Frankenstein by Mary Shelly Essay Example for Free

Frankenstein by Mary Shelly Essay The setting in both books is mainly in the 18th century where there wasnt anything too modern which helped add the theme of gothic horror to the reading audience as in those times it was a lot darker and more horrifying. In an Interview with a vampire the story is set over 200 years. Showing as the theme of gothic horror in the book decreases, as the book becomes more modern. This is shown when Lestat is scared of the modern world and the artificial lights as he thinks they are sunlight scaring him into hiding. There are various themes in both books for example they have written one of the characters acting like God, Lestat in Interview with a vampire and Victor in Frankenstein. This was especially scary in Frankenstein 1816 as the people took religion very seriously and to talk about gods in this way was known as evil, which scared the people who read the book Which would inspire terror into the people who read it. When in Frankenstein the creature says I am thy creature, I ought to be thy Adam And in Interview in the vampire when Lestat acts as god by creating Louie and also when Lestat says they are the same as God when he says Gods kill, and so shall we This shows the God theme as Lestat connects being a vampire to being Gods which is shown in the quote. Another thing in both books they deal with the themes of outsiders. In Frankenstein when the creature is looking in On examining the dwelling, I found that one of the windows of the cottage had formally occupied part of it but the panes had been boarded up with wood. In one of these was a small and almost imperceptible chick, through which the eye could just penetrate. Through this crevice a small room was visible. Also in Interview with a vampire Louie became an outsider when he became a vampire. I said goodbye to the sunrise and went out to become a vampire The two texts are very similar though in many ways. First of all in both texts the main character is an outsider, Louie as a Vampire as he is different from everyone else as he is a vampire and Victor as an outcast to everyone else as he created this monster and is a criminal for doing so making him an outsider and different to other people. Also both authors have lost a child which may have helped write the book using their life experiences to help them writing the book. Both books have roughly the same plot when Louie or the creature both have a natural birth and find it hard to survive. Also in both books they murder when the creature kills people or Louie kills people for blood. As when Louie said, Now I am guilty of murder. I think the authors of these two texts have dont an excellent job in dealing with the theme of outsiders in the text as the setting, the characters and whats happening around them all make them outsiders. Also what the characters are and how they act and what they do which inspires terror or horror into the reader create the genre of Gothic horror and make it stand out. But what most of all stuck into my mind were the words from Louie, which really made me think Gothic horror and outsiders, was I wanted love and goodness in this which is living death I said It was impossible from the beginning, because you cannot have love and goodness when you do what you know to be evil, what you know to be wrong and also in Frankenstein when Victor said It was necessary that I should return without delay to Geneva, there to watch over the lives of those I do fondly loved; and to lie in wait for the murderer, that if any chance led me to the place of his concealment, or if he dared Both showing the Gothic horror in their words like when they say murderer and evil creating the gothic horror feeling. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Mary Shelley section.

Decline of the United Auto Workers Union (UAW)

Decline of the United Auto Workers Union (UAW) Introduction What does labor want? It wants the earth and the fullness thereof. There is nothing too beautiful, too lofty, and too ennobling unless it is within the scope and aspiration of labors aspirations and wants. We want more schoolhouses and less jails more books and less arsenals more learning and less vice more constant work and less crime more leisure and less greed more justice and less revenge in fact, more of the opportunities to make childhood more joyful womanhood more beautiful and manhood more noble. (Samuel Gompers, 1893) Organizations that deal with corporations, firms and other organization for the benefits of the workers on the behalf of members of union are generally termed as union. There are present different types of unions for example trade union, represent workers who do a specific type of job e.g. the American Federation of Labor-Congress of Industrial Organizations (AFL-CIO). Then there is industrial union that indicates workers in a specific industry. United Auto Workers (UAW) is a good example of industrial union (Brent Radcliffe, 2011). A large number of economists consider union as monopolies in the labor market. They believe that the rise in the wages of members, at the expense of unorganized labor is the main impact of union. These researchers analyzed the negative impact of unions on the productivity, employment, and the subsequent crowding of the nonunion zone. In addition there are present another group of economist who believe that unions have positive affecting both politically and economically. These skilled analysts noted that unions could increase retention of skills and developments. When a market is national or international, with output produced in one plant competing with that produced in other plants, independent bargaining by individual locals would lose unions their monopoly power, as locals would compete for jobs through lower wages. . . . The result would be a reduction in wages to more or less competitive levels. Unions can help in the achieving higher productivity and better management by increasing morale of workers, reducing labor turnover, and cooperation. Unions also help in providing well-organized workplace for better results. This is very much true that unions reduce profit (Richard B. Freeman and James L. Medoff, 1984). In todays globalized world, there is great need of union for number of reasons e.g. there is great increase in compensation, workers are hired according to their ranks, the gap between labor and management decreases both in terms of wages and in representation. There are present different viewpoints on the necessity and efficiency of unions. The problems faced by UAW at General Motors had raised the issue on the importance of unions in the future and in the modern society. In 1998, a harsh fight raged between the company and union. To remain competitive in the market the companies needed to change their strategies and increase their competence. Lower-cost outsourcing is very usual in the companies. Outsourcing involves the selling off business divisions in order to have a more focused and profitable company. United Auto Workers struggled for the union jobs.UAW were against the outsourcing (Korey Harlyn Coon, 1999). In the United States, the workers who have a stab to make unions are usually fired. If the management saw workers engaged in any collective activities, they are consistently harassed and stressed. The workers are permanently replaced if found in such activities like struggling for their rights (Bronfenbrenner, 1994). Stipend earners or salary earners has started an organization for the protection of their combined interests while dealing with their company and this organization is known as labor union. Generally, in the industrialized countries the unions are widespread. In the last 30-40 years, in most countries, there is large decline in the unions (representing workers). In 1950s, the unions of the United States represented about one-third of all workers but today less than 15 percent of the workforce represents the unions. In the private zone the labor force is less than 10 percent (in the late 90s the unions represented 30-40 percent of public sector workers). In the past decade s the workers union was considered as very strong force in the United States but these days the situations are opposite (Comstock, 1994). The industrial unions of the United States have large number of unionized workers. The workers of the industrial unions have large variety of occupation (within one or more industries). United Automobile Workers (UAW) is an excellent example of industrial union. The most important American automobile companies have both skilled and unskilled workers and in these companies, UAW has separate contract for workers. However, the industrial unions started by arranging workers in the single industry or set of allied industries. In the tractor and earthmoving equipment industry (Caterpillar and John Deere), UAW also represents workers. At the end of 1990s UAW across the country added different groups such as Graphics Artists Guild (3,000 members), the National Writers Union (5,000 members), and various service, technical, and graduate student employees at more than 20 colleges and universities. Decline of Union The history of union membership in the United States has noticeably changed. In US for almost 200 years, the unions (in some forms) have been in existence. Until 1930s, the unions membership did not gained significant position. In 1953, the union membership rose from 3 percent to 26 percent of the labor force in United States and in 1962 declined to 21 percent. The most ingenious and flourishing auto industry, the United Auto Workers (UAW) had faced tremendous decline by losing thousands of members in the 70s and 80s. At that time there were hardly six percent union workers who were engaged in product manufacturing (subtracting non-manufactures like nurses, civil servants, police, teachers, etc) because without base membership is not retained (David Macaray, 2008). In United States (1953), the union membership increased from 3 percent to 26 percent and declined to 21 percent in 1962. The quick expansion in employment in the nonunion organizations (governmental, finance, trade etc) is one of the factors responsible for decline of union. During the great depression, 1929-1933, another half million union members were dropped. The new deal era (1933- 1939) brought new legislation which helped in increasing members. The Auto Workers and the Machinists unions were top ranked that showed largest increase in the members of union during wartime but after the war (Leo Troy, 1965). In shaping the union, the legislation plays a key role. The workers can perform their work without any fear of wages any other problem. UAW played a significant role after World War II, in increasing labor movement, job security, and health care. Many researchers think that cause of decline is both external and internal. In