case 1 Essay

Submitted By huongph24
Words: 1154
Pages: 5
Open Document
Intel’s Site Selection Decision in Latin America
According to the reading Intel’s Site Selection Decision in Latin America, it is well-known that Intel had a dramatic rate of growth in computing market after the contract between Intel’s first microprocessor. In order to maintain this competitive advantage and the innovation, the founder of Intel, Gordon Moore created the strategy based on the Moore Law, which was the power of microprocessors would double every 18 months if it was driven by the competitive market forces. To make the strategy above successfully, Intel needed to open the new plan at a rate of almost one every nine months. Also, this new plant need to have costs, such as labor costs, lower than in the United States to continue the competitive advantage of Intel. With the criteria above, Latin America offered the low labor costs and the logistical advantages for exporting products to two of the most consuming markets, which were the United States and Europe. In additional, Intel wanted to expand its locations all over the world that they already had in Asia but none in Latin America, which encouraged the Intel manager to develop in this emerging market. In order to create a successful international business, understanding which needed conditions of the new plant would be the first thing that any company should consider to, and Intel was not an exception. Ted Telford, a full time employee in Intel’s selection team had listed some main elements of a potential country, which were political and economic stability, labor unions and labor regulations, infrastructure, and the government incentives. First of all, under the condition of political and economic stability, there were some concerns, such as the change of government or economic policy, regulations, and security, which Intel selection team should take a look to prevent some negative effects. Some easy aspects that the team can research were current political issues, the trend of government or the government incentives. For example, with Costa Rica, it had the well reputation for political stability and democratic government. However, in contrast to the country above, Brazil had unitary political system with centered power in the national legislature and the president, and complex federal system. These conditions above from Brazil made Intel difficultly chose which state to invest based on the different tax policy and individual government incentive. Security is another issue rising more and more with the development of technology, and Brazil was one of the examples that had the rise of hijacking of truck in Sao Paulo. In addition, Intel selection team could look at the economic index to realize the trend in each country. The second element that Intel should consider to is labor unions and labor regulations. There are four key concepts rising in this aspect, which are whether or not be being labor unions which Intel officially prohibits, labor costs, relationship and culture between labor and management, and related government regulations. An illustrated example is combative labor unions in Costa Rica. While one was the government’s establishment of a national collective bargaining system, using wage boards to establish wage levels, which eliminated an important role for such unions; another was that unions could call a strike only if 60% of affected members signed a petition in favor of doing so, and a judge decided that the reason for the strike was valid. And during the time waiting for the decision, the employers could fire any workers who were involved. Infrastructure is the next element that Intel selection team should concern about, which is specific on transportation, cost, and electrical supply. The main problem was Intel would need to export all of its chips by air, therefore, they need valuable flight price and distance, and also a good ground transportation to deliver material on time. However, In Costa Rica, the airport did not offer sufficient
Show More

Related Documents: case 1 Essay

Case 1 1 Essay

Subject: Case 1-1 Ribbons an’ Bows, Inc. Financial Standing I have been asked to share my opinion on the financial standing, profitability, why the decline in cash after three months, and whether I consider the first three months successful for the business, Ribbons an’ Bows. The summary of the financial situation is presented below, followed by my opinion of the situation. Carmen Diaz opened Ribbons an’ Bows, Inc. on April 1, 2010 from the help of two cousins loaning a total amount of $10,000…

Words 755 - Pages 4

Essay Case 1

CASE 1: GROUPON (Due 10/26/2014 10:00PM) Case Requirements: Form a group of no more than 4 students. Go to the SEC website (www.sec.gov) and locate Groupon’s initial registration statement (S-1) dated on 06/02/2011, the SEC’s comment letter dated on 06/30/2011, Groupon’s response on 07/14/2011, and Groupon’s revised registration statement (S-1/A) on 11/01/2011. Read relevant materials from the SEC’s website and the FASB Accounting Standard Codification system. Answer the following 6 questions…

