motorola- strategic overview (1)

8/10/2019 Motorola- Strategic Overview (1)

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Strategic Overv

CHANCE

CONSULTING

Marco Di Stefano Jordan Hartzenburg Jaylen McCurbin


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AGENDA

oCompany OverviewoBackground & MilestonesoCompetitive Analysis

oASIC Strategic AnalysisoCritical IssuesoIndicator 1: Keys to SuccessoIndicator 2: Traditional Costing SystemoIndicator 3: Effective Measures of KSFsoIndicator 4: Implementation of MeasuresoRecommendations to Motorolao

Conclusion


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COMPANY OVERVIEW

Company Background

Overview ASIC Issues

Keys to

Success

Traditional

Cost System

Measures

KSFs

o

Multi-national telecommunications company founded preceding the Great Depression (HQ: Schaumburg, Il

oWell known for their radios and consumer electronic p

oBy 1960s, sold semiconductors and communicationsequipment

oTargeted clients: Average consumers, military, and incompanies

oPresident & COO: Rick Osterloh


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COMPANY OVERVIEWMilestones


Keys to

Success

Traditional

Cost System

Measures

KSFs

193

1947

1973

1983

1986


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COMPANY OVERVIEW

Market Performance


Keys to

Success

Traditional

Cost System

Measures

KSFs

Stock pric Dip in pric

demand inAmerican business, anticipated

Gate Arrays

1984- $455M

1985- $740M199 - $1.4B(Growth fromexpected to Financial Times, 2015


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COMPANY OVERVIEW


Keys to

Success

Traditional

Cost System

Measures

KSFs

In 1984, Moachieved grevenues obehind NEC

Toshiba H

4th

Opportunity:

Shift in demand fCMOS. Focus onand develop core


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ISSUES

Strategic Opportunities Missed

Overview Issues ASIC

Keys to

Success

Traditional

Cost System

Measures

KSFs

oHigh performance gate array market valued at 91984- Forecasted to grow to 600m in 1990 (6.7xgrowth)

oDemand higher for CMOS, but focus is being pmainly on the bipolar semiconductorsoIn 1984 it captured 40% of the market, soon to be 70% o

market

oProduction efficiencies forgone due to flawed qualitassurance processes


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ISSUES

Inefficiencies in Production Plann


Keys to

Success

Traditional

Cost System

Measures

KSFs


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ISSUES

Manufacturing Processes & Account


Keys to

Success

Traditional

Cost System

Measure

KSFs


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ASIC STRATEGIC ANALYSIS

Introduction


Keys to

Success

Traditional

Cost System

Measures

KSFs

o

Organized ASIC as part of SPS in 1984 in Phoenix, wowith customer to design the semicustom ICs

oCustomers: DEC, Apple Computer, Unisys, Cray, PrimeComputer

oIn the computer manufacturing world, markets are chara

by rapidly changing technology, rapid intro of new produoNew requirements in semicustom gate arrays market-

Involvement of customer in the middle of the developme

oFormed in conjunction with increasing usage of JIT


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Model 1: SWOT Analysis


Keys to

Success

Traditional

Cost System

Measures

KSFs

STRENGTHS

- Core competency is in design and process expertise

- Leader in semicustom integrated circuits

- Market Leader for Bipolar conductors

- First movers advantage for many products

OPPORTUNITIES

-

-

-

-

WEAKNESSES

- Production Planning Department

- Strategic focus

- Quality assurance issues (no Standard)

- Weak inventory turnover

- Accounting system

THREATS

- New demand shifting

- Environmental standards and regulations

-

-

-


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Model 2: GAP Analysis


Keys to

Success

Traditional

Cost System

Measures

KSFs


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INDICATOR 1

Keys to Success


Keys to

Success

Traditional

Cost System

Measures

KSFs

Bipolar CMOS


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INDICATOR 2

Traditional Costing System


Keys to

Success

Traditional

Cost System

Measures

KSFs


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INDICATOR 3

Measures of Key Success Factor


Keys to

Success

Traditional

Cost System

Measures

KSFs


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INDICATOR 4

Implementation of Measures


Keys to

Success

Traditional

Cost System

Measures

KSFs


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RECOMMENDATIONS


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Thank you for choosin

motorola- strategic overview (1)

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