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Motorola
 

Motorola

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    Motorola Motorola Document Transcript

    • Individual AssignmentTable of Contents No Content Page 1 Introduction-Motorola Company 2 Part A. The Main Reasons that caused a company to fail its operation by discussing with the case study of Motorola. 3 Part B. Implementation of any organisational change model 4 Conclusion 5 References 6 AppendixIntroduction- Motorola CompanyHistory of MotorolaThe two founders of Motorola-Paul V. Galvin and his brother, Joseph E. Galvin, starts withpurchasing a battery eliminator business in Chicago at September 1928 and named thecompany as Galvin Manufacturing Corporation.Galvin‟s first product is to develop is a battery eliminator which allows electronic devices torun on electricity rather than battery.Later, the name Motorola was given to Galvin‟s first car stereo. „Motor‟ stands for car and„ola‟ stands for sound. Year 1936 onwards, Galvin production lines were dominated bymanufacturing radios for cars and receivers up to 1947 where they produce their firsttelevision and the company name changes from Galvin Manufacturing Corporation toMotorola by continuing manufacturing communications mediums.Starting from the year 1967, Motorola expands its markets into other countries like Australia,Canada, France, Hong Kong, Israel, Italy, Japan, Malaysia, Mexico, Puerto Rico, South Korea,Taiwan, the United Kingdom and West Germany. Later on 1969, Motorola starts supplyingthe National American Space Agency (NASA) with radio equipment so astronauts cancommunicate with their Earthly bases. The first man on the moon, Neil Armstrongcommunicated with Earth whilst on the Moon using a Motorola Radio.Asia Pacific UCTI 1
    • Individual AssignmentIn 1973, Motorola introduce the world‟s first cellular mobile phone-DynaTAC which usesradio technology and is released in 1984. Then, Motorola starts to combine both computer andradio technology to make the first cellular network which the DynaTAC operated on.Motorola began to make mobile handsets smaller and smaller sizes. In 1996 Motorolareleased the StarTAC which weighed in at 88 grams only. So far, it is still the lightest even inthis day and age.Continue at the year 2000, Motorola and General Instrument Corporation merged to enhancetheir services and in 2001 Motorola introduces the Motorola v60 phone the world first metalmobile phone which is available on the cellular networks GSM, TDMA and CDMA. Next, inthe year 2002, Motorola developed released a GPS chip that could be installed into consumerelectronics to enable location positioning. Also, Motorola released a 3G which canbetransmitted over CDMA network.Finally, Motorola releases the Cross-Technology PoC product line that enables subscribers tohave "push-to-talk" connectivity across and between GPRS, CDMA2000 1X, and WiFinetworks and Motoroloa releases Ojo Personal Video Phone. Ojo promises broadbandconnectivity and a video phone that doesn‟t break up which is commonly known with videophones.Sources from: http://www.motorola-phones.com/motorola-history.html A) The Main Reasons that caused a company to fail its operation by discussing with the case study of Motorola.What I can say in Motorola is intermediate failure which is almost losing out theirentiremobile or smart phones market share to their competitors such as Apple, Samsung,Nokiaand so on.Table 1 below is the diagram showing that the Global Mobile Device Sales toconsumer for the year ended 2011.Asia Pacific UCTI 2
    • Individual AssignmentAvailable at:http://www.extragsm.com/news/gartner-s-phone-market-share-report-for-2011-i719.htmlAccording to the Extragsm.com, Nokia is having highest sales among the competitors at theyear 2011 which is 11,699.4 units, taking over the mobile device market share of 23.4%followed by Samsung, Apple and so on. Where by Motorola is at the 9th ranking of 2.1% withsales of 10,075.3 units only. So what exactly are the reasons which led to these failureimposed on Motorola company?No proper LeadershipMotorola was too arrogance at one time not knowing that their other competitors were cominginto the market- the rivalry of the industry.Motorola currently is that they attempted to turntheir wayward ship around with repeated job-cuts and still confused with the corporaterestructuring. Most significantly, Motorola has decided to spin-off its handset business, inhopes that it can still make money from its cell phone-making business.However, the problem Motorola is currently facing is rooted in the company leadership‟sapparent inability to get the right person for the executive manager‟sposition of its variouscell phone divisions and refusal to cut-off its useless heads and start fresh.Asia Pacific UCTI 3
