Duplicate OL-215 6-2 Profile of a struggling company PDF

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Profile of a struggling company- Motorola. OL-215 6-2...

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Motorola was founded by Paul and Joseph Galvin in 1928 in Schaumburg, Illinois. It was then known as the Galvin Manufacturing Corporation. “Its first product was the “battery eliminator,” a device that connected direct-current, battery-powered radios to the alternating current then found in almost two-thirds of U.S. households.” (Hall, n.d.) The company changed the name to Motorola in the 1940s after releasing radios for cars. They invented the first two-way radio and the first cell phone, which they became famous for. This company was the lead in the market for years, with its downfall being reluctance to change. Around 120 million phones of the Motorola Razr were sold in the early 2000s, which became an instant hit. While other companies were developing and releasing the next style of cell phone, Motorola stalled defending their newest release. This company was known to run at their own pace, which proved to be damaging for their company. The reluctance of this company with changing with the times quickly became its downfall. After releasing the Motorola Razr, they saw a rapid decline. “After having lost $4.3 billion from 2007 to 2009, the company was divided into two parts. Motorola Solutions which is considered as a direct successor to Motorola and Motorola Mobility which was bought by Lenovo in 2014.” (Harshita, 2017) During times of downfall, the company would layoff hundreds of people, and shut down entire building. Job security was felt by thousands employed with Motorola. “Top management believed in letting the sector guys run the businesses their way. If that rubbed others the wrong way, tough luck” (Fishman, 2014) This showed followers they have no voice within this company. The selling of the Motorola company put more pressure on the employees, putting a halt to new ideas that could hinder their careers. Bob Galvin retired from CEO in 1986 Before retiring in 1986, Bob Galvin launched the Dyna-TAC. “After that, the cellular business “exploded,” says DiNanno: “It was the glamour

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sector of the company, the industry, and the country.” (Fishman, 2014) With this, their culture was introduced to a harmful element. “Employees in the public safety division, who were chugging along selling to cops and firefighters, watched and seethed as the handset division lavished riches on its own.” (Fishman, 2014) By creating an internal competition, the CEOs had divisions competing against each other, winning bonuses for top performers. Following this, the halls would soon ring with screaming matches between sector heads. Having conflicts between leaders is bound to increase any ill emotions of followers.

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References: Fishman, T. (2014, August 25) How a culture shift nearly doomed an iconic local company that once dominated the telecom industry. Chicago. https://www.chicagomag.com/ChicagoMagazine/September-2014/What-Happened-to-Motorola/ Hall, M. (n.d.) Motorola, Inc. Britannica. https://www.britannica.com/topic/Motorola-Inc Harshita. (2017, July 31). Motorola- The rise and fall of one of the biggest companies. Revtechno. https://revtechno.com/motorola-rise-fall-one-biggest-company/...