phones. Intel's main headquarters is located in Santa Clara, California. It is a Fortune 500 company and as of 2003 it employed about 80,000 people around the world. The current chief executive officer is Craig Barret who has been so for the past six years.

In 2003 the company reported revenues of $30.1 billion. There are 294 worldwide offices and facilities located throughout the Americas, Europe, Asia-Pacific, and Japan. Intel is the world's largest chip maker. Other competitors in this industry include Advanced Microsystems Devices and Texas Instruments. Intel was first incorporated in 1968 as a California company but in 1989 Intel was re-incorporated in Delaware. The two companies merged so that Intel Corporation Delaware is the surviving company.

The stock went public in 1971 and is traded under the symbol INTC in the Nasdaq National Market and as NMS in The Swiss Exchange. Intel is the world's largest chip maker, and is also a leading manufacturer of computer networking, and communication products. Intel has created this competitive advantage through its scale of worldwide operations. It has eleven fabrication facilities and six testing / assembly facilities worldwide, and employs 78,000 people in 48 countries. In an interview, Intel CEO Craig Barrett said "The world is always ready to receive talent with open arms, that's what outsourcing really is". ("Intel Chief...

". ) Intel heavily relies on outsourcing to keep its prices down. About 70 percent of Intel's revenue comes from outside the United States and they believe it is necessary to have resources outside the U.S. to support that. For the last two decades, Intel has had about 40 percent of its employees outside the United States. The company is investing heavily into China where the integrated technology industry is making ground because of low labor costs, tax breaks and large numbers of skilled workers. An example is Intel's newest assembly and testing facility, which will be located in Chengdu, China and will open in 2005.

This site will have four factories and employ 600 people. The Chengdu site will focus on the assembly of chip sets. These large investments in manufacturing facilities and research and development demonstrate Intel's long-term commitment to China. In its attempts to introduce Centrino wireless technology to China, Intel has encountered a major problem. The Chinese government has issued that all wireless technology products must comply with new Chinese security standards otherwise they will be banned from the Chinese market. Intel reported that it is not able to comply with the ruling and has stopped exporting Centrino chips and Centrino technology techniques to China as of June 1, 2004.

Intel is unwilling to comply with this adaptation to the new Chinese market because it feels that this new Chinese security standard is not compatible with current international standards and is unlikely to have competitive power. Intel is committed to creating diversity in the workplace. The company believes it is necessary for its employees to have skills that enable them to operate effectively in a variety of cultural settings and contexts. They provide employees with multicultural training that consists of culture-specific training courses that focus on how business is conducted internationally and how business differs across cultures. Intel reported in 2003 that about 48,000 of its employees worked in the U.S. and 22,000 worked overseas.

Intel often takes advantage of work visas that allow non-citizen employees to come to the U.S. to work. The company also encourages minorities such as African-American, and Latinos to apply for work in their U.S. facilities. Intel encourages its employees to earn degrees in computer-related fields by offering tuition reimbursement programs. This allows its entry-level employees to gain on-the-job training and university degrees that allow them to advance within the company.

Intel has been a global company since 1970, first working with a company in Japan to manufacture its first microprocessor. With countries like China and India with large populations and increasing markets for computer chips, networking and communications; Intel has responded by supplying and shifting its focus into these booming markets. It is committed to creating a diverse work environment for its employees and teaching employees to be sensitive to different cultures. This is how Intel has managed to become the world's largest chip manufacturer. Intel's long-range goals for environmental, health and safety are embodied in three principles. The first principle is to prevent all injuries in the workplace.

The second principle is to be an environmental, health and safety leader in the community and semiconductor industry. The third principle is to reduce the environmental impact of their products, processes and operations. To ensure that these principles are upheld, the company creates short-term goals each year to measure their performance. There are many hazardous chemicals used in the manufacturing process such as lead, cadmium, benzene, and hydrochloric acid. Prolonged exposure can cause major health problems such as cancer, kidney failure and bone marrow depletion. To help prevent exposure to employees they are required to wear protective gear that covers their entire bodies.

Hazardous waste is also a major health concern because these chemicals could potentially leak into water systems or soil if not properly disposed of. Intel recycles about 98% of its chemical waste and 74% of solid waste, the rest of the wastes are disposed of in compliance with government regulations. Intel strives to improve and exceed its expectations. Lead is a main component used but is dangerous to the health of its employees and consumers. To reduce environmental and health damage caused by discarded PC's Intel has reduced the lead content of its products by 95%. Intel is committed to improving its standards in hopes that it will benefit the environment.

Former CEO, Craig Barrett stated, We will be responsible members of the communities in which we live and work. We will continue to expand our knowledge and understanding of the effect of our operations on safety, health and the environment. We are committed both to the continuous improvement in our operations and to sharing the knowledge that we gain with our employees, customers, suppliers, the communities in which we live and work, the scientific community, government and industry. (Barrett) This quote reflects Intel's community involvement and government cooperation. In 1995 Intel was selected to participate in an Environmental Protection Agency program called Project XL. The goal of the program was to find innovative, proactive approaches to environmental compliance and cleanup in partnership with the EPA and the public.

In 1997 Intel and the EPA entered into a joint contract. The company pledged to work toward developing "equal or better environmental standards than the previous command-and -control regulatory methods" (Chepesiuk). Throughout its many locations worldwide Intel is involved at the local community level. Intel hosts an electronic equipment-recycling program called Recycling it is held across the nation so people can safely discard old or used equipment. Once the equipment is collected it is sent to a recycling center, this prevents hazardous chemicals from leaching into our natural resources. Intel also sponsors a program called Strut; students recycling used technology, which teaches students to rebuild used computers that have been donated.

The Strut program is unique because it teaches students computer repair skills and redistributes the refurbished computers throughout schools. The company strives to take a proactive role in cleaning up the environment through beach clean ups and its recycling programs. Craig Barrett decisions vary from environmental factors to company decisions. Craig Barrett was named chief executive officer of Intel in 1993; he has been with the company for 30 years. As CEO he decided to invest heavily in research and development at a time when the semiconductor industry began to slow down. He persisted through the semiconductor industry's slowdown and shifted focus on diversifying Intel's market.

Now as the semiconductor industry begins to surge ahead CEO Craig Barrett has been given praise for his foresight and perseverance. Barrett will be stepping down as CEO in the spring of 2005, and will sit on the board of directors with Intel founder Andy Grove. As reported by Intel, Barrett earned a salary of $610,000 and received a $1.5 million dollar bonus in 2003. Paul Otellini, Intel's chief operating officer will be taking over the position of CEO. Otellini, is Intel's first CEO without an engineering degree. In 2003 Intel Foundation and Intel Corporation contributed more than $90 million to primary and secondary education, higher education, and to non-profit organizations in communities where Intel operates.

CEO Craig Barrett's point of view on the nation's education system, "A faulty educational system that does little to teach adequate math and science skills is a major problem the high-tech economy and the nation will need to address in the coming years" (Riucciti).