IT FOR MANAGERS
ANALYSIS OF MOTOROLA
Guided by: - Prof. KALYAN AGARWAL
NAME: TANU SINGH
ROLL: 120115
SECTION: B
▪ HISTORY
The origin of Electronic communication pioneer – Motorola
goes back to 1920s when two Brothers Paul V. and Joseph E.
Galvin purchased the bankrupt Stewart Battery Company’s
battery-eliminator plans and manufacturing equipment at auction
for $750. It began with $565 and 5 working people. In initial days
it had the name Galvin Manufacturing Corporation and was later
named Motorola as the company progressed.
The company kicked the things off by manufacturing a battery
eliminator which was mainly aimed at letting battery powered
household radios run on household electricity as well. The
product was highly liked and it gave the company a NAME. The
company moved on to make a cheap budget automobile radio
which was represented before the radio manufacturing
association.
This product was quite appreciated and received good response
from the customers. It even manufactured a walkie-talkie product
like radio which helped soldiers during World War [Link]
company had then very broad ambitions and tried it’s hands in
many tech devices including pagers for hospitals, introduced TV
when television was just becoming popular and many more
things. But, It was only after 1970 that the company focussed on
mobile phones production. The company can be credited with
the revolution of handheld mobile phones in last century.
The company in mid 80s and 90s was a living example of how
your continuous and incessant efforts in good direction can bear
good results. It kept on flourishing and expanding it’s customer
base. And after it’s first cellular phone launch in 80s, It b
ecame the most popular and successful brand at that time.
▪ ABOUT THE COMPANY
The company got it’s name ‘Motorola’ from two words,
Motorola meaning related to motor and Victrola meaning related
to music. Motorola, right from it’s birth in 1928, has been in the
service of Human beings with it’s products which are full of
quality and standards.
Motorola is credited with the first ever launch of a
cellular phone named, DYNA TAC 8000x.
Specifications of the phone :-
● Weight :- 2.5 pounds
● Height :- 11 inches
● Cost :- $4000
● At that time, it became a trademark of being called a
celebrity. Every Hollywood actor, actresses, big
businessman had this phone with them.
It was Motorola’s radio technology that relate Neil Armstrong’s
first words from moon landing. The company has got so much of
recognition that it touched the voice coming from the moon and this all
was happening in 1969.
Motorola launched first Television in the year 1947 and it was very
compact and cheap, compared to it’s other competitors. The company
put up it’s price $180 while other companies were selling at $300. So
apparently Motorola got an edge over it’s competitors in both price and
quality, leading to an edge in the sell as well.
Another electric product was transistor. The company was
leaving no stone unturned to expand it’s base and acquire the
highest place in the world of technical and electronic devices.
And due to it’s efforts and monopoly of continuously producing
standard and high quality products, it was awarded the first
annual Malcolm Baldrige National Quality Award in 1988. It’s
innovative employee welfare and training programs were also
taken into consideration for this award.
Everything was going well and in favour of Motorola until a
Finnish company named NOKIA arrived in the telephone market
in 1998. However it could not give a tough competition to
Motorola but things started to change after few years.
▪ LOSS SCENARIO
Motorola brand was invincible and untouchable in 90s until
NOKIA came to put up a challenge. The company then revealed
it’s masterpiece in 2004 and it was Razor V3. It was the thinnest
phone around and about 50 million phones were sold in 2 years
by Motorola. But sadly, that was the last finest product from
the company.
Motorola couldn’t produce any big hit in the
forthcoming years and as a result, it’s competitors like Nokia
and Samsung overtook the market. In technical market, once
you are gone then it becomes very much difficult to come back
and get the old place.
However, there were a number of more reasons for it’s
extinction from telephone market. The company shifted it’s
focus to few other things, like producing mainframe computers.
Only a fool would compete with IBM computers to replace it. It
spent 12.9 billion dollars on a satellite system which bore no
fruit for them. They didn’t focus on their Products, rather they
focussed on their brand name but brand doesn’t stand if your
products are a failure.
The company which had net profit of 4.6 billion
dollars in 2005, came to verge of it’s split up and finally being
sold in the year 2011 in hands to Google.
▪ CURRENT SCENARIO
2011 saw the company split into two:
● Motorola Mobility
● Motorola Solutions
After split up, the mobility part was purchased by Google in
2012. Just after two years, Google sold it to Chinese tech
company Lenovo. Lenovo started selling Motorola brand
phones under E-series, G-series, X-series and Z-series.
