Management Essay Example | Topics and Well Written Essays - 500 words - 29

Management - Essay Example Therefore, it is important for Intel to have a proper understanding and interpretation of its external environment. The external environment comprises of the political, economic, socio-cultural, technological, legal and environment aspects (Penrose 60). The political aspects of the external environment relate to the fact that Intel is a multinational company that operates in different states. In effect, the political stability of the country determines the manner in which the company penetrates the market. Politics tend to have great influence on other aspects of the market such as policy and the economy. The ideology adopted by political players determines the direction in which the economy takes and the manner in which the company operates. Intel took over four years negotiating with the Vietnamese government to be allowed to operate in the country. The economic and technological aspects of the environment go to the financial capacity and competitiveness of the various states. The recent economic down turn greatly affected the company’s profitability and level of investment in innovation and new technology. The legal aspect of the environment affects the manner in which the company operates in the specific environment. Unf riendly policies limit the extent of the company’s operations. The porter’s five forces analysis framework interrogates the environment on five main areas. The competition, the substitutes, consumer bargaining power, supplier bargaining power and the intensity of the competition, are the fundamental aspects of the external environment. The technology market is increasingly expanding, and it allows companies to specialize in particular fields. Intel is one among the largest semiconductor chip makers. The chipset industry has a diverse structure that engages different inventors and producers. The competition is differentiated buy the customer loyalty and the legal boundaries that