Essay About Craig R Barrett And Internal Problems

Chipping Away at Intel
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Background
Craig R Barrett after joining as CEO, started production of information and communication appliances, and services related to Internet.
Company was in bad performance due to 9/11, slowing economy and war threat.
Internally, problems were compounded by internal problems: product delays and shortages, recalls, overpricing, bugs in the system.
Barrett invested in new markets but with no results and had to withdraw: Production of network servers and routers, closing of iCat, etc.
There was also weak demand and overcapacity in semiconductor industry.
AMD was giving Intel tough competition with its Athlon processor, faster than Pentium III.
People got more interested in the speed of internet rather than of the processor.
Due to 9/11, share prices crossed their lowest point by October, 2011.
Barrett felt the need to reorganize this segmented market to make more nimble, avoid duplication and better coordination.
Barrett reorganized different business units to enable decentralization and delegation of decision making to make company better coordinated.
In his first year, he created new wireless unit combining new acquisitions with Intels flash memory operations.
In the second, he created Architecture Group, combining development and manufacturing of core processors.
In the third year, he reorganized the Architecture Group and created new unit consisting of merger of communications and networking operations.
But the reorganization was so much that it was termed as “shuffling execs like cards in a deck”
There were layoffs as well in Intel.
Barrett wanted to change the culture of the company as well, taking help from outside consultants.
Main aim was to move toward better customer relations rather than market leader.
Strategically, he decided to invest in R&D into new production technologies to cut chip-making costs.
Looking towards the future, Barrett thought that he would be able to increase sales and win over his competitors.
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