This action might not be possible to undo. Are you sure you want to continue?
Intel is the world's largest semiconductor chip maker, based on revenue. The company is the inventor of the x86 series of microprocessors, the processors found in most personal computers. Intel was founded on July 18, 1968, as Integrated Electronics Corporation and based in Santa Clara, California, USA. Intel also makes motherboard chipsets, network cards and ICs, flash memory, graphic chips, embedded processors, and other devices related to communications and computing. Founded by semiconductor pioneers Robert Noyce and Gordon Moore, and widely associated with the executive leadership and vision of Andrew Grove, Intel combines advanced chip design capability with a leading-edge manufacturing capability. Originally known primarily to engineers and technologists, Intel's successful "Intel Inside" advertising campaign of the 1990s made it and its Pentium processor household names. Intel was an early developer of SRAM and DRAM memory chips, and this represented the majority of its business until the early 1980s. While Intel created the first commercial microprocessor chip in 1971, it was not until the success of the personal computer (PC) that this became their primary business. During the 1990s, Intel invested heavily in new microprocessor designs fostering the rapid growth of the PC industry. During this period Intel became the dominant supplier of microprocessors for PCs Intel began as an engineering and technology company and developed the first microprocessor chip in 1971. Upon the invention of the personal computer (PC) microprocessors became Intel's main business. Intel has always enjoyed the largest market share in the industry and only began facing competition in the 1980s. Since it was founded Intel has always been on the cutting edge of microprocessing technology.
Business and Spread
Intel sells its products to a number of different types of customers: • Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs) are customers who produce computers, hand held devices, and telecommunications and network communications products. The products that these manufacturers produce rely on the processors and other products that Intel makes. PC and network communications product users are customers (individuals, small and large businesses, etc.) that buy Intel's products through distributors, resellers and retailers across the world. Various groups in Intel for different functions:
Digital Enterprise Group (DEG) manufactures products that are incorporated into desktop and net top computers, enterprise computing servers and workstations, a broad range of embedded applications, and other products. DEG’s products include microprocessors and related chipsets and motherboards designed for the various computers mentioned. Mobility Group offers products including microprocessors and related
chip sets designed for the notebook and net book market segments, wireless connectivity products, and energy-efficient products designed for the MID and ultra-
• • •
mobile PC market segments. NAND Solutions Group offers NAND flash memory products primarily used in memory cards and system-level applications, such as solid-state drives Digital Home Group offers products for use in consumer electronics
devices designed to access and share Internet, broadcast, optical media, and personal content through a variety of linked digital devices within home.
Digital Health Group offers technology-enabled products for healthcare.
Intel has over 300 facilities located in more than 50 countries. The table below shows the company’s global locations along with the facilities associated:
Years Gross margin Research & Development Costs Operating Income Net Income 2008 $20,844 $5,722 $8,954 $5,292 2007 $19,904 $5,755 $8,216 $6,976 2006 $18,218 $5,873 $5,652 $5,044 2005 $23,049 $5,145 $12,090 $8,664 2004 $19,746 $4,778 $10,130 $7,516
Percentage of revenue of different intel groups in year 2008
Intel constantly push the boundaries of innovation in order to make people's lives more exciting, more fulfilling, and easier to manage. Its unwavering commitment to moving technology forward has transformed the world by leaps and bounds. Intel inspire its partners to develop innovative products and services, rally the industry to support new products, and drive industry standards. It does this so that it can collectively deliver better solutions with greater benefits more quickly.
Delight its customers, employees and shareholders by relentlessly delivering the platform and technology advancements that become essential to the way intel work and live.
• TOTAL QUALITY-In order to achieve excellence and customer satisfaction worldwide, they focus on continuous improvement in the quality of all products, processes and services. In order to improve product cost and performance, Intel and its suppliers consider all factors, which when combined make up the true value of the materials, equipment, and services being purchased. • SUPPLIER COLLABORATION- In order to achieve total quality, they aim at building long-term business relationships with a select group of suppliers who share their total quality vision by consistently delivering the highest quality products and services. AVAILABILITY- The speed of technological changes drives the need for reduced cycle times, shorter lead-times, 100% defect-free materials, and on-time delivery.
