Intel: Balanced Scorecard & Segmentation

Balanced Scorecard & Segmentation Criteria – Intel Corporation Industrial Marketing Assignment  Assignment 

Vipul Satya - 34141 Ankur Paul - 34149 Bhargav Kapadia - 34174 Pranjal Sharma – Sharma – 34201

Balanced Scorecard Balanced Sco recard - Intel Corporation Strategic Priorities

Financial

Customer

Internal

Objectives

Measures

• Making and supporting the business decisions • Provide business analyses • Recommendations and solutions to operating groups

• Cross-functional business partnerships • Business Directional Changes • Cash Savings & Maximization

C1) Expanding capabilities to a computing solutions p rovider C2) Establish new technologies for effective and efficient societal functioning

• Identifying and creating new markets • Compete in each relevant market segment • Use expertise & core competencies in the design and manufacture of new product sets

• Expand smartphone SoC and communications product roadmaps for the performance and value smartphone market segments • Expansion into Services - Intel AppUp, Wind River • Expansion into Software - Intel Soft Network, MeeGo, Clik  • Expansion into Platforms - vPro Technology

I1) create value for Intel and for society

• Cultivate a safe, respectful, and ethical work environment • Development of energy-efficient computing technologies • Inspiring the next generation fueling innovation and sustainable economic development

F1) Influencing decisions which maximize shareholder value F2) Keep Intel on solid financial ground

• Uniform global Code of  Conduct

• Build a workforce on the values of  • Identifying underperforming discipline, quality and risk-taking • Equal employment opportunities divisions and pinpointing cost for all applicants and employees inefficiencies • Empowering female workforce & • Linking annual employee ease the effects of working in a male- bonus to sustainability factors dominated environment

Learning & Growth

Sources http://www.intel.com/jobs/careers/finance/ http://www.imanet.org/PDFs/Public/SF/2005_10/10_05_boedeker.pdf  http://www.treasuryandrisk.com/2012/03/19/positioning-for-the-future http://www.eweek.com/c/a/Desktops-and-Notebooks/Intel-Strategy-to-Grow-Beyond-PC-ServerChips-Paying-Off-Analyst-117012/ http://www.intel.com/content/dam/doc/report/corporate-responsibility-2010-report.pdf  http://businesscasestudies.co.uk/i ntel/identifying-and-creating-new-markets-a-new-strategy-for-aglobal-leader/introduction.html http://www.simply-communicate.com/case-studies/company-profile/how-intel-empowers-theirfemale-work-force

Targets

Initiatives

• Maximizing and growing profits to the extent of $4 billion in 2013 • Ensuring legal compliance • Finance Business Partner Model of  • Effective risk control working • Developing world-class financial professionals • Working with customers to share a vision of future technologies • Developing new customer focused technologies • Restructuring of Business • Giving people new products that Objectives and focus are easy to understand and use • Communicating clear messages about these new products • Concentrate on emerging markets • Improve computing energy efficiency by 50% • Collectively save $5.5 billion in energy costs • Leverage Computing to Drive Energy Savings through - Automation - Substitution - De-materialization • Implementing review based changes • Arming women employees with the • Women's Leadership Council skills they need • Giving women a voice • Helping women achieve a successful work/life balance

SEGMENTATION CRITERIA Macro Segmentation Characteristic of the buying organization: Geographical Location: In 2008, Hewlett-Packard Company accounted for 20% of our net revenue (17% in 2007) and Dell Inc. accounted for 18% of our net revenue (18% in 2007). Original equipment manufacturers (OEMs) and original design manufacturers (ODMs) who make computer systems, cellular handsets and handheld computing d evices, and telecommunications and networking communications equipment; PC and networ k communications products users (including individuals, large and small businesses, and service providers) who buy PC components and board-level products, as well as our networking and communications products, through distributor, reseller, retail and OEM channels throughout the world; and other manufacturers, including makers of wide range of industrial and communications equipment. 

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Company Size: Several major personal computing, mobile computing and other microprocessor intensive market are the main customers of INTEL. The company sizes of some of t he major customers like DELL, HP, Google, Facebook, Acer, Samsung, Apple etc. is huge and has constant demand for different products manufactured by INTEL. Usage rate (Non user, light user, moderate user or heavy user) Above mentioned companies are in the category of heavy users and the demand is surging due t o the high quality and consistent performance by the INTEL product categories. To have a check on the competit ion, INTEL has been offering their products with some amount of discounts.

Product/Service application End user application INTEL’s products are used directly by almost all the customers as they are standardized for all the customers. Some players do tweak the product but the population that does so is very less compared to the others and thus INTEL does not have to make that as a specific segment. 

Characteristic of Purchase situation: Type of buying situation (straight rebuy, modified re buy or new task) Straight rebuy: INTEL has been supplying to several of the major players at a constant rate and the market o has understood the pricing mechanism that it has been following. To tackle t o this issue, INTEL has been continuously enhancing its product through R&D, making its products better every year. This gives them advantage in the pricing decision. 

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Stage in purchase decision process: Most of the customers for INTEL are b een with them since almost 10 years or more. Hence INTEL has had a great relationship with the companies like DELL, HP, Samsung, Compaq, Toshiba etc. hence t he company is in late stage of  purchase decision process. New bidding processes are also done mainly t hrough competitive bidding.

Micro segmentation Purchasing strategies 2 different segments can be seen in the case of INTEL, firstly it gives orders to the vendors they know very well and they know that the r equirement will be satisfied. Other is th e competitive bidding process. As the requirement of  material and the volumes in operations for INTEL are very high, it simply gives orders to the reliable sources though keeping prices under check. 

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Structure of decision making units Most of the decision makers the company deals with are market leaders and also the positioning of INTEL’s product is in such a manner which helps them to command a premium over the competitors. Attitudes towards vendor Decision maker is usually a partner, supporter or neutral in the case of attitude towards the vendor.