The technology industry is one of the most competitive. To survive in this industry, firms need to innovate and provide their customers with products which meet their needs and are significantly distinguished from what rivals make. Intel is among the firms in this industry whose success can be attributed to its commitment to innovation. Producing components that power computing devices, this firm continues to supply markets with innovative products. In addition to innovation, the firm’s success is also driven by its objectives and strategies which are aligned with its mission, vision and values.
Short and Long-Term Objectives
The objectives that a firm pursues play a critical role in shaping its level of success. While the objectives should be ambitious, they should also serve specific purpose and be attainable. In the following section, an analysis of the short and long-term objectives that Intel is pursuing is offered.
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Meaning and Purpose of Objectives
In an effort to determine the goals that Intel is pursuing, an interview with one of the firm’s senior managers was conducted. According to this manager, among the firm’s short-term goals include empowering innovators and promoting diversity. Essentially, these goals mean that the firms wishes to provide its employees with the skills and support that they need to push the firm to new heights of innovation. The purpose of this goal is to enhance the firm’s competitiveness and facilitate the attainment of its mission. Regarding diversity, the firm strives to ensure that its workforce is representative of the demographic profile of the communities with which they work. Establishing a sense of community and creating an environment that bolsters engagement are the primary purposes of these goals. There is no doubt that if fully implemented, Intel’s short-term goals will enhance its competitive advantage. It is understood that innovation and diversity are some of the main drivers of competitiveness (Doran & Ryan, 2014). Apart from the short-term goals, Intel has also identified a number of long-term goals that it believes hold the key to its future. These goals include bridging skills gap among the youth and empowering them to create change in their communities. Basically, these goals mean that Intel is extending its mission its internal environment; it wishes to have a lasting impact on communities. These goals are designed as part of the company’s corporate social responsibility (CSR) package. CSR is among the tools that firms use to boost their image and to gain the confidence and support of communities (Chemev & Blair, 2015). It is reasonable to assume that in supporting the world’s youth, Intel is seeking to improve its image and obtain support.
Alignment of Objectives with Mission, Vision and Value Statements
As they develop and pursue their objectives, firms should ensure consistency with their mission, vision and value statements. An analysis of Intel’s statements shows that they are in line with the short and long-term goals discussed above. The firm’s mission statement reads as follows “utilize the power of Moore’s Law to bring smart, connected devices to every person on earth” (“What are Intel’s Mission”, n.d). Through this statement, Intel indicates that it desires to leverage innovation to impact communities through the devices that it produces. This statement echoes the objectives discussed above. For example, as already noted, one of the objectives involves empowering the youth by bridging the skills gap. This goal shows that Intel is dedicated to use its devices to transform the world’s young population. Its vision statement also captures its desire to transform the world. This statement is as follows: “if it’s smart and connected, it’s best with Intel” (“What are Intel’s Mission”, n.d). While concise and simple, this vision statement summarizes Intel’s deepest and most desperate desire. Through the statement, the firm indicates that it seeks to develop technologies that are smart and facilitate connections. It is evident that in formulating its goals, Intel was guided by its vision. All the firm’s goals are geared towards enhancing its relationships with its stakeholders. This shows that the connections captured in its vision underlies its goals.
In addition to the mission and vision, Intel also received inspiration from its values when it identified the goals to strive toward. Quality, risk taking, inclusivity, discipline, customer orientation and results orientation are the primary values that Intel upholds in its operations (“What are Intel’s Mission”, n.d). During the interview, the manager confirmed that these values inform the company’s goals. For example, empowering the workforce is part of the firm’s efforts to enhance inclusivity, diversity and to obtain positive results. Overall, Intel’s long and short term objectives are mirrored in its mission, vision and values. It is not surprising that the company continues to thrive as its competitors struggle to hold on to their market share.
