SEMESTER 1 YEAR 1

BUSINESS MANAGAMENT

FAB 0015

PROJECT PAPER OF INTEL COPRORATION

SUBMITTED FOR: SIR RADZI

SUBMITTED BY: GROUP NN

MEMBERS NAME:

Contents

COVER LETTER

4

BACKGROUND/HISTORY OF INTEL

5

ABOOUT INTEL

6

INTEL LOGO

7

ANNUL REPORT

8

BUSINESS ORGANIZATION

9

CORPORAT DIRECTORY

10-11

HUMAN RESOURCE STRATEGY

12-13

STRATEGIC PLAN

14

PRODUCTS

15-17

MARKETING

18

FINANCIAL

19-20

Date: May 4, 2015

Mr.

Business Management,

Department and Management and Humanities,

University Teknologi Petronas,

Malaysia

_____________________________________________________________

Dear sir,

SUB: Submission of Assignment

As a first semester students for foundation programmed in University Teknologi Petronas, this is our pleasure to submit our assignment on the research of Intel Corporation which were assigned. This is a great opportunity for us as we acquire a lot of knowledge about Intel. We also gain more experiences as we have to work in group. This is a first attempt on how we want to communicate with each other and do our assignment by ourselves.

2. We had did a great efforts in order to complete our assignment and achieve our objectives of this case study based on the Intel corporation and we hope our assignment has achieved the purpose of this assignment.

Thank you for your time and consideration.

Sincerely,

___________________

__________________

____________________

BACKGROUND / HISTORY OF INTEL

Intel was founded in Mountain View California in 1968 by Gordon E. Moore, who was a chemist and Robert Noyce, a physicist and a co-inventor of the integrated circuit. Arthur Rock helped them find investors, while Max Palevsky was on the board from an early stage. Before this, Moore and Noyce had left Fairchild Semiconductor and incorporates a new venture as NM Electronics. Later that year, they purchase the right to use the Intel name from a company called INTELCO. Arthur Rock was not an employee, but he was an investor and was a chairman of the board. Moreover the total initial investment in Intel was 2.5 million dollar convertible debentures and 10, 000 million dollars from Rock. Then, just 2 years later, Intel completed their initial public offering (IPO), and raised 6.8 million dollar (23.50 million dollar per share). Intels third employee was Andy Grove, a chemical engineer, who later ran the company through much of the 1980s and the high-growth 1990s.

Intel Corporation, is an American multinational technology company that had headquarters in Santa Clara, California. It is one of the worlds largest and highest valued semiconductor chip makers, based on revenue. Also, Intel was the inventor of the x86 series of microprocessors, the ones that is found in most personal computer. Though, Intel was originally known primarily to engineers and technologist, its Intel Inside advertising campaign of the 1990s made it a household name, along with its Pentium processors.

A little more, about the story behind the name Intel itself, the founder Moore and Noyce quickly rejected the name Moore Noyce to name their corporation. This is because the homophone for more noise was an ill-suited name for an electronic company, since noise in electronic is usually very undesirable and typically associated with bad interference. Instead, they used the name NM Electronics before renaming their company Integrated Electronics or Intel for short.

Intel design and manufacture advanced integrated digital technology platforms. A platform consists of a microprocessor and chipset, and may be enhanced by additional hardware, software and services. Intel sell these platforms primarily to original equipment manufacturers ( OEMs ), original design manufacturers ( ODMs ) and industrial and communication equipment manufacturers in the computing and communication industries. Our platforms are used to deliver a wide range of computing experiences in notebooks, 2 in 1 systems, desktops, servers, tablets, smartphones, and the Internet of Things ( including wearables, transportation systems, and retail devices ). Intel also develop and sell software and services primarily focused on security and technology integration. By December 27, 2014 Intel had about 106, 700 employees worldwide, approximately 51% of those employees are located in the U.S.

