...Case Analysis: The Intel Pentium Chip Controversy (A) Immediate Issue: As Andrew Grove, during my meeting of December 17,1994 with my internal team, Should I approve replacing the defective Intel chips of all concerned users with no-question asked? Also, should we also pay for the labor and other incidental costs? How should we integrate our decision into our financial books? Basic Issues: • Negative Publicity: Since Oct 30th, we have encountered a self-propelled negative publicity campaign against Pentium brand and it doesn’t seem to fade away if we don’t do anything. • Business Ethics: We knew this problem since October, but tried to hide it with the hope that it will fade away. We will be scrutinized from an ethical perspective. • Cost of my decision: How much would it cost to replace the defective chips (fully or partially)? How much would it cost if I do nothing? • Risks and Liabilities: Some of our chips are being used by large engineering firms, financial industry, research firms and educational institutes. Is there a chance that we may be sued for damage to our users? What if our chips are used in a space program? • Role of the Internet: The pace at which it went from a simple technical report by Dr. Nicely to a full fledge all media campaign against Pentium within a short period of time emphasizes to me that I can’t underestimate the power of internet. • Major players in the market: Nothing hurt us more than IBM announcement to drop Pentium...
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...CASE STUDY: Chipping Away at Intel General Environment 1. Social Important as a semiconductor business, provided as the biggest chip maker in the industry. Intel’s mindset is toward better customer relations and away from perspective of being the only real competition in the marketplace. 2. Technological Concerned with chip making for PCs but then went beyond it into the production of information and communication appliances as well as providing services related to the Internet. Barrett created a new wireless unit that combined new acquisitions such as DSP Communications Inc. ( a chipset supplier for digital communications) with Intel’s memory operations. 3. Economic Affected by Septemeber 11, 2001 and needed to withdraw investments in new markets (production of network servers and routers and e-commerce service for small businesses) due to direct result of the downturn in economic condition. Intel’s shares also suffered. At $26, were down to 60 pecent compared to their highest over the previous years and get worse after the downturn and fell further to $20 by October. 4. Ecological Not being mentioned in the case. 5. Political Operates on a global basis and so be attuned to different governmental and country requirements in its distribution and sales. The manufacturing plant in Hamburg, Germany suggests an important political dependency that must be monitored. Task Environment...
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...Unit 5 Analysis 1: Pentium Flaw The Pentium flaw was discovered by Intel testers in June of 1994. Intel determined that the flaw did not affect many people and did not inform anyone outside the company. Intel withholding this information was a recipe for disaster in the first place. This lead to the customers of Intel to assume that the company was not completely trustworthy. Finally in November of 1994, Intel announced the flaw, although they have known about it for months. Intel did not handle this problem correctly. Intel should have at first notice of the flaw conducted a full recall of all the processors possibly affected. Not announcing a flaw of this level was a huge error on Intel’s part. They could have announced the problem and offer fixes to address the issues at hand. Waiting to announce this until months after the fact was a huge let down for customers. Customers expect that if a company finds a problem with their products that they inform them about it and provide a fix to the problem. Intel finally announces in December of 1994, that there would be a total recall, replacement, and destruction of all of the flawed processors. Something that should have happened months before. Finally, they have done right. Intel commits to purchase of all chips produced through the end of the year in January 1995. Intel sets aside 420 million dollars to cover costs of replacing all flawed processors upon request in mid-December 1994. If a flaw of this nature happened again...
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...Pentium Flaw In the summer of 1994, Intel discovered the Pentium Flaw. Once discovered they decided that their chips did not need to be recalled because the chance of the average user finding out about the error was 1 in 9 billion. Thomas Nicely, a professor at Lynchburg College in Virginia, made the error public. He had sent an e-mail to several colleagues. Nicely was using a few computers to compute mathematical problems. He wanted to prove they had enough power to do so. I feel Intel did not handle the problem professionally at all. While Intel knew that there was a flaw in the chip, they continued to send out a defective product. Regardless of who might discover the error, they should have recalled the chip to have them replaced. By deciding to send out the flawed processor, this probably helped the company as well. Before this mistake, not many people were aware of Intel. After months of research, Intel finally decided to recall the chip. Thomas Nicely had then run over a quadrillion calculations on a revised chip and was unsuccessful of reproducing the error. I am unsure of the outcome if a similar flaw like this were to happen today. With the help of social media and the internet, word of any flaw or error today would spread like wildfire. The old rule of thumb is 1 tells 10, well now it's more akin to 1 tells 10,000. I believe that if a homogeneous situation were to occur it would be handled expeditiously and promptly. I’m sure Intel has new policies in place to deal...
