That happens because there is no file named Makefile in that directory. To create that Makefile, you need to execute
The configure script determines if your system has all the dependencies necessary to compile the application. If a dependency is not found, the configure will fail and the Makefile's will not be created. To solve that, you must install all the dependencies needed by the application.
The application xf86-video-intel seems to be provided by the xserver-xorg-video-intel package, and its dependencies may be easily installed by running
$ sudo apt-get build-dep xserver-xorg-video-intel
For more information, you might want to read the README or INSTALL files.