Company Profile of Motorola
Uploaded by spootyhead on Mar 04, 2007
Company Profile of Motorola
After years of being the world's leading provider of wireless communications, semi-conductors and advanced electronic systems and services, things have began to slow down for Motorola, Inc. This company was once known for its cutting-edge technology and level of quality. Motorola is now working to revamp its image and catch up with the competition.
Motorola has not yet recovered despite restructuring efforts. The company attributes some of its problems to the weak U.S. economy and a slow down in telecommunications spending. Heavy cost-cutting has been done by the company. Since August 2000, 48,000 jobs-nearly a third of its workforce-have been eliminated. Over the next nine to fifteen months, four more semiconductor plants will be shut down. This will result in the loss of 2,500 jobs.
Motorola's five-point strategic plan
In 1998, Motorola decided to reshape the company's strategy. They decided to go back and seek to change everything at Motorola except their principles, characters, and ethics. This five-point strategic plan is as follows:
1. Revitalize the management team
2. Stabilize the balance sheet and improve financial flexibility
3. Reduce costs and manufacturing capacity
4. Produce new, innovative products and growing customer relationships
5. Evaluate and re-evaluate business plans in order to remain competitive in the ever-changing business climate
How has Motorola been doing in following its strategic plan? They are making progress in all areas of their strategic plan. The company realizes they still have a lot of work to do.
1. They have placed new leaders in 70 of Motorola's 100 most important assignments within the last 18 months. They also hired a new president and chief operating officer.
2. They generated more than $1.9 billion in positive operating cash flow in 2001 and reduced the ratio of net debt to net debt plus equity from 27 percent to 18 percent.
3. They reduced their employee population by one-third and closed five manufacturing facilities. In 2001, four additional facilities will be closed.
4. They enhanced their position in telematics by design a platform wireless chipset.
5. They launched a new China growth strategy.
Although, Motorola addressed the need to add new innovative products in their five-point strategic plan, they did not address the fact that they need to be more aggressive to get on the...