Entrepreneurship Management: Profitability and Growth
Entrepreneurship Management: Profitability and Growth
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THE SUCCESS STORY
PROFILE
Type Public
NASDAQ: INTC
SEHK: 4335
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Euronext: INCO
Dow Jones Industrial Average Component
Industry Semiconductors
Founded 1968
Gordon E. Moore
Founder(s)
Robert Noyce
2200 Mission College Blvd.
Headquarters
Santa Clara, California, U.S.
Area served Worldwide
Jane E. Shaw
(Chairman)
Key people
Paul S. Otellini
(President and CEO)
Microprocessors
Flash memory
Products Motherboard Chipsets
Network Interface Card
Bluetooth Chipsets
Website Intel.com
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CORPORATE HISTORY
Origins and early years
Company Perspectives:
For over 35 years, Intel Corporation has developed technology enabling the computer
and Internet revolution that has changed the world. Founded in 1968 to build
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semiconductor memory products, Intel introduce d the world's first microprocessor in
1971. Today, Intel supplies the computing and communications industries with chips,
boards, systems, and software building blocks that are the "ingredients" of computers ,
servers and networking and communications products. These products are used by
industry members to create advanced computing and communications systems. Intel's
mission is to do a great job for our customers, employees, and stockholders by being the
preeminent building bloc k supplier to the worldwide digital economy.
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1996: Revenues surpass $20 billion, net income exceeds 6.5 billion.
1997: Company introduces the Pentium II microprocessor.
1999: Intel debuts the Pentium III and is added to the Dow Jon es Industrial Average.
2000: The Pentium 4 hits the market.
2003: The Centrino technology for mobile computers is launched .
MAJOR EVENTS
Employment
Intel microprocessor facility in Costa Rica was responsible in 2006 for 20% of
Costa Rican exports and 4.9% of the country's GDP.
Finances
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Intel stock price, Nov 1986 – Nov 2006
Intel's market capitalization is $85.67 billion (May 11, 2009). It publicly trades on
NASDAQ with the symbol INTC. A widely held stock, the following indices
include Intel shares: Dow Jones Industrial Average, S&P 500, NASDAQ-100,
Russell 1000 Index, Russell 1000 Growth Index, SOX (PHLX Semiconductor
Sector), and GSTI Software Index.
On July 15, 2008, Intel announced that it had achieved the highest earnings in the
history of the company during Q2 2008.
Advertising and brand management
Intel has become one of the world's most recognizable computer brands following
its long-running Intel Inside campaign. The campaign, which started in 1991, was
created by Intel marketing manager Dennis Carter. The five-note jingle was
introduced the following year and by its tenth anniversary was being heard in 130
countries around the world. The initial branding agency for the 'Intel Inside'
campaign was Dahlin Smith White Advertising of Salt Lake City. The Intel swirl
logo was the work of Dahlin Smith White art director Steve Grigg.
INTEL BRAND LOGO
Main Logo Date Subset logo Date Remarks
1968–2005 1990–2003 The original "Intel
Inside" logo,
introduced in 1990.
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2005– 2006–2009
present
LOGOS
The Intel Inside advertising campaign sought public brand loyalty and awareness
of Intel processors in consumer computers. Intel paid some of the advertiser's costs
for an ad that used the Intel Inside logo and jingle.
COMPETITION
In the 1980s, Intel was among the top ten sellers of semiconductors (10th in 1987)
in the world. In 1991, Intel became the biggest chip maker by revenue and has held
the position ever since. Other top semiconductor companies include AMD,
Samsung, Texas Instruments, Toshiba and STMicroelectronics.
Competitors in PC chip sets include VIA Technologies, SiS, and Nvidia. Intel's
competitors in networking include Freescale, Infineon, Broadcom, Marvell
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Technology Group and AMCC, and competitors in flash memory include
Spansion, Samsung, Qimonda, Toshiba, STMicroelectronics, and Hynix.
The only major competitor in the x86 processor market is Advanced Micro
Devices (AMD), with which Intel has had full cross-licensing agreements since
1976
Strategic planning
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Intel always plans for the long term benefits of the organization. Intel had to
look at restructuring. Intel adopted the "Tick-Toc" program for their R&D
department. This program states that there will be a change in the product
and massive further development on an annual basis. This sets a clearly
defined goal.
Management:
“There is no better chance to train managers than in a start-up, where they
have the opportunity to see the entire company as it grows,” says Moore.
From the very birth of Intel, the management was determined to use
workforce to its full capacity . By placing top priority on their people, and
encouraging openness, equality, and responsibility, Intel was able to take
full advantage of its workers.
