MN7031 Global Strategy and Innovation

Case study 2 –Macro- Environment analysis (Semiconductors)

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Word count: 511

Case Study 2 – External Environment Analysis – Semiconductors

Introduction:

For four decades Intel Corporation has set a benchmark for innovation in the Silicon Valley. The
company was established in 1968 by Robert N. Noyce and Gordon E. Moore. Their mindset was
to make the application of the semiconductors more practical and more affordable. The duel
called their start-up Intel short for “integrated electronics”. The start up was backed by a
venture capitalist Art rock that raised around 2.5 million dollars initially.

Later the company was joined by Andrew S. Groove who played vital role in manufacturing of
the Metal oxide semiconductors (MOS) and large scale integrated technology.

The current leadership team is having peter Gelsinger as its CEO and also serves in the board of
directors. The other board of directors include James J. Goetz, Andrea Goldsmith, Alyssa Henry,
Omar Ishark, Risa Laviza- Mourey, Tsu- Jae King Liu, Gregory D. Smith, Dion Weisler and Frank
D.Yeary. Intel provides microprocessors for computer system manufacturers. It manufactures
motherboard chipsets, network interface controllers and integrated circuits, flash memory and
other devices related to computing. Its biggest rival in the market is AMD (Advanced Micro
Devices) which deals in the same computer related hardware.

2. Key current and future external changes facing Intel:

Key factors of PESTEL Current external changes Future external changes

Political  Support for the  Imposing of the regulations

globalization by the by government of countries
government can expand other than the home
the company as well may country can influence the
lead to increase in the market.
competition.

Economic  Hasn’t been able to yet  Inflation rates can affect

enter into the the market of Intel
Smartphone market. Corporation.
Entering the Smartphone  Consumers’ spending
market can be a huge habit cannot be predicted
boost to the revenue of accurately and can
the company. change with time.
Social  Internet related works  Affordability of the
such as banking; gaming product of the company
promotes the company will ultimately affect the
to make suitable purchasing capacity as
processors. well as the market.

Technological  Company is too focussed  Rise of automation and

on the speed and artificial intelligence will
ignorant of the power pose a challenge to the
management. prowess of the company
 Mobile devices are in the market.
preferred more by the
people

Environmental  Need for the sustainable  Need for manufacturing

products is increasing of the high end products
manifolds which posses and need for using high
as a challenge to the quality recyclable
company. material to minimize the
 Ethical corporate social e-waste production.
responsibility.

Legal  Competitive regulations  Increase in the

have been increasing complexity of the waste
which may lead to the disposal regulations.
ending of the virtual  In globally acquiring the
monopoly on the market production local labour
of windows system. laws can impose a
problem

3. Intel opportunities and threats

 Opportunities Threats
rapid increase in th
research and deve e
lopment
can lead to increas
globalisation open
ed
ing rivalry.
doors to the globa if the power efficie
l
market. ncy of the
microprocessors is
improvement in th being
e continuosly
wealth status of th
e
individuals provid labor cost increase
es and the
accessibility trade war impact
with moving of th
e new entrants in th
technology industr e
y semiconductor mar
towards ket
provides customer
with
customisation of th
e
product .

References:

 Hall, M. (2021, May 3). Intel. Encyclopedia Britannica.

https://www.britannica.com/topic/Intel
 Macro Trends (2022). Intel Revenue 2010-2022, INTC
 Attinasi, M.G., Stefani R.D, Frohm, E., Gunnella, V., Koester, G., Melemenidis, A. (2022)
The semiconductor shortage and its implication for euro area trade, production and
prices
 MacroTrends (2022). Intel Revenue 2010-2022, INTC.
Appendix:

PESTEL analysis of INTEL

POLITICAL  Government Policy

 Political Stability
 Global trade agreements

ECONOMIC  Interest Rates

 Labour Cost
 Inflation
 Exchange rates
 Economic decline/ growth

SOCIAL  Consumer behavior

 Population demographics
 Career attitudes
 Lifestyle factors
 Consumer trends

TECHNOLOGY  Automation
 Disruptive Technologies
 Social Networking
 Cyber Security
 AI and Machine Learning

LEGAL  Trade laws

 Employment laws
 Environmental laws

ENVIRONMENTAL  Environmental sustainability

 Reducing electricity consumption
 Water resource management
techniques