Risk Analysis Amd – AtiEssay Preview: Risk Analysis Amd – AtiReport this essaySituation Analysis and Problem StatementThe businesses of the world today are always in a state of fluctuation trying to maintain their competitiveness within their respective industries. For various opportunities to be determined for a company to stay competitive, companies need to define the “right” problem and challenges. Once they do this reaching their end state goals are just an implementation away.
This paper will describe the situations of AMD-ATI and what lead to the decision for AMD to acquire ATI. . We will look at the opportunities available to both companies which will make them more competitive in the computer processing market and begin to work towards their goal of being on the same level as Intel. Also, what it will take for ADM-ATI to reach their desired end state along with a few goals to ensure the desired end state is met. This will in turn allow a problem or opportunity statement defining the “right” problem in the “right” way to be developed.
Situation Background (Step 1)AMD is a leading global provider of innovative microprocessor solutions for computing, communications and consumer electronics markets. AMD is dedicated to delivering superior computing solutions based on customer needs that empower users worldwide.
ATI is a world leader in the design and manufacture of innovative 3D graphics, PC platform technologies and digital media silicon solutions. ATI is the worlds foremost graphics processor unit provider and is dedicated to deliver leading edge performance solutions for full range of PC and Macintosh desktop and notebook platforms, workstation, set-top and digital television, game console and handheld device markets.
AMD needs to acquire ATI to become more competitive in their current line of micro-processing products, to try to compete with Intel in the areas of graphics, chipsets and consumer electronics and to compete in the enterprise market. By acquiring ATI, AMD hopes to create a processing powerhouse by bringing AMDs technology leadership in micro-processors together with ATIs strengths in graphics, chipsets and consumer electronics.
Issue IdentificationHow the following issues should be prioritized I am not sure but they are all equally important. First there is the tough competition, which is only Intel the way AMD sees it. Intel has had the platform that includes graphics, chipsets and consumer electronics for quite a while. In order for AMD to even think about giving Intel a run for their money they need to at least offer the same type of product line. By acquiring ATI, AMD hopes to offer not only the same types of products, but with better quality and more innovation. When AMD acquires ATI, this will open up the same them up to the market that Intel is servicing.
Reducing cost is always apart of a companies strategic plan. The question is how well does a company do this and still maintain productivity. AMD is no different. In this situation the issue of cutting costs depends on where facilities will continue to be located and how personnel will be brought together. This presents a huge problem with personnel in the areas of work productivity, combining work cultures, keeping the stress levels low and minimizing layoffs. Communication between employees and management are of the utmost importance in this situation. While all this is going on, AMD-ATI still needs to be able to keep moral high amongst the employees. When moral is low then usually productivity will be low also. These two issues alone I think present the biggest challenge of all.
The AMD-ATI decision to implement a new and innovative process in the management area is particularly significant considering the recent failure to bring the company a new way of dealing with all things management. One area in the CEO’s responsibility is the performance aspect of the company. The solution AMD has just implemented is to reduce the use of performance. This has been a huge challenge for AMD. Its CEO has already expressed that the company will continue to focus on performance, not performance management and the CEO should have known that was not the case for the company last time and now. What I think about AMD is the way to use performance as one part of a management strategy. This should also be the case all the way from management to CEO.
You are obviously the company’s CEO, who was also a member of AMD in 2008 and was asked to lead. This year AMD has had to reorganize as many as 1% of its executive team to maintain unity, especially in this area. Although some of you may be wondering why I think your group is a little bit different from the others in its strategy, I think there’s a basic formula that works.
As a company, I find that by focusing more on performance, I can bring productivity forward as I’d like to so the management of my companies is looking at how to best bring about those productivity processes, or how to get the most benefit from those processes. The company has a general formula that I think balances performance based on the need for management to do the job effectively. In the end, any person, anywhere, that takes the job for himself, and he will do it for everybody who takes his role.
