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Intel Corp.

In: Computers and Technology

Submitted By dwriterjobs
Words 2483
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| Bizwise consultancy |
|Case: Intel Corp. |

|Objective: This case covers a wide range of financial policy issues: the competitive dynamics of innovation; the appropriate capital |
|structure for a firm in a highly innovative business; the fundamentals of cash disbursement policy; common stock repurchases; and |
|consideration of more complex hybrid securities. Intel needs to change its financial policies as they grow/mature into a cash cow from a |
|startup. The case revolves around an understanding of the Microprocessor Industry. From a market structure perspective the case deals with the|
|advantages and disadvantages of being a first-mover vs. being a second-mover. The competitive role of financial flexibility must be addressed.|
|Finally, what are the major issues associated with holding cash (costs and benefits)? Again several financial management issues must be |
|addressed. There are tax issues, agency issues, signaling issues, timing issues, just to start. The dynamics of cash disbursement policies, |
|particularly dividends and stock repurchases must be treated holistically. |

Executive Summary

The subject of this Harvard Business School case analysis is the Intel Corporation (NASDAQ: INTC) from its creation in the late 1960s to the end of 1992. Based in Santa Clara, California, Intel designs and manufactures microprocessor and chipsets, and sells them to a variety of markets, including Original Equipment Manufacturers (OEMs) and Original Design Manufacturers (ODMs). The Intel...

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