the American economy, there is elementary shift from industrialized to service-based jobs. Globalization has made capital more mobile. Through this, employees got the opportunity to shift from lower to higher wages job. In addition, the political environment favored the economy. Labor law premeditated to protect the rights of labors. Some workers have the thought that by negotiation with the employers they can get better chance of work place. The workers have the feeling that negotiation is better than bargaining. This is because the workers have lost confidence in the ability of unions (Yates, 1998). The internal causes of labors decline are believed to be the willingness of workers to enter into a cooperative relationship with capital in the years following World War II. During the war period, t he unions did their best to establish peace between labor and corporate leaders. The labor also agreed that they would not interfere in the decisions of management. UAW president Bob king said that The UAW was able to win tremendous contracts with employers in the auto, aerospace and agricultural and construction equipment sectors because all three sectors were almost completely unionized, The United Auto Workers Union (UAW) was established in 1935. At this time it had 600,000 members representing the three main auto industries (General motors, Ford and Chrysler). In 1970s, there was great decline in the membership of UAW for some time. The decline indicates that there is great downfall in employment in the automobile and related industries. The UAW was struggling for the jobs of the future generation and not for their own jobs. To achieve their goals they did many strikes. These strikes showed the great decline in the power of the union. UAW chart.png graph1: Decline in UAW membership (source Dale Buss, 2011) The above graph shows the decline in UAW membership from 1979 to 2009. It is very clear that in 1979, the membership was at its peak that is 1.5 million and in 2009; UAW membership fell by 18 percent. According to the annual report submitted by US department of labor the main cause of decline was cut down in jobs (Jerry White, 2010). Union Busting The worlds leading automakers, the General Motors and Delphi (biggest auto parts suppliers of the world) had started union busting attack against the United Auto Workers (UAW). In the past decades, the US workers saw the biggest decline in the actual wages. The Delphi, auto parts supplier to GM, went bankruptcy. The company decided to cut the pays of workers from $27.00 to $10.00 per hour. At the same time, the bosses of GM claimed huge givebacks from UAW. Globalization Globalization is very important in several aspects. Over the past few years, the international competition has been enormously increased due to globalization especially in the economy sector. The higher prices on the imports have been cut down. Also due to increased competition, the domestic competitors were forced to give great benefits to their unionized workers. In unionized sector, the employment declines while in nonunion industries employment expanded. Moreover, the companies shut down or seal their plant, if union attempts to raise the profit of the workers and start new production in other country where costs are less. Globally the auto industry had become very competitive. In the 1980s, UAW responded to Asian and European growing challenges by abandoning any assault on jobs and on the living standards. Job Banks UAW in 1984 started a program called Jobs Banks,. The autoworkers get $31 per hour. Each year $70,000 to $85,000 are paid (for not to work) to UAW members. These workers are getting their full pay and all the benefits without working. They do not care about the loss of the company. This practice of allotting funds to the workers cost billions of dollars (approximately $4.5 billion) to the companies. Health Insurance The Negotiation of the union with the companies for the health benefits of members of union resulted in the decline of UAW, the auto industry. According to the survey of 2002, UAW wasted money as the big three (General Motors, Chrysler LLC, and Ford Motor) spent nearly $10 billion on health insurance. Roughly, each car pays the cost of $1,500 for health insurance. In this way, the money spent on health insurance is greater than the money spent on the steel for the construction of the car. In contrast to UAW, Toyota has less health insurance. Assault of Fund To fill the incursion funds The United Auto Workers (UAW) used nearly $ 1 billion dues of its workers. No other union performs such a pact to fill the strike funds. It was estimated that 30 percent from the pay of UAW member was given to fulfill the assault of fund. Other unions by negotiation with its member full fill this gap (without using the workers dues). Luxurious Resort UAW constructed luxurious resort, The Black Lake Resort and Golf club. The finance for construction was drawn from union dues. The UAW union members are allowed to visit the resort. The labor agreement between UAW and three big automakers In 2007, a historic negotiation took place between the Big Three automakers (General Motors, Chrysler LLC, and Ford Motor) and the United Autoworkers (UAW). Both the parties were aware of the significant of the agreement. They knew that to survive in this technical era and to compete with of global economy this agreement help them a lot. After the decline in membership, the main aim of the agreement was to protect the jobs and healthcare for the members of union. In addition, the big Three automakers (General Motors, Chrysler LLC, and Ford Motor) committed to lower the wages for some workers. To achieve the dynamic auto sales and to boom their market shares the agreement plays an important role. (John J. Lucas, and Jonathan M. Furdek, 2009) The recent economic slump had left bad impact on the US auto industry. The majority of Detroit autoworkers are represented by, United Auto Workers (UAW) union. They give allowances on its pay and benefits package. The UAW negotiates with the company to protect this package (Tony Escobar). The growth of non-union workers in the plant is also a cause of decline in UAW membership. Moreover the cars made by foreign companies (whether in the US or elsewhere) are account for more than half the cars sold in this country. It was analyzed that if UAW and other large unions did not get financial and regulatory support from government they will soon be vanished (Gary Becker and Richard Posner, 2008). A survey showed that only one third of UAW members are autoworkers and large percentage of work force is employed by state (includes colleges, universities and health care organizations (Dale Buss, 2011) Conclusion Union plays a very vital role in both political and business environment. They exit in many forms in industries. Unions help workers in obtaining better wages and working conditions. There are present two types of unions, federal and industrial. A large number of economists consider union as monopolies in the labor market. Unions can help in the achieving higher productivity. In industrialized countries, the unions are widespread. In the last 30-40 years, in most countries, there is large decline in the unions. In the past there was tremendous growth in the union membership but today its growth is not to that extend. The United Auto Workers (UAW) had faced tremendous decline by losing thousands of members in the 70s and 80s. In the beginning, there were 1.5 million members of UAW, which declined to 600,000 in 2009. In the past decades, the US workers saw the biggest decline in the actual wages. In 2007, a historic negotiation took place between the Big Three automakers (General Motors, Chrysler LLC, and Ford Motor) and the United Autoworkers (UAW). The recent economic slump had left bad impact on the US auto industry through the collective bargaining process the unions have reinvented themselves.

The Online Advertising Overview Media Essay

The Online Advertising Overview Media Essay As the presence of technology meshes into every aspect of our lives, mobile advertising has been recognized by many if not all marketers as being the future, but is it truly? Mobile devices have taken over our lives in many aspects. With their ability to shoot video, take pictures, playing your music library, browse the internet and so on; these new features allow marketers to target consumers via mobile ads and mobile applications. As time passes and technology evolves, new types of advertising venues spring up transitioning from newspapers to billboards, TV and radio, and now the internet. The authors of a peered reviewed scholarly article discuss how, Online advertising has three characteristics; ease of targeting; personalized contents; and interactivity (Dhar, Subhankar, and Upkar Varshney, 356). In comparison to TV or radio advertising, the internet medium allows advertisers to create interactive advertisements that can be tailored to be personalized and target the consumers di rect interests. But with the introduction of new methods and technologies to the market, it does not come without its disadvantages. Online Advertising Overview The end of the 20th century and the beginning of 21st were characterized by rapid developments of communication tools. Advertising delivered over the Internet or better known as online advertising has become a significant source of revenue for web-based businesses. Internet-based advertising is a gale of creative destruction (in the words of Schumpeter, 1942) sweepin g across the advertising and media landscape. Online advertisings humble beginnings began in in 1994 when HotWired, a web magazine, sold a banner ad to ATT and displayed the ad on its webpage (Kaye and Medoff, 2001). But since that time, the e-commerce hype has taken hold, and the focus has already moved on to the mobile Internet. The new technology changed the world by revolutionizing communication at a time when mobile computing technology as a communication tool was solely limited to telephone. However, due to digitalization and the consolidation of telecommunication networks and Internet technology, mobile devices ha ve evolved to provide the same experience as full-scale Internet-enabled computers. The convergence of these technologies provides endless possibilities for mobile computing applications and usage. M-advertising is inexpensive and can be highly targeted towards a certain individual. The potential of mobile devices as direct marketing tools has not gone unnoticed and advertisers have realized the opportunity to use the mobile channel to text information to targeted consumers. Unlike traditional print, TV, or even email advertising, companies can now reach speci ¬Ã‚ c consumer groups or even individuals, virtually anywhere, anytime, and based on the physical location of the mobile user. In addition, companies have more