So I think the company needs to look for something like the following: – The process needs to be based on what I think is an effective management structure and does not require other people to lead the company. – More efficient and more human-centered processes with an emphasis on making decisions and taking risks. – I think that’s critical to making people in business feel good about what they’re doing and making them happy and motivated by their passion… in other words, I think it’s time to think about how you can also use performance to create a culture that is productive.
I think this is the most significant example of how the company should think about how to bring productivity and success forward with their management. At this point the company should be able to focus on what the company is doing better and not focus on what they are doing more efficiently and efficiently.
This is going to come as a shock, but what I really like most about the approach is how you think about how you use productivity to create a culture and I think what I’ve discussed in the past couple of weeks is important in general. But it probably needs to be part of a much larger philosophy of what we need to achieve as a company. But I really don’t think for those of us who do have the ability to do that the company can ever possibly deliver on its promises.
When you started your job at AMD, it was something we talked about as having tremendous importance.
The AMD-ATI decision to implement a new and innovative process in the management area is particularly significant considering the recent failure to bring the company a new way of dealing with all things management. One area in the CEO’s responsibility is the performance aspect of the company. The solution AMD has just implemented is to reduce the use of performance. This has been a huge challenge for AMD. Its CEO has already expressed that the company will continue to focus on performance, not performance management and the CEO should have known that was not the case for the company last time and now. What I think about AMD is the way to use performance as one part of a management strategy. This should also be the case all the way from management to CEO.
You are obviously the company’s CEO, who was also a member of AMD in 2008 and was asked to lead. This year AMD has had to reorganize as many as 1% of its executive team to maintain unity, especially in this area. Although some of you may be wondering why I think your group is a little bit different from the others in its strategy, I think there’s a basic formula that works.
As a company, I find that by focusing more on performance, I can bring productivity forward as I’d like to so the management of my companies is looking at how to best bring about those productivity processes, or how to get the most benefit from those processes. The company has a general formula that I think balances performance based on the need for management to do the job effectively. In the end, any person, anywhere, that takes the job for himself, and he will do it for everybody who takes his role.
So I think the company needs to look for something like the following: – The process needs to be based on what I think is an effective management structure and does not require other people to lead the company. – More efficient and more human-centered processes with an emphasis on making decisions and taking risks. – I think that’s critical to making people in business feel good about what they’re doing and making them happy and motivated by their passion… in other words, I think it’s time to think about how you can also use performance to create a culture that is productive.
I think this is the most significant example of how the company should think about how to bring productivity and success forward with their management. At this point the company should be able to focus on what the company is doing better and not focus on what they are doing more efficiently and efficiently.
This is going to come as a shock, but what I really like most about the approach is how you think about how you use productivity to create a culture and I think what I’ve discussed in the past couple of weeks is important in general. But it probably needs to be part of a much larger philosophy of what we need to achieve as a company. But I really don’t think for those of us who do have the ability to do that the company can ever possibly deliver on its promises.
When you started your job at AMD, it was something we talked about as having tremendous importance.
AMD and ATI both currently have partnerships and vendors that they deal with. AMD has an ongoing partnership with a company named, Nvidia who is a main rival of ATI in the graphics space industry. As well, ATI provides service to and has a relationship with Intel OEMs. If the acquisition goes through Intel is predicted to of course cut off their relationship with ATI, but AMD officials say that the deal does not threaten their relationship with Nvidia (Lemon and Sayer, 2006).
Opportunity IdentificationThe first opportunity that everyone I am sure will see is to expand AMDs product line. By acquiring ATI, AMD will be able to offer graphic chips and chipsets with integrated graphic capabilities to its current customer base. At the same time with will open up a larger customer base for them as well. On this level AMD will have a better chance at increasing their momentum to compete with Intel.
Reducing cost can be done by combining operations. The merger is expected to save AMD and ATI $75 million in operational cost in the first year and as much as $125 million in the second year, without the need for job cuts (Lemon and Sayer, 2006).
AMD and ATI will be able to increase customer benefits. As a combined company, AMD and ATI will develop and offer better commercial platforms, advance mobile computing and digital entertainment across multiple consumer devices. AMD will realize future growth in micro-processor sales in the market for mobile PCs.
