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Advanced Micro Devices

DIVERSIFICATION AND GLOBAL POSITION 3

Advanced Micro Devices, Inc. is ranked as the as the world's second largest PC chipmaker with a market share of just 17%, far behind Intel Corp. with 81% of the market (Buckman and Williams 2001, 1). However, in 2000 AMD's sales jumped 63% to $4.6 billion, producing $983 million in net income and its first profitable year since 1995 (Streetwalker 2001, 1).

AMD owns engineering, manufacturing, warehousing and administrative facilities where it produces not only PC chips but also microprocessors, memory circuits, logic circuits, flash memory devices, telecommunication products and embedded processors (Moody's 2000, 2520). The company's headquarters and research and development site are located in Sunnyvale, CA, while the wafer manufacturing plants are located in Austin, TX and Dresden, Germany. The test and assembly facilities are located in Bangkok, Thailan


In the globalization era, AMD has to adapt to different cultural environments and incorporate different cultures in the organization. AMD operates in four continents, so its work force is a mix of people, cultures and customs. One can find an American working in a Singapore assembly plant or a Bolivian working in a factory in Dresden, Germany. This diversity creates an atmosphere of synergy and creativity that encourages every employee to do his or her best. The mix of cultures also facilitates the international communication between AMD's locations, suppliers and customers. Under the universal employment policy and procedures that govern AMD's practices worldwide, discrimination is not welcomed. Job applicants do not need to be concerned about age, color, ancestry, disability, religion, gender, sexual orientation, marital status or national origin (AMD 1999, 1). AMD also cares about employee morale and respect for individuals as well as individual's values.

· AMD collaborated with LSI Logic Corp. and Texas Instruments Inc. to create integrated solutions for digital base band processors (Dum 2000, 2).

AMD has been committed to the communities in which it operates. The firm has also been a responsible and good neighbor that has involved the local communities in its corporate contribution programs. Some of the most important contributions done in 1999 directly by the AMD headquarters were; first, a cash gift of one percent of pretax profits to nonprofit agencies and schools that serve the communities where AMD operates and second, $1 million to the Taiwanese government because of the September 21st earthquake. On the other hand, each site contributes to its own community in different ways. For example, in 1999 AMD's Bangkok site donated 200 computers to the community and cash to the Red Cross of Thailand to support a project that helps mothers with the AIDS virus. AMD Sunnyvale donated $600,000 to organizations and schools in the Sunnyvale area. In addition to financial donations, AMD's workforce also participates in volunteer opportunities. Some examples are AMD's Penang employees' blood donations to the Blood Bank Hospital of Penang and AMD's Dresden EHS personnel factory tours and the monitoring of ecological projects with local schools (AMD 1999, 10-18).

Customers neither want to depend on only one supplier nor to contribute to Intel market dominance. They want to reduce the risk of insufficient supply of chips that occurred last year. Siemens is now buying flash-memory chips from both FASB and Intel (Accord is set... 2001, 1). Besides Siemens, Sun Microsystems Inc. also decided to buy microprocessors from both AMD and Intel for its Cobalt server (Robertson 2001, 3).

The personal computer microprocessor market is considered a quasi-monopolistic market in which the largest corporate buyers such as Dell Computer Corp., Compaq Computer Corp., Hewlett Packard Co. and IBM Corp buy almost solely from Intel Corp. (Mathew 2001, 1). For this reason, AMD has had difficulty introducing its microprocessors into the market. For example, in January 1994, AMD and Compaq Computers Corp. formed an alliance in which AMD Am486 microprocessors would power Compaq computers (AMD 2001, 2). Between 1994 and 2001 AMD was not able to convince another large PC vendor to buy its microprocessors. However, in January 2001 AMD got its first contract with a major PC vendor, Micron Electronics Inc., to supply the Athlon microprocessor for the Micro Electronics' ClientPro product line (Konicki 2001, 2). In the same month, AMD also contracted to supply and introduce its first version of the Duron microprocessor for laptops to NEC Corp., Japan (Duron chips for laptops... 2001, 1)



Some common words found in the essay are:
Duron AMD's, AMD EHS, AMD's EHS, Dresden Germany, East Asia, AMD Intel, AMD's Athlon, HEALTH POLICY, Buckman Williams, Intel AMD, 2001 1, market share, local sites, amd 1999, ehs program, pentium iv, 2001 2, safety health policy, · amd, joint venture, safety health, dum 2000 2, intel's pentium iv, konicki 2001 2, 3 collaborative efforts,
Approximate Word count = 2764
Approximate Pages = 11 (250 words per page double spaced)


  

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