Intel Corporation: Milan or St Petersburg

The Intel Corporation is a multinational company that is the leading provider of semiconductors in the world.

These microprocessors are found in nearly every PC made today. The headquarters for Intel is in Santa Clara, California and they have a network of affiliates offering their innovative products to all nationalities. They have employment opportunities around the globe, including Milan, Italy and St. Petersburg, Russia.

Each country has its own enticements as well as drawbacks.In order to make the right selection, it is necessary to examine each location and its reflection of the Intel corporate culture as well as the country’s local customs (Coleman, 122). MNC Subsidiaries Intel operations in St. Petersburg opened in 2004 and include a full product development and testing facility. Their employment opportunities include positions in facilities, engineering, finance, human resources, information technology, legal, manufacturing, marketing, sales, and materials, planning and purchasing (Intel.

com).This branch of Intel employs approximately one hundred staff members consisting mainly of local employees; however, there are a select few international staff members as well, including some from the United States. This is key in training as most of the technology is developed in America (Gavin). The St. Petersburg Research and Development office is focusing on Dynamic Runtime Layer (DRL), grid computing, and communication technology.

It works closely with local universities to help support students’ information technology needs (Intel. com) The other departments in St.Petersburg allow this subsidiary to function as its own corporate branch rather than an off-shoot of the main corporation. It has an in-house human resources department and its own finance division.

It operates as its own entity, reporting back to the corporate office in Santa Clara. When considering a position in St. Petersburg, it is necessary to determine which department to work for as there are many options (Gavin). Their multitude of job openings signifies that Russia is a growing market, with sales growing and expanding.

Intel has only recently begun to move into Russia, expanding their reach within the last few years.Technologically, the Russian people are behind the United States and other developed countries in computer use and there is an active and open market for first time buyers (Coleman, 213). Russia houses the largest software solution group outside the United States and the St. Petersburg location was recognized in 2005 by Intel’s company president for its outstanding work. The Russian government holds Intel in high regard and works closely with them for their technology needs (Intel.

com). The biggest concern for the Russian market is the prevalence of the mafia, which infiltrates many businesses and portions of the government.It is often difficult to distinguish between mafia businesses and legitimate ones (Gavin). The branch office located in Milan, Italy is quite a bit smaller than St. Petersburg, offering only sales and marketing support.

The Milan branch services Greece, Turkey, South Africa and Israel as well as Italy and middle Europe. They also offer consumer support services. The office works mainly with local personal computer manufacturers, the software industry and distribution partners (Intel. com). The only positions available are in marketing and sales and there is little to no growth in the European market.Europe is a mature market where consumers are replacing old machines rather than purchasing them for the first time (Coleman).

The market in Italy and the countries this office supports is minute when compared to other European and international markets. The Milan branch is responsible for delivering new and innovative products to consumers and original equipment manufacturer markets, driving Intel’s technology, services, and products into the marketplace. They strive to create demand for Intel products, and they drive the European market to recognize the role Intel plays in the manufacturing and end user market (Intel. om).Though this office supports five different countries, the fact that these markets are shrinking has affected their sales and sales staff.

European countries also sell to the consumers differently than American markets do. Rather than offering them in specialty stores such as Best Buy, they sell them in grocery stores, markets and mom and pop stores throughout the country. The northern part of Italy has more brisk sales than the poorer south; however, the reach of the personal computer is ever-expanding (Gawer, 122). The manufacturers the Milan branch sells to include Acer, Olivetti, Packard Bell and Hewlett Packard.

Most of these companies are international, though Olivetti is focused mainly in the region around Italy and middle Europe. AMD is Intel’s main competitor and they compete vigorously for this market share. The opportunity for growth in this area is minimal as the market is saturated and as the only opportunity is in marketing and sales and the expansion opportunity in that area is minimal. In addition, the European Union just fined Intel several million dollars for antitrust violations, which has restricted their advertising and sales campaigns within Europe (Gavin).