To: Maurice Winn who wrote (15034 ) 9/15/1998 9:25:00 PM From: Ruffian Respond to of 152472
Maurice, Motorola & China, (Thanks for the 2nd chance) Motorola restructures to foster 'team culture' China Daily [ Motorola Inc ] hopes its new North Asia Centre on north Chang'an Avenue in Beijing will symbolize a fresh start for the company's business in China. Motorola has often been criticized for setting up "silos" within the company, meaning that each sector is a discrete body that discourages the sharing of resources and teamwork between different sectors. However, like the many Chinese enterprises that are laying off workers and consolidating their structures, Motorola (China) is renewing itself to stay competitive. "We will do some consolidation and reorganization of the cellular and pager businesses, changing the focus of some of our groups here," said Ronald W. Thomas, vice-president and general manager of Motorola Greater China Cellular Subscriber Division. Thomas said his group will share some functional teams with the paging business side, or have personnel, finance, IT and service forces working for both. "One of my major tasks here is to develop a strong team-based culture," said Thomas, who took up his position in July. A number of employees will be laid off due to the restructuring, although Thomas said the company's Volunteer Severance Pro-gramme will mean that job losses would be kept to a minimum. The restructuring in China is part of Motorola's global strategy to adapt to a new era characterized by networking and to ensure its products have Internet capability. The company combined its communications-oriented businesses into a single group -- Communications Enterprise (CE) -- in July, incorporating six sectors covering cellular, paging, two-way radio, space, global customers and networking business. Motorola has been on a downward cycle worldwide, which many believe was a result of the company's slow transition from analogue to digital technologies. However, in China its performance has remained strong. In cellular business, Motorola is still the leader in the Chinese market, but competitors are closing in. Motorola was the overwhelmingly dominant cellular phone supplier in China in the early 1990s. However, its slow transition to digital handsets let European companies like Ericsson and Nokia take a significant slice of the rapidly growing Chinese cellular market in the past three years. According to a report from market research company Sainuo, Motorola had a 34.4 per cent share of the cellular market in China in the first six months this year, followed by Ericsson with 28.6 per cent and Nokia with 22.1 per cent. In GSM, Motorola's share is 32 per cent, while Ericsson and Nokia account for 30.4 per cent and 23 per cent, respectively. Thomas was involved in setting up Motorola's cellular business in China in the late 1980s and helped the company become the leader in China's cellular market in the early 1990s. He said Motorola's cellular business is not as unfavourable as some think, arguing that its growth was simply a bit slower than it should be. He said the growth of sales of its digital handsets is over 50 per cent annually, and overall growth is between 30 per cent and 35 per cent. In terms of problems in Motorola's operations in China, Thomas said distribution channels need to be rationalized as "there are too many conflicts." He said some distributors compete with one another with the same products and cause prices to fluctuate. (Copyright 1998) _____via IntellX_____ Publication Date: September 14, 1998 Powered by NewsReal's IndustryWatch ...back to top