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
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The Flaw in the Intel Pentium Chip I In late 1994, the media began to report that there was a flaw in the new Pentium microprocessor produced by Intel. A flaw in the Pentium was especially significant since at that time it was the microprocessor used in 80% of the personal computers produced worldwide. Apparently, flaws in a complicated integrated circuit such as the Pentium are not uncommon. Most of these flaws cannot be detected by the user and do not affect the operation of the computer
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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
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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
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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
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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
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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
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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
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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
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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
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