Assessment of Quality of Objectives
Whereas it is critical for firms to align their objectives with their values, mission and vision, it is also vital for the companies to ensure that these goals satisfy the criteria for quality and effectiveness. Among the elements in this criteria include attainability, specificity and measurability. It is also important for goals to be time bound and realistic. Overall, Intel’s goals fail to fulfill these guidelines. For instance, the goals are rather general and lack time bounds. To address these shortcomings, Intel should make its goals more specific and introduce timelines. For example, the company could modify its goal regarding empowering the youth to focus on the young people in Africa and state that this goal is to be attained by 2025. While the goals have some shortcomings, they are indeed attainable. For instance, among the goals that the firm wishes to attain is to use its innovative prowess to transform communities. Already, Intel has established programs through which it safeguards the wellbeing of communities. In its report on CSR initiatives, the company mentions that it has invested in such endeavors as environmental protection and championing for human rights (“Corporate Responsibility at Intel”, 2017). These investments show that the firm’s desire of transforming communities is as valid as it is attainable.
Evaluation of Strategic Goal Profile
Alignment of Strategies with Goals
Value disciplines, generic strategies and grand strategies are some of the processes that facilitate business success. Essentially, value disciplines refer to the specific focus of a company’s operations as it seeks to gain and maintain a competitive edge. There are three primary value disciplines: operational excellence, product leadership and customer intimacy (Payne & Frow, 2013). These disciplines are designed to challenge a firm to leverage its resources and advantages to gain an edge over its rivals. Generic strategies refer to the approaches that a firm selects from a group of commonly applied techniques in an effort to enhance competitiveness. Cost leadership, focus and differentiation are the main generic strategies. On the other hand, grand strategies are the combination of processes and approaches that a firm applies in the pursuit of its long-term objectives. As is the case with generic strategies, the grand strategies are intended to enhance competitiveness.
Innovation is at the core of Intel’s value discipline. The manager who was interviewed shared that the company strives to develop products which captivate its customers and enable it to outperform competitors. Since it emphasizes innovation, Intel’s value discipline is captured by the product leadership element. The firm aims to ensure that its products are better than what its rivals make. The company has also invested heavily in establishing close connections with its customers through superior products and CSR initiatives. Regarding focus, Intel’s area of operation is rather wide. It develops products for a wide range of computing devices. Combined, its three value disciplines enable it to maintain its grip on the market.
Grand and generic strategies are other elements of Intel’s operations. The firm’s main grand strategy lies in diversification. Historically, the firm has been involved in the personal computer (PC) business. As the competition in the industry intensifies, it has seen the need to invest in such new areas as cloud computing (Krzanich, 2016). Cost leadership appears to be the main generic strategy that Intel is implementing. As part of efforts to minimize costs, the firm implemented a restructuring initiative which saw thousands of employees lose their jobs (Moorhead, 2016). The restructuring is intended to enable the firm to offer its products at lower costs and to achieve higher operational efficiency. A wide focus is another generic strategy. As already noted, the company develops components for various computing devices. Its wide range of products is clearly intended to allow it to serve as wide a market as possible.
Consistency of Strategies with Mission, Vision and Value Statements
In an earlier section, it was noted that Intel’s mission challenges it to promote connections using technology while it derives inspiration to innovate from its vision. The company is also guided by a set of values which include quality, risk taking and customer orientation, among others. On the whole, the strategies and the value disciplines discussed above are aligned with the mission, vision and values. For example, it has been observed that diversification is the firm’s primary grand strategy. If fully implemented, this strategy will enable the firm to reach more customers, thereby bolstering connections. Its generic strategies include cost minimization and broadening its focus. The relentless pursuit of these strategies will help the firm to establish an operational environment where customers are the center of focus. Furthermore, through these strategies, Intel will be displaying its faithfulness to such values as customer orientation and risk taking. There is no doubt that Intel’s mission, vision and values are not mere empty rhetoric. They are solid processes which continue to govern how the company operates.
Alignment with External Environment and Competitive Position
Intel does not operate in a vacuum. It is part of an industry that is intensely competitive. There is indeed a need for the firm to ensure consistency between its strategies and the environment in which it operates so as to improve its competitive position. Apart from stiff competition, Intel’s operating environment is also defined by rapid technological advancements and customers are demanding better quality and treatment from companies (FTC, n.d). Given Intel’s value disciplines, and generic and grand strategies, it can be predicted that this firm will thrive and outperform its competitors. While they address different issues, the value disciplines and strategies are all designed to steer the firm to new levels of growth and competitiveness. For instance, thanks to the restructuring program that it has implemented, Intel will be able to offer products at lower costs without sacrificing quality. The firm’s strategies also drive it to innovate. Since the strategies and value disciplines seek to boost Intel’s competitiveness and account for the realities in the technology industry, one can conclude that strategies and disciplines are effective.