Hard Work:
Moore and Noyce were the first to admit that they knew nothing about
business when they first started up their own. However, in admitting their
limitations, they were then able to seek out the help of others more qualified than
themselves. They also went to work learning all that they could about
entrepreneurship. By refusing to shy away from their inexperience and being
willing to do what work they needed, Moore and Noyce proved that
entrepreneurship could come in all various forms.
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Competition:
There may have been many missed opportunities along the way, but the
lesson Intel corporation took away from those experiences was a valuable
one. They learned that the key to entrepreneurial success was a healthy dose
of paranoia. By being in a constant state of awareness and fear of your
competitors, entrepreneurs can become proactive instead of reactive, seizing
new opportunities as they present themselves instead of letting them pass
them by.
Exclusivity:
There is a reason why 75 percent of all new personal computers are
produced with an Intel chip inside; the company has established its reputation as
the best of the best at what it does. By specializing and focusing on a computer
chip market, Intel was able to not only stand out from the crowd, but grow so large
that it was in fact untouchable.
2. Product Technology:
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This lever deals with decisions that platform leaders need to make with regard
to the architecture of their product and the broader platform. How much
modularization should there be in the design? How much information should
they disclose about interfaces or subsystem interdependencies? Should they
make licenses easily available or is patent and intellectual protection necessary?
4. Internal Organization:
This lever is important for helping platform leaders decide how to use their
internal organizational structures and processes to manage external and internal
conflicts of interest and priorities more effectively.
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THE DOWNFALL
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INTRODUCTION
The Indian Cricket League (ICL) was a private cricket league funded by Zee
Entertainment Enterprises that operated between 2007 and 2009 in India. Its two
seasons included tournaments between four international teams (The World, India,
Pakistan and Bangladesh) and nine domestic teams notionally located in major
Indian cities as well as the champions Lahore Badshahs who were based in Lahore,
Pakistan. The matches were played in the Twenty20 format. There was also a
planned domestic 50-over tournament, but this did not eventuate. While its
establishment pre-dated the Indian Premier League, the ICL folded in 2009. Aside
from commercial factors, the ICL lacked the support of the Board of Control for
Cricket in India.
History
Zee Telefilms, part of the Essel group promoted by Subhash Chandra, had bid for
the telecast rights to the 2003 Cricket World Cup. Although the highest bid, it was
unsuccessful. In 2004, Subhash Chandra again bid for telecast rights and ended up
in an inconclusive court battle. He made another bid for the 2006 ICC Champions
Trophy rights and once again lost. He responded by creating the ICL. “They denied
us the cricket content,” said Himanshu Mody, business head of ICL and Zee’s
sports,“so, we had to create our own content.” Zee Telefilms announced that it
would partner with major infrastructure group IL&FS to create a new, ambitious
cricket organisation, the Indian Cricket League. with prize money of one million
US dollars in the initial edition for the winning team.
The ICL was set up with a billion dollar Indian Rupee corpus, and was to initially
comprise six teams playing Twenty20 cricket, with plans to expand to sixteen
teams within three years and to eventually move to 50-over matches. These plans,
if they had been realised, would have made the ICL the richest professional league
in India. On 24 July 2007, some famous international names were announced to
have signed to play in the ICL, including highest innings record-holder Brian Lara.
Due to the unofficial nature of the league, most of the national cricket boards
warned their players against joining it and as a result most of the international
players who signed for the first edition were retired internationals, such as Brian
Lara, Chris Cairns and Craig McMillan, or former players with little hope of
breaking back into their national team, such as Chris Read and Daryl Tuffey (who
has since broken back in the New Zealand team, after breaking ties with the
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league). A notable exception was Imran Farhat, who chose to opt out of his
Pakistan Central contract to sign with the League. Former Pakistan captain Javed
Miandad said he was not able to understand why the PCB would not allow its
players to participate in the league and why it was threatening players with a
lifetime ban.The PCB subsequently banned players involved in the ICL from
playing domestic cricket, a move that prompted some players, notably Farhat and
Taufeeq Umar, to threaten court action.
The opposition to the league from the national cricket boards across the world and
the International Cricket Council (ICC) was continued into the league's second
edition. Several international ICC players who were signed to play domestic
cricket for teams in the English County Championship, including Shane Bond,
Rana Naved-ul-Hasan, Mushtaq Ahmed and Jason Gillespie were unable to fulfill
their County Championship contracts because the home counties cricket boards
refused to grant them the necessary documents to play in England..
The first edition of the league commenced on 30 November 2007. The league
consisted of six teams with the matches played at Panchkula, near Chandigarh.
