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Intel & Malaysia

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by

Matson Hardie

on 1 September 2014

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Transcript of Intel & Malaysia

4
3
US MNC Profile
Company Name: Intel (IC companies)
Headquarters location: Santa Clara, California, USA
Founded: July 16, 1968
Business: Semiconductor chip
The company slogan: Look Inside.
Annual turnover: $ 53.34 billion (2013)
Number of employees: 105000 (2013)
Founder: Noyce, Gordon Moore, Andy Grove
Incumbent CEO: Paul Otellini





Country Economic Assessment
Thursday, March , 2014
US MNC Profile
Competition Assessment
Country Political Risk Assessment
Country Technology Assessment
Country Legal Assessment
Market Assessment:
1 with the development with smart phone more and more client of intel change to ARM(competitor from UK)


2 Computers and peripherals is expected to record positive volume growth in both business and retail over the forecast period

Competitor:

Montalvo's chips

1.Common Law: Unwritten law, which can be found in case decisions. This is known as the common law or case law.

2.Civil Law: personal laws governing Muslims and laws relating to religious offense.

3.Islamic Law: It only applies to Muslims.


4. Possible Stakeholders to consider
a. Corporate tax& Withholding tax
b. the lack of patent protection
c.advanced economy
d.Foreign companies are not allowed to be registered as a sole proprietor of Malaysia.
Very brief recent history of MNC..
Intel & Malaysia
Management Considerations
People of Malaysia are made of Malays,Chinese and Indian.

Malay is the majority of the population in Malaysia, so the Malay culture national culture is the backbone of Malaysia

On the ruins of the 1969 race riots in Malaysia, Malaysia create a more tolerant society, mosques, Christian churches and Chinese temples in many cities is a very full illustration
Cultural Profile
Globe Management
Industry Type:
Infrastructure assessment
Malaysia has one of the most well-developed infrastructure in Asia.

■Network of highways
■Efficient Seaports (Kuantan Port.)
■International Airports
■Developed Industrial Parks
■Specialized Parks
■Hi-Tech Telecommunications




Possible Stakeholders to consider
Trends

■ Focus on developing the ICT industry
■ Digital Malaysia initiative
■ Shortage of labor

Current strengths
■ Increased Internet penetration
■ Technical Cooperation with China

Current challenges
■ Increasing cybercrime
■ Poor implementation of intellectual property rights


Strategic Decision Models
population density
83/KM2 (Malaysia)
34.2/KM2 (USA)
Strategic Analysis
Strategic Analysis Recommendation
Malacca
Final Thoughts
Pacific
Indian
Ocean
Information about Malaysia
4
Country: Malaysia
Continent: Asia
Capital: Kuala Lumpur
Major cities: Ipoh, Penang
National Day: 8/31/1957
National Anthem: “My Country”
Country Code: MAL
Office language: Malay
Money: Ringgit Malaysia
Time Zone: UTC+8
Political System: Constitutional Monarch and parliamentary system
Population; 29,495,147(2012)
Density of population: 86/KM2(2010)
Major Nation: Malay and Chinese
Religion: Muslin, Buddhism, Hinduism and Christian
National Territorial Area: 329,847KM2
GDP Total: $2,87.943 billion(2011)
System of Law: Common Law
Weather: Tropical Rainy Climate

• United Malays National Organization
• Corruption and other Bureaucratic Obstacles
• Policy Uncertainty Would Weigh on Growth
Political Risk: Moderate
• Government policy
STRENGTHS
•Cheap Labour
•Regional advantage
•Cheap raw materials


WEAKNESSES
•Economy dependent on external demand
•Political risks
•Very high stock of bank credit to private sector
•Transportation risk(sea rover,war,submerged rock and so on)


Robert Noyce
Gordon Moore
Andy
Economic Risk: Moderate
• Since it became independent in 1957,
Malaysia has become a regional manufacturing
center, services provider, and
off-shore financial center. Malaysia has
sought to boost domestic demand, however
exports remain the driver of growth.
• Inflationary pressures have eased
recently and are forecasted to remain
contained for 2013 due to weaker global
growth prospects. With a stable outlook
Bank Negara Malaysia is unlikely to change
monetary policy in the near-term.
• Weak demand for its exports could
dampen Malaysia’s growth, but its outlook
remains strong due to increasingly robust
domestic demand and investment.
Monetary situation
Key monetary indicators
Inflation in Malaysia was under 2% during 2002–04 but shot up to 3.61% in 2006. In 2007, the government's monetary
policy faced the dual challenge of inflationary pressures arising from global commodity and food prices. There was an
increased risk to growth arising from unstable global financial markets. However, the existence of administered and
controlled prices for selected food items and petrol and petroleum-related products reduced the impact of global price
pressures on Malaysian domestic prices to some extent. The average inflation rate in 2007 was 2%, which increased to
5.44% in 2008. The country witnessed inflation of 0.62% in 2009, which again went up to reach 1.70% in 2010. In 2011
the rate of inflation increased to 3.19%.
As of November 2012, the benchmark interest rate is 3%. It was increased by the BNM for the first time in May 2011, by
a cumulative margin of 25 basis points, to 3%. The statutory reserve requirement level was increased from 2% to 3%.



Paul Otellini
Cultural Profile
there are so many different religions in Malaysia
• Ethnic
Full transcript