knowledge about their client pool than ever before. This provides businesses with the opportunity to reach their prospects when and where it is most appropriate for the effectiveness of a marketing campaign. M-advertising could most likely become a very powerful new marketing tool enabling businesses to customize and personalize advertising for mobile users. The Negative Side Effects of Mobile Advertising Although there are various de ¬Ã‚ nitions for the concept of M-advertising, no commonly accepted de ¬Ã‚ nition exists. This is because not much research is done in the area of M-advertising. In the present article M-advertising is referred to as the sending of electronic advertisements (mobile ads) to consumers carrying mobile devices. M-advertising is regarded by many as one of the most promising and pro ¬Ã‚ table business opportunities amongst mobile computing applications. A recent mobile marketing survey suggests that about 7% of the mobile users would be willing to receive mobile ads if they were relevant. Unlike personal computers (PCs), mobile devices typically are not shared, which allows for precise targeting of advertising to a single person. Moreover, mobile users rarely leave their home without their device and use them frequently throughout the day. As a result a message sent to a mobile device commands the immediate attention of the mobile user and may be perce ived as intrusive if the message is unanticipated. Mobile advertising is inexpensive and novel, and can be highly targeted towards a certain individual. The potential of mobile devices as direct marketing tools has not gone unnoticed and advertisers have realized the opportunity to use the mobile channel to text information to targeted consumers. Unlike traditional print, TV, or even email advertising, companies can now reach speci ¬Ã‚ c consumer groups or even individuals, virtually anywhere, anytime, and based on the physical location of the mobile user. In addition, companies have more knowledge about their client pool than ever before. This provides businesses with the opportunity to reach their prospects when and where it is most appropriate for the effectiveness of a marketing campaign. M-advertising could most likely become a very powerful new marketing tool enabling businesses to customize and personalize advertising for mobile users. The authors bring up the negative side effects of mobile advertising which include spam mail, SMS text messages, and privacy invasion. The authors go on to explain that, Since mobile communication is perceived as a truly private way of intercommunication, consumers can easily have a feeling that their privacy is invaded (Dhar, 356). The biggest fears that have arisen in recent years are location based marketing via GPS enabled mobile devices. (Dhar, 356). It isnt a surprise though that the idea of combining location information and user data could raise a serious privacy concerns for consumers because the activity of the individual can possibly be traced, which the authors also bring up. Privacy of the consumer can come in many different tolerance levels. Consumers nowadays prefer advertisements which are geared more towards their interests than ones that dont. Email and other types of internet messaging services are often times the center of spam targeting. A scholarly article by Evelyne Beatrix Cleff affirms that, Unanticipated advertising messages, commonly referred to mobile spam, are considered to be a form of privacy violation (Cleff, 229). Data which is collected from the market is used to create a profile of the consumer and help to categorize what that persons interests are. Cleff later states in the article that These practices may lead to an over-collecting of personal data without the proper implementation of personal data privacy, such as providing a set of standards governing the collection as well as the use of personal data and addressing issues of privacy and accuracy (Cleff, 229). Since most of use our smartphones for popular social networks such as Facebook, Twitter or Instagram, our standard of privacy as changed c ompletely. 50 years ago, for example, the general population would have never dreamed of putting up their personal home phone number up on a billboard for all to see. Yet nowadays, Facebook users will post even their home addresses on their profiles and other social networking websites with millions of eyes to see it. Because these advertising methods interfere into peoples private information, there are opt-out programs when using these services that restrict personalized advertising from gathering any information from your online browsing habits. A statement made by Cleff brings up the point that Consequently, privacy fears may not only be limiting the growth of m-advertising, but may also be affecting the validity and completeness of customer databases and pro ¬Ã‚ les, leading to inaccurate targeting, wasted effort, etc (Cleff, 229). Because online privacy has been a huge issue, there has been doubt that as the consumer becomes more annoyed by the presence of advertisements on the internet. Since literally all major social networking and online e-tailors provide opt-out programs for their users, will it be able to provide continued revenue growth in the coming years? Regulation and The Future Regulation in the United States falls under the Federal Trade Comission (FTC) with their Federal Trade Commission Act (FTCA) which protects consumers from unfair practices by sellers and marketers alike. A scholarly article in the Texas Law Review by David DeMarco goes indepth on the topic of privacy issues related to online marketing methods and subsequent regulations that comes with it. He goes on to explain that Although e-companies and Internet users may differ about the degree of access to collected information that companies ought to provide to their customers for verification purposesà ¢Ã¢â€š ¬Ã‚ ¦ businesses have a compelling interest in maintaining accurate and complete information about their customers (DeMarco, 1042). He goes on later to explain how there has been a push in the last two decades to push for industry self-regulation which is considered by a source in his article to be an abject failure. Because the internet is so vast and unregulated by governments, there h ave been huge doubts as to how consumers privacy will ever be regulated. According to a statement made by DeMarco, At the core of the self-regulatory regime sits a websites privacy policy (DeMarco, 1045). Since websites wont take responsibility for your information, who will? People dont realize as they allow for these websites and applications to access our photos, contacts, emails and so on, we give up ourselves to potential criminals that may lurk on the internet. As social networks come and go, the privacy we give up wont change. Society today as shifted completely due to the internet and without regulation, privacy or the idea of it will become nothing more than a word since all our information will be out there for the taking, regardless of your opinion. Overall, privacy issues and mobile advertising have turned into something highly taboo. Opinions on the matter vary from consumer to consumer due to younger people being more open about information their parents generation would have deemed unimaginable to post on the internet for all eyes to see. Laws and regulations by governments cannot keep up with the ever changing fads on the internet. From location based personalized advertising to the billboard you drive past on highway, mobile advertising is becoming embedded into every aspect of our lives. Consumers today carry their phones everywhere and with the mobile internet service providing the link, millions if not billions of people have their information gathered daily to provide a more personalized and creepy targeting campaign for your buying desires.

The Story of An Hour Theme :: Kate Chopin

Kate Chopin’s â€Å"The Story of an Hour† Kate Chopin wrote a short piece called â€Å"The Story of an Hour† about a woman’s dynamic emotional shift who believes she has just learned her husband has died. The theme of Chopin’s piece is essentially a longing for more freedom for women. Chopin reflects her rejection of the â€Å"postures of femininity† through her character’s descriptions. She describes her as â€Å"young, with a fair, calm face, whose lines bespoke repression.† Describing her as young and calm are what men looked for in a wife in the 19th century. They wanted a submissive woman to tend to their needs as Chopin’s description suggests. Furthermore, Chopin says of her character Mrs. Mallard, â€Å"she would live for herself.† Her character believes she will now be free of her marriage, and won’t be â€Å"repressed† as aforementioned any longer by her husband. Wives had a natural servitude towards their husbands as husbands worked and went about their lives. All in all, Chopin displays her character as having a joyous moment after the death of her husband because she is let go of being forced into her â€Å"femininity.† Chopin displays a need for more independent women in this piece, suggesting that wronged womanhood is the simple fact that society didn’t allow them to be on the same level with men. Mrs. Mallard realizes a â€Å"possession of self-assertion which she suddenly recognized as the strongest impulse of her being.† This suggests a dying will for independence. Mrs. Mallard realizes that she can now rely upon her self for everything and it will become her number one driving factor in life. After she realizes this, Chopin says Mrs. Mallard thinks â€Å"spring days, and summer days, and all sorts of days that would be her own.† When she has days to herself, she will have no one to tell her what to do, as this line suggests her husband used to.

The Advertisement of Harmful Products Essay -- Tobacco Marketing

The Advertisement of Harmful Products Psychological Persuasion through advertising: Why tobacco companies are still in business. With continuing advancements in medical research, the harsh reality of tobacco smoke becomes more evident. The deadly effect of smoking tobacco is gaining notoriety in society, and a general social movement towards a smoke-free environment is becoming the norm. Regardless of these obstacles, tobacco companies are determined to stay in business, and absorb the growing backlash against smoking. One main weapon of defense for the tobacco companies is their ability to draw new costumers through persuasive advertising. The majority of new smokers are between the ages of fourteen and twenty-one. Coinciding, the majority of smoking ads are projected to a younger crowd, attempting to dissolve a younger persons's resistance to smoking. Campaigns such as the cartoon "Joe Camel" seem to be directed towards a younger audience. Psychologist John Pierce, of the University of California, says "advertising reduces the conc...

