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School of Mittal Faculty of Business and Arts Name of the faculty member Dr. Arun
Kaushal

Course Code : OPRM Course Title :

Academic Task No : Academic Task Title :
Date of Allotment : Date of Submission :
Student Roll No : RQ2011A04 Student Reg. No :
Term : Section : Q2011
Max. Marks 30
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I declare that this Assignment is my individual work. I have not copied it from any
otherstudents’ work or from any other source except where due acknowledgement is
made explicitly in the text, nor has any part been written for me by any other person.

Evaluation Criterion: Rubrics on different parameters

K LAZIM YOONAS

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Evaluator’s Comments (For Instructor’s use only)

General Observations Suggestions for Best part of

Improvement assignment

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 INTEL
Intel Corporation, commonly known as Intel, is an American multinational corporation and
technology company headquartered in Santa Clara, California. It is one of the creators of the
x86 series of instruction sets, which are the ones used in the majority of personal computers,
and the largest manufacturer of semiconductor chips in the world by revenue (PCs). For
nearly ten consecutive years, from the 2007 to 2016 fiscal years, Intel, a Delaware
corporation, was placed No. 45 on the 2020 Fortune 500 ranking of the largest American
firms by total revenue. Intel supplies microprocessors for computer system manufacturers
such as Acer, Lenovo, HP, and Dell. Intel also manufactures motherboard chipsets, network
interface controllers and integrated circuits, flash memory, graphics chips, embedded
processors and other devices related to communications and computing. Intel (integrated and
electronics) was founded on July 18, 1968, by semiconductor pioneers Gordon Moore (of
Moore's law) and Robert Noyce (1927–1990), and is associated with the executive leadership
and vision of Andrew Grove. Intel was a key component of the rise of Silicon Valley as a
high-tech center. Noyce was a key inventor of the integrated circuit (microchip). Intel was an
early developer of SRAM and DRAM memory chips, which represented the majority of its
business until 1981. Although Intel created the world's first commercial microprocessor chip
in 1971, it was not until the success of the personal computer (PC) that this became its
primary business.
Their Leadership:

Patrick Gelsinger David Zinsner

Chief Financial Officer Chief Executive Officer\
Intel's main products:

• Intel Xeon Scalable Processors. ...

• Intel Xeon Processors.
• Intel Core Processors.
• Intel Pentium Processor.
• Intel Celeron Processor.
• Intel Atom Processor.
• Intel Movidius Vision Processing Units.
• Processors for IOT and Embedded Applications.

Vision & Mission

• Vision: “If it is smart and connected, it is best with Intel”
• Mission: “Delight our customers, employees, and shareholders by relentlessly
delivering the platform and technology advancements that become essential to
the way we work and live.”

Problems faced by INTEL

1. Quality problem: Contrary to what it claimed, the business was too concerned with
speed and too dismissive of power management to even be considered for the iPhone
CPU, and despite years of effort, it was unable to enter the Android market either. The
damage this did to the company went deeper than foregone profits; over the last two
decades the cost of building ever smaller and more efficient processors has sky-
rocketed into the billions of dollars. That means that companies investing in new node
sizes must generate commensurately more revenue to pay off their investment. One
 excellent source of increased revenue for the industry has been billions of
smartphones sold over the last decade; Intel, though, hasn’t seen any of that revenue,
even as PC sales have flatlined for years.
2. Server issue: It wasn’t that long ago that Intel was a disruptor; whereas the server
space was originally dominated by integrated companies like Sun, with prices to
match, the explosion in PC sales meant that Intel was rapidly improving performance
even as it reduced price, particularly relative to performance. Sure, PCs didn’t match
the reliability of integrated servers, but around the turn of the century Google realized
that the scale and complexity entailed in offering its service meant that building a
truly reliable stack was impossible; the solution was to build with the assumption of
failure, which in turn made it possible to build its data centers on (relatively) cheap
x86 processors.
3. Inventory Problems: Intel’s immediate troubles stem from the supply chain holdups
that have slowed production of computers. But Intel faces a bigger problem: Its lineup
isn’t competitive. Over the last several years, the company had repeated delays in
moving to the latest chip manufacturing technologies. That has allowed Taiwan
Semiconductor Manufacturing Co. to surpass the company in its capability to
fabricate chips at more advanced processes, enabling the Asia-based foundry’s clients
including AMD and Apple Inc. - to design higher-performing, more power-efficient
chips.

