International Business Case Discussion
Case Discussion Questions
1. A green field development can be a best way to reduce labor costs. Intel could employ well- educated, reliable workers inexpensively in Costa Rica through the development of green field.
2. The international site selection team is important for Intel because they should identify and collect the technical, economic, and environmental protection criteria, develop an evaluation plan, evaluate proposed sites, identify alternatives that meet the purpose and need for the proposed action, and make recommendations to the site-selection official.
The various functions and expertises are necessary in site selection team because all site selections involve multiple criteria, it is important that the various members' expertise be appropriate to the task.
3. There are some risks that Intel must assume as it enters into the development of a silicon manufacturing plant in a foreign country.
First, The development costs a lot to start up. Establishing silicon safer semiconductor manufacturing capabilities is an expensive endeavor, normally ranging between $100 and $300 million
Second, This industry is very sensitive industry to time. Such an investment is projected approximately two years ahead of production demand. The world of semiconductor manufacturing is fast paced. Production capabilities must be acquired quickly.
4. Intel supported Costa Rica financially through Greenfield development. Intel had projected an initial $300 million investment in a Greenfield development. To a small country such as Costa Rica, a $300 million investment was equivalent to 2.1 percent of the country’s GDP. Moreover, There were derivative impact that this mode of entry had on the economy and the population in general. Intel also had some benefits from entering Costa Rica. They discovered high levels of engineering and software development capabilities that permitted expansion into more sophisticated processes.
5. I think a acquisition strategy would
1. A green field development can be a best way to reduce labor costs. Intel could employ well- educated, reliable workers inexpensively in Costa Rica through the development of green field.
2. The international site selection team is important for Intel because they should identify and collect the technical, economic, and environmental protection criteria, develop an evaluation plan, evaluate proposed sites, identify alternatives that meet the purpose and need for the proposed action, and make recommendations to the site-selection official.
The various functions and expertises are necessary in site selection team because all site selections involve multiple criteria, it is important that the various members' expertise be appropriate to the task.
3. There are some risks that Intel must assume as it enters into the development of a silicon manufacturing plant in a foreign country.
First, The development costs a lot to start up. Establishing silicon safer semiconductor manufacturing capabilities is an expensive endeavor, normally ranging between $100 and $300 million
Second, This industry is very sensitive industry to time. Such an investment is projected approximately two years ahead of production demand. The world of semiconductor manufacturing is fast paced. Production capabilities must be acquired quickly.
4. Intel supported Costa Rica financially through Greenfield development. Intel had projected an initial $300 million investment in a Greenfield development. To a small country such as Costa Rica, a $300 million investment was equivalent to 2.1 percent of the country’s GDP. Moreover, There were derivative impact that this mode of entry had on the economy and the population in general. Intel also had some benefits from entering Costa Rica. They discovered high levels of engineering and software development capabilities that permitted expansion into more sophisticated processes.
5. I think a acquisition strategy would