Capital Structuring Decisions at Intel Corporation (Essay Sample)

Capital Structuring Decisions at Intel Corporation, 1992
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Capital Structuring Decisions at Intel Corporation, 1992
Introduction
The success of a company is dependent on the objectives set by the management. Intel is an American company, which is known for the manufacture of memory cards and microchips. This is an aspect that Intel has enjoyed, but has soon changed with the evolvement of the market. However, the company did produce microcomputer although, not in large scale like the memory devices. There are various aspects that led to the growth and success of Intel. One of these aspects is merger and acquisition. Merger and acquisition help a company grows and attains the market. The partnership between Intel and IBM was of success to Intel (Aid, 2012 p 85). The other aspect that has helped in the success of the company is employee loyalty. Employee loyalty entails employees working for one firm in their career. This is an aspect that makes employees understand what the company needs as well as the customer. The other aspect that has seen the success of Intel is its ability to change from manufacture of memory to processors (Domeika, 2008 p 79).
A second-mover advantage is the aspect of a first-mover failing to take complete advantage of the market. This means that the company has a commanding power in the market. Intel faces competition from other companies, which can be branded second-mover advantage. Some of these companies include Toshiba, which also manufactures flash memory. Intel is also facing competition from an innovator called Applied Micro Circuits. This is a corporation, which is said to have begun the development of chips, which saves energy. Consequently, this is an advantage to users of Google and face book. This company also risks competition from a second-mover called AMD (Domeika, 2008 p 107). Intel needs to repurchase stock, as a way of gaining its position in the market. The company needs to buy stock, as a way of ensuring that it offers payouts which are big to stakeholders (Aid, 2012 p 125).
Conclusion
Each organization must clearly identify the correct structure and culture. This aspect ensures that the organization has the focus to achieve the set target. The success and performance of an organization is dependent on the type of structure used. The kind of structure applied should be well thought of to ensure the organization attains the long-term goals. However, b...