Intel corporate strategy for the next five years includes specific goals related to building new businesses while tackling global issues—such as helping to bridge the digital divide, providing technology training to teachers, and putting digital learning devices into the hands of students around the world. Intel have also set goals related to applying our architectures and technologies to make a difference in the areas of energy and the environment, and connecting people and information to improve the quality and reduce the costs of healthcare.
Intel global strategy uses its unmatched manufacturing, technology, employee talents, and brand strength to: • Accelerate the PC Globally Enable an additional 1 billion people to get Internet access by 2012. Expand PC total available market and footprint (netbooks, visualization, system-on-a-chip capabilities). Establish Intel architecture as the building block for the Internet cloud and data center. • Extend Intel Architecture into Three Adjacent Market Segments Deliver high-volume mobile Internet devices and Smartphones by 2012. Grow in the embedded market by enabling 120 million units of new devices. Win high-volume consumer electronics devices in the living room. • Build New Businesses by Tackling Big Problems Digital Divide: Make WiMAX available to 1.2 billion people by 2012. Education: Train 13 million teachers and get 500 million devices into students’ hands by 2012. • Energy and Environment: Use our architectures and transistor technology to make a difference. Services: Grow new revenue built on unique Intel platform features. Health: Connect people and information to reduce costs and increase the quality of healthcare.
Intel System Management Software
Intel System Management Software is a set of management applications that lets you view and control hardware (servers, desktops and laptops) and software (operating systems, applications, and patches) across your network.It includes the following components:
Intel Active System Console- Built specifically for small businesses, Intel Active System Console is a lightweight console that gives basic server monitoring capabilities, including server health and baseboard management controller (BMC) configuration. Intel Management Packs for Microsoft System Center Essentials- For more heavy-duty management needs, Microsoft System Center (Essentials 2007) offers a management solution specifically designed for midsize businesses (up to 500 PCs and 30 servers).Essentials 2007 provides a single, easy-to-use console that provides: -Monitoring and alert resolution for servers, clients, applications, hardware, and network devices, Software distribution, Update management, Software and hardware inventory
Standalone utilities from Intel- For Enterprise customers, Intel offers these management tools that allow you to access and control the servers in your network.
It began with the Intel microprocessor, the invention that sparked a revolution. Intel's history of developing groundbreaking technology continues today. It attracts the most brilliant minds in science to push the boundaries of innovation and further their position as the world's leader in semiconductor technology. The objective is to create technology that changes the world. They have an interactive leadership forum for school leaders is only offered in select locations. The Intel Teach Leadership Forum provides face-to-face professional development focusing on the importance of leadership in promoting, supporting, and modeling the use of technology in instruction. Through the forum, participants explore relevant research and behaviors related to supporting effective technology integration and associated professional development. All forum materials are provided free of charge and include a CD containing relevant research, case studies, and other resources to help leaders implement their action plans.
In this 4-hour forum, participants engage with their peers to: • • Examine the critical role leaders play in the effective integration of technology into teaching and learning Apply their knowledge to create a prioritized list of leadership behaviors that impact the integration of technology as a tool to improve student learning Analyze the International Society for Technology in Education (ISTE) National Educational Technology Standards for Administrators (NETS-A)
Achievements of the corporation
Intel gained number one spot on Corporate Responsibility Officer magazine’s 100 Best Corporate Citizens list for 2008—it continues to push itself to do more. For over a decade, it has set formal goals in its primary corporate responsibility focus areas, helping to drive accountability and continuous improvement. In 2008, it set new five-year environmental goals in key areas such as emissions reduction and water conservation. And to help focus all of its employees on environmental sustainability, it aligned a portion of its employees’ compensation with environmental criteria for the first time. In 2008, it became the largest purchaser of green power in the U.S., according to the U.S. EPA. It also built the first solar installations at Intel facilities, and its venture capital arm, Intel Capital, invested $100 million to support firms that are developing solar technologies. With the 2008 release of the Intel® Core™ i7 processor, it continued to demonstrate leadership in driving both high levels of performance and energy efficiency in its products. In addition, working diligently on water management, it reduced its fresh-water needs by 3 billion gallons per year. In education, it surpassed the milestone of training 6 million teachers worldwide through the Intel Teach Program. The corporation has partnered with governments to support the advancement of their education programs, and helped put affordable, portable, Intel-powered classmate PCs into the hands of students in close to 40 countries. It announced a joint business venture with Grameen Trust, using a “social business” model aimed at applying technology to address issues related to education, poverty, and healthcare in developing countries.
