Motorola, Inc.

Introduction

I have researched the Motorola Incorporation and with the information have created a strategic audit for them. Motorola is the leader in global communications. They are currently revolutionizing broadband. The companies headquarter is in Schaumberg, Illinois with 320 other facilities in 73 countries. Motorola's CEO and Chairman is Edward J. Zander and employs more than 9,000 people worldwide and had sales of $42.9 billion in 2006. Motorola today has three business segments: 1) Mobile devices 2) Home and networks Mobility and 3) Enterprise Mobility solutions. This company has come a long way since its first product which was the battery eliminator in 1928 and they have also been recognized for their dedication to ethical business practices. Their products over the years have grown and changed along with their drive for excellence which has become stronger than ever. What more can this company do? The strategic audit I have prepared might shed some light on some ideas for them.

Strategic Audit

Section V: Analysis of Strategic Factors.

SWOT- Portfolio (S) - They have a very strong portfolio but need to beef it up. In 2007, they invested in Vocera Communications. What Vocera Communications does is provide wireless communications systems which enable instant voice communication among mobile workers to leading institutions and companies requiring enhanced customer service, productivity, and teamwork.

Multiple Business Units (S) - What the Connected Home Solutions segment provides is wired and wireless broadband networks for homes. This also includes digital set-top boxes and cable modems. Their Mobil Devices segment designs, manufactures, and markets mobile phones and accessories. Not only do these devices communicate they also provide access to data that can be managed. Their Networks and Entertainment segment provide government, public safety organizations, network service providers, and enterprise customers with integrated voice and data communications along with information solutions.

Company Structure (W) - Corporate governance is the way they manage their business responsibly in order to serve the needs and interests of their shareholders. Their board of directors is elected by shareholders and responsible to them too. The company's business is run by their employees, managers and officers, under the direction of their chief executive officer and the oversight of the board. They feel that this way will enhance the long-term value of the corporation for shareholders. The board monitors the performance of their CEO and senior management in order to ensure shareholders' long-term interests are being served.

Innovation (W) - The Motorola Fellows are a group of people who have a critical role in technological development of Motorola. They are focusing on technology advancements and innovation. All members are experts, mentors, and ambassadors of subject matters.

New Industries (O) - In the automotive-communications industry there is an emerging market called Telematics. What Telematics does is use wireless voice and data to provide locations, directions, information, and entertainment services to drivers. Motorola's core technology components are found in their Telematics Communications Unit and this is how the car and driver are connected to the response center. This is very helpful in emergency situation or even if one is lost.

Multi-Media (O) - Motorola has developed a multi-media mobile device called the Mobile Extreme Convergence. This new development will remove many flaws and limitations of design and costs. What this new product has done is simplified the design of the hardware and software components of the products in order to reduce the cost for the consumer purchase.

Global Markets (T) - Even with their forecasted sales for 2008 being over 767 million phones, the phones have seen a decrease in price. Because of this, it is expected that the next five years the global market will see weaker growth rates.

Advanced Technologies (T + W) - Competitors are basking in the glory that they have came up with an Iphone or IPOD and the leader in communications hasn't. This is a threat and weakness for Motorola and they should really think about developing one. One unit device that serves as a phone and a music player would definitely be marketable to younger generations.

Review of Mission and Objectives- Motorola's mission is to seek the benefits the communities around them at every facility. They achieve this mission through making strategic grants, strong partnerships with their community, fostering innovation, and engaging their stakeholders. Their vision is to uniquely contribute in improving the world they live.

Section VI: Strategic Alternatives and Recommended Strategy/Strategies.

Strategic Alternatives- Motorola has a strong portfolio right now and I feel that if they took on a parenting strategy it would definitely help it grow even more. A successful parenting company is the Altria Corporation. What the parenting strategy does is focus on resources and capabilities used to build value across business units. The funds