The History of Intel

THE HISTORY OF INTEL The microprocessor has changed our lives in so many ways that it is difficult to recall how different things were before its invention. During the 1960’s, computers filled many rooms. Their expensive processing power was available only to a few government labs, research universities, and large corporations. Intel was founded on July 18,1968 by engineers, Gordon Moore, Robert Noyce, Andrew Grove, and Arthur Rock. Rock became Chairman, Moore was President, Noyce was Executive Vice President in charge of product development and worked with Moore on long range planning, and Grove headed manufacturing.The purpose of the new company was to design and manufacture very complex silicon chips using large-scale integration (LSI) technology. Moore and Grove’s vision was to make Intel the leader in developing even more powerful microprocessors and to make Intel-designed chips the industry standard in powering personal computers. Moore and Noyce wanted to seek In tel because they wanted to regain the satisfaction of research and development in a small growing company.Although the production of memory chips was starting to become a commodity business in the late 1960’s, Moore and Noyce believed they could produce chip versions of their own design that would perform more functions at less cost for the customer and thus offer a premium price. Intel’s unique challenge was to make semiconductor memory functional. Semiconductor memory is smaller in size, provides great performance, and reduces energy consumption. This first started when Japanese manufacturer Busicom asked Intel to design a set of chips for a family of high-performance programming calculators.Intel’s engineer, Ted Hoff, rejected the proposal and instead designed a   Single-chip, a logic device that retrieved its application instruction from semiconductor memory. Buying Back the Cash There was a problem with this new chip Busicom owned it. Intel was convinced to repurchase the rights to the product. Intel then offered to return Busicon’s $60,000 investment in exchange for the rights of the product. The Japanese agreed after struggling with the financial troubles. The Microprocessor Hits the Market Intel’s first microprocessor, the 4004, was introduced in 1971.This $200 chip delivered as much computing power as the first electronic computer, the ENIAC. After the 4004, Intel introduced the 8008 microcomputer, which processed eight bits of information at a time. The 4004 and 8008 began to open new markets for Intel products. Today, affordable computing power is available to designers of all types of products, producing creativity and innovation. Turning Point: IBM PC In 1981, Intel microprocessor family had grown to include the 16-bit 8086 and the 8-bit 8088 processors. These two chips created 2,500 winning designs in the year.A product from IBM was one of those designs, which became the first PC. Intel was convinced IBM to ch oose the 8088 as the brains of its first PC. Because of IBM’s intelligent decision, the PC business grew to tens of millions of units every year. In 1982, Intel introduced the 286 chip. It contained 134,000 transistors and provided 3 times the performance of other 16-bit processors during the time. The 286 were the first microprocessor that offered software compatibility with its predecessors. The Microprocessor Machine In 1985, the Intel 386 hit the market.The 386 could perform more than five million instructions every second. Compaq’s DESKPRO 386 was the first PC based on the new microprocessor. In 1989, Intel 486 processor was ready to hit the market. This new chip resulted in 1. 2 million transistors and the first built-in math coprocessor. This chip was faster than the original 4004. In 1993, Intel introduced the Pentium processor, which set new performance standards with up to five times the performance of the Intel 486 processor. The Pentium processor uses 3. 1 million transistors to perform up to 90 MIPS, about 1,500 times the speed of the original 4004.In 1995, Intel’s first processor in the P6 family, the Pentium Pro processor, was introduced. It included 5. 5 million transistors and contained a high-speed memory cache to accelerate performance. The Pentium Pro processor was a popular choice for multiprocessor sewers and high performance workstations. Intel introduced the Pentium II processor in May 1997. It contains 7. 5 million transistors packed into a unique Single Edge Contact Cartridge and delivers high performance. Intel offers Pentium II processors for Mobil PC, carrying new levels of performance and computer capabilities. In April 1998,Intel introduced the Celeron processor. This is the latest Intel processor created to meet the computing needs of Basic PC users. Intel’s recent introduction is the Pentium II Xeon processor. This is the newest addition to Intel’s Pentium II brand. It is Intel’s first microprocessor designed for mid and higher server workstation platforms. The company’s success in memory chips was built from the resources involved in working on projects to design and develop the world’s best microprocessor. INTEL’S STRATEGY Intel's primary business into the mid 1980s was memory chips, which accounted for 70 percent of revenues.In 1985 and 1986, Intel closed eight memory chip plants. They were fighting a never winning battle with the Japanese produces of memory chips. Gordon Moore and Andrew Grove refocused the company on advancing the technology of microprocessors. Intel decided to create a new vision and strategy for the company. Their vision was to make Intel-designed chips the industry standard in powering personal computers. Intel supplies the computing industry with chips, boards, systems, and software. Intel's products are used as â€Å"building blocks† to create advanced computing systems for PC users.Intel's mission is to be th e preeminent building block supplier to the new computing industry worldwide. Intel has several objectives in order to pursue their vision. The objectives include PC and server management advances through new Intel hardware and software products, alliances with other industry leaders, education and development programs, and industry standards efforts. Most importantly, Intel's greatest objective was making the PC an indispensable and persuasive appliance, which would ultimately compete with the TV, VCR, and telephone.Andy Grove crafted a series of strategies in order to reach Intel's objectives: 1. Introduce innovative products quickly. Andy Grove's vision of making the PC tomorrow's information appliance required the company to do more than be a leader in advancing microprocessors. Intel tries to bring innovative products to the market as quickly as possible. In 1995, Intel introduced the new high-end Pentium Pro processor. This came less than three years after the introduction of the Pentium processor, which is now the processor of choice in the mainstream PC market.Together, these products provide computer buyers with a wide spectrum of computing choices. Due to the growing popularity of the Internet, Intel programmers developed a software product called Streaming Media Viewer that software developers could incorporate into their products and allow users to view video as it arrived from the World Wide Web. Also, Intel developed hardware based cryptographic technology that provided increased levels of security for data communicated over the Internet. Intel's strategy of bringing innovative products to the market quickly has proven to be costly.In 1996, Intel spent $500 million on R&D projects to develop products (other than microprocessors). Even though other producers were using joint ventures to build the extremely expensive fabrication plants, Intel chose to go alone. Beyond their primary task of making microprocessors, Intel invests in a range of computi ng and communications applications that support their core business. Intel's supercomputer and network server efforts take advantage of the flexibility and power of Intel architecture, while their flash memory business supports booming communications applications, such as, cellular phones.Intel executives saw the future PCs equipped with new features, such as, digital video, stereo sound, 3-D graphics, fax, and data communications. Intel decided to add these features into its next generation microprocessors. Intel decided to compete with the Taiwanese computer industry. They felt that the Taiwanese were too slow to adapt their products to the latest Intel innovations. By producing motherboards, it would enable Intel engineers to integrate new functions. 2. Promote the Intel brand. Intel invests in education and marketing programs that describe the benefits of genuine Intel technology.In 1990, Intel initiated a marketing program to build the Intel brand and make PC users aware of the benefits of genuine technology and products. Intel asked PC makers to put the Intel logo on their machines. The company also sponsored television and print advertising campaigns stressing that by choosing an Intel-based PC, users got the ultimate in quality, reliability, software computability, and value. The marketing program was a success and had become a prominent element in Intel's strategy ever since.Not only did Intel continue to sustain its dominant market share, but also customer feedback revealed that PC buyers, not just computer techies, really cared about their computer's chip and performance capabilities. Instead of assigning its two new chip generations numbers like 286, 386, and 486 chip generations, Intel named them Pentium and Pentium Pro. This helped Intel build their brand name by allowing PC buyers to become familiarized with their products. Experts believed that Intel was spending over $100 million annually on promoting their name among consumers. . Alliances wi th other industry leaders. The breakup of the old computer industry is what gave Intel its chance and made the mass-produced computer possible. The old computer industry was vertically aligned. Industries used to build their computers from bottom up. Now, these companies purchase products from other industries to build their computers. Because PCs contained components from so many different vendors, Grove believed industry participants in different horizontal specialties had to develop new products in parallel.Intel works with other industry leaders to develop new PC technologies, such as the PCI â€Å"bus†, which has been widely adopted. This technology removes bottlenecks to provide greatly enhanced capabilities. They incorporate their chips into PC building blocks, such as, PC motherboards, to help computer manufacturers bring their products to the market faster. Intel also works closely with software developers to create rich applications, such as, PC video conferencing a nd animated 3D Web sites, that make the most of the power of Intel processors. Also, Intel is working with the U. S.Department of Energy to build the world's fastest computer supercomputers. As Intel introduced new generations of microprocessors, it was beneficial for Microsoft