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  2.The 
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, 
Motor​ola  meaning  related  to  motor  and  Victr​ola 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