Operations and Project Management Case Study

Intel Corp: The Customer Oriented Reorganization

OR

Abstract:
Intel Corp. entered a phase of transition, when in November 2004, its board named Paul Otellini (President and Chief Operating Officer), as the new CEO. On 17th January 2005, Paul Otellini announced his plan to re-organise Intel's operations, in order to boost sales of its high-end microprocessors, by penetrating new markets. Under the guidance of the new CEO, the company set up five new divisions to develop advanced features for products like desktop computers, notebooks, Personal Digital Assistants (PDA) etc., in order to focus on specific segments like domestic customers, corporate customers and small-businesses. To increase the sales of its processors, the company considered the non-PC devices such as digital cameras and other electronic equipments. The Case discussed Intel's re organisation in order to become more customer oriented along with the challenges that the company might face.

Pedagogical Objectives:

• To analyse Intel’s strategy before Paul Otellini
• To discuss Paul Otellini’s strategies to reorganise Intel
• To discuss Intel’s strategy of emphasizing the non PC devices
• To analyse Intel’s strategy of entering into different geographical segments.

Keywords : Intel Corp; Customer oriented reorganisation; PDA (personal digital assistant); Desktop computers; Domestic customer; Corporate customer; Advanced micro devices; Intel 855 chip set; LAN (local area network); Pentium processor; Hewlett-Packard; IBM; Operating Strategies Case Study; Paul Otellini; Digital Home Group; Capacity planning

Contents:

• Growth since inception
• The re-organization
• Challenges for Otellini
• Road ahead