Dr. Dorothy Paun, dap@uw.edu Introduction to the Case Study Companies Summer Quarter 2017
ESRM 320 Case Study Companies AMD Produce processors, graphics, memory, and drives for computing equipment and electronics Produce software FLUOR Project management (design, engineer, procure, staff) Construction, distribution, and contingency response services INTEL Produce processors, chipsets, motherboards, memory, and drives for computing equipment and electronics Produce software
Case Study Companies: Customers AMD B2C: No B2B: Original equipment manufacturers (OEM) of computing equipment System builders Distributors (resellers) FLUOR B2C: No B2B: Energy firms Industrial firms (metals and mining, rail, manufacturing) Government (nuclear projects, contingency response) INTEL B2C: No B2B: Original equipment manufacturers (OEM) of computing and communication equipment System builders Distributors (resellers)
Case Study Companies: Size AMD Sales: $5.5 billion Loss: ($0.4 billion) Employees: 9,700 FLUOR Sales: $21.5 billion Profit: $0.5 billion Employees: 36,000 INTEL Sales: $55.9 billion Profit: $11.7 billion Employees: 106,700
CEO Financial Report Comments AMD CEO’s financial comments: We took important steps improving the financial foundation of the company and re-profiling our near-term debt maturities. As a result, we achieved annual revenue growth for the first time since 2011. CEO’s sustainability comments: None FLUOR CEO’s financial comments: Fluor’s revenue was $21.5 billion, down from $27.4 billion from 2013. CEO’s sustainability comments: None INTEL CEO’s financial comments: Intel reported record revenue of $55.9 billion, up 6% from 2013. Net income rose 22% to $11.7 billion. CEO’s sustainability comments: We extended efforts to ensure ethical sourcing of minerals, including “conflict minerals” from the Democratic Republic of the Congo (DRS) and adjoining countries. We manufacture microprocessors that are DRC conflict-free and have a new goal for all products to be DRC conflict-free by 2016. We announced a Diversity in Technology initiative to invest $300 million for hiring and retaining women and under-represented minorities.
CEO Sustainability Report Comments AMD Environment Comments: When we issued our first version of this report in 1995, it was titled the “AMD Environmental Report.” Now our corporate responsibility report covers a broad range of issues from diversity to labor rights, ethics, and environmental stewardship. One of the biggest changes over the last 20 years is how corporate responsibility has become a key facet of our business. An example is our commitment to improve the energy efficiency by a factor of 25 by 2020. Social Comments: Employees around the world are motivated by working for a responsible company and designing products that change the world. FLUOR Environment Comments: We are positioned to provide clients with the technical experience and know-how in energy efficiency and managing carbon footprints. Social Comments: Sustainability is fundamental to our offerings. We’ve again been listed as one of Ethisphere’s World’s Most Ethical Companies, one of only 14 companies to receive this recognition in every year it has been awarded. Our definition of sustainability extends to include our safety programs and dedication to bettering the Our employees have volunteered 41,000 hours on community projects and Fluor has donated $8.5 million to community initiatives. INTEL Environment Comments: Intel topped the U.S. Environmental Protection Agency’s list of “green” power purchasers in the U.S., a position we’ve held since 2008. In 2014, our water use and solid waste generated decreased. Social Comments: We continue to make significant investments in programs to encourage employee volunteerism. Our goal is to achieve full representation of women and under-represented minorities at Intel in the U.S. by 2020. We seek to empower people and expand economic opportunity through education and technology access.