Texas Instruments

Texas Instruments was founded in 1930 as Geophysical Service, Inc. On December 6th, 1941 GSI was purchased by Cecil Green, J. Erik Jonsson, Eugene McDermott, and Patrick Haggerty, four GSI employees. Prior to their purchase GSI provided seismic exploration services for oil companies. During World War II GSI built electronics for the U.S. Army and Navy. In 1951 the company changed its name to Texas Instruments. TI, as it is popularly referred to, has made numerous advancements in the electronics field, including the first transistor radio in 1954, the integrated circuit and hand-held calculator in 1967, the single-chip microcomputer in 1971, and along with Intel, invented the microprocessor in 1973. (www.wikipedia.org, www.businessweek.com, www.ti.com)

Texas Instruments continues to be a world leader in semiconductors and is also the leader in digital signal processors (DSPs). More than 50% of the wireless phones sold worldwide contain TI's DSPs; these DSPs are also found in DVD players, automotive systems, and computer modems. TI also has an educational technology division (ET) that makes handheld graphic calculators. The ET division may make up less than 10% of TI's revenues; however most of consumers' familiarity with TI comes from these calculators. Variants of the popular TI-8x series can be seen in high-schools and colleges all across the United States. (www.fundinguniverse.com, www.wikipedia.com)

Texas Instruments employs more than 35,000 employees; TI employs individuals from 30 different groups in its attempts to diversify the workplace. TI is known for its retirement plans, flexible work options, employee spas, clubs, and many other various benefits. Not only has TI been known as one of the top places to work, but has also been noted for the way it serves its stakeholders. TI is also known as being an environmentally friendly company as they strive to produce environmentally friendly products.

Key Marketing Issues

Ð'* Codes of conduct Ð'- Formalized rules and standards that describe what the company expects of its employees. (also called a code of ethics) Texas Instruments is a company that has chosen to maintain a high ethical standard. They have worked hard and set up documentation that defines their code of conduct, this includes the TI Standard Policies and Procedures, The TI Commitment, and The Value and Ethics of TI.

Ð'* Ethical issue Ð'- An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical. To handle ethical issues TI has created an ethics office and has an ethics director.

Ð'* Competition Ð'-Other organizations that market products that are similar to or can be substituted for a marketer's products in the same geographic area. TI's strong overseas competition has led to losses in a few years, like in 1985 when the company lost more than 100 million dollars. (www.fundinguniverse.com)

Ð'* Technology Ð'- The application of knowledge and tools to solve problems and perform tasks more efficiently. TI has been a leader in the technology field and has been a leader in the manufacturing of Digital Light Processors (DSPs). By using these DSP something that would normally require multiple processors, can possibly now be done with just one.

Ð'* Organizational (corporate) culture Ð'- A set of values, beliefs, goals, norms, and rituals that members of an organization share. One goal that TI has set out to accomplish is to create a satisfying workplace for its employees. It reaches its goal by offering employee benefits such as flex time, on site activities & clubs.

Ð'* Monopolistic Competition Ð'- A competitive structure in which a firm has many potential competitors and tries to develop a marketing strategy to differentiate its products. Texas Instruments competes with many competitors in the semiconductor industry. TI has to try to differentiate its product so that it can outsell its competition.

Ð'* Strategic philanthropy Ð'- The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits. TI tries to satisfy not only its customers and stakeholders, but also its employees. TI has been on the 2005 list of Best Employers for Healthy Lifestyles, and has been ranked 83rd on the Fortune list of 100 best companies to work for.

Ð'* Green marketing Ð'- The specific development, pricing, promotion, and distributing of products that do not harm the natural environment. Texas Instruments has been named a "Sony Green Partner" for trying to protect the environment by supplying materials that are not harmful.

Case Questions

1- How effectively has TI managed the ethical and legal environment?

I believe that TI has done a great job of managing the ethical and legal environments. TI has very strong documentation in place for its ethical practices, and there are many channels of communication that are available. TI also has an entire department that is devoted to handling any and all law related issues that may arise. Even if you just have a question they are there to help you out.

2- What are the ethical and legal risks associated with competing in TI's industries?

Hypothetically TI could start to produce semiconductors in a country where the production was actually hurting the population of that country, but because they could get their conductors so cheaply