Stakeholder Perspectives/Ethical DilemmasShareholders, employees, and current partners with AMD and ATI should be concerned ethically with what this merger could bring about. On behalf of the stakeholders from ATI the questioned can be asked is one of the main reasons AMD buying our company to increase their value in their shares. Personnel, customers, vendors and partners have a right to know how this directly affects them. Employees have a valid concern about how the two work cultures will be combined. Will some people be demoted while others are promoted? Relationships and partnerships with other companies will be deeply affected. Intel will not be doing any more co-marketing with ATI (Yager, 2006). Nvidia, who currently has a partnership with AMD has a right to be concerned since ATI is their number one competitor. Is it ethical to acquire a competing firm knowing you have a partnership with their number one competitor and why did AMD not consider purchasing Nvidia?
I agree to be interviewed at least once at an open company. I will never be paid the same salary a stockbroker earns. I am also not eligible to participate in a multi-party event unless it is part of a multi-party agreement. I am not a lawyer, but I had no knowledge to obtain an affidavit from the attorney to establish this type of contract. Is this ethical? What ethical issues exist here?
The answer is: A number of these issues are being raised so far.
First of all it is possible to understand for example what type of agreement the company had set up. The company and its chairman, Jim Pardee, are former employees of Nvidia.
They were, after all, both former employees of Nvidia. Jim Pardee is now the head of technology. The company has not revealed how he came to make his decision. Is he a company employee? How do these people make their decisions?
What is in your report? Have you ever seen a corporate event where you and other employees are asked to present their own agendas or a specific business agenda for the event? What policy could you have put in place so that your position is to do your best to convey your own agenda? You did NOT.
That does not excuse you from engaging in such an inappropriate event. If you should have presented your own agenda, why would your own CEO do so? I suggest some of you watch this exchange at this link:
http://forum.comics.net/archives/showthread.php?t=334669
And watch it right there. At this point your CEO had to ask that you “ask that you ‘ask’ that you ‘ask’. This was at least a personal one and I had to ask that question to him.
Now let’s take a look at the evidence here. This is the time from 2002 to 2003, when you and your company were actually at the forefront of AMD’s business in the video gaming space. You have talked about using Nvidia for the video game console. How does this business model work? How did it break down in a way that wasn’t even possible before that?
The only major disagreement you have with Nvidia is the “faster GPU and lower memory usage”. It was the second fastest GPU with a 16.3 TFLOPS for the first two years that AMD became their target market and they were really pushing it.
With today’s business model Nvidia has the advantage in the gaming marketplace to bring it down to half of their competition. I can see how this would not have happened. AMD has a lot of people who do NOT want their game titles to be rendered in low resolution, in some cases rendering in high resolutions. Many developers in the video game industry have their own proprietary technologies, including DirectX11, that allows them to render to high quality video in native resolution. If NVIDIA has that technology they could have a lot more people playing high quality games on their systems because their gaming power consumption is more limited in comparison to other companies and graphics cards.
This was a huge advantage for AMD, at the same time, since it allows them to sell highly playable games at a low price per dollar compared to other rivals. Even on paper graphics cards are cheap.
Now here is the story of how AMD started to make all of these technologies viable, that was their major goal. The first is a new design platform.
First off I would like to mention that I have been involved with many people that were involved in this idea. That is to say that I have had a major role in developing and designing this new design platform for AMD and other partners. I have even worked with AMD on the GPU design for AMD’s Radeon HD 7770 series. So I want to use these facts in the way the other companies who have made new
Problem Definition (Step 2)AMD has just recently grabbed attention with significant gains in market shares, much of the shift in momentum is the result of many changes in the company, market, and technology. AMD is now facing changing market dynamics and an invigorated competitor. In addition, the war between AMD and Intel is moving beyond the processors to a new battle over the entire platform. AMD has to come up with a sure fire way to continue to be innovative and keep