Crystal Galvin, the tall and thin third-generation CEO of the Motorola family, is discussing some recent events with the company's senior executives. Because their positions are far apart, the discussion has a strong smell of gunpowder;
“After the Iridium project failed miserably, the entire company was filled with a sense of failure.
Various businesses have experienced significant setbacks, and Motorola has gradually reduced itself from a dominant company in the field of wireless communications to an inconspicuous little player. This is absolutely unacceptable.
Just a few years ago, Motorola could sell more than 100 million mobile phones every year, and its sales alone reached more than 30 billion US dollars. Now it is less than a quarter, and the company must make changes.
Gentlemen, we must find out where the problem is and find new profit points."
Several other big guys in the office sneered and had strong opinions on this.
Executive Director Trode said quietly: "The Iridium Project is a super big plan that the former CEO of the Motorola family insisted on, and it is also a super big hole that is bleeding. At the beginning, we refused to listen no matter how hard we tried, and even threatened to kick me.
After leaving the board of directors, the current mess is all caused by this damn big plan."
"Yes, this is a big mistake made by your uncle, but you can't just pretend that nothing happened."
"Think about it, how many mobile phones do we have to sell to launch a satellite? The Iridium satellite project worth tens of billions of dollars has turned into an unprecedented joke. After the Iridium satellite project went bankrupt, the satellite deorbited and entered the atmosphere and burned up.
It turned into 66 fireballs at an altitude of 50,000 feet. Oh, God! Our stupidity may go down in history.”
"Gentlemen, a painful scene has happened. Let us abandon the baggage of the past and look forward. We cannot always live in memories."
Crystal Galvin had to stop everyone from continuing to complain. If it continued, it would become a denouncement meeting against his uncle, repeating a scene that had happened countless times.
Motorola is one of the Fortune 100 companies in the world, spanning the fields of chip manufacturing, electronic communications, mobile phones and wireless mobile communication equipment, and is the world's largest manufacturer of digital set-top boxes.
According to market research,
In 2002, the global digital set-top box market totaled 46.5 million units, of which North America accounted for 38 million units. Motorola accounted for 58% of the global market share.
besides
Motorola also produces military and civilian computers, walkie-talkies, mobile phones, communication terminals and a wide range of application chips. It plays a decisive role in its respective segments and is a comprehensive electronics multinational enterprise spanning many fields.
Although it suffered a heavy blow from the Iridium project, it still could not shake its foundation.
It can be said that it is a centipede insect, dead but not stiff.
Motorola is still a giant in the communications industry, but it is completely rotten inside. It is plagued by big company diseases, administrative efficiency is procrastinated, there is a heavy bureaucracy, there is a heavy bureaucracy, there is no clear shirk of responsibilities, and there are countless other problems.
Investigate its source
It was Narcissus Galvin, the second generation CEO of the Motorola family, who sadly resigned due to the failure of the Iridium satellite project. He was not punished and did not bear any subsequent financial responsibilities. He just quietly replaced someone else to finish the job.
The loss of tens of billions of dollars was like a breeze blowing in the face, which had a heavy blow to the confidence of the entire company. The condensed entrepreneurial spirit was completely dispersed, and the spirit of hard work and entrepreneurship could never be regained.
Entrepreneurship is something intangible and insubstantial, but it’s really useless without it.
In order to avoid a quarrel, COO Mike Zafirovsky took the opportunity to change the subject and brought up the recent major events in the international market;
"The Royal Fund has made another move. They have further increased their holdings of Apple stock to 55.2%, and they have an absolute controlling stake in Apple. They will use Athlon 3 microprocessors in the newly launched Apple Mac computers, and they can freely choose ios
system and Android system, and the products of Atlantic Jinko Group are fully used in the Apple iPhone digital player."
"This incident made Intel and Microsoft very angry. They accused the Royal Family Fund of monopolistic behavior in the media and radio stations, and threatened to launch an antitrust lawsuit. It caused a stir for a while."
"According to reliable sources, Steve Jobs intends to enter the field of mobile phones and is asking Boss Wang to be lenient and agree to Apple's mobile phone project plan."
Trodd burst out laughing and said contemptuously, "Jobs was a joke in front of the boss. He even tried to arm-wrestle with him, but he was crushed. He was really a fool who overestimated his abilities."
"Okay, Steve Jobs saved Apple, which was on the verge of bankruptcy, and he was also a talented manager. We don't need to laugh at him." Christo Galvin stepped forward and looked at everyone seriously before continuing;
"Nowadays, the mobile phone companies under Royal Family Fund are developing vigorously and they are also cooperating very closely with us.
Our latest A760 mobile phone is equipped with the LINUX operating system, which is the best wireless communication system proven by the market and can provide customers with the best Internet experience.
Motorola needs their wireless communication technology and Android system authorization, as well as the Athlon 3 CPU processor. The two parties have a lot of cooperation on the technical level.
But we must also see that they are also our strong market rivals and do better than us.