and other developers of operating systems and software to be ready to go to market with new software systems and products that capitalized on the speed of Intel's new processors. Andy Grove and Bill Gates began meeting in the 1980s to explore how their organizations can share information. Intel believes that if computers work better, do more, and are easier to use, more PCs will be sold and more Intel processors will be needed.As with any other strategy, it is necessary to evaluate performance and initiate adjustments in vision, long term direction, objectives, strategy, or implementation in the occurrence of changing conditions, new ideas, and new opportunities. For example, in 1994, a mathematics professor found a flaw in how Intel's new Pentium chip did division in certain situations. The media got a hold of this and there was negative publicity about Intel floating around. Intel explained to its consumers that the chances of this happening were minute. Intel admitted the flaw, but Andy Grove felt that it shouldn't concern nyone except the most demanding scientists. Intel wanted to stand behind there â€Å"Intel Inside† campaign, so they had to reevaluate their strategy. Within days of the incident, Intel offered all owners of Pentium based computers a free replacement of their Pentium chip and took a $475 million write off to cover the costs. Even though it was considered a disaster, only a few owners took a replacement chip. Intel focuses on being a best-cost provider. Their strategic target is the value conscious buyer. They want to give customers more value for their money.Intel's product line carries good-to-excellent attributes, several to many upscale features at low co st to the PC buyer. Overall, their focused strategies have kept them on the right track. However, Intel continues to attract competition, both from makers of software-compatible microprocessors and from makers of alternative-architecture chips. SWOT ANALYSIS To provide a good overview of Intel’s business position and whether it is healthy or unhealthy, a SWOT analysis was conducted. This analysis will show if there is a good fit between Intel’s resource capability and its external situation.STRENGTHS Intel is one of the most profitable companies in the world. It is a leader in its industry with over 80 percent of the world’s 250 million personal computers powered by Intel microprocessors and over 90 percent of all new PCs currently being assembled with â€Å"Intel Inside†. Intel is a recognized market leader with an attractive customer base and a good reputation of creating an advanced quality product. Some of Intel’s strengths are its financial co ndition, brand-name image, good management skills and technical expertise. Financial ConditionOne of Intel’s major strengths is the ability to fund for research & development. The company has a high degree of profitability, cash flows from depreciation, and low dividend payout. Therefore, Intel can provide the financial resources and use their financial strength to fund the capital requirements associated with refurbishing existing plants and building new ones. Intel’s strategy to maintain a leader status in the industry and to accommodate expected demand is necessary for them to stay ahead of competitors by producing more advanced products and building new plants or refurbishing existing plants.In recent years, Intel has built a new fabrication plant about every 9 months and announced that its goal is to reduce that to every 6 months. Also, for the past 6 years, it has led the semiconductor industry in new capital investments. Brand Name Image In 1990, Intel initiated a marketing program to build the Intel brand and show PC users the benefits of Intel technology and products. The reason for the program was to increase sales of the Intel brand and lower sales of AMD’s cloned microprocessors. Their marketing strategy was to ask PC makers to put a distinctive â€Å"Intel Inside† sticker on their machines.They also sponsored television and print advertising campaigns promoting that an Intel-based PC provided customers with ultimate quality, reliability, software compatibility, and value. This was a major success and created a good brand name image for Intel. Management Skills and Technical Expertise Talented and skilled individuals from the beginning managed Intel. They had the expertise to manage Intel by choosing the right individuals that had the technological know-how to bring it to the top. Intel’s skill and expertise proved to be a strength back in 1985 when Intel’s primary business was the memory chip.Japanese comp etitors started producing and marketing their memory chips at lower costs than Intel. However, Intel had the skills and expertise to abandon the memory chip business and put their full energies into a secondary microprocessor business. They wanted to become leaders of the industry and they proved that they knew what needed to be done to accomplish their vision. WEAKNESSES Diversity Intel is one of the most successful companies and it is hard to find a weakness in such an established firm. Intel is known for its strengths, competencies, and capabilities. However, one of Intel’s weaknesses is the focus on primarily microprocessors.The diversification of companies into other industries allows them to be less risky in case a rival developed a better product. For example, Microsoft is expanding into the Internet business to become more diversified. America Online and Netscape are merging to enhance their core business. Intel could become even more successful if it were to diversif y into other industries. The company can be in grave danger if another firm was to rise to the top with the manufacturing of microprocessors or if technology promoted a more efficient product than the microprocessor. Leadership After GrovesAndrew Groves has been the backbone of Intel for many years. Under Grove, Intel was very aggressive in protecting its technology. He is a hands-on manager whose high level of involvement and attention to detail inspired and intimidated subordinates. A big part of Intel’s success is Groves’ leadership style, competitive ability, and innovative mind set. Eventually, Groves will retire and the question will be what will happen to Intel? Will Groves’ successor lead Intel to remain on top. Andrew Groves has proved to be an excellent leader, but the leadership after him is questionable. OPPORTUNITIESMarket opportunity is a big factor for shaping Intel’s strategy. Intel is equipped with the right resources and has the capabili ty to pursue many opportunities that exist. The company’s innovation has helped build alliances to expand the firm’s market coverage and competitive capability. Intel also has the ability to grow rapidly because of strong increases in market demand. Innovation Andrew Groves has a vision of the PC as tomorrow’s information appliance. He wants to have televisions, VCRs, game players, cable boxes, and telephones to be pushed to the background and bring PCs to be in the spotlight.Groves does not want to just lead in advancing the microprocessor, he wants to fully utilize the capability of the microprocessor and introduce a number of PC-based communications products to meet the broad range of consumer needs. Some of the products that Intel has available are chip products used for keyboards, printers, copiers, and fax machines. These chip products are used to enhance cellular phones, pagers, digital cameras, and personal digital assistants. Intel is also manufacturing universal Serial Bus- single type of connector to attach printers, modems, CD-ROM drives, and other peripherals.Other innovative products include Intercast plug-in cards, a ProShare line of conferencing products,   And an I960 RP processor. Intel has a software lab in Shanghai developing multimedia and 3-D content in Chinese. They have created software to help popularize long-distance telephone calls on the Internet and a hardware-based cryptographic technology that provides levels of security for data communicated over the Internet. Intel is introducing new products and technologies on a weekly, sometimes daily, basis. They are gradually increasing their R&D budget to look for valuable ways to broaden their product line.Their reputation for innovation is among the best in the U. S. In fact, Intel was ranked third for its innovation in 1997. Strategic Alliances Alliances expand the firm’s market coverage and competitive capabilities. It is essential that Intel develop a cl ose relationship with other PC component producers, manufacturers, software developers, cable TV companies, media and telecommunications companies, and entertainment companies. Before the mid-1980s the structure of the old computer industry was aligned vertically, in which each company sold their products based on their own proprietary technology.They designed and built their computers themselves. Buyers had to commit to the whole package of one manufacturer. Since then, the computer industry is growing horizontally. Each product depends on another product. This is why it is important to collaborate with others. Products within each horizontal specialty should be compatible with other specialty products to make a powerful PC or other PC-based product. Growth Intel has the ability to grow rapidly because of strong increases in market demand. The process of making PCs has changed with that of the past. Only a few PC makers produced the components inside of the PCs.Therefore, the deman d for Intel’s products increased. Intel had the ability to grow rapidly because it responded quickly to market demand and had the capital and expertise to develop advanced powerful products faster than competitors. THREATS Looking at Intel’s external environment, there are some factors that create a threat to the company. Some of the threats Intel is facing are competition, slowdowns in market growth, and the bargaining power of consumers. Competition In 1997, Advanced Micro Devices (AMD) and Cyrix were the two major competitors that challenged Intel by cloning Intel’s microprocessors and marketing them at lower prices.This created a major threat to Intel’s market share. A third competitor was developed by the partnership among Motorola, IBM, and Apple Computer. They were producing and marketing Power PC chips for Apple’s line of PCs and certain IBM PCs. For example, the Power PC offered a reduced instruction-set computing (RISC) processor which ha d a simpler instruction set and higher computing speeds than Intel’s chips. This was an attractive feature for the end user, which also threatened Intel’s market share. The competitors mentioned above are just three of the major companies that are a threat to Intel.There is also the possibility of other companies making a technological breakthrough by developing a more powerful and cheaper product that will outlive Intel. For such reasons, Intel has to be innovative and ready for any possible external threat. Slowdown in Market Growth Intel is always planning ahead of things. They refurbish or build plants two years before the new