    • Individual AssignmentFailed on product and market differentiation due to lack of market knowledgeWhat Motorola failed to realize was that the cellphone market changed the consumer‟s buyingdecisions from “hardware”, to a “software decision”. In the trend now, customers want to runreal, native, apps on their phones. End of story. After the initial boom of cell phone designs inthe early ‟00s, people don‟t care anymore if the new RAZR is 1mm thinner than the previousmodel. Phone form factors and battery life have become good-enough in the last 4 years foralmost all manufacturers, and so the interest and market differentiation has shifted towardssoftware solutions instead. Also, Motorola was too concentrating on putting their productresearch and development instead of marketing which causes they lost in the battle of mobiledevice market. Motorola often attracted to businesses that are pioneering a brand new productor industry. While a precious few are successful, most fail. Businesses that are radicallydifferent from existing known businesses can even scare off customers rather than attractthem. Below is an example of the product life cycle.Product Life Cycle, Available at:http://www.consumerpsychologist.com/marketing_introduction.htmlFrom the diagram above, we can get to know that it is necessary for a product to reach acertain maturity stage before it decline. Each new product intro to the market will continuewith growth. Motorola does not understand to invent or create product according to marketneeds, the demand which is what consumer want, not to create product according to what theythink the consumer want. This is why they fail to strategize their business continuously.Right business but Wrong timingMotorola got out of the right business at the wrong time. Motorola at one time owned lots ofspectrum, which it traded for equity in Nextel. So it starts every year with zero sales whileAsia Pacific UCTI 4
    • Individual Assignmentfirms such as Qualcomm own intellectual property worth billions, and Verizon, AT&T andSprint have millions of customers who will pay them $500/year. Motorola turned down achance year ago to buy both Qualcomm and/or Nokia (for $20 million!). Motorola missed themovement to 3G. Its biggest customers are the U.S. wireless carriers, didnt think they wanted3G. So Motorola listened to its customers, when they should have been listening to itscustomers customers.Failure in CRMFor some time, Motorola was too arrogance on their product which later makes Motoroladidnt execute. Their customers start to have a hate-hate relationship with Motorola, which didnot deliver what it promised it would. Motorola never drank its own Kool-Aid; they neverbuilt the "seamless mobility" lifestyle among its various product groups. They couldn‟t findany way that consumers could have wanted to tie in their needs at home, at work, on theirperson and their auto. Also, Motorola couldn‟t bring these warring tribes together inside thefirm. There are basically no proper communication way for Motorola to communicate or tointeract with their customers which led to failure in customer relationship management. B) Implementation of any organisational change modelRestructuring to reengineer the managementThe main problem exist in Motorola is starting from the bottom of the root which is themanagement problems and the company is still remained there. I would recommend Motorolato actually hire an outside CEO. To do this, I think, is a sign of a poorly run company. Hiringan outside CEO means that the company has not done a good job of developing leaders in-house. Sometimes it is necessary though, because everyone within the company thinks acertain way, and a fresh perspective is needed to get them out of a rut.Motorola would do better to bring in an outsider. It needs someone immediately capable ofcutting through the companys notoriously intractable bureaucracy and hidebound engineeringculture. Motorola is famous for hanging on to technologies such as analog and satellite phoneslong after the market rejects them.It needs a leader like Edward D. Breen Jr., the former COO it lost to Tyco International (TYC )in 2002 after just a few months on the job. Breen impressed many by killing unpromisingAsia Pacific UCTI 5
    • Individual Assignmentcable-modem technology and urging the sale of the wireless-infrastructure unit. "My issuewith Motorola has always been the glacial pace of how they run their businesses," says KevinM. Rendino, a fund manager at Merrill Lynch & Co., which owns 9.7 million Motorola shares.GET TOUGH. The company also needs a leader with a proven record for divining key techtrends. With wireless growth slowing and phones fast becoming a commodity business,Motorolas next chief needs to understand how to catapult into such promising areas asgaming and PC-like smart phones. Thats where a Silicon Valley exec could help someonewho knows how to develop technology that matches what customers want.That has been a perennial problem at Motorola, which has failed to customize cell phones forkey carriers such as Sprint (FON). The new CEO ideally would have experience in bothmarketing and technology — one reason investors say Edward J. Zander, former CEO of SunMicrosystems (SUNW), would be a good fit.Above all, the next chief will need to be tough. He or she will have to decide what tooutsource and what to keep in-house, as well as what to jettison. While its walkie-talkietechnology is a keeper, axing the rest of the infrastructure biz looks like a no-brainer. Figuringout what to do with semiconductors wont be so easy, since wireless chips are part of thecompanys heritage.Thats precisely why an outsider would be best: Motorola needs someone willing to slay a fewsacred cows. The companys success may depend on it. Basically this can be done with thefollowing steps.Empowering LeadershipFor Motorola to besuccesses is to empower leadership. This type of business managementstyle has also been called transformational leadership. Transformational leadership is the typeof motivational style that draws others in and inspires them to achieve something greater thanthemselves. However, the employees and staff members of Motorola do not merely do thework; they also become better people in the process.Well-Defined VisionMotorola need to have a new well-defined vision. A corporate vision is a scriptedunderstanding of what a company wants to do and how they want to accomplish it. A well-Asia Pacific UCTI 6