Motorola Solutions continue to provide services and products
to the government. Recently, It has acquired UK based
Airwave solutions and Canada based Avigilon.
Motorola’s current standing is a far cry from the company that
beamed down the moon landing but there are again
reasons for it’s revival. It has managed a fairly decent
comeback through it’s newly, X, G and Z series phones
manufactured under Lenovo.
▪ COMPANY’S BALANCE SHEET
Period Ending:
2018 2017 2016 2015
31/12 31/12 31/12 31/12
Total Current Assets 4272 3950 3468 4619
Cash and Short Term
1246 1205 1076 2418
Investments
Cash - - - -
Cash & Equivalents 1246 1205 1030 1980
Short Term Investments - - 46 438
Total Receivables, Net 2473 1675 1500 1406
Accounts Receivables - Trade,
2335 1585 1410 1362
Net
Total Inventory 356 876 768 670
Prepaid Expenses - - - -
Other Current Assets, Total 197 194 124 125
Total Assets 9409 8208 8463 8346
Property/Plant/Equipment, Total -
895 856 789 487
Net
Property/Plant/Equipment,
2258 2449 2239 2125
Total – Gross
Accumulated Depreciation,
-1363 -1593 -1450 -1638
Total
Goodwill, Net 1514 938 728 420
Intangibles, Net 1230 861 821 49
Long Term Investments 169 247 238 231
Note Receivable - Long Term 161 111 89 88
Other Long Term Assets, Total 1168 1245 2330 2452
Other Assets, Total - - - -
Total Current Liabilities 3096 2931 2668 2193
Accounts Payable 592 593 553 518
Payable/Accrued - - - -
Accrued Expenses 817 903 838 687
Notes Payable/Short Term Debt - - - -
Current Port. of LT Debt/Capital
31 52 4 4
Leases
Other Current liabilities, Total 1656 1383 1273 984
Total Liabilities 10702 9950 9427 8452
Total Long Term Debt 5289 4419 4392 4345
Long Term Debt 5289 4419 4392 4345
Capital Lease Obligations - - - -
Total Debt 5320 4471 4396 4349
Deferred Income Tax 201 115 121 -
Minority Interest 17 15 12 10
Other Liabilities, Total 2099 2470 2234 1904
Total Equity -1293 -1742 -964 -106
Redeemable Preferred Stock,
- - - -
Total
Preferred Stock - Non
- - - -
Redeemable, Net
Common Stock, Total 2 2 2 2
Additional Paid-In Capital 419 351 203 42
Retained Earnings
1051 467 1148 1716
(Accumulated Deficit)
Treasury Stock – Common - - - -
ESOP Debt Guarantee - - - -
Unrealized Gain (Loss) - 6 - -3
Other Equity, Total -2765 -2568 -2317 -1863
Total Liabilities & Shareholders'
9409 8208 8463 8346
Equity
Total Common Shares
163.5 161.2 164.7 174.3
Outstanding
Total Preferred Shares
- - - -
Outstanding
▪ PROFIT ANALYSIS
Company’s economic fluctuations can be directly interpreted from the
table given above. The quarterly data of Revenue, Profit, operating
Income and net income show a growth from June 30, 2018 to Mar 30,
2019 but a downfall in the followed quarter. The total revenue it
generated in the first quarter of 2018 is $1760 billion but it decreased
to 1657 in the last quarter. The Gross profit it earned till June, 18 is
$822 billion and it increased to $1088 in Dec, 18 but it too underwent
degradation and finished with a gross profit of $773 billion in Mar, 19.
Even the net income met the same fate and it’s value fell from $180 to
$151.
▪ RECOMMENDATION
● The company should focus on improving working efficiency,
satisfaction and retention.
● They need highly motivated employees who feel engaged
respected, and appreciated at work.
● The organization need to follow the latest technology updates so
that it can compete with it’s rivals. In order to stay in the game,
one must be ahead of it’s competitors.
● Motorola has to compete in the market with giant companies like
Apple, Google, Samsung, Huawei . So, It must set a standard for
it’s products so that they may match with the levels of similar
products in the market.
▪ CONCLUSION
he conclusion we draw is that Nothing is permanent in
T
this temporary world. Motorola had once reached a stage when it had
everything, it could do anything it wishes in technical field. The biggest
mobile phone selling ever at once, and gets into a web of circumstances
where it has to be sold to some other companies one and again. But still,
Hope is a good thing. May be the best of the things, and no
good thing ever dies.
THANK Y0U