product ever is produced. This could be considered an advantage or disadvantage. It is an advantage to Intel because they are constantly developing technologically advanced and more powerful products, which allows them to compete and be a leader of the industry.However, the major disadvantage is the possibility of the PC market slowing down. Intel could be hurt tremendously if the market growth slows down because they have already planned ahead and invested a lot of capital into the plants. Bargaining Power of the Consumer Cost pressures are also a threat to Intel. Consumers are demanding lower prices on products or higher quality for the prices they are paying. If a consumer can get the same product at a lower price from competitors, it can be a major threat to the company.Intel can influence bargaining power of the consumer by making sure the prices are low based on cost efficiency and the quality is maintained. The SWOT analysis provided the opportunity to view the company’s overall position. An evaluation of Intel’s strengths, weaknesses, opportunities, and threats support the fact that above all Intel has established a healthy position in the industry. TESTS OF A WINNING STRATEGY Test 1: Goodness of Fit The goodness of fit test determines if a company’s strategy is suitable for its internal and external situation in order to obtain market success.Intel is a member of the technology sector and in the semiconductor industry. Firms involved with technology must deal with the quick obsolescence that is inherent when dealing with computers. An example of this is Moore’s Law coined after Gordon Moore, Intel’s founder, who truthfully stated that â€Å"the power and complexity of silicon chips would double every year with proportionate decreases in cost†. This external environmental situation causes two problems for companies in the industry. One problem is that a company must constantly innovate to stay on top and secondly, the company will need capital in order to create new technology.Does Intel’s strategy adequately deal with the constant change that is prevalent in its business environment? The Intel’s strategy is to cannibalize its own products. In other words Intel strives to make its own products obsolete. A Company’s profits and market position can be severely undermined if another company offers a faster chip with more capabilities. Intel is able to do this because of its internal situation. Intel has vast amounts of capital, â€Å"†¦a ‘war chest’ of about $10 billion†. This is useful when the average plant costs will be about $2. 5 billion dollars around the year 2000.Test 2: Competitive Advantage Test The competitive advantage test ascertains if a company’s strategy leads it to have a sustainable competitive advantage over its rivals. The competitive advantages that Intel has are its brand image and research prowess. Intel’s brand name is a competitive advantage because it helps keep the sale of silicon chip clones from rivals down so that these companies do not erode Intel’s profitability and market share. If a company had a clone of equal performance, it would be easier for consumers to switch over if not for the power of brand name and awareness that keeps customers loyal.The strategy that Intel has is to increase the awareness and preference for its products. Research prowess is a competitive advantage for Intel. It has large amounts of capital compared to its competitors. For example, next year Intel will spend $3 billion on research and development, â€Å"which is more than AMD generated in sales in 1998†. Intel continues to produce innovative products faster than its rivals do in order to receive the lion’s share of profits so as to keep itself able to acquire the capital to produce these innovations. Test 3: Performance TestThe performance test ascertains if the company’s strategy is helping the company become profitable and help obtain long-term market position. Located in the Appendix are several profitability ratios for Intel from 1983 until 1998. In Appendix A-E are graphs representing this data? In Appendix F are the actual numerical data. After 1986 is when Intel changed its strategy to what it is pres ently. The data used to compute these ratios was from the Intel case in Strickland and Thompson’s Strategic Management 10th Edition. The 1997 and 1998 were compiled from data obtained from Intel’s homepage located at http://www. ntel. com. Appendix A shows the gross profit margin. The gross profit margin has, since 1986, been steadily increasing and since 1990, has remained above fifty percent. This profitability ratio shows the amount of money that remains after making a product that is available for the company to utilize. This shows that the company is strong in this aspect. Operating profit margin is shown in Appendix B. This shows the profit of the company prior to interest payments and taxes taken out. The ratio was negative for the years 1985 and 1986. After 1986, the operating profit margin has been strong reaching a peak of 39. 4% in 1997. Appendix C displays the net profit margin, which is the profit the company realizes. After posting a loss in 1986, the net profit margin of Intel has steadily improved and strengthened. Since 1990, Intel has been positing profits higher than fifteen percent. It reached a profit peak in 1997 with a net profit margin of 27. 7%. Intel has at the present time has a dominant 75. 7 % market share. This is a dominant position since its next closest rival, Advanced Micro Devices (AMD), has merely fifteen and one-half percent of the market share. Its other competitor Cyrix has only 5. 6%.This data is represented in pie chart form in Appendix G. The data has shown that Intel’s strategy has successfully completed all of the tests and is thus a winning strategy. Its present strategy is allowing it to respond to the business environment and maintain its competitive advantages while raking in profits. Andy Grove’s Performance as CEO It is imperative to acknowledge Gordon Moore, his mentor, before discussing the performance of Andy Grove. Gordon helped to set the Intel culture as being one of low bureau cracy and set the standard of holding one-on-one meetings with his subordinates in order to help the flow of information.Moore has is own ‘law’ which stated that the power and complexity of the chip would double every eighteen months with proportional decreases in costs. This helped Intel from the onset set its sights on innovation and being a leader. Appendix F shows the numerical numbers for the return on stockholders’ equity (ROE) and return on assets (ROA). Appendix D and E show their values graphically. These ratios are used to gauge how effective management is. Andy Grove became President in 1979 and was given more total control in 1987 when Gordon Moore served only as chairman.To adequately ascertain how well Andy Grove has been as CEO, an examination of the following these ratios are necessary. The ROE since 1987 has been strong with most years above twenty-percent as displayed in Appendix D. The highest value being in 1997 with 35. 99%. This ratio is put into perspective when one compares the ROE with that of the industry. The ROE-to-Industry ratio taken from Daily Stocks website which is 131. 4%. The ROA since 1987 has also been steadily increasing into the teens and lower twenty’s. The ROA-to-Industry for Intel is large 140. 4% from Daily Stocks website.This analysis shows that Andy Grove has done a superb job at Intel. Other factors concerning Andy Grove speak well of his performance as the CEO of Intel. His views have permeated into the corporate culture of Intel and have helped it become the dominant force in its industry. The strategy-making style that Grove uses is that of a master strategist. The master strategist exerts strong influence over the strategy of the company. Andy Grove’s own view, which is his ‘law’, of â€Å"only the paranoid survive† has helped keep Intel on its toes and looking ahead to what is happening.This is shown by the fact that Intel builds factories years before they are needed in order to stay on top of the market. Andy Grove’s leadership has helped Intel not fall into the pitfall of becoming stagnated by its own success. The shortcoming that Andy Grove has in being a manager is he is too good. As stated in the SWOT analysis, Andy Grove’s permanent retirement from Intel could set the company floundering unless the company finds someone as well qualified and with an analogous approach to management style. INDUSTRY ANALYSIS The U. S. icroprocessor industry comprises of more than 100 companies that design, manufacture, and market semiconductors to original equipment manufacturers and personal computer end users. The following information is a profile of the dominant economic characteristics of the microprocessor industry. Market Size: $300-$350 billion worldwide consumption. Scope of Competitive Rivalry: Global. Market Growth Rate: 15-20 percent annually. Stage in Life Cycle: Rapid growth and takeoff. Number of Companies in Industry : About 174 companies. Customers: 80 million microprocessors for use in PCs and network servers.Degree of Vertical Integration: Mixed; forward and backward integration. Ease of Entry/Exit: High entry barriers in the form of capital requirements. Technology/Innovation: Rapid technological changes microprocessor production. Product Characteristics: Highly standardized. Scale Economies: Companies can realize economies of scale. Learning and Experience Effects: Strong. Capacity Utilization: Manufacturing efficiency is higher when capacity is increased. Industry Profitability: Above par. 1995 Industry Usage 1997 Industry Usage Error! Not a valid embedded object.The two pie charts above display the industry usage in 1995 and 1997. As shown, the computer sector is the main user of the microprocessor. Within two years, the computer sector increased its usage by 11% and is expected to continue increasing over the next several years. Computers are the main focus in the microprocessor industry , which is why many rivals are competing for market share in that sector. THE FIVE FORCES MODEL OF COMPETITION Rivalry among competing manufacturers in this industry is a strong force of competition. It is focused on such factors as performance features, new product innovation, quality, and brand image.New product innovation plays a major role in the microprocessor industry because it determines the intensity of rivalry among competing firms. Companies are trying to gain better market position and competitive advantage. Threat of potential entry is a weak force due to the fact that it is hard for a newcomer to break into the market. Moreover, economic factors put a potential entrant at a great disadvantage because of the learning and experience curve effects. The existing microprocessor companies have advantageous positions in the industry from the experience they have gained from being in the industry longer than new entrants have.Leaders of the industry, like Intel, have verticall y integrated their manufacturing to make products at low efficient