Operations

Operations Management
Management

Operations
Operations Strategy
Strategy in
in a
a Global
Global Environment
Environment
Motorolas
Motorolas Global
Global Strategy
Strategy

Disusun Oleh :
Ari Kusuma
Archenar Tridhiarso Sumantri
Catrine Amandra Yusril
Rahma Respati Ayu Agustya
Soesatyo
Robby Zuharf

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

About Motorola
Motorola one of the most
Successfull electronic frms in us
estabalished 1928
Produce various Device in
mobile technology
Controlled US market by pagers
and telephone
Product classifed in to three
categories
1. Software-enhanced
2. Embedded semiconductor
3. Electronic systems
Magister Management Program The Faculty of Economics and Business
Gadjah Mada University

Product of Motorola

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Problem Analysis
Problem begin at 1980s when japannese frm to flood US
market, began to fall competition with japanese
Motorola considered the electronic product of Japannese Firms
is not a serious matter for their market
Motorola take action lately to compete with japannese product
especially pager and telephone
And then motorola get a serious impact and japannese hit
their market
They abandoned some business area and considered to
merger with toshiba semiconductor

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

The case Questions

What are the components of Motorolas
international strategy?
Describe how Motorola might have arrived
at its current strategy as a result of a SWOT
analysis.
Discuss Motorolas primary business
strategy.

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Motorola strategies to compete with

japan

Commited the the to lowering cost

Improving quality
Regain the market share
Send managers on mission world wide
especially to japan with two main
strategies learn from japan and compete
with them

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

MOTOROLAS
GLOBAL STRATEGY
Video

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Transnational
Strategy
- Learn from Japan & Compete it -

Cost Reduction
Lowering cost by increase productivity.
Six Sigma Quality - perfection rate of
99.9997%.
Total cycle Time Reduction
Local Responsiveness
Nowadays revenue broad share is 56%,
management want it would be 75% at 2002
Visit Japan to learn operation management

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

SWOT MATRIX
Market leader
Strong Brand Name
Superior Technology

Old Management
Strategy
Slow Respond on market
competition

Strength

Weakness

Opportuni
ty

Threat

Information flow
Globalization

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Japan Domination

Strength

Market leader: Motorola is one of the world's leading

providers of wireless communications, semiconductors and
advanced electronic systems, components and services.
Strong Brand Name: Motorola as a company has strong
brand name in the telecommunication market. In the
development countries, Motorola has been known.
Superior Technology: Motorola is an inventor of technology
and has first-mover advantage.

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Weakness

Business Strategy: Motorola maintained old strategies

in doing business, was conservative and unambitious.
Set too low target of productivity level

Motorola was complacent in its leadership position in

the U.S. market, and failed to aggressively compete
with the emerging Japanese firms.

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Opportunity
Information and communications technology is fast-paced, with
new discoveries happening every minute. Motorola can match
this speed of discovery with new and innovative product and
technology Development.
International business exposure (Globalization) has been widely
open and barrier of each country to cross the lines has been
decreased.

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Threat
Japanese electronics frms are heavy
competitors in terms of cost and quality
leadership.
Barriers to Entry

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Primary Business Strategy Quality

The frm placed its new commitment to quality at the
forefront of everything it did.
It even went so far as to announce publicly what seemed
at the time to be an impossible goal: to achieve Six
Sigma quality, a perfection rate of 99.9997%.
When Motorola actually achieved this level of quality, it
received the prestigious Malcolm Baldrige National
Quality Award.

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University

Motorola Sig Sigma

Magister Management Program The Faculty of Economics and Business

Gadjah Mada University