In September, 2006, Paul Otellini, CEO of Intel Inc., a computer chipmaker, announced the company's plan to eliminate 10,000 jobs, approximately 10% of the company's worldwide workforce of 100,000 employees. Many of the job cuts would be in the marketing area, as company studies concluded that the company's ratio of marketing personnel to salespeople was higher than that of competitors. This move follows the layoff of 1,000 managers in July, 2006. The strategic moves were in response to Intel's lost market share to rival Advanced Micro Devices in recent years and 57% drop in net income and 13% drop in revenues from the previous fiscal year. (News.Com. September 5, 2006)
Required:
(a) Describe the quantitative aspects of Intel's decision.
(b) Describe the quantitative aspects of Intel''s decision.
(c) What step in Intel's value chain is impacted by this decision?

Question

Quizplus · Accepted Answer

The Answer of In September, 2006, Paul Otellini, CEO of Intel Inc., a computer chipmaker, announced the company's plan to eliminate 10,000 jobs, approximately 10% of the company's worldwide workforce of 100,000 employees. Many of the job cuts would be in the marketing area, as company studies concluded that the company's ratio of marketing personnel to salespeople was higher than that of competitors. This move follows the layoff of 1,000 managers in July, 2006. The strategic moves were in response to Intel's lost market share to rival Advanced Micro Devices in recent years and 57% drop in net income and 13% drop in revenues from the previous fiscal year. (News.Com. September 5, 2006)
Required:
(a) Describe the quantitative aspects of Intel's decision.
(b) Describe the quantitative aspects of Intel''s decision.
(c) What step in Intel's value chain is impacted by this decision?