Do you remember when Intel was formed? It does not seem that long ago to me, but see what has happened to Intel. It was totally predictable as I will explain in this blog.
I think it was in the early part of the 1960's that the new company Intel was formed. At the time it looked like the timing was perfect. intel was a technical leader at the very time that the USA experienced one of the most significant things that ever happened in the USA. What happened next was classical.
Intel grew significantly and pioneered all kinds of technical innovation. Like so many USA companies, Intel expanded and had record profits. It had matured and shifted from being a technical company to a large company that was difficult to manage. The answer was to shift from being a technical company to being an MBA or Accounting managed company. If this seems strange, look at companies like GE or IBM. These companies started being run by accountants who were more worried about Wall Street than the true health of a technical company. The manage ment adopted a strategy that only looked at the profits for the nest month or quarter when they should have been looking much father down the road.
What do you think the end results were? Remember ITT, they started acting just like GE and they got all kinds of praise for their short term management and all ended up the same way. Look around at other companies that were very profitable and technical leaders who were taken over by accountants. Do you think Intel will be honest about why they are failing? If they do not, they will end up like so many other companies who have taken their path,