Words 405 - Pages 2

Essay on CASE 1

The fit stop case study Wei Zheng 200084324 Overview: Susan Superfit who is a founder of brand new sport equipment firm. The firm plans to specialize in this equipment and provide customers with personalized advice geared to customer needs. She hope her firm can help customer choice which equipment is more suitable. She came up with the idea for this business during her recovery. She found that most of seller lacked in knowledge for equipment; therefore, they often gave poor advice…

Words 676 - Pages 3

Case 1 Essay

1. Consider a 1-Year $10,000 CD A. The future value of a $10,000 CD that has a maturity of 1 year at maturity with 10% interest is $11,000. Financial Calculator Inputs: $ -10,000=PV, 1=N, I=10, FV=? ($11,000) B. The future value of a 1-year, $10,000 CD after one year at an interest rate of 5.0% is $10,500. Financial Calculator Inputs: $-10,000=PV, 1=N, 5=I, FV=? ($10,500) The future value of a 1-year, $10,000 CD after one year at an interest rate of 15.0% is $11,500. Financial…

Words 2175 - Pages 9

Case 1 Essay

20 were residents of North Carolina.Each of the individuals sampled was given a standardized test to measure depression. The data collected follow; higher test scores indicate h igher levels of depression. These data are contained in the file Medical 1.A second part of the study considered the relationship between geographic location and depression for individuals 65 years of age or older who had a chronic health condition such as arthritis, hypertension, and/or heart ailment. A sample of 60 individuals…

Words 365 - Pages 2

Case 1 Tecoids

PPDPT 1613: CASE 1: NSAIDS & CORTICOSTEROIDS NJ is a 72 year-old female who has been receiving PT as an outpatient to improve her range of motion (ROM). You are now seeing her as an inpatient for gastrointestinal bleeding. Her previous medical history (PMH) is significant for rheumatoid arthritis and coronary artery disease. Her current medications include: 1. Ibuprofen :NSAID 2. Isosorbide mononitrate: NITRATE 3. Aspirin enteric-coated (low dose -…

Words 956 - Pages 4

Case 1 Essay

Case 1: The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues Q1. Review the case details Exhibit 5 “Survey Questionnaire and Response Distributions” and Exhibit 6 “Buckingham’s pricing matrix worksheet.” Complete filling in the pricing matrix worksheet for Exhibit 6 as taking the role of Larry Buckingham. The Table 1 illustrates Larry Buckingham’s price matrix. Table 1: Larry Buckingham’s price matrix Ticket…

Words 2064 - Pages 9

Case #1 Essay

retailers products or services. -In 1 or 2 paragraphs, evaluate the effectiveness of the retailer social media efforts. Make sure to make reference to the retail market segment that this retailer is targeting and whether or not the social media actives are relevant to promoting the products or services to the target market. NOTE: Please use the forms provided below for this part of the assignment RETAIL SOCIAL MEDIA CASE – Company Profile STUDENT NAME: Retailer #1: H&M Retailer URL : www.hm…

Words 1317 - Pages 6

Essay on Case 1

First Keystone Bank Case 3.4 02-01-2015 1. Internal Controls: Audit should be performed weekly/monthly by an outside auditors or account. Someone unconnected to the records/balance sheets A segregation of duties, never allow one person to complete a transaction from start to finish Rotate personnel, this should be done randomly and for a lengthy period of time to make it effective Require vacation to be taken yearly by personnel and for at least one-two weeks, therefore putting someone else in the…

Words 328 - Pages 2

Essay on Case 1

Case 1: MHA Textile Corporation Over the last 15 years, MHA Textile Corporation has been one of PwC’s audit clients and has established a professional, constructive working environment with them. Currently, NYH, one of MHA Textile Corporation’s subsidiaries, is going through some tough economic times that have seen it layoff employees in their accounting department and has implemented many cost-cutting strategies in order to remain profitable. Due to the many employee layoffs, the accounting department’s…

Words 963 - Pages 4