Developed by David S. Chappell, Ohio University
Motorola Inc., world famous for its Six Sigma quality control program, was an early success story in the computer/electronics age. Motorola moved from being a decentralized but integrated, narrowly focused electronics firm at $3 billion in 1980 to being a decentralized and disintegrated broad portfolio firm at $27 billion in 1997.1 Motorola is one of the world’s leading providers of wireless communications, semiconductors, electronic systems, components, and services. Its cellular phone and pager products were identified among the very best in the early 1990s. However, increased competition, the Asian economic crisis, and its failure to fully embrace the digital revolution have severely tarnished its operating results and image. Can Motorola return to its high performance ways?
The Evolution of Motorola
Motorola Inc. was founded by Paul V. Galvin in 1928, as the Galvin Manufacturing Corporation. Motorola’s long history of technological innovation began in the 1930s with the first car radio. Under the brand name “Motorola,” suggesting “sound in motion” the company name was changed to Motorola, Inc. in 1947.2 Being the sound of innovation, it was Motorola’s goal to provide products that would give people the time and freedom to explore new worlds and handle daily tasks in the most efficient way. Motorola represents a large number of firsts, including the first rectangular television picture tube, first practical car radio, pagers, and more. In 1988, Motorola won the first Malcolm Baldridge National Quality Award in recognition of quality in American business. This is the commitment to seeking and developing a broad base of knowledgeable, highly trained employees, evident through their innovative training programs, through the establishment of Motorola University, and through the offering of expansive benefit plans to all associates.
The Importance of