Intel-Costa Rica

EXECUTIVE SUMMARY

The purpose of this case study is to outline the issues which Intel faced, when it initiated assembly operations at its Costa Rica plant. Intel is the world’s largest manufacturer of semiconductors, which are used in computers. Intel’s mission is to be the pioneer building block supplier to the worldwide Internet economy. Intel’s core market segments are designing and manufacturing microprocessors for desktop, laptop and high performance servers; it also supports networking and wireless technology to its microprocessor architecture, it also focuses on new growth industries in Internet and Computer field. Intel has several assembly and testing plants all over the world, and its existing assembly and test factories in Malaysia and Philippines had already proved its success. The primary objective to goes worldwide is to achieve the cheap labors and the urge to diversify the company’s culture. Intel’s work culture quit different from others in market, it gives more important to customer orientation, discipline, result orientation, risk taking, quality and a great place to work and get reward for talents. These principles consist of effective meetings, decision-making, constructive confrontation, structured problem solving, and operational excellence. Most of the times employees are based on these principles, but some values, especially result orientation, discipline, and quality, are given more influence able.

In this project, Intel was in a situation little bit different from its previous overseas projects, it had very short period of time to set up the test and assembly plant in Costa Rica, furthermore in this short period of time, Intel had a responsibility to hire new employees and train them for their work culture, it consist of many training programs and work shop courses. It was a difficult time for Intel’s top level employees to overcome from this situation; they were in charge for this project to achieve the optimal level. Another important factor was Costa Rican employee’s knowledge of semiconductor industry; most of them were very new to this industry and to Intel, moreover Intel had some cultural difference in Costa Rican work community. From all these issues faced by Intel, I came up with some recommendation and solutions more likely related with employee’s point of view, respecting cultural values, try to outsource foreign employees, using employee’s existing skills in company’s strategy and decision making, effective training programs, and find out the talents with incentives.

RECOMMENDATIONS TO SOLVE THE INTEL’S MANAGEMENT PROBLEMS

I would recommend the following solutions, which will be suitable to solve the management problems in Costa Rica Project.

пЃ¶ Hiring employees from foreign countries:

Semiconductor industry has several complicated process in manufacturing level, it needs more technically skilled staffs than any other manufacturing industry. But Costa Rican employees are inexperienced and have limited technical skills and they are very young labor force. So they need more training and guidance, this option will give Intel to hire skilled employees from other countries and they are ready to relocate them to Costa Rica immediately. These experienced skilled employees can easily train and shape the local inexperienced employees into Intel’s standard.

 Using local employees existing skills in company’s strategy and decision making:

Costa Rica’s manufacturing industry is not only limited by semiconductor market, it’s a developing land for new opportunities. Already many industries were successfully established their presence, we can recruit talented people from these industries to suits Intel’s manufacturing standard and skill sets. We can use their existing talent and experience in their field, and motivate them to engage in company’s strategy and decision