Intel revenues then and now (note: Revenue has grown from about $ 2b a year to almost $ 36b) Intel 2004 Annual Report 1423 45 27 879 23 51 27 23.

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Presentation transcript:

Intel revenues then and now (note: Revenue has grown from about $ 2b a year to almost $ 36b) Intel 2004 Annual Report

What is globalization?  globalization of production  globalization of markets +  mobility of investment  mobility of labor / skills  dispersion of popular culture

Drivers of globalization  Competition (often fierce)  ‘Management innovation’, value chain analysis, etc.  Regional Integration WTO / Predecessor GATT, NAFTA, EU, R.E.I.  Technological change  transport  telecomm / communication  microprocessors

‘ …A vertically integrated model of industrial production… Ford’s Steel Mill Ford’s Glass Works Ford’s Rubber & Tires Plant Ford’s Battery Plant Rouge Plant Detroit Inputs Outputs Fordism’

Value chain steps in contributing value added – ‘build / buy question’ Customers Components Financing After sales Support Sales / marketing Design

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