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Strategic Alternatives and Recommended Strategy

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1. Analysis of Strategic Factors. Since you are aware that your analysis of strategic factors or SFAS (Strategic Factor Analysis Summary) is based on IFAS and EFAS tables, and since we will need to understand your choices, you are required to submit the three tables in Excel format in one separate file from your written Word assignment. No comments are needed on the IFAS and the EFAS tables, but comments are needed on the SFAS table, which is the foundation for this assignment (You will submit one Excel file that will include three separate sheets, one for the IFAS, one for the EFAS and one for the SFAS). As a reminder, two files are to be submitted: One Excel file (counting for three pages) and one Word file (five to seven pages double-spaced). You will be graded on your knowledge of the software and math in building the MS Excel tables, and on your ability to communicate in writing and present your arguments.

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This explains the Strategic Alternatives and Recommended Strategy for Intel

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Analysis of Strategic Factors. Since you are aware that your analysis of strategic factors or SFAS (Strategic Factor Analysis Summary) is based on IFAS and EFAS tables, and since we will need to understand your choices, you are required to submit the three tables in Excel format in one separate file from your written Word assignment. No comments are needed on the IFAS and the EFAS tables, but comments are needed on the SFAS table, which is the foundation for this assignment (You will submit one Excel file that will include three separate sheets, one for the IFAS, one for the EFAS and one for the SFAS). As a reminder, two files are to be submitted: One Excel file (counting for three pages) and one Word file (five to seven pages double-spaced). You will be graded on your knowledge of the software and math in building the MS Excel tables, and on your ability to communicate in writing and present your arguments.

About Intel

Intel Corporation is the world's largest semiconductor company and the inventor of the x86 series of microprocessors, the processors found in most personal computers. It was founded in 1968. (Wikipedia)
Now it is headed by Mr. Paul S. Otellini. He became the company's fifth CEO on May 18, 2005, succeeding Craig R. Barrett. He had served as Intel's president and chief operating officer, positions he held since 2002, the same year he was elected to Intel's board of directors. Intel's mission is:
"To meet and exceed the expectations of our customers, employees, and shareholders. "

Intel Values are:

? Customer Orientation

? Discipline

? Quality

? Risk Taking

? Great Place to Work

? Results Orientation

SFAS Analysis
Analysis of External Environment
Economic Forces

Globalization has increased opportunities. Moreover, globalization leads to the creation of the universal customer, one who expects the same quality of products and services regardless of where he or she is located in the world. This does not mean one customer, one world, one brand or one positioning platform.
Exchange rate exposure may affect financing costs volatile cash flow. Transaction exposure reflects the exposure of Intel's future cash transactions to exchange rate movements. Economic exposure measures the direct and indirect risks to cash flows from exchange rate movements. Translation exposure focuses on consolidated financial statements. (Measuring Exposure to Exchange Rate Fluctuations, 2004)

General economic and geo-political risks

Events like terrorist attacks and political instability may affect the revenue and profitability. Similarly the business cycle, inflation, softness in corporate information technology spending, or other changes in general economic conditions that affect demand for computer hardware or software could adversely affect the revenue or our investment portfolio.
Technological Forces
The impact of the internet, portable information devices, electronic networking, smart mobile robots, and increase in the speed of microprocessors will have tremendous impact on business. There has been tremendous impact of e-business on the typical business. The information is exchanged much more quickly than any other medium which is helping organizations to make more quick and accurate decisions. E-business has removed geographical and time restrictions for the organizations. It also helps in the following: (Information Systems, 2007)
?Recording and analyzing strategic management records: processing these strategic management records into industry trends reports, market share reports, mission statements, and portfolio models. (Information Systems, 2007)
?Use of all the above to implement and control the businesses.

Thus they are more connected and knowledgeable in seeking to improve the processes, quality, technology and overall customer delight. Due to e-business there is much more agility to improve and also to respond to the needs of the customers, vendors, government and to society at large. It is also reducing the costs and making supply chain more efficient.

?Political Legal regulations

As a large company Intel will find it tough to handle regulations.
Issues such as intellectual property, consumer protection, access, confidentiality, sustainability, reliability are very important.
Thus they are subject to government litigation and regulatory activity. They also face scrutiny from government agencies under U.S. and foreign competition laws. Some jurisdictions also provide private rights of action for competitors or consumers based on alleged anti-competitive conduct.
Opportunities
? High Growth in emerging economies
? Faster growth in Internet and computer penetration
? Opening up through WTO
? Opportunity of Alliances
? Multiple uses of Chips

Threats
? Increasing government regulations
? Strong competition
? Technological changes and emergence of new technologies
? Recession in US

Strengths:

Highly talented human capital

Intel has a fairly strict meritocracy that rewards work generously and does not keep underrated employees around for very long. Intel promotes very heavily from within, most notably in its executive suite. The company has resisted the trend toward outsider CEOs. Paul Otellini was a 30-year veteran of the company when he assumed the role of CEO.It has a mandatory retirement policy for its CEO when they reach age 65, but only one CEO, Barrett, has actually retired at 65.
The culture is to promote equality and there is no office in Intel as every one sits in a cubicle. Intel has a Diversity Initiative, including employee diversity groups as well as supplier diversity programs. Intel received a 100% rating on the first Corporate Equality Index released by the Human Rights Campaign in 2002. It has maintained this rating in 2003 and 2004. ...

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