Multiple groups across Intel play a critical role in driving strategy, operational and product improvements and policy initiatives related to environmental responsibility. Intel’s Environmental Health and Safety (EHS) organization has primary responsibility for managing environmental compliance and driving performance improvements in its operations. Environmental commitment is integrated into all phases of Intel’s product design and development, and they focus on addressing the environmental challenges of each new generation of technology before manufacturing begins. Intel consider environmental impact in the design of Intel buildings, and set environmental performance levels for tools, and goals for production processes. Intel works continuously to achieve both absolute and normalized reductions per chip produced for air emissions, water use, and waste generation. As a leading technology company, Intel is well-positioned to effect meaningful, lasting improvements in education. Its approach is multifaceted: Intel and the Intel Foundation invest in programs to improve teaching and learning; develop and promote access to technology solutions for education; and collaborate on education initiatives with governments, ministries of education, universities, and nonprofit organizations. In addition, its employee volunteer program includes a strategic focus on education.
The Intel Code of Conduct guides the behavior of its employees, officers, nonemployee directors, and suppliers, and serves as the cornerstone of Intel culture. The Code’s business principles and guidelines promote honest and ethical conduct, deter wrongdoing, and support compliance with applicable laws and regulations. The principles embodied in the Code also express its policies related but not limited to conﬂicts of interest, nondiscrimination, antitrust, bribery and anti-corruption, privacy, health and safety, and protecting the company assets and reputation. The Code directs employees to consider both short- and long-term impacts on the environment and the community when they are making business decisions. All employees are expected to complete training on the Code of Conduct when they join the company and annually thereafter. Intel’s Ethics and Compliance Program is chartered by the Board to advance a culture of the highest levels of business ethics and legal compliance. Intel’s CEO drives its ethical culture, including making decisions that set an appropriate “tone at the top” and holding the senior management team responsible for recognizing and addressing risk; role modeling accountability; visibly and proactively demonstrating a commitment to ethics and compliance; holding managers accountable; and overseeing effective business group
ethics and compliance systems, work environments, and communications. Ethics and Compliance Oversight Committee (ECOC). The ECOC is chartered on behalf of the Audit Committee of the Board to oversee and verify an effective Ethics and Compliance Program. The ECOC includes senior representatives from Internal Audit; Legal and Corporate Affairs; Human Resources; Sales and Marketing; Supplier Management; Environmental Health and Safety; and other Intel organizations. The ECOC is responsible for: • Ensuring that Intel’s Code of Conduct is current, accurate, and easy to apply. • Reviewing and evaluating existing compliance information and reporting systems, and auditing procedures. • Reporting on company-wide and business unit program status and making recommendations to the Audit Committee of the Board. • Staying abreast of legal developments such as the Federal Sentencing Guidelines and emerging best practices. • Assisting in compliance issues resolution. Each quarter, the ECOC invites various organizations within Intel to assess and report on ethics and compliance in their respective businesses.
-Q3 2009 Outlook • • • • • • • Revenue: $8.5 billion, plus or minus $400 million. Gross margin percentage: 53%, plus or minus 2 percentage points. Spending (R&D plus MG&A): approximately $2.8 billion. Restructuring and asset impairment charges: Approximately $40 million. Amortization of acquisition-related intangibles and costs: Approximately $40 million. Net loss from equity investments and interest and other: Approximately $80 million. Depreciation: Approximately $1.2 billion.
-Full-Year 2009 Outlook • Spending (R&D plus MG&A): Between $10.6 billion and $10.8 billion, up from the prior outlook of $10.4 to $10.6 billion. This figure excludes the $1.45 billion expense associated with the EC fine recognized during the second quarter. Capital spending: Expected to be $4.7 billion plus or minus $200 million, down from $5.2 billion in 2008. Depreciation: $4.8 billion plus or minus $100 million, unchanged. Tax rate: Approximately 23 percent for the third and fourth quarters, versus the company's prior expectation of 24 percent.
Current Problems with Intel new chips
• • • • It is fast, but it is prone to premature calculation. Doesn't have a specific plan for improving health care. Only capable of handling 5.2 Windows crashes per day. Since they added Olestra to the chips, the users files do not get backed up any more.