Motorola in 2004: Zander's Challenge


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Case Details:

Case Code : BSTA101
Case Length : 16 Pages
Period : 1928 - 2004
Organization : Motorola
Pub Date : 2004
Teaching Note :Not Available
Countries : USA
Industry : Telecommunications

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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"Motorola is a 75-year-old global icon that is known for its innovation in communications. It needs focus and execution, speed and results. That's what the board asked me to come in to do."

- Edward Zander, CEO, Motorola Inc.1

Introduction

In 2004, Motorola, the #2 manufacturer of cell phones (Nokia being the global leader), was also a leading supplier of wireless infrastructure equipment such as cellular transmission base stations, amplifiers and network switching systems.

Motorola's semiconductor unit was a leader in embedded chips used in wireless, networking, automotive and consumer products.

In 2003, Motorola recorded sales of $27,058 million and a net income of $ 893 million. The company employed approximately 88,000 people

Motorola generated nearly 40% of sales through its personal communications operations. The company had closed its semiconductor manufacturing operations, sold off its noncore IT services units, shifted some production to contractors, and used extensive layoffs to reduce costs. Motorola had also spun off its semiconductor operations, called Freescale Semiconductor, as a publicly traded company...

Excerpts >>


1] Dean Takahashi. "Zander takes on Motorola challenge," www.siliconvalley.com, 17th December 2003.


 

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