ABOUT INTEL

Intels Mission

To delight our costumers, employees, and shareholders by relentlessly delivering the platform and technology advancement that become essential to the way we work and live.

Intels Vission

Create and extend computing technology to connect and enrich the lives of every person on earth, by focusing on the following key strategic objectives.

Intels Objetives

To extend our silicon technology and manufacturing leadership

To deliver unrivaled microprocessors and platforms

To grow profitability worldwide

To excel in customers orientation

Intels Key Success of Factors

Strategy retaining skilled labor force

Process Manufacturing chips and transitioning manufacturing plants with new technologies.

Technical Control and manage data for current technologies that are utilized. Helps innovate.

Intels Values

Customers orientation

Results Orientation

Risk Taking

Great Place to Work

Quality

Discipline

Intels Logo

The first logo, the dropped-e Intel logo was wide use and was highly recognizable worldwide during 1960s. And when Intel has become one of the worlds most recognizable computer brands thanks to its long running Intel Inside Campaign. Intel branding Campaign was originally started with The Computer Inside tagline in 1990 in the US and Europe. The Japan chapter of Intel proposed Intel in it tagline in December 25 in 1990. Several months later, The Computer Inside incorporated the Japa idea to become Intel Inside which eventually elevated to the worldwide branding campaign in 1991, by Intel marketing manager Dennis Carter. The case study of the Inside Intel was put together by Harvard Business School. The Intel swirl logo was the work of Dahlin Smith White art director Steve Grigg under the direction of Intel president and CEO Andy Grove. This Intel Inside logo was used from 1991 until 2006.

2014 Annual Report - Current Progress of Intel Business

For 2014, Intel reported record revenue of $55.9 billion, up 6% from 2013. Net income rose 22% to $11.7 billion, and earnings per share were $2.31. Their operating income of $15.3 billion was up 25% over 2013.They achieved record annual unit shipments for PCs, servers, tablets, phones, and the Internet of Things.

According to the Chairman of The Board of Intel, Andy D. Brant, 2014 was a year of significant and tangible progress for Intel.they solidified their strategy and executed it well in 2014, resulting in a very strong year for Intel. Intel sharpened their focus, accelerated their pace of innovation, and delivered stockholder return. As Intel move forward, it will continue it work to ensure that if its smart and connected, it is best with Intel.

In reviewing cash policy, the Board looks first at the needs of the business. Most of Intels investments focus on advanced technologies critical to business success. In 2014, Intel made capital investments of $10.1 billion, the largest portion of which was used to build and equip leading-edge manufacturing capacity. The company also spent $11.5 billion on research and development. About 70% of this was for technical capabilities and intellectual property, the costs and benefits of which are shared across Intels business segments. This broad and deep foundation allows us to integrate functions into the platform products that customers increasingly require.

After reviewing plans for the business, the Board considers the dividend and then stock repurchases. In 2014, the Board announced the first increase in the dividend since 2012, from $0.90 to $0.96 per share. It also authorized an acceleration of stock repurchases to return more cash to investors. Intel repurchased $10.8 billion worth of Intel stock in 2014, five times the level of 2013. Through dividends and repurchases, Intel returned cash to stockholders in 2014 of $15.2 billion, more than two times the amount in 2013.

These actions extend Intels commitment to deliver long-term value to owners. In the last five years, Intel returned $54.2 billion to stockholders through dividends and stock repurchases. Since 2009, the dividend has risen from $0.56 to $0.96 per share, and average shares outstanding have decreased from 5.6 to 5.1 billion shares.

With an eye to Intels future, the Board reviewed its composition to make sure it has the appropriate skills and experience for stewardship. We added a new Board member who brings more than 20 years of experience in enterprise software innovation and cloud computing, areas that are key to Intels business.For them, change is essential for innovation. We must continue to embrace change and innovate. Their goal is to continue the foundational technology investments and drive Intels profitability.

