Monday, April 21, 2008

Motorola and impure strength

Peripetii Motorola are continuing. From the once-leading manufacturer of cell phones in recent weeks have such news that reluctant start to think: perhaps without the impure forces top managers of corporations do not take important decisions.

It all started with the fact that the company was subjected to attack by investor Carl Aykana, which owns 6.45% of the shares of Motorola. He filed a suit in court, demanding access to documents of the board, which he refused to provide. Aycan At the same time, the company rejected a proposal put to the board of directors of two of its representatives - it requires four. But the leadership does not want to see Motorola among them Maystera Kita, a fund manager Icahn Partners. Aycan found such a position "unacceptable" and "does not intend to tolerate it." In general, it would be decided at a meeting of shareholders in early May.

In addition, the lawsuit, filed in the American state of Delaware, Aycan requires him to provide information about the decisions to appoint top managers, for example, information about the use of corporate aircraft managers and their families. Aykan also requested documents unit for the manufacture of cellular phones, the loss of which last year amounted to $ 1.2 billion In general, already on the list of issues it is possible to understand how things are going at Motorola.

Shortly after the announcement of claims Aykana learned that Motorola did break up into two companies in 2009. The purpose is clear: to get rid of unprofitable production of mobile phones. One of the companies created after the division, will actually manufacture cellular devices. The second will