Findings
• Insignificant presence in the mobile market
• Dependence on Windows machines
• Limited business diversification
• Competition with ARM in the mobile processor
• Competition with AMD and ARM in the PC market

Solutions

1. Breakup: This is why Intel needs to be split in two. Yes, integrating design and
manufacturing was the foundation of Intel’s moat for decades, but that integration has
become a strait-jacket for both sides of the business. Intel’s designs are held back by
the company’s struggles in manufacturing, while its manufacturing has an incentive
problem. Intel has margins closer to Nvidia, which is why Intel’s own chips will
always be a priority for its manufacturing arm. That will mean worse service for
prospective customers, and less willingness to change its manufacturing approach to
both accommodate customers and incorporate best-of-breed suppliers.
2. Subsidies: This also opens the door for the U.S. to start pumping money into the
sector. Right now it makes no sense for the U.S. to subsidize Intel; the company
doesn’t actually build what the U.S. needs, and the company clearly has culture and
management issues that won’t be fixed with money for nothing.That is why a federal
subsidy program should operate as a purchase guarantee: the U.S. will buy A amount
of U.S.-produced 5nm processors for B price; C amount of U.S. produced 3nm
 processors for D price; E amount of U.S. produced 2nm processors for F price; etc.
This will not only give the new Intel manufacturing spin-off something to strive for,
but also incentivize other companies to invest.
Suggestions
A dominant industry position shows that the company has what it takes to withstand the
effects of competition and new entry. However, weaknesses make the company vulnerable to
threats in its business environment. For example, because of its insignificant presence in the
mobile market, Intel is vulnerable to the threat of the rapid market shift to mobile computing.
Also, the company is dependent on Windows machines, making it vulnerable to the threat of
competition with AMD and ARM. Nonetheless, Intel has opportunities to address these
issues.
Conclusion
Business diversification is an opportunity for Intel to improve its performance. For example,
the company can develop semiconductor products to target new segments in the household
appliance market. Acquisition of other firms can also diversify the business. Diversification
remains a significant opportunity that has not been fully exploited, considering Intel’s generic
strategy and intensive growth strategies. In addition, the company has the opportunity to
develop products for the mobile market, considering the lack of successful Intel processors
for mobile devices. Also, the company can increase the flexibility of its processors to widen
their potential use.
 NIKE

Nike, Inc. is a multi-national organization located in the United States of America (USA) that
is involved in the design, advancement, making, and global marketing and sales of footwear,
apparel, equipment, accessories, and services. The company has for a long time been the key
top in the footwear industry. However, the company has been faced with the issue of
increased levels of financial loss. This issue has been disintegrated into three issues namely
high levels of expenditure within the corporation, high levels of competition within in the
market and decline in Nike’s brand power. NIKE, Inc. is an apparel company founded in
1964 and its headquarters are in Beaverton, OR. It is involved in the design, advancement,
marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. Its
sales regions include North America, Western Europe, Central & Eastern Europe, Greater
China, Japan, Emerging Markets, Global Brand Divisions, Converse, and Corporate. The
worldwide label Divisions category depicts the Nike brand licensing the brand. The Converse
category brand, sales, license, and sell casual sneakers, apparel, and accessories.
Their Leadership:

John Donahoe Philip H. Knight

Chairman Emeritus President & CEO

Mission & Vision

 • Mission: The company’s official mission declaration is to bring inspiring and
innovating spirit to each sportsperson around the globe. Nike Inc. states that everyone
is a sportsperson, according to a statement by the company’s initiator Bill Bowerman.
“If one has a physique, he/she is a sportsperson.”
• Vision: Aid NIKE, Inc. and the company’s costumers prosper in a workable financial
state whereby individuals, profitable and the world are in equilibrium
Some potential problems of Nike Inc are identified and listed in the following:
1. Inventory issue: One of the primary factors that have contributed to the high levels of
financial loss at Nike Corporation is the high levels of expenditure. Expenditures are
costs that the business incurs and tend to eat into a business’ profit margins. As a
result, higher margins of expenditure reduce the profit margin and in some instances,
result in a loss on the part of the company. At the Nike, the company is faced with
very high operational costs that have resulted in increased losses within the
organization. The high levels of costs at Nike is a result of costs from different
departments such as finance, procurement. Production and marketing among others
pooled together. Most organizations in the present generation are falling into the
losses due to mismanagement of the company’s expenditures.
2. High levels of Competition within the market: The other issue faced by Nike
Corporation in its market is a higher level of competition by various other players in
the market. When competition is high in the market, businesses are forced to
undertake strategies that will attract customers into the business. One of the basic
strategies undertaken by businesses in the face of intensive competition is a price
reduction. However, price reduction also affects the profitability margins resulting in
low profitability margins. To solve the issue of competition in the market, Nike
should seek strategies that will make the corporation attain competitive advantages.
Nike should identify its strengths in the market and base on them in attaining
competitive advantages.
3. Decline in Nike’s brand power: The Decline in Nike’s brand power has also played
a significant role in a financial loss at Nike. This is because the brand is no longer
able to command the market the way it used to be. As a result, Nike was forced to sell
its products at a lower level to maintain competitiveness. In some instances, the
corporation is forced to sell its products at a price lower than the costs of production
which results in financial losses on the part of the business. Loss of brand power also
results in a decline in the market share as the customers no longer find the products
appealing to their respective needs and wants.
4. Technologies and troubles from software: Nike during 1999 actualized the initial
segment of its supply chain system i.e. the request and supply chain arranging
application programming as created by i2 advances. (Ross 1998)This product was
created to assist Nike with matching its supply with request by mapping out the
assembling of particular items. The goal was to diminish cost and amount of elastic;
canvas and different materials utilized by Nike to create extensive variety of its items
and make it more reasonable . Nike likewise needed through it to assemble more
shoes that were more requested. Nike had 1,20,000 distinct assortments of items
(SKUs). A few its items required 130 individual strides to produce. In 2001, Nike
 detailed altogether bring down income that normal, which the organization faulted for
i2 Technology's request anticipating and supply chain management programming.
Demand forcasting
A standout amongst the most imperative parts of proficient supply chain management is precise
request estimating. (Altay and Litteral 2011; Demand forecasting and inventory cont...) This is
on the grounds that obtainment, generation, appropriation, requesting, booking, and inventory
are altogether decided in light of forecasts of what request will be. (Thomopoulos 2014b)While
gauges are never totally precise, there are an assortment of devices and systems that Nike can
use to enhance the exactness of their forecasts(Thomopoulos 2014b). Since i2 Technology's
estimating programming ended up being inadequate, Nike ought to consider an assortment of
quantitative strategies using in-house information to create bits of knowledge. One normal and
helpful strategy for determining request is direct relapse. By relating interest to time and
concentrate the straight pattern line, the organization can extend the slant into the future and
make forecasts in light of past conduct. (Demand Forecasting and Inventory Control‖ 1997)
Regular modifications ought to be made and figure blunder ascertained to enhance precision.
Gauge mistake can be computed utilizing strategies, for example, mean absolute deviation
(MAD). By observing gauge blunder after some time, Nike can actualize conjecture control
and ascertain a following sign to decide whether forecasts are reliably high or low. This will
permit the dynamic refinement of their expectations starting with one period then onto the next.
FINDINGS
• Nike ad software problems in demand forecasting and supply chain
• Nike did not know their customers want and need well which lead to excess inventor.
• Nike later updated to a better software which gave accurate results
Solutions
• Optimization of Inventory: Good inventory control is the understanding of
merchandise and controlling it excellently. When excellent inventory methods are
implemented, the organization can now do the optimization of merchandise quantity to
not only enhance efficiency but also achieve ever-changing consumer requirements. In
the recent marketplace, consumers will not delay to socially share their awful
incidences when their requirements aren’t met or just looking for a different
organization.
• Standard Management: Several unnecessary expenses in the business are attributed
to poor management. As a result, decisions related to the management of the
organization are not given due attention. The implementation of effective management
will go along in ensuring effective management will go along in facilitating the
implementation of cost effective decisions that will go along in managing expenses in
an effective and efficient manner.
• Reaching out to customer needs and wants: Individuals are reluctant to deal with
companies which don’t come up with innovative ideas and brands. Innovation causes
excitement to the marketplace and customers like excitement. A company should invest
their time to study the kind of reaction a brand, service will get from the public at its
new launching. Innovation gives the marketplace something exciting to talk about.
 Advertisements through the word of mouth promotes the company, services, and brands
faster.
• Innovate Existing Product Offerings in the Market: The other significant methods
that can be used by Nike to reach out to the market is by improving their existing
products in the market. Improvement of existing products in the market can only be
facilitated through innovation. At Nike, innovation may entail the introduction of new
products into the market or improv the existing products. Innovation will result in the
development of competitive advantages in the market as the company’s products will
reach out to the customer needs and wants in a more effective manner than the other
players in the market.
• Brand Positioning: To benefit from the market in an effective and efficient way, the
business should be able to capitalize on existing opportunities. In strategic
management, the process of anticipating and capitalizing on opportunities is referred to
as strategic positioning. Nike should also position itself in a strategic position to enable
it to capitalize on existing position in the market. Strategic positioning at Nike could be
in the form of acquiring a talented labor force and producing goods that are aligned
with the various customer needs and wants

Suggestions
From Nike Inc. problem analysis above, it’s right to say that the company, it’s facing various
challenges that it can solve for its continued growth and survival. The notable struggles that
Nike faces today are market competition, high levels of expenditure that affect profitability
margins and degradation of the Nike Brand. Today Nike is experiencing diminishing brand
image and quality, and thus more money can be pumped into brand and class improvement and
advertisement. The product design should be enhanced as well as materials and production
process. Also, their products should be expanded and diversified from their main footwear to
casual footwear and others for increased sales and profits. They can ask consumers their needs
by taking survey and produce according to it. Produce the required amount to avoid excess
inventory. Nike should keep on checking the progress of their company in order to stay in the
market.
Conclusion
In summary, cost point is the key point which affects consumers in this company. At a
monopolistic market, it’s difficult to determine if it’s inflexible or flexible need a few of the
customer could more concerned about the cost of footwear while others would not. Apart
from the cost of shoes, there exist other factors which will as well have an effect on the need
for footwear, e.g.: preferences, standard, trend and if there are alternative merchandise.
Additionally, hobby or view of other people can be a less individual cause of affecting the
buying resolution. For instance, the man of the house feels highly pessimistic about footwear
which the wife desired to buy. The implementation of the above stated recommendations and
respective implementations should take a maximum of 3 years before being realized
holistically. The implementation of these recommendations should improve the sales margins
by 25% while reducing expenditure by 12%. An improvement of the sales and reduction of
the expenditure should improve the profit margin by 20% if all the recommendations are
implemented in an effective manner.