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...Professor Thomas Nicely discovered the “Pentium Flaw” June 1994. Basically Thomas was adding a Pentium system to some computers when he noticed some calculations were wrong. He then contacted Intel and told them about the problem. Ironically the person he contacted at Intel already knew about the problem but never said anything. He then contacted people to see if they were also having the same problem. After a couple days Thomas wasn’t the only person who realized there was a problem. People around the world who had access to the Internet found this out. The diversion result from Pentium was off by sixty-one parts per million. Intel then was forced to tell people about this hiccup but said that it was of little importance and that it wouldn’t affect most people in a big way. Even though this was most likely true it made everyone feel like they messed up and nobody wants something that doesn’t work how it’s supposed to even if it’s off a little. Intel then felt the need to tell customers that if their Pentium chip was flawed in any way they would replace it with Pentium chips that were flawless. Not a lot of people even bothered to replace their chips at all. In, 1995 Intel had to pay $475 million because of the flawed processors. My opinion on the “Pentium Flaw” is that it is a complete outrage. Everyone always wants the best of the best and if it has a flaw people tend to keep away from it. If the new IPhone came out the same day as the new Galaxy S3 and there...
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...Future Statement For this report I am to write of a technology that I could see evolving in the near future and so the technology I could possibly see becoming widespread is micro chip implantation , able to store, transmit, and capture data in real time with other chips or servers like using your identification or even a debit card to even a hand held gps unit and compacting it all into a chip the size of a eraser and implanting it into a humans limb now this by its self is amazing but then the limitations grow exponentially. The first impact this could have would be with Society. Now Society as a whole might clash with this concept at first due to some fundamental human traits such as invasion of privacy, This chip if left unchecked could function the same as a gps unit and give someone the ability to track individuals making such things as missing person’s would be much easier to find. The second impact would be Economy. This could change everything we know about current banking practices by allowing your banking information to implanted on this micro chip and injected in to yourself so that instead of swiping a card your data is automatically registered and updated with your actual bank to route funds and make payments and deposits. The third and final impact I could foresee is Politics. Now imagine a world where your personal and life data is stored on your body and can be accessed there would surely be very little information that could not be accessed either by...
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...Pentium System to his computer group. Upon Further inspections and calculations, he contacted Intel with his results. Intel denied that there was a problem with their chips. When it became clear that their chips were flawed, and the accusations were true. Intel changed its policy, admitting that their chips were indeed defective. Intel agreed to replace the defective chips for free, but only if the uses could demonstrate that they needed and unflawed chip. In the fall of 1994, IBM decided to halt all shipments on their Pentium based computers. After they discovered the Flaw during their testing. Intel finally agreed to replace the flawed microprocessors for anyone who asked for a replacement. Because Intel new about the Flawed chips before it surface in the press. They had already corrected the problem on another version. Intel continued to sell the Flawed chips, and had planned to continue its bad practices until the bad chips were exhausted. In doing this Intel had to write off 475 million dollars to solve the problem, when they could have corrected it from the beginning. Intel has learned from their mistake and now feel that flawed chips should be replaced before and upon request, no matter how insignificant the problem seems to be. If the same flaw was to happen in a new CPU today, I think especially if the company decided to cover it up like Intel did. It would cost the company a lot of money. Consumers would probably take their business...
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...topics in this overview, visit www.intel.com/go/responsibility to view or download our 2008 Corporate Responsibility Report, prepared using the Global Reporting Initiative’s G3 Sustainability Reporting Guidelines. What can we make possible? The paper is certified Ancient Forest Friendly and according to Forest Stewardship Council (FSC) standards. Contains 100% post-consumer recycled fiber and is processed chlorine-free. Produced at an FSC-certified printing facility. Copyright 2009 Intel Corporation. All rights reserved. Intel, Intel logo and Intel Core are trademarks of Intel Corporation in the U.S. and other countries. © *Other names and brands may be claimed as the property of others. Recycled Supporting responsible use of forest resources 0509/SPF/LAI/AP/7.5K Please Recycle To view or download the Intel 2008 Corporate Responsibility Report, visit L E T T E R F R O M O U R C E O www.intel.com/go/responsibility Throughout our 40-year history, Intel has pushed the boundaries of innovation, creating products that have fundamentally changed the way people live and work. But what we make possible goes well beyond our product roadmap. By working with others, we are finding opportunities to apply our technology and expertise to help tackle some of the world’s greatest challenges—from climate change and water conservation to education quality and the digital divide. Our commitment to corporate responsibility is unwavering, even during economic...
