Motorola's market entry and operational strategies in China

Motorola

Motorolla

Motorola was initially created as the "Galvin Manufacturing Corporation" in 1928. The company is the Fortune 100 world communications leader that is providing faultless communication products and solutions related to broadband, embedded systems and wireless networks. In the year 2005, the company sales were U.S. $36.8 billion. At present the company is comprised of "four businesses: Connected Home Solutions, Government & Enterprise Mobility Solutions, and Mobile Devices and Networks."

Motorola expanded its network to China by opening its representative office in Beijing in 1987. After four years of establishment of representative office Motorola (China) Electronics Ltd. was established in Tianjin. At present, Motorola China has been expanded all through China having one investment company, four completely owned companies, six joint ventures and 22 branch offices all over the country. At the end of 2004, the number of employees exceeded 9,000, and the total cumulative investment in China reached U.S.$3.5 billion, making it one of the largest foreign investors in China. Its total sales revenue in 2004 has reached U.S.$7.73billion (www.motorola.com.cn). The company has been very successful in China and has won rewards like "A Most Influential Global Company in China" in 2004, "Best Foreign Investor of the Year in China "(CCTV Annual Economic Leaders, 2003), and "Best Employer in China" in 2003, 2004 and2005(www. ChinaHR.com).

2. Reasons Motorola Entered China

3. Strategies Adopted by Motorola

HR Structure

The human resource system in Motorola (China) comprise of three parts. At the top management level is the corporate core platform which performs the duty of providing solution which includes organizational learning, organizational development and policy, development of leadership, reimbursements and reward, and so on. On the second level are business account managers who are HR representatives in every business unit. The third management level is site HR managers who play the role to deal with government as well as local employees.

Leadership Development Practices

Brief History

Motorola China has emphasized on developing leadership practices within local employees. Several steps were taken to train the first local managers. Initially they are provided on-the-job training in which employees having high potential follow the expatriate around. Thus these expatriates are trained directly by the immediate boss prior to their appointment as managers. In the second step of training they are provided leadership development training through training programs customized for their needs, these training programs offer theoretical training. In the next step, they are given an overseas assignment. After completing this assignment they are provided coaching and mentoring which is helpful in sharpening their leadership skills on the job.

Talent Development

The top management of HR corporate is liable to platform three functions related to the management and development of talent: recruitment, learning and development of leadership. There are several employees at Motorola China who are engaged in learning function and these are in addition to the staff at Motorola University.

In Motorola strategic planning the function of learning plays the role of developing and managing talent. The duties include designing an overall structure of learning, the synchronization of resources of learning, and making policies and plans to develop talent and initiatives to develop and manage talent. An instance of reorganization decision or initiative is the official planning of Motorola University on the function of learning. Prior to 2000, Motorola's talent development program was divided into three categories: "training on corporate culture, training on basic knowledge and skills, and management development programs." According to this training program there was a necessary requirement of 40 hours of training of every employee annually. It was compulsory for each business unit. After 2000, the company has changed the focus from classroom training toward experience- and feedback-based learning. As precised by the Headquarters, "current talent development should be 70% project-based experience and job rotations; 20% feedback, such as performance management, coaching and mentoring; and 10% classroom learning."

Leadership Development Programs

There are four main components of the China Leadership Supply System: "MMFP-Motorola Management Foundation Program, a program designed to develop all first-time managers and supervisors, providing tools, techniques, and networking to help all participants effectively navigate their new roles as managers. CAMP-E: China Accelerated Management Program -- An 8-month program especially designed for middle-level managers in China, providing systematic learning of critical and China-specific knowledge and skills required to be a Business Planner, a Process Manager, and a People Developer, and to engage in Networking. CAMP-A: China Accelerated Management Program -- An advanced 8-month program especially designed for senior managers who are potential business leaders and will contribute to the high growth of Motorola in China, providing knowledge, skills and business strategy development and implementation tools aligned with the Global Motorola business. BDI: Business Development Institute, a 3-day course designed to accelerate the development of directors who will lead the organization to profitability" (Training Handbook, p. 5).

4. Future of Mobile Handset Industry in China and Position of Motorola