Source: Intel 2007 Annual Report
However the company's budgets are undisclosed to the general public, Intel emphasizes on the increasing value of the R&D Department. For instance, a decade ago, this budget had a value of $2.5 million; by 2008, the value had more than doubled, reaching $5.8 million
Source: Intel 2007 Annual Report
The process of budget planning within Intel is briefly explained in the following quotation. "The company's budget and planning process commences with a segment-level evaluation - which as noted above excludes share-based compensation - and culminates with the preparation of a consolidated annual and/or quarterly budget that includes these non-GAAP financial measures (gross margin, research and development expenses, marketing, general and administrative expenses, operating income, income tax expense, net income and EPS). This budget, once finalized and approved, serves as the basis for allocation of resources and management of operations. While share-based compensation is a significant expense affecting the company's results of operations, management excludes share-based compensation from the company's consolidated budget and planning process to facilitate period to period comparisons and to assess changes in gross margin dollar, net income and earnings per share targets in relation to changes in forecast revenue" (Edgar Online, 1995-2008).
Relative to their stakeholders, the Intel Corporation promotes intense efforts into the development of communities on numerous fields: they support the managerial development of specialists, they offer training programs to young software developers, they engage in developing higher and more advanced technologies that improve the quality of the educational and healthcare systems. Also, they allocate impressive sums of money into the preservation of the natural environment. They generally do this through sponsorship programs and direct involvement, but they also contribute to the well-being of communities to the payment of large taxes, which are then redistributed by the state budget. As a result of their efforts, in 2007 alone, the Intel Corporation has been the receiver of more than 50 international awards for environment, health and safety, education,...
The wards include, but are not limited to, those from the Philippines Department of Education, the U.S. Environmental Protection Agency, the U.S. National Business Group on Health, the Ministry of Natural Resources and the Environment, the China Ministry of Education, the Brazilian Federal Government or the Corporate Responsibility Officer Magazine (Intel 2007 Corporate Responsibility Report).
5. Conclusions
The Intel Corporation was founded in 1968 and since its beginnings, it has never ceased its efforts to improve the semiconductors industry. The most renowned products are the Intel microprocessors, which are basically present in most personal computers. The company's operations revolve around three major players: the employees, the customers and the shareholders. The shareholders and the employees are one and the same party at times, mostly since 75% of the staff members own Intel stocks. The organization invests large sums of money into the complete satisfaction of their customers' needs and wants, into the development of communities, including education, healthcare and business entities, but also for the preservation of the natural environment. The primary efforts are concentrated towards the development and integration of cutting edge technologies, all with the ultimate purpose of registering higher revenues.
References
1995-2008, Edgar Online, http://sec.edgar-online.com/2006/04/19/0001157523-06-003823/Section2.asplast accessed on June 9, 2008
2008, Intel Corporation - Key Facts, CBR Online, http://www.cbronline.com/companyprofile.asp?guid=E82C088A-0488-4DB5-8953-9E316C2B44D1&CType=Backgroundlast accessed on June 9, 2008
2008, Intel Salary Surveys, Vault, http://www.vault.com/companies/company_main.jsp?product_id=340&co_page=13&type=salarylast accessed on June 9, 2008
2008, Official Website of the Intel Corporation, http://www.intel.comlast accessed on June 9, 2008
Intel 2007 Annual Report, Retrieved at http://intc.client.shareholder.com/on June 9, 2008
Intel 2007 Corporate Responsibility Report, Retrieved at http://www.intel.com/intel/cr/gcr/overview.htm?iid=about_intel+cm_crron June 9, 2008