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...Intel Corporation is an American multinational corporation headquartered in Santa Clara, California. Intel is one of the world's largest and highest valued semiconductor chip makers, based on revenue.[4] It is the inventor of the x86 series of microprocessors, the processors found in most personal computers. Intel Corporation, founded on July 18, 1968, is a portmanteau of Integrated Electronics (the fact that "intel" is the term for intelligence information also made the name appropriate). Intel also makes motherboardchipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. Founded by semiconductor pioneersRobert Noyce and Gordon Moore and widely associated with the executive leadership and vision of Andrew Grove, Intel combines advanced chip design capability with a leading-edge manufacturing capability. Though Intel was originally known primarily to engineers and technologists, its "Intel Inside" advertising campaign of the 1990s made it a household name, along with its Pentium processors. Intel was an early developer of SRAM and DRAM memory chips, and this represented the majority of its business until 1981. Although Intel created the world's first commercial microprocessor chip in 1971, it was not until the success of the personal computer (PC) that this became its primary business. During the 1990s, Intel invested heavily in new microprocessor designs fostering...
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...trends. Intel company is a great example of their always trying to keep up with the consumers trends. Due to the rise of smartphones and tablets, the sales of PC’s have been declining in the past few years. Intel has created a product that will help them with their declining pc sales. Intel had started from humble beginnings. Intel Corporation was formed in Mountain View, California in 1948. It was founded by Gordon E. Moore who was a chemist, Robert Noyce who was a physicist and Arthur Rock who was an investor/venture capitalist. Originally they wanted to name the company Moore Noyce but it sounded like “more noise” which meant that the technology was having some problems. It was initially call NM electronics then it was later called Integrated Electronics (Intel). In its early years, Intel were able to distinguish themselves by making semiconductors. Their first product was a 64 bit random access memory (RAM), which was able to outpace its competitors. In the same year Intel released their 1024 bit read only memory (ROM). By the 1980’s Intel sales were declining because the growing success of IBM. Intel decided to shift it’s focus to microprocessors. For 10 years, Intel was the primary supplier to the PC industry. By 1991, Intel was able to create brand loyalty with customer selection. At the turn of the century, the demand for their high end microprocessors slowed down. Intel biggest competitor, AMD, had the biggest share of the market, so Intel decided...
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...reported in 1994. The Intel P5 chip was found to have a floating point unit bug that made digital divide operation in algorithms flaw after the 4th decimal point. I will also be touching on the contributions of Professor Thomas R. Nicely and the time line on which he brought attention to the bug from the Intel P5. The Pentium FDIV bug The Pentium FDIV bug was first discovered by a professor named Thomas R. Nicely from Lynchburg College in Virginia. He discovered there were a few missing entries in the lookup table by the digital divide operation algorithm. Sadly Intel knew about the bug when they were testing the chip in June of 1994. Intel’s managers decided the error would not affect as many people as it would to issue a recall, and that they should not inform anyone outside the company. Later thet same month Dr. Nicely, a professor of mathematics noticed small differenced in two sets of numbers. Dr. Nicely spent months eliminating possible causes such ad PCI bus errors and compiler artifacts. October 19th after testing on several 486 and Pentium-based computers Dr. Nicely was certain that the error was caused by the Intel P5 processor. On the 24th of October he contacted Intel technical support and the support representative confirmed the error and said that it was not reported before. Then on October 30th after receiving no more information from Intel he sent an email message to a few people, announcing his discovery of a bug in the Intel P5 processor. From there...