    • Individual Assignmentdefined vision allows members of an organization to unite for a common cause who singularaim and all energy focused in one direction.Relevant Knowledge of the Business MarketMotorola need tohave relevant knowledge of the business market. In order to do anything well,a person or company must do their homework to gain a deep understanding about the factorsthat are essential for success. These days as the World Wide Web continues to expand, thereis no excuse for a would-be to lack knowledge of whatever technology business they feel ledto pursue. Sadly, many businesses are dead out of the gate because they do not take the timeto gain a proper perspective on the mobile industry.Detailed Business PlanMotorola need toformulate a comprehensive business plan. Knowing about an industry andsketching out a vision is only the beginning. The next step for Motorola Company is to takewhat they know and what they want to accomplish and write a detailed strategy for how tomake it happen. A business plan covers all the related factors that are essential for a winningenterprise including vision, description of the market, projected financials, employeerelationships and customer relations management (CRM).Effective Change Management for MotorolaFor any change management to adopt in the company, first of all, the organisation needs to beready which is assessing organizational readiness. Motorola need to evaluate the high levelimpact of change, identify key points of risk and plans to address them.Next is Motorola need to develop a future state vision by Articulate the change in a conciseand compelling manner that can be shared broadly.Then, the company need to engage leaders. The Leaders will develop a plan to gain the buy-inand support of those individuals most critical to success.Of course the most important thing for any hierarchy of management is to Communicate.Motorola need to develop a proper communication strategy and roll-out plan to createunderstanding and drive acceptance internally and externally.Apart of the restructuring in the top management, Staff transition also needed. HumanaResource department of Motorola need to develop plans for staff transition, redeployment,Asia Pacific UCTI 7
    • Individual Assignmentseparations and talent retention in order for the company to come up with a new direction inthe market.In the changes, Motorola have to ensure to facilitate individual change from top to bottom bybuilding change adaptability skills and help individuals internalize and move through thechange to avoid anyone from missing out of the trend and understand the need for the change.Into this, the management also need to create organizational alignment by evaluating relevantprograms and business policies, to identify points of incongruence and develop plans foralignment.Furthermore, Motorola need to set up proper training and development for the employees.Develop a training strategy to create proficiency for operating under the new model.Last but not least is to monitor and remediate the performance and result bymeasuringadoption and performance and develop strategies to address problems that occur. Take a goodreference on it and make improvement.ConclusionIn summary, for the year coming of Motorola Company, I hope that Motorola successfullyadopt and adapt the change management by restructuring it by proper reengineering theirprocess not only on product but also their marketing to remain competitive advantages in themobile device market. With the recommended new transformation will actually new Motorolato stand another chance for their product differentiation and market differentiation instead ofcompeting in price and cost. Motorola need to understand that the globalisation happeningaround which is to understand what is the needs and demands instead of working in researchand development but not knowing the market demand. New creation and innovation are thekeywords for Motorola to enter the mobile device market. Such reasons like faster internetspeed, more apps, more mobile function and so that highly popular Android smartphones, theelectronics veteran has brought innovation, excitement and experience to the world of mobilecommunication.To make the changes successfully, internal and external cooperation of Motorola Companyare needed with strong relationship including shareholders and stakeholders, to keep theAsia Pacific UCTI 8
    • Individual Assignmentsustainable advantages of the company and its product.ReferencesBooks, Journals, MagazinesMotorola, 2009, A Timeline Overview of Motorola History 1928-2009N. Fred, 2010, Four Change Management StrategiesOnline ResourcesConsumer Psychologist.com 2009, Introduction of Marketing, available at:http://www.consumerpsychologist.com/marketing_introduction.html, viewed on 14 April2012Extragsm.com, 2011, Gartner‟s Phone Market Share Report 2011, available at:http://www.extragsm.com/news/gartner-s-phone-market-share-report-for-2011-i719.html,viewed on 13 April 2012Motorola Phones.com, 2010, History of Motorola Company, available at:http://www.motorola-phones.com/motorola-history.html, viewed on: 12 April 2012N. Fred, 2011, Embracing Resistance to Change, available at:http://www.nickols.us/embracingresistance.htm, viewed on 13 April 2012AppendixAsia Pacific UCTI 9