The most troubling thing is that Motorola cannot do without its cooperation with the royal family fund. If it must close the US factory to further reduce costs, seeking OEM services from Yangtze Technology Group is the best solution."
COO Mike Zafirovsky is a market expert and has studied this very deeply, and he nodded and said;
"Yes, Royal Fund has a presence in the entire mobile phone industry chain. Corning provides glass substrates and high-quality semiconductor components. Huanghe Technology Group produces LCD monitors, which are installed on Athlon III devices designed by Athlon Corporation and manufactured by TSMC.
CPU, the baseband chip is manufactured by Atlantic Jinko, and the LINUX operating system is manufactured by Red Hat Systems. The final mobile phone product is manufactured by Yangtze Technology Group.
It has formed an assembly line OEM production capability, and its competitiveness is undoubtedly strong.
The OPPO brand, Dell brand, Polaroid brand, Geli, Panda and Playboy, as well as the Apple mobile phone that Steve Jobs is trying to launch, all come from the foundries of Yangtze Technology Group.
The only difference is the difference in OEM products. This kind of ultra-large-scale OEM can greatly reduce costs and increase corporate profit margins.
If they want, they can launch 100 mobile phone brands to compete in the market.
Comparing the two sides, we have obvious disadvantages, especially the high cost.
Motorola must get rid of its heavy-burdened U.S. factories. The cost of our products is more than twice as high as those of our competitors. Market competition is at an extremely disadvantageous position, which is completely inconsistent with the principles of rational global resource allocation by multinational companies. This must change."
"I agree, the high cost is its fatal weakness."
"Second, it is urgent to reduce costs."
"Second."
Seeing that everyone had no objections to this article, CEO Christo Galvin thought about it and said;
"Motorola has 13 factories on the east and west coasts. It can initially consider suspending five factories, reducing the production capacity of other factories, and gradually transferring production orders to foundries.
In order not to provoke a strong backlash from labor unions, the capacity reduction plan will be completed over two to three years, with the goal of transferring at least 65% of production capacity and retaining only high-value core parts.
Gentlemen, we have agreed on cost cutting.
So, in what areas should Motorola make efforts to enhance the competitiveness of its products?"
The problem is back to its original point
When mentioning this executive director Trode, he became angry and said dissatisfiedly;
"Of course it's technology research and development and product innovation. This is the core competitiveness of a great company. Unfortunately, many of us have forgotten this and spend a lot of money on boring cross-country meetings and unknown projects.
Motorola's scientific research investment has shrunk year by year, the system has become rigid, and high-level scientific research personnel have continued to lose.
The OPPO brand of Atlantic Business Machines Company has developed the classic V3 series of flip phones, and the core scientific research team is from Motorola.
I once spoke loudly, but who listened to me?
Last year, the talented Professor Ross left Motorola angrily. I tried my best to persuade him to stay, but some people present even laughed at me with cold words.
What was the result?
Professor Ross single-handedly created the stunning Polaroid S1 mobile phone, which became an instant hit in the market and became a popular product that people in the fashion industry are eager to own. It has become another cash machine for the royal family fund.
Motorola is not without talents, but our energy is consumed in day-to-day infighting and tired of dealing with office politics. How can we produce good products like this? How can we participate in market competition?"
Therefore, the scientific research system must be completely overhauled and learn from Arctic Ocean Holdings, which is the top level company in the industry.
Respect knowledge, respect talents, cut redundant staff, implement a project incentive system, implement a project contracting system and a target responsibility system, and break all the original old frameworks to see results."
"this……"
CEO Christo Galvin hesitated. It was really not a big matter that he could decide. Otherwise, there might be a magnitude 12 earthquake.
It has been 75 years since Motorola was founded. It has been passed down by three generations of the family. Uncles and even grandfathers are all over the company's departments. Many of them even watched themselves grow up, and they have had deep friendships for decades.
Now, if we want to break up their jobs and reduce redundant staff, it is completely conceivable how strong the resistance will be.
The interweaving of family and friendship, and the atmosphere of being like a family for decades, made Christopher Galvin completely lose his voice. He was unable to make such a major decision, which would almost overturn everything in his current life.
"We can increase investment in science and technology, so there is no need to overthrow the original framework, right?"
"Stupid, the current system has been completely rigid. Without breaking the original framework and introducing fresh air, no matter how much investment in science and technology is added, it will be useless. In the end, it will become a Florida beach vacation and a party in a French restaurant, but there will be no eye-catching things."
Technological innovation.”
"Sorry, I have no right to do this."
"Eh..."
Trode, the executive director, let out a long sigh of disappointment and said, "Everyone can see the shortcomings of Motorola, but no one wants to change, and no one has the courage to change. Instead, they just watch it sink. Forget it.
, I have spent the golden years of my life with Motorola, and I can only hope for a miracle to happen, otherwise I will only die along with it."
Looking at Trode's pale hair, Christo Galvin opened his mouth to persuade him. Seeing that the old man turned his face away from him in disappointment, he could only sneer and say, "Trod, believe me, I will always be the best."