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...TASK 1 AbaKus Technology Interest Group at IIMK INTRODUTION Founded on July 18, 1968 by Robert Noyce and Gordon Moore, Intel manufactures the Intel computer processors, Intel Overdrive CPU upgrades, networking devices, and is considered by most to be 'the' company that has influenced the hardware market. The Company offers platforms that incorporate various components and technologies, including a microprocessor and chipset, a stand-alone system-on-chip (SoC) or a multichip package. The Company offers microprocessors with one or multiple processor cores. In addition, its Intel Core processor families integrate graphics functionality onto the processor die. The Company offers and develops SoC products that integrate the Company’s central processing units (CPU) with other system components, such as graphics, audio, imaging, communication and connectivity, and video, onto a single chip. The Company offers a multichip package that integrates the chipset on one die with the CPU and graphics on another die, connected through an on-package interface. The Company also offers fifth generation Intel Core processor, code-named Broadwell. The Company offers manufacturing technologies and design services for its customers. Its foundry offerings include full custom silicon, packaging, and manufacturing test services. It also provides semi-custom services to tailor Intel architecture-based solutions with customers' intellectual property blocks. The Company also offers design kits, intellectual...
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...What strategy did Intel use to gain a competitive advantage in microprocessors? Intel gained its competitive advantage by focusing on its competitors, buyers and suppliers. The company focused mainly on a strategy of leadership at the development stage in conjunction with an aggressive marketing campaign. Intel faced a dual threat from outside companies making Clones and RISC architecture. Intel was able to counter these threats by being a leader in innovation of new products. Intel continued to improve its products at a very high rate, which greatly helped Intel command a premium lead in its technology and product offerings over the competition. This is a highly technical field with new technology in chips demanding higher and more premium chips. Even with updating the facilities this means also to utilize economies of scale to gain a cost advantage, these combinations will give the ability to introduce new chips to increase their profit margins. The aggressive marketing campaign such as the Crush and Checkmate campaigns along with the latest Intel Inside campaign that has played a major role in gaining a competitive edge and building brand recognition for the company. What threats has Intel faced in sustaining its competitive advantage in microprocessors? Intel has faced many threats over the course of the years. Intel has been threatened by other entrants to the microprocessor market virtually since they started making microprocessors. The Asia firms have proven...
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...Ariel Torrente NT1110 Unit 5 Analysis 7/27/2013 Pentium Flaw The Pentium flaw also nicknamed the Pentium FDIV bug, was an identified error in the Intel P5 Pentium floating unit. The presence of the bug can be checked manually by performing the following application that uses native floating numbers, including Windows Calculator or Microsoft Excel in Windows 95/98 (Pentium FDIV bug). The Pentium flaw was discovered byProfessor Thomas R.Nicely at Lynchburg Collwge,Virginia USA (Emery, Vince). Dr.Thomas R Nicely is a mathematic professor, noticed a small difference in two sets of numbers, he always double-checks his work by computing everything twice, two different ways (Emery, Vince). Dr.Nicely spent months successively eliminating possible causes such as PCI bus errors and compiler artifacts (Emery, Vince). Intel wanted to keep to keep the Pentium flaw a secret, after Intel testers discovered a division error in the Pentium chip (Emery, Vince). Intel managers decided that the error wouldn’t affect many people, therefore no one outside of the company was not informed (Emery, Vince). The pandemonium over Intel’s Pentium chip cost the company millions of dollars and could have been prevented and became an uproar on the internet (Emery, Vince). This was Intel’s first mistake and the company was given a reputation that made Intel not a trustworthy company and not disclosing that information made them seem to be hiding a sinister secret (Emery, Vince). After several tests on...
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...Current and Future Challenges to Intel: 6 Analysis of Intel Corporation: 7 Corporate strategies: 8 Conclusion and Recommendations: 8 INRODUCTIONS AND HISTORY: Intel is one of the world’s largest and very best introducers of semi conductor chip Makers Company. It’s an American based multinational chip makers corporation which is located Santa Clara, California and founded on founded mountain view on July 18, 1968 by Gordon E. Moore , Robert Noyce, Arthur Rock and Max Palevsky. Rock was the Chairman of the Board. After Rock Andry Grove ran the company till 1980 till 1990. The word Intel is basically used in terms of intelligent. Intel manufactured many products as motherboards ,chipsets, network interface controllers and integrated circuits, flash memory ,graphics chips ,embedded processors and other devices which are used in communications and computing systems on large scale. In ages of 1990 Intel was only be known primarily to engineers and technologists i.e. Intel inside which made it a household name, along with its Pentium processor. The main ability of Intel is to combine advance chip design capability with as leading-edge manufacturing capability. As compared to other companies like Google in today’s world Intel is not using common system. As Google is transferring data from long distance by using fiber optics but when machines move individually then its takes time to update information over old fashioned copper wire. Recently Intel has started to produce commercial...
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