Motorola Corporate Strategy This Report

Motorola Corporate Strategy

This report aims to find the greatest hazard for a corporation to not realize its strategic goals or not meeting the expectations of its stakeholders and investors. The report is designed to explain corporate decisions that are aligned with the corporate goals and objectives and also support the process to and the judgmental calls to a Board of Directors. The company this report will focus on will be Motorola. The overall objective is to explain the organization's 'strategy screen' which entails all relevant variables, capabilities, challenges and risks associated with the firm's strategic intent. By understanding Motorola's general environment and issues, the company's future will become clearer particularly in the important areas of the national and international economy, technology, demographic, political, and legal responsibilities. "For more than 75 years, Motorola has proven itself a global leader in wireless, broadband and automotive communications technologies and embedded electronic products, and has become a company recognized for its dedication to ethical business practices and pioneering role in important innovations." (Motorola)

History

Since being founded as the Galvin Manufacturing Corporation in 1928, Motorola has always been considered a pioneer, innovator and visionary organization and today is considered a leader in mobile communications. "Motorola has an unmatched history of technological marvels-from the first car radio to the first words from the moon." (Motorola) as an organization, we have become a global leader in the various emerging markets and we are a renowned employer all over the world.

As an organization, we offer vast opportunities for our customers, employees, partners, stakeholders and our investors. As the world moves closer a one market system due to technological and economic breakthroughs, Motorola is well positioned to take advantage of the world's new emerging markets with products such as our cell phones and pagers, internet software, hardware and wireless broadband communications processes, or the amazing new technology products such as 'DigitalDNA' which in the not so distant future will be the driving force for completely 'living' electronics.

Motorola has been able to adjust to the times like no other company in the world. "Its products have grown and changed over the years, and its drive for excellence has strengthened and intensified. From the five pound Handie-Talkie ™ radio to the lightweight models of today, Motorola has been the leading provider of two-way radio services to public safety, government, transportation, utility and manufacturing enterprises. Its digital cable set-top terminals and cable modems deliver the promise of a connected home just as the original home radios and televisions did in the 1930s and '40s." (Motorola) as a world leader in consumer electronics and communications, we as a company will continue to use our imaginations to create and implement our vision and technical expertise to continue to be an example for the rest of the world to follow.

Mission

Our mission is founded on a few key beliefs and those beliefs define our organization. We have a mission to be good corporate citizens and partners to each other, our customers, our shareholders, our suppliers, our competitors, our communities and the environment. We work with uncompromising integrity and with constant respect for all people. As a company we have high ethical standards and our internal code of contact reflects this. "This Code is neither a contract nor a comprehensive manual that covers every situation Motorolans throughout the world might encounter. It highlights key issues and identifies policies and resources to help Motorolans reach decisions that will make Motorola proud." (Motorola)

Core Business

Motorola's core business in the current decade will be built on a foundation of our being a global provider of wireless, broadband, automotive communications technologies and embedded electronic products. We are a world leader that provides technologically superior and software enhanced wireless telephone and messaging services. We also are the world leader in the two-way radio communications product and system manufacturing and maintenance. The internet has become a hot bed of our Research and development core and we have therefore made great strides in providing network and Internet access products for consumers, network operators, commercial industry, governmental and industrial consumers.

We also provide end to end systems that are the key to interactive digital video, voice and high-speed data processes for the future of the broadband communications industry as well as the embedded semiconductor solution industry for consumers of wireless communications, networking and other transportation related markets. All of these advances are not to overshadow the strong market share we hold in our original product and service lines such as integrated electronic systems for the automobile industry, telematics, industrial telecommunications and portable energy systems.

Industry

Our industry is a highly competitive industry with all major and minor players constantly vying for new market share opportunities based on new technological advances, partnering and political negotiation as well as other marketing strategies.

Competitors

Direct Competitor Comparison

MOT AGRa ERICY NOK Industry

Market Cap: 45.55B 2.36B 53.64B 73.52B 228.03M

Employees: 88,000 6,800 50,649 51,359 332

Rev. Growth (ttm): 1.40% -15.50% -2.90% 17.50% 7.30%

Revenue (ttm): 33.91B 1.91B 18.65B 37.66B 104.22M

Gross Margin (ttm): 34.82% 45.29% 44.58% 40.03% 40.03%

EBITDA (ttm): 4.38B -108.00M 3.15B 6.17B 2.88M

Oper. Margins (ttm): 8.57% -6.02% 16.91% 16.01% 2.67%

Net Income (ttm): 1.37B -90.00M 1.91B 4.36B 325.00K

EPS (ttm): 0.558 -0.053 1.208 0.935 N/a

PE (ttm): 34.52 N/a 27.52-17.29-30.22

PEG (ttm): 2.34 N/a 2.05 2.08 1.87

PS (ttm): 1.36 1.23 2.89 1.99 2.07

AGRa = Agere Systems Inc.

ERICY = Telefon AB LM Ericsson

NOK = Nokia Oyj

Industry = Communications Equipment

Yahoo Finance, Motorola)

Telecommunications Equipment Makers Ranked by Sales

Company Symbol Price Change Market Cap P/E

NOKIA CORP NOK 16.17 -1.70% 73.52B 17.29

ALCATEL ALA 15.54 -1.77% 20.00B N/a

LM ERICS TEL ERICY 33.25 -0.36% 53.64B 27.52

NORTEL NETWORKS NT 3.47 1.46% 14.48B 38.56

LUCENT TECH LU 3.93 -1.50% 17.27B 16.72

Yahoo Finance, Motorola)

Core Competencies

Our core competencies revolve around our well established business units:

The Broadband Communications Sector provides scalable, integrated end-to-end system for the broadband services of the world's consumers informed.

The Commercial, Government and Industrial Solutions Sector has been a top performing sector that provides integrated radio communications and information solution technology for public safety, government and business consumers.

The Global Telecom Solutions Sector provides the infrastructure, network services and software needed in the highly technologically advanced next-generation networks for communications.

The Integrated Electronic Systems Sector designs, manufacturers and sells automotive and industrial electronics systems. In addition, telematics systems are the backbone of the new roadside assistance technological breakthroughs.

The Personal Communications Sector manufactures wireless subscriber and server equipment including.

Competitive Advantage

Our competitive advantage is based on our ability to research and develop, manufacture, market and sell our products better and more efficiently than our competition. We have over seven decades of experience and we are still considered a young and innovative organization. Fro example, when the world was restructuring we were developing and the world's new direction was molded by our organization. We have implemented new strategies such as Six Sigma in our manufacturing process and therefore we have ever more efficient.

We have another competitive advantage in our partnering and supplier relations. "The Supplier Business Conduct describes the expectations of Motorola in the area of corporate citizenship for all its Suppliers." (Motorola)We have developed strong just in time manufacturing partnerships in new cheap labor driven emerging markets and our costs are reflectively lower than our competitors. "Motorola's Supplier Diversity program assists minority-owned businesses, woman-owned businesses, disabled veteran-owned businesses and other recognized "diversity" businesses by helping them connect with Motorola supplier procurement opportunities." (Motorola)