costs that entrants would not be able to compete and be exposed to fierce competition. Other entry barriers are economies of scale, brand preferences and resource requirements. Competition from substitutes is a weak force because there are no substitutes in the industry. The microprocessor is needed to manufacture many types of equipment, such as, TV sets, VCR’s, cameras, wristwatches, kitchen appliances, mobile phones, and stereo equipment.There is no other product that can be used in place of the microprocessor. Power of suppliers is moderate. Some companies rely on suppliers to supply a component more cheaply than industry members can make themselves. This can increase their leveraging power. However, suppliers also tend to have less leverage to bargain over price and other terms of a sale because the industry they are supplying is a major customer. A microprocessor company usually orders in large quantitie s, which in turn decreases suppliers leverage. Also, major companies are integrating backwards to self-manufacture the component.Backward integration allows companies to negotiate favorable terms with suppliers. Power of customers is a strong force in the industry primarily because buyers are large and purchase much of the industry’s output. Purchasing in large quantities gives a buyer enough leverage to obtain price concessions and other favorable terms. For instance, PC makers have a substantial bargaining leverage when deciding to use Intel’s chips in their computers. International Competitiveness Due to fierce international competition, the microelectronics industry has become highly globalized. To compete effectively, U. S. icroelectronics suppliers must sell to all domestic and foreign markets. The profit margins for certain products are so slim that only through international sales can a supplier generate profits adequate to remain in business. Survival in this highly international industry requires microelectronics manufacturers to be first to market with leading-edge products that focus on high-end technology. Only those suppliers who introduce the breakthrough products can maintain profit margins that will support research, development, and the purchase of new equipment for manufacturing the next generation product. COMPETITOR ANALYSISIntel's rivals: Advanced Micro Devices, Cyrix Corporation, Motorola, IBM, Apple Computer, and the Power PC are favorably positioned, but not in the same leading position as Intel. Intel dominates the computer industry. Intel works closely with alliances to introduce many innovative products that give them a leading edge over their rivals. Intel’s products are distinguished from their competitors, which make it difficult to clone. In 1997, Intel's two biggest competitors were Advanced Micro Devices (AMD) and Cyrix, both of which made â€Å"Intel-clone† microprocessors and marketed them at pric es below those charged by Intel.A partnership among Motorola, IBM, and Apple Computer to produce and market Power PC chips for Apple's line of PCs and for certain IBM PCs represented a third competitor. Sun Microsystems was a fourth competitor, producing and marketing a microprocessor line that competed against Intel chips in a limited number of computing applications. These competitors can possibly take some of the market share away from Intel. Therefore, Intel needs to maintain market dominance by continuing to make a high quality microprocessor with process technology improvements.These factors will help Intel stay ahead of their competitors. Advanced Micro Devices (AMD) had carved out a niche providing less expensive microprocessors than Intel's mainstream offerings. AMD, confident that NexGen had strong technology despite its low sales, promptly scrapped its own design for a chip to compete with Intel's Pentium Pro in favor of a design (subsequently named K6) that NexGen had un der development. Whereas previous generations of AMD chips had been clones of Intel's designs, AMD and NexGen engineers had designed the K5 and K6 from scratch.AMD hoped that its K6 chip would be an attractive alternative to Intel's higher-priced Pentium Pro chip. AMD was planning to introduce 180, 200and 233 MHz versions of its K6 chip during 1997 and a 300 MHz version was the plans for 1998. AMD expected that 5 of the top 10 PC manufacturers would be using the K6 in some of their models during 1997; analysts projected that AMD could sell up to 5 million K6 chips in 1997. The K6 was expected to sell for about 25% less than Intel's Pentium   Pro chips. IBM and Compaq announced in 1997 that they would use AMD's K6 processors in their low-end machines.During the first three weeks of September, nearly half of all the desktop computers sold through retailers used the AMD K6 microprocessor, according to market researcher PC Data Inc. That is a dramatic improvement from last year when 9 2% of those same machines had Intel chips inside. Today, only 43% of retail PCs sold use Intel. Industry analysts expected Cyrix to be more successful in marketing its M2 against Intel's MMX Pentium in the price-sensitive home computer and notebook segments. The stigma of a non-Intel chip posed a high barrier for Cyrix to hurdle in, penetrating the high-end desktop and notebook segments.Motorola, Apple, and IBM initiated a partnership in 1991 to develop the Power PC chip as an alternative to Intel chips. After production delays and disagreements over design, IBM and Apple finally agreed to a common design in 1995. The Power PC along with Sun Microsystems' UltraSPARC chip was a reduced instruction-set computing (RISC) processor, whereas, Intel, AMD, and Cyrix chips were complex instruction-set computing (CISC) processors. Chips incorporating RISC designs used simpler instruction sets to achieve higher computing speeds than CISC processors. Also, RISC designs had better floating-point performance.KEY SUCCESS FACTORS Technology-Related KSFs Intel has many key success factors that helped it prosper in the market place. Intel has product innovation capability and the funds available to invest in research and development. Intel's reputation for innovation was among the best of any U. S. company, it ranked third on innovation among all U. S. companies. Besides investing in R&D, Intel had to gut and refurbish its existing fabrication plants every three years to produce the new chips and sometimes build a new plant to accommodate the expected   demand.Year after year, building new plants became very expensive because they used exotic tools and equipment to etch finer and finer lines on a silicon chip. Finer etching also required more labor and production time. Intel estimated that each succeeding generation of microprocessors required more than twice the capital and manufacturing capacity for production. Intel intended to be among the handful of chip producers that c ould afford to build top-of-the-line chip fabrication plants. Manufacturing-Related KSFs Intel has the flexibility to manufacture a range of models and sizes.Besides the products already in the market, it has additional products in various stages of development. For instance, Intel has a segmented brand including the Celeron, Pentium II, and Merced chip which is expected to be available in 2000. Distribution-Related KSFs Intel works closely and distributes to PC component producers, PC manufacturers, software developers, cable TV companies, media and telecommunications companies, entertainment companies, and information-communications appliance for both the home and the workplace.Intel is involved with Microsoft, Pointcast, America Online, IBM, Cisco Systems, and others to develop and promote Internet software. Marketing-Related KSFs To diminish the sales of clones of Intel microprocessors marketed by AMD, Cyrix, and others, Intel initiated a marketing program in 1990 to build the I ntel brand and make PC users aware of the benefits of genuine Intel technology and products. Intel asked PC makers to put a distinctive â€Å"Intel Inside† sticker on their machines. Manufacturers who used Intel microprocessors in their PCs also used the logo on their packaging and in their ads and brochures.The company also sponsored many television and print advertising campaigns to promote the Intel’s brand name image. Skills-Related KSFs Intel has the ability to develop innovative products and product improvements. Also, it has the ability to get newly conceived products past the R&D phase and out into the market very quickly. They are always ahead of their competitors and always find new ways to improve their product. Intel’s team consists of many experienced employees using top of the line technologies. Organizational CapabilityIntel has the ability to respond quickly to shifting market conditions and customer needs because of its many years of experience and the ability to invest in R&D. Andy Grove’s management style also plays a major role in organizational capability. His concern for the flow of information helped instill Intel’s corporate culture and allows every employee to contribute to the company. INDUSTRY PROSPECTS AND OVERALL ATTRACTIVENESS The factors that make the industry attractive are the large use of computers at home, work, libraries, coffee shops, and bookstores. Computers allow easy access to Internet, e-mail, and research.PC’s use up-to-date technology, which makes life easier and daily tasks simpler. The fastest growth was expected to occur in Asia outside Japan, where use of PCs was still relatively limited and where the market potential was largely untapped. The Chinese market was the largest in the Asia-Pacific region (with projected growth of 25-35 percent annually over the next several years), followed in order by Korea and Japan. Also, PC sales in Europe were expected to grow 8% annuall y. The profit outlook seems favorable because a computer at home or work will be a necessity.The factors’ making the industry unattractive was that Intel was producing new products too quick for the market to catch up. New developments were occurring at such a fast and furious pace that the end result was unpredictable. There was a lot of competition going on. The Internet was central to most of the forthcoming developments in information technology. This is the reason why Intel is mainly focused on the computer sector. As Andy Grove put it, â€Å"The Internet is like a 20-foot tidal wave coming thousands of miles across the Pacific, and we are in kayaks. It’s†¦ gaining momentum, and its going to lift you and drop you.It affects everybody†¦the computer industry, telecommunications, the media, chipmakers, and the software world. † FUTURE PROSPECTS Their commitment to R&D creates future generations of products and the manufacturing processes they use to make them, while their capital expenditures ensure the availability of state-of-the-art factories that allow them to deliver high-volume, high-performance microprocessors efficiently. Looking into the future, they will continue to manufacture quality microprocessors that will live up to the Intel name and strive towards perfecting their existing ones.