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Business Organization

As of December 31, 2011, Intel managed their business through the following operating segments.

Corporate Directory

BOARD OF DIRECTORS

Ambassador Charlene Barshefsky5Senior International PartnerWilmer Cutler Pickering Hale and Dorr LLPAneel BhusriCo-Founder and Chief Executive OfficerWorkday, Inc.Andy D. BryantChairman of the BoardSusan L. DeckerPrincipalDeck3 Ventures LLCJohn J. DonahoePresident and Chief Executive OfficereBay Inc.Reed E. HundtPrincipalREH AdvisorsBrian M. KrzanichChief Executive OfficerJames D. PlummerJohn M. Fluke Professor of Electrical EngineeringStanford UniversityDavid S. PottruckChairman and Chief Executive OfficerRed Eagle Ventures, Inc.Frank D. YearyExecutive ChairmanCamberView Partners, LLCDavid B. YoffieMax and Doris Starr Professor of InternationalBusiness AdministrationHarvard Business School

EXECUTIVE OFFICERS

Andy D. BryantChairman of the BoardWilliam M. HoltExecutive Vice President,General Manager,Technology and Manufacturing GroupRenee J. JamesPresidentBrian M. KrzanichChief Executive OfficerGregory PearsonSenior Vice President,General Manager,Sales and Marketing GroupStacy J. SmithExecutive Vice President,Chief Financial Officer

Intels Human Resource Strategy

One of the Human resource strategy applied in Intel is the HR people strategy. The human resource management strategy has shifted to hiring professionals with cross sectional skills. These teams then work in collaboration to come up with compelling products that are inline with the product driven strategic plan process. All the units have received processor experts or IT managements for the sake of sustaining the Intel IT strategy. With the people strategy, the company carefully correlates the human resource policies to achieve the Intel IT strategy in several ways. First, a team of professionals within the IT department consisting of engineers, architects and business analysts within the company keeps a close eye on the implementation and achievements of the strategic plan. This is done by analyzing the gaps with the within the strategic plan and makes recommendations necessary to implement the change. Such recommendations must reflect the broad range of functions within the Intel Company.

After the analysis and the recommendations, the next thing is to keep the employees updated on the new strategic plan approach. The employees are then assessed on how much of the organization direction they understand for the sake of training. In this instance, all levels of the organization embrace the communication of the strategic plan. In this way, the understanding and support of the strategic plan is made possible for the personnel.

One of the approach adapted for such communications included the IT employee communication with which exposure of employees to the product driven strategic plan would be maximized. In this approach, managers provide briefings to the employee. They also provide employees with presentations, video casts and articles through which the employees get a clear and bigger picture of the composites of the revised strategic plan.

To boost the people strategy, Intel company reorganization put into place the old employees into new jobs and increased the employees with about 20, 000 new faces as a way of encouraging the launch of new products(Craig, & Johnson, 2008). Most of the employees are highly specialized in dozens of fields including the doctors, software developers, engineers, marketers, and other managers. Market specialist analyze the competitive nature of the market environment and report to the management who assign duties and responsibilities to core teams, subject matter experts and the decision makers.

To recognize the contribution of its employees, the company has a reward and recognition strategy which as a way of employees motivation and performance improvement. As a way of motivating its employees, Intel Company includes both monetary and non-monetary rewards. With the monetary awards, the employees are motivated to perform even better in their duties. The non-monetary awards like informal or formal acknowledgement of employees or more enjoyable duties are provided as a way of building up the confidence and satisfaction feelings of the employees. Additionally, non-monetary awards to employees promote employees retention.

To a competitive company like the Intel company, retaining employees is as important as ensuring a given product issustained. Product-driven strategic plan calls for expertise in innovations of the existing products to advance them as well as inventions and new creative ideas (Craig, & Johnson, 2008). Having such employees within the work force is one thing but retaining them is another. As a way of retaining their competitive advantages, employees within Intel Company are rewarded to ensure expertise is not lost to other competitors likeTexasinstruments, orHP.

The reward system in Intel, whose aim is to achieve product differentiation also promote innovations and creativity as a way of providing unique products and services. This way, the all level managers identify the work of the employees under their docket recognize their efforts informally by showing regular appreciations as a way of encouraging a given code of conduct in an employee. Finally, the company can then formally recognize the individual by awarding certificates, vacations, training or even promotions. This is effective since like is the case, the current CEO was a former employee of the company, Otellini. Though he holds no degree in engineering, he took over from his predecessor Barret who was an engineer. The company is going places with the new CEO despite all odds.

Intels Strategic Plan

One critical element of any successful business is the strategic plan. Like many other IT companies, Intel has to remain in touch with its present activities while keep a close eye on the future (Craig,& Johnson, 2008). As a matter of fact, such a move is aimed at enabling the business to have rapid, timely and effective response to shifting business climate and to delivering solutions which are in tune with the corporations needs as a whole. The only way to achieve such corporation goals is to engage in a process of strategic planning.

Currently, the company strategic plans high priority is on aligning the business. This is in the efforts to make information available for the leaders to make the decisions right and best for the company (Craig, & Johnson, 2008). Additionally, such an alignment is important in keeping the business activities well within the budget. Since the IT field is dynamic, the strategic plan is also incorporates diversification and change possibilities as a way of ensuring new directions and growth opportunities are pursued to make future company goals possible.

A purpose-driven strategic plan process is what Intel Company uses to date (Craig, & Johnson, 2008). In this way, the companys strategic plan is integrated in that it is combines the strategic planning calendar with the planning cycle of the corporation. This way synchronization of the companys activities in IT with the direction of the company is possible.

Additionally, Intels purpose driven strategic planning process holistic nature is a good way to explore both the companys business direction and the investment in technology (Craig, & Johnson, 2008). In this way, the entire of the corporate work environment can be well understood in depth since ideas and expertise can be consolidated explicitly from across the Intel IT.

A sustainable strategic plan is very crucial since all decisions made today will affect tomorrow by all means (Craig, & Johnson, 2008). In this light, the purpose driven strategic plan process of Intel requires sound decisions so that future generations will not be provided with limited choices that may limit the continued growth of the company. Sound decisions and effective implementation of such decision is only possible when a company has a souProducts

Intel Corp is the worlds largest semiconductor broad line industry by market capitalization. Intel supplies to the computing and communications industries. The product composition that Intel supplies to these industries include, but limited to microprocessors, chipsets, network processor chips, embedded control chips, and flash memory used in cellular handsets and handheld computing devices. Board level products include Ethernet network interface cards and complete PC motherboards for OEMs. End markets for Intel products include Personal Computers (PCs), servers, and networking and communications equipment.

Microprocessor

A microprocessor is the central processing unit ( CPU ) of a computer system. CPU acts as the brain of the computer and it function to process system data also controls other devices in the system. Intel offer microprocessor for a variety of products such as laptops, netbooks, servers, and handhelds. Intel also offer microprocessors with one or multiple processor cores. Multi-core microprocessors can enable improved multitasking and energy-efficient performance by distributing computing tasks across two or more cores. Their 2nd and 3rd generation IntelCore processor families integrate graphics functionality onto the processor die. In contrast, some of our previous-generation processors incorporated a separate graphics chip inside the processor package. We also offer graphics functionality as part of a separate chipset outside the processor package. Processor packages may also integrate the memory controller.

Chipset

A chipset sends data between the microprocessor and input, display, and storage devices, such as the keyboard, mouse, monitor, hard drive or solid-state drive, and CD, DVD, or Blu-ray drive. Intel chipsets are also in a wide variety of products and is very often seen paired with Intels microprocessor units. Chipsets extend the audio, video, and other capabilities of many systems and perform essential logic functions, such as balancing the performance of the system and removing bottlenecks. Some chipsets may also include graphics functionality or a memory controller, for use with our microprocessors that do not integrate those system components.

System-on-Chip ( SoC )

Intel also offer and are continuing to develop System-on-Chip (SoC) products that integrate our core processing functions with other system components, such as graphics, audio, and video, onto a single chip. SoC products are designed to reduce total cost of ownership, provide improved performance due to higher integration and lower power consumption, and enable smaller form factors.

They also offer features to improve their platform capabilities. For example, they offer IntelvPro technology, a computer hardware-based security technology for the notebook and desktop market segments, designed to provide businesses with increased manageability, upgradeability, energy-efficient performance, and security while lowering the total cost of ownership. In 2011, Intel introduced the 2nd generation IntelCore vPro processor family, designed to deliver security, manageability, and power management on the 32-nanometer (nm) process technology.

Intel offer a range of platforms that are based upon the following microprocessors:

Motherboards

Motherboard

The motherboard acts as the skeleton for a computing device. Intels designs motherboard for desktop, server, and workstation platforms. The motherboard is the main board that houses the microprocessor, chipset, memory, and other essential components. The mother also acts as a subsystem for transferring data between various parts of the device.

Wireless and Wired Connectivity

These products include network adapters and embedded wireless cards that are used to translate and transmit data across information networks. These wireless connectivity products are based on WiFi technology, which allow users to connect wirelessly to high speed Local area networks (LAN) within the range of the network.

Phone Components

In addition to the Intel Atom processor-based products for the smartphone market segment, Intel offer components and platforms for mobile phones and connected devices. Key mobile phone components include baseband processors, radio frequency transceivers, and power management integrated circuits. They also offer complete mobile phone platforms, including Bluetooth wireless technology and GPS receivers, software solutions, customization, and essential interoperability tests. Their mobile phone solutions based on multiple industry standards enable mobile voice and high-speed data communications for a broad range of devices around the world.

McAfee

McAfee offers software products that provide security solutions for consumer, mobile, and corporate environments designed to protect systems from malicious virus attacks as well as loss of data. McAfee's products include endpoint security, network and content security, risk and compliance, and consumer and mobile security.

Wind River Software Group

The Wind River Software Group develops and licenses embedded and mobile device software products, including operating systems, virtualization technologies, middleware, and development tools.

Non-Volatile Memory Solutions

Intel offer NAND flash memory products primarily used in solid-state drives (SSDs), portable memory storage devices, digital camera memory cards, and other devices. They offer SSDs in densities ranging from 32 gigabytes (GB) to 600 GB. Their NAND flash memory products are manufactured by IM Flash Technologies, LLC (IMFT) and IM Flash Singapore, LLP (IMFS).

Marketing

Intels global marketing objectives are to build strong, well-known Intel corporate brand that connects with businesses and consumers, and to offer a limited number of meaningful and valuable brands in the Intels portfolio to aid businesses and consumers in making informed choices about technology purchases. The Intel Core processors family and the Intel Quark, Intel Atom, Intel Celeron, Intel Pentium, Intel Xeon, Intel Xeon Phil, and Intel Itanium trademarks make up Intels processor brands.

Intel also promotes brands awareness and preference, and generate demand through its own direct marketing as well as through co-marketing programs. Intels direct marketing activities primarily includes advertising through digital and social media and television, as well as consumers and trade events, industry and consumers communications, and press relation. Intel markets to consumer and business audiences, and focus on building awareness and generating demand for new form factors such as tablets, Ultrabook devices and 2 in 1 system powered by Intel. Intels key messaging focuses on increased performance, improved energy sufficiency, and other capabilities such connectivity, communications, and security.

Purchases by customers often allows them to participate in cooperative advertising and marketing programs such as the Intel Inside Program. This program broadens to reach of Intels brands beyond the scope of their own direct marketing. Through the Intel Inside Program, certain customers are licensed to place Intel logos on computing devices containing Intels microprocessors and processors technologies, and to use Intels brand in their marketing activities. The program includes a market development component that accrues funds based on purchases and partially reimburses customers for marketing activities for products featuring Intel brands, subject to customers meeting defined criteria. These marketing activities primarily includes advertising through digital and social media and television, as well as press relations. Intel also entered into joint marketing arrangement with certain customers.

In 2014, Hewlett-Packard Company (HP) accounted for 18% of Intels net revenue (17% in 2013 and 18% in 2012), Dell Inc. (Dell) accounted for 16% of Intels net revenue (15% in 2013 and 14% in 2012), and Lenovo Group Limited (Lenovo) accounted for 12% of Intels net revenue (12% I 2013 and 11% in 2012). No other customer accounted for more than 10% of Intels net revenue during such periods.

Financial

For 2014, Intel reported record revenue of $55.9 billion, up 6% from 2013. Net income rose 22% to $11.7 billion, and earnings per share were $2.31. Our operating income of $15.3 billion was up 25% over 2013.We achieved record annual unit shipments for PCs, servers, tablets, phones, and the Internet of Things.

In PC clients, revenue of $34.7 billion was up 4% over 2013. Operating income of $14.6 billion was up 25%. We introduced the Intel Core M processor family, designed to enable superior compute and graphics performance and long battery life in razor-thin, fanless mobile devices. In Chromebooks*, Intel now leads in market segment share. In data center products, revenue was $14.4 billion, up 18% over 2013, and operating income increased 31% as we capitalized on the growth of cloud computing and big data.

During Q4 2014, the closing stock price conversion right condition of the 2009 debentures was met and the debentures wil be convertible at the option of the holders during Q1 2015. The excess of the amount of cash payable if converted over the carrying amount of the 2009 debentures of $912 million has been classified as temporary equity on our consolidated balance sheet as of December 27, 2014.

During 2013, management approved several restructing actions, including targeted workforce reductions as well as exit of certain business facilities.

The net revenue for the PC Client Group operating segment increased by $1.4 billion, or 4% in 2014 compared to 2013. PC Client Group platform units sales were up 8%, primarily on strength in the traditional PC business, while PCCG platform average selling prices were down 4%. The increase in revenue was driven by higher notebook platform unit sales of 11%. To a lesser extent, higher desktop platform unit sales of 3% and higher desktop platform average selling prices of 2% also contributed to the increases. These increases were partially offset by lower notebook platform average selling prices of 7%.

Operating income increased by $2.9 billio, or 25% , in 2014 compared to 2013, driven by $2.8 billion of higher gross margin and $109 million of lower operating expenses. The increase in gross margin was driven by approximately $1.2 billion of lower PCCG platform unit costs, approximately $930 million of lower factory start-up costs primarily driven by our next generation 14nm process technology, and higher PCCG platform revenue.

Net revenue for PCCG operating segment decreased by 1.4 billion dollars, or 4%, in 2013 compared to 2012. PCCG platform unit sales were down 3%, primarily on softness in the traditional PC business during the first nine month of the year.The decrease in revenue was driven by lower notebook and desktop platform unit sales, which were down 4% and 2% respectively. PCCG platform average selling prices were flat, with 6% higher desktop platform average selling price offset by 4% lower notebook platform average selling price.

Operating income decreased by 1.3 billion dollars, or 10%, in 2013 compared to 2012, driven by 1.5 billion dollars of lower margin, partially off set by 234 million dollars of lower operating expenses. The decrease in gross margin was driven by 1.5 billion dollars of higher factory start-up costs, primarily on our next generation14nm process technology, as well as lower PCCG platform revenue. These decrease were partially offset by approximately 520 million dollars of lower PCCG platform unit costs, 260 million dollars of lower excess capacity charges, and higher sell-through of previously non-qualified units.