Ethics and Organizations - 26908.

201320
Case Study 4
Ladawn Butler

Read the Case Study, Intel's "Rebates" and Other Ways It "Helped" Customers on page 230.
Submit you answer for questions 1 and 2 on page 234.

1. In your judgment is Intel a “monopoly”? Absolutely Intel was a monopoly.

Did Intel use monopoly-like power; in other words, did Intel achieve its objectives
by relying on power that it had due to its control of a large portion of the market?
Explain your answer.

I am appalled at this story; I am one of those customers who hung with AMD processors
for many years. However; had I read this story before I purchased this current Sony
Vaio, I would have not made this purchase in 2011. I have had more trouble with this
computer than my old HP. My old HP with AMD processor still works great, it was
purchased in 2006. I have kept it as a backup but it’s only good for surfing the net these
days and now I know why, it’s because of Intel’s compliers and software codes.

I think Intel never should have paid-off Dell and deceived its investors and was wrong
too. Dell definitely doctored its financial reports so show the rebate/pay-offs as profits.
Personally, I have never owned Dell products but we use them at work. I have never been
impressed by them because they are always messing up. Dell should have been sued also
by its investors for lying to them.

Intel’s use of “compilers” software codes was unethical and a crappy move on their part.
This made me mad to read about how Intel infected the AMD computers through the
software.

2. In your judgment, were Intel’s rebates ethical or unethical? Explain your answer.
The so called rebates were never rebates. They were, in my opinion, a bribe or pay-off to
insure that AMD never had a marketable chance. The use of these so-called rebates was
the most unethical thing Intel could have done. Intel paid high prices to insure AMD
would not profit by their sales.