Matches were initially held at Tau Devi Lal stadium in Panchkula, near
Chandigarh, Lal Bahadur Stadium in Hyderabad, and at Tau Devi Lal Stadium in
Gurgaon, near New Delhi. In 2008, ICL games were played at more venues.
The first edition had 6 teams; this was expanded to 8 in early 2008, and one more
team was added in the second half of that year. Players participating in this league
had been threatened with bans by the cricket boards of their respective countries,
as the ICL was regarded by them as an unsanctioned rebel league. However most
of the players continue to play first class cricket under the control of their
respective boards. The first edition concluded on 16 December 2007 with the
Chennai Superstars winning the first title. The second edition was a 50 over
tournament played from 7 January 2008 to 28 January 2008 at Mayajaal Cricket
Ground, near Chennai, with Chennai Superstars winning again. A third edition
which commenced on 9 March 2008 saw the league expanded to eight teams and
matches being played at two further venues, Hyderabad and Gurgaon. The
Hyderabad Heroes won the 3rd edition. The fourth edition was a domestic Twenty-
20 tournament won by Chandigarh Lions.
The second season, which added Ahmedabad as a venue, commenced in the last
quarter of 2008, with the Lahore Badshahs from Pakistan winning.
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LEAGUE STRUCTURE
Each team was coached by a former international cricketer and comprised four
international, two Indian and eight budding domestic players. Essel Group also
planned to set up cricket academies all over the country. The BCCI was assured
that it was free to draw from ICL's talent pool. The league became active in
November 2007 with matches in the Twenty20 format.
Former international cricketers including Kapil Dev, Tony Greig, Dean Jones and
Kiran More were hired as board members of the Indian Cricket League. The board
positions will be paid positions.
1. The World
2. India
3. Pakistan
4. Bangladesh
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REASONS FOR CREATION
Several factors have played a role in formulation of a cricket league which may run
in parallel to the current official Indian cricket control body, BCCI.
There is wide disparity between the facilities enjoyed by the national team and the
regional ones. This makes the regional players far from finished products when
they are called to represent their country, preventing a huge country like India from
having adequate reserve strength in the national squad when key players are
injured or retire. Also, the regional cricket boards depend on the BCCI for hand-
outs of funds for infrastructure and grassroots development. The players who are
entrenched at the top have strong backing from sports management firms and also
can afford the best in personal trainers, physiotherapists and technical consultants,
which are well beyond the scope of the average player.
The Essel group has expressed a keen desire to help India develop cricketing
talent, as well as provide lucrative sports programming for Zee Telefilms, which
lost out on the rights to broadcast all BCCI-sanctioned cricket matches in India
until 2011.
Essel Group had originally launched Zee Sports earlier with the anticipation of
bagging at least some of the BCCI telecast rights in 2006. This was followed by
Zee acquiring 50 percent in TEN Sports in November 2006 for Rs. 257 crore
(Rs. 2.57 billion). This gave the company a few international cricket rights —
West Indies, Sri Lanka and Pakistan.
During his battle with BCCI and ESPN Star Sports for the five-year telecast rights
in August-September 2004 in the Bombay High Court, Chandra was present every
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day for the hearings. Despite Zee bidding the highest at $307 million, BCCI and its
then president Jagmohan Dalmiya denied him the rights.
The pain of denial has been with Chandra since 2000 when the ICC World Cup
rights were sold to NewsCorp’s Global Cricket Corporation (GCC) for
$550 million despite Zee bidding the highest at $650 million citing Zee's
insufficient sports marketing experience.
Chandra then tried the political route too and supported Sharad Pawar’s
candidature as BCCI president against Dalmiya. Pawar emerged victorious but not
Chandra. In the last round of bidding in February, last year, it was Nimbus who
bagged BCCI’s telecast rights till 2011 for $613 million with Zee trailing at
$513 million.
Since there was a Zee-Nimbus alliance before the bidding, media pundits thought
Nimbus’ bid was a Zee front. But Nimbus chose to go its own way and launched
its own sports network – NEO Sports.
The ICL has received support from some unexpected quarters. There was a fear
that lack of access to infrastructure, like the premier cricket stadiums, would limit
the success of the operation of the league, but support from various government
bodies has boosted the league. Camps will be held at Mayajaal in Chennai, which
is a private resort with good cricket facilities. Indian Railways chief Lalu Prasad
has shown his backing by opening all the cricket stadiums controlled by the Indian
Railways to the league. Describing the ICL as a “good initiative”, Prasad has
issued a statement saying that the BCCI and ICL should each come up with a
cricket team and play against each other to show who's the best. The state
government of West Bengal has also agreed to rent its cricket grounds, notably
Eden Gardens, to the league.
