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I'll call you on your Motorola Motorola is one of the world's leading manufacturers of cellular phones, beepers, and two-way radios. Its products are so ubiquitous that its name has become synonymous with telecommunications; in China, for example, cellular phones are simply called "Motorolas." The company that would eventually become Motorola was founded by Paul Galvin in 1928. As the first manufacturer of two-way, hand-held radios, as well as a pioneering maker of semiconductors and car stereo equipment, the Galvin family's business has over the years earned 1016 patents; 403 of these were registered between 1991 and 1995. The company is one of the top three patent holders in the country. Big contracts, big worries Recently, however, Motorola has not performed well. In February 1998, Prime Communications L.P, a wireless-phone service owned by Bell Atlantic, U.S. West and AirTouch Communications, cancelled a $500 million contract with Motorola after persistent failures with the company's cellular network equipment and software. In one embarrassing episode, PrimeCo's cellular network went down in Chicago as executives from both companies were meeting to discuss the network's problems. PrimeCo's action could have a significant spillover effect: Motorola supplies similar equipment and software to other large companies, including a $1.4 billion order from Spring PCS and $3.5 billion agreement with two Japanese firms. The digital impact The failed PrimeCo contract illustrates a problem that has led to Motorola's dwindling market share and profit margins: the company's technology is simply outdated. Motorola had built its market reputation on its analog cellular technology, only to see the industry and its customers go digital. The company also lacks its own switching and network software like Lucent and Nortel, leaving Motorola unable to compete for telecommunication contracts. As a result, Motorola has seen its worldwide cellular systems market share drop to 15 percent from more than 25 percent. In June 1998, Motorola officials announced a sweeping restructuring and consolidation plan, laying off 15,000 employees (10 percent of its workforce), closing numerous factories, and taking a $1.95 billion charge to pay for the plan. Sticking by the Pacific Even during a weak Asian economy that contributed to the company's financial woes Motorola still planned to push full steam ahead in the continent it once dominated, and where it remains a major player. Construction continued on a $750 million plant in China, with several factory upgrades planned for the future. Motorola's aggressive pursuit of Asia, even as the company closed its U.S. plants, reflected CEO Christopher Galvin's gamble that the region would be the most promising market for cellular technology and other Motorola products despite the global financial crisis. Going up against rival Ericsson, Motorola is betting that China is the market to grab. With 100 million mobile phone users predicted by 2003, Motorola has poured nearly $2 billion in China, becoming the country's largest American investor. It's getting some money back, too; sales in the country totaled $3 billion in 1999, a year when the company inked deals with China Unicom and China Mobile, worth $163 million and $65 million respectively. Wider is better Despite its struggles, Motorola has not thrown in the towel. In September 1999 Motorola announced that it would purchase General Instrument for $11 billion in stock. General Instrument is the largest provider of set-top cable boxes and the acquisition of the company places Motorola in a position to capitalize on the burgeoning broadband market. As phone lines fall out of favor, and broadband cable lines are increasingly used to access a variety of digital traffic, the set-top box will become an increasingly indispensable piece of hardware. Motorola is forming a new business unit that will focus on the broadband market. The head of this department will be Edward D. Breem, former CEO of General Instrument. In a ringing endorsement of the General Instrument acquisition, Motorola sold two million set-top boxes and one million cable modems to AT&T for $1 billion in September 1999. The company has made myriad moves to continue its recovery. It has launched a major marketing scheme, which includes advertisements made by award-winning director Oliver Stone, in an attempt to overtake cellular leader Nokia. It has also aggressively pursued new technology, including wireless Internet, carbon semiconductors, SoftDSL, MCAD+ contactless card acceptance device, Bluetooth-enabled products, and WAP-enabled products. A plethora of mergers and alliances has also aided Motorola's comeback. The company has extended into Europe and North America, forming several partnerships with companies based in the areas. Motorola has also inked agreements with companies that include Certicom, Flextronics International Ltd., IBM, Linuxcare, Lynx, Phone.com, and TeamPlay.
Motorola's operations are highly de-centralized and organized into several different divisions. Motorola's web site, located at www.motorola.com, provides information about current opportunities in each of these units. Applicants should be careful to direct their resumes to the appropriate one. Motorola hires top MBAs primarily into strategy/corporate planning and marketing positions. In marketing, Motorola utilizes the traditional brand management structure, with MBAs starting as assistant marketing managers. Both internships and full-time positions at Motorola can take MBAs around the world. Incoming employees "often have the opportunity to go on rotational programs to get a feel for the different business units before choosing one to work in permanently."
Disparate divisions, united by company pride Motorola is an "engineering and product-oriented" company that encourages "creative solutions to difficult problems." While those in finance and marketing sometimes feel that the technical staff keeps them "at arm's length," everyone appreciates the "prestige of working for a company whose name transcends language barriers." Employees say that Motorola's decentralized organization "occasionally causes communication difficulties," but also "allows for a significant degree of departmental autonomy without excessive red tape." The dress code is described as "casual, but more professional than most high-tech firms." There are no dress codes "anywhere in engineering," but "business dress in finance and marketing." A mentor is key, if you can find one Although one contact describes co-workers as "very cool," and the dress as "very casual," he points out that to advance in such a big company, "one needs to be very mindful of managing his or her career there. The advice to find a mentor is freely and amicably given, but there is no real process to make sure one actually finds a good mentor. Without one, many employees still do fine but find measurable career advancement often unreachable." Unstructured summers MBAs who have spent summer internships at the company report a variety of experiences. "It had its ups and downs," says one, who worked at the company's headquarters. "The work was interesting, but I do not believe I received adequate exposure to upper/middle management and I don't think I was given enough responsibility." Another, who worked overseas reports: "It was very unstructured, so I was able to be creative. There was lots of exposure to the CFO." Another, who worked in Asia, agrees: "It turned out to be a highly unstructured experience -- a very steep learning curve and substantial exposure to upper/middle management."
Human Resources
Cellular phones;Beepers;Two way radios;Cellular phone and beeper services;Semiconductors
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