Credit Agreement Resolutive Condition

Pactum reservati dominii 2. Facts of the case and the issues to be decided4 3. Validity and effects of pactum reservati dominii in the present case5 Conclusion7 References8 Table of Cases Quirk’s Trustees v Assignees of Liddle & Co. (1884 – 1885) 3 SC 322 Courtney-Clarke v Bassingthwaighte 1990 NR 89 (HC) Smith & Venter v Fourie 1946 WLD 9 R v Ellinas 1949 (2) SA 45 Gosvenar Motors v Samson 1956 (3) SA 169 National Motors v Fall 1958 (2) SA 570 IntroductionThe law governing credit transactions is the Credit Agreement Act 75 of 1980 (hereinafter referred to as the Act) which replaced the Hire-Purchase Act 36 of 1942 as a result of Proclamation AG 17/1981 which states that â€Å"Subject to the provisions of this Proclamation, the Credit Agreements Act, 1980 shall apply to the territory of South West Africa. † The act regulates transactions where movable goods are purchased or leased on credit. It also applies to services rendered on credit.According to the Act, a c redit agreement is a credit transaction or a leasing transaction or any transaction with the same import regardless of its form or regardless of the fact that the transaction(s) is subject to resolutive or suspensive conditions. For the purpose of this assignment, I will only discuss issues pertaining to credit transaction because the case of Quirk’s Trustees which is central to the question whether there is sale before the last assignment is paid falls with the ambit of this paper.A credit transaction according to the Act includes ‘goods sold and services rendered against payment of a stated of determinable future date or in whole or in part in instalments over a period in future’. Section 1 (b) states that the â€Å"goods† shall mean movable goods or in other words movable property. This point is significant given the nature of the problem we are faced with of whether a contract of sale by credit exists. 1. Pactum reservati dominii Before looking at the facts in the case of Quirk’s Trustees v Assignees of Liddle & Co . It is important to briefly discuss the concept of pactum reservati dominii. Credit agreements are in a form of pactum reservati dominii which entails that the seller allows the purchaser to take possession of the goods but ownership is retained by the sell until the buyer or purchaser has paid all the instalments. The pactum reservati dominii is meant to protect the seller who sells goods on credit. It also provides the seller with security in case the buyer defaults on the payment of instalments. The pactum clause is the same as a suspensive condition.It suspends not only ownership but also the whole contract of sale until the fulfilment of the suspensive condition – the payment of the purchase price in full. It means that unless there is an agreement to the contrary, the risk will only pass to the buyer when the last instalment has been paid. Consequently, the Aedilitian remedies for defects of the go ods are not available to the buyer until the payment of the last instalment. 2. Facts of the case and the issues to be decided The case of Quirk’s Trustees v Assignees of Liddle & Co is concerned with the transfer of ownership.The Briefly the facts from the headnotes are as follows: Q sold the furniture, fitting and stock of a certain hotel premises to L. , who subsequently assigned his estate for the benefit of his creditors, and Q and L. ’s assignees the entered into the following written agreement: â€Å" Sold by L. ’s assignees to Q. all the furniture, fitting etc. – in fact, everything stored in the town for ? 650, Q. to give bills at three, six, nine and twelve months. Property in goods bought to pass to Q. only upon payment of the last bill†. The greater portion of the goods so sold was delivered to Q. who, however, neither gave the bills nor paid any portion of the price. Q. the surrendered his estate. Q. ’s trustees and L. ’s assignees both claimed the goods delivered to Q. The issues were (a) whether this was a valid sale on credit and (b) whether ‘upon a contract of sale of goods the property must be held to pass forthwith to the purchaser, notwistanding a condition attached to the contract that the property shal only pass upon payment of the last of several promissory notes, payable at different dates, agreed to be given by the purchaser in payment of the rice. ’ 3. Validity and effects of pactum reservati dominii in the present case The Credit Agreement Act provides the following regulation: (1) The Minister may†¦. (a)prescribe the maximum period within which the full price under a credit agreement shall be paid; (b)prescribe the portion of the cash price or any other consideration which shall be paid or delivered as an initial payment or initial rental in terms of a credit agreement; (c)prescribe the manner in which the price of any goods or service shall be displayed or advertise d; d)generally, prescribe any such conditions as he may find fit in regard to any credit agreement. (2) Different regulations may be made under subsection (1) in respect of different credit agreements, kinds of credit agreements, goods, services, classes or groups of goods or services, credit grantors or credit receivers or categories of credit grantors or credit receivers. It is also worth mentioning that Section 1 (b) states that the â€Å"goods† shall mean movable goods or in other words movable property. There is no doubt that the parties agree that the buyer will pay in instalments.There is also no doubt that the buyer did not honour the agreement. The problem that we have to deal with is whether this type of agreement can be regulated by the Credit Agreement Act 75 of 1980 which is still applicable in Namibia despite the fact that where it originated in South Africa, it has since been replaced by a more progressive and market cognizance National Credit Act. Based on our understanding of Section 1 (b) the agreement does not fall within the realm of the Act and hence it cannot be said to be a credit agreement as it involve sale of immovable property.This agreement is rather governed by two Acts that are still applicable to our law i. e. Formalities in Respect of Contracts of Sale of Land Act 71 of 1969 and Sale of Land on Instalments Act 72 of 1971. Although the merx is sold with movable properties, the substance of the agreement is the building and land on which it stands and not the furniture, fittings etc. Section 5 of the Act provides for the following requirements of the contents of the credit agreement that†¦.. ; (1) Subject to †¦Ã¢â‚¬ ¦. any credit agreement shall- (a)be reduced to writing and signed by or on behalf of every party thereto; b)state the names of the credit grantor and the credit receiver and their business or residential addresses or, if they do not have such addresses, any other address in the territory; (c)state the amount paid or to be paid as an initial payment or as initial rental; (d)contain a description whereby the goods or service to which that credit agreement relates, and any goods delivered to the credit grantor as payment, may be readily identified; (e)if it is an instalment sale transaction, state the conditions, if any, as to the reservation and passing of the ownership of the goods to which that credit agreement relates; f)if it is an instalment sale transaction or a leasing transaction, state the conditions, if any, as to the right of the credit grantor to the return of the goods to which that credit agreement relates; (g)contain a reference to the provisions of section 13; (h)be in the official language which the credit receiver may request in writing. (2) No person shall be a party to a credit agreement which does not comply with a requirement referred to in subsection (1): Provided that a credit agreement which does not comply with any such requirement shall not merely for th at reason be invalid. 3) If after delivery to the credit receiver of goods to which a credit agreement relates, the credit grantor and the credit receiver agree that those goods or any part thereof shall be replaced by any other goods, the goods to be described in terms of subsection (1)(d) in that credit agreement shall, as from the date on which those goods are or any part thereof is replaced, be the goods to which that credit agreements relates. We can rightfully contend that agreements do not always show clearly their true nature. A contract, though called by the parties a credit agreement, is really one of sale if it does not entitle the buyer to sale.The condition as to the passing of ownership is a suspensive one if the ownership is not to pass till all instalments have been paid. , Conclusion A consideration of the Quirk’s case shows that a suspensive condition is of more frequent occurrence than a resolutive one. A resolutive condition provides that the ownership sha ll pass to the buyer immediately on delivery, but revert to the seller if the instalments have not been paid by a certain time, or on any other event. What is known as lex commissoria usually takes the form of such a resolutive condition.It appears, however, that the lex commissoria does not concern the passing of ownership. In the present case, it is clear that this is not a credit agreement although the makers chose to call it as such and that it resembles a credit agreement. It is rather a matter of substance versus form. . References R R Pennington Retention of Title to the Sale of Goods under European Law The International and Comparative Law Quarterly, Vol. 27, No. 2 (Apr. , 1978), 277- 318. C Visser, JT Pretorius, R Sharrock and M van Jaarveld Gibson South African Merchadile & Company Law 8th ed. Cape Town: Juta & Co