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CONTROVERSY
BCCI Response
The BCCI refused to recognise the ICL as a cricket league, and criticised Kiran
More and Kapil Dev for joining the ICL. Kapil Dev's association with ICL was
seen by the establishment as a conflict of interest as he was also the chairman of
National Cricket Academy, a BCCI owned cricket facility.. On August 21, 2007
Kapil Dev was sacked from his NCA post. Subhash Chandra had earlier stated that
the ICL will go ahead regardless of the BCCI's stance. The International Cricket
Council gave a statement through its chief executive, Malcolm Speed, that the ICC
would not recognize the ICL unless the BCCI chooses to recognise it. The ICC
looks at the ICL as an issue to be sorted out by the BCCI.
Faced with the threat of young players joining the ICL, the BCCI jacked up prize
money for winners, runners-up and losing semi-finalists across all tournaments. An
average domestic cricketer can hope to make around Rs 35,000 per match day
from the season of 2007-08: more than double the Rs 16,000 they got in 2005-06.
The BCCI has also planned to do away with honorary selectors, who will be paid
professionals from September 2008 onwards.
The BCCI started its own international Twenty20 league. The official league,
which launched in April 2008, is called the Indian Premier League Twenty20
cricket. The league model is revolutionary, based on the franchise model of the
National Football League and Major League Baseball in the USA.
In August 2007, the ICL filed a petition against the BCCI in the Delhi High Court
accusing the BCCI of threatening and intimidating them and other state
organsiations, and asked the court to stop BCCI from interfering with its attempts
to sign up players for its tournaments. It also petitioned that the BCCI stop trying
to "out-hire" cricket stadiums in India that are owned by the state governments, in
anti-competitive attempts to stop the ICL from using them to play matches.
On August 27, 2007, the Delhi High Court ruled in favor of the ICL. In its ruling,
the Delhi High Court said that players should not suffer in the battle between
corporate giants. The court has issued notices to all corporate sponsors, the state
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cricket associations & the BCCI against terminating valid contracts of players
joining the ICL.
In considering rejoining the ICL former England wicketkeeper Paul Nixon was
said to have put his career in jeopardy because any player that signs up with the
ICL, which does not have official status from the International Cricket Council,
risks losing their registration.
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THE DOWNFALL OF ICL
The future of ICL has become dark when BCCI allowed ICL players to play
international matches.Since then many ICL players have returned to their national
team including famous players like Shane Bond , Abdul Razzaq.
The huge success of IPL is also a reason of the coming down of ICL.
Shortly before the conclusion of the inaugural tournament, the ICL announced its
plans for expansion, which include a fifty over tournament in February 2008, and
the expansion of the ICL Indian Championship to eight teams for the second
tournament, due to be held in September and October 2008.
A similar initiative has been launched in United States by the PayAutoMata group
but details have yet to emerge.
In October 2008, the promoters of the ICL, Zee and its parent company Essel
Sports Pvt. Ltd, had applied for trademark registration of T20 under Class 28 of the
Trade Mark Rules, 2002.
Transparency Issues
Independent analysts have had difficulty gauging the financial viability of the ICL
due to the lack of transparency of the league’s operations. Terms of contracts are
hidden and advertising revenue from match telecasts — considered to be a major
contributor to revenues — have never been disclosed. Because they are
unsanctioned by the ICC, the teams do not have access to the best facilities across
the whole country or access to the best players, limiting their ability to generate
high gate revenues. This lack of transparency leads to questions regarding the
overall viability of the ICL’s business model.
The icl has now come to an end after all its player dropped out from it.This was
because of the offer given by bcci to reconsider icl players only if they leave icl.
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BROADCASTING OF ICL
Since the ICL is conducted by Zee Telefilms, the ICL is broadcast in most domains
on the Zee network.
Broadcasting Ban
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CONCLUSION
Entrepreneurship is a risky business and requires a lot of innovation and
creativity.
It depends not only on managerial and financial abilities, but also on various
situational factors.
INTEL was first in its field and it came up with innovative products with
proper marketing,which made it a success.
ICL was also a first of its kind in india,but it failed due to lack of support from
the government and ,IPL,which is on the same format of ICL of T20 cricket but
it became a success because it has proper league structure and it came up with a
good marketing techniques.
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BIBLIOGRAPHY
1. WWW.GOOGLE.COM
2. WWW.WIKIPEDIA.COM
3. WWW.INTEL.COM
4. WWW.MOBILEDOWNLOADS.COM
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