As noted above, Intel faces tough competition from other technology companies. According to the manager who participated in the interview, Qualcomm, Texas Instruments and Advanced Micro Devices pose the greatest competitive threat. The responses that the manager offered indicated that Intel recognizes that if it is to thrive, it must tackle the competition that its rivals present. In addition to the strategies and measures already discussed above, the firm has adopted horizontal diversification through which it has ventured into new areas of operation, and is also encouraging its employees to take risks as they innovate. Combined with the other strategies, these measures promise to solidify Intel’s competitive position.
Strategic Choice Recommendations
There is no doubt that the current strategy that Intel is implementing is among the factors fueling its growth. However, the company can still benefit from strategic recommendations. In the following section, the strategies that Intel should adopt are outlined.
Value Disciplines
It has already been stated that value disciplines concerns how a firm distinguishes itself from its competitors. Currently, product leadership is the focus of the company’s value discipline. While product innovation has propelled Intel to the top of industry, it is not sufficient to sustain the company’s dominance. It is recommended that the firm should invest more in customer intimacy. It is true that Intel strives to provide its customers with unrivalled experiences. However, if the firm is to stave off the stiff competition that it faces today, it must offer even better customer experiences. For instance, the company could establish adequate and effective processes for obtaining and responding to customer feedback. Satisfied customers hold the key to sustainable business success.
Grand and Generic Strategies
The generic and grand strategies that Intel is implementing are inspired and well-designed. However, the pursuit of different strategies could further enhance the company’s competitive advantage. Entering markets that it has neglected is the grand strategy that Intel is advised to adopt. Currently, North America and Europe are the main markets that Intel is serving. Its operations in such other markets as Africa and Asia are rather limited. The firm can exploit the opportunities that these markets present by establishing a presence here. Cost leadership has been identified in a previous section as the main generic strategy that Intel is pursuing. Thanks to this strategy, the company has managed to keep its costs low and attain enhanced efficiency. For even better performance, Intel should embrace differentiation. It should take steps to distinguish its products from those of its rivals. For example, the firm could imbue its processors with unparalleled computing power. As it does this, it will provide customers with a basis to purchase its products over alternatives available in the market.
In conclusion, Intel embodies innovation. Since its establishment, this firm has impressed customers with its cutting-edge technologies and products. Despite its focus on innovation, the company is facing stiff competition today. To tackle the competition, it has developed goals and is implementing strategies designed to improve its competitiveness. The goals and strategies are also aligned with Intel’s mission, vision and values. Thanks to these goals, Intel has minimized costs and achieved higher engagement with employees, customers and communities. For the company to record even better performance, it needs to enter new markets and incorporate differentiation into its strategies.
References
Chemev, A., & Blair, S. (2015). Doing well by doing good: the benevolent halo of corporate social responsibility. Journal of Consumer Research, 41 (6), 1412-25.
Corporate Responsibility at Intel. (2017). Intel. Retrieved December 4, 2018 from http://csrreportbuilder.intel.com/PDFfiles/CSR-2017_Full-Report.pdf
Doran, J., & Ryan, G. (2014). The importance of the diverse drivers and types of environmental innovation for firm performance. Business Strategy and the Environment, 25 (2), 102-19.
Federal Trade Commission (FTC). (n.d). Competition in the technology marketplace. FTC. Retrieved December 4, 2018 from https://www.ftc.gov/tips-advice/competition-guidance/industry-guidance/technology
Krzanich, B. (2016). Brian Krzanich: our strategy and the future of Intel. Intel. Retrieved December 4, 2018 from https://newsroom.intel.com/editorials/brian-krzanich-our-strategy-and-the-future-of-intel/
Moorhead, P. (2016). Intel’s new strategy is the right one for the company. Forbes. Retrieved December 4, 2018 from https://www.forbes.com/sites/patrickmoorhead/2016/04/28/intels-new-strategy-is-the-right-one-for-the-company/#7c49b79a41e3
Payne, A., & Frow, P. (2013). Strategic customer management: integrating relationship marketing and CRM. Cambridge: Cambridge University Press.
What are Intel’s mission statement, values and objectives? (n.d). Intel. Retrieved December 4, 2018 from https://www.intel.com/content/www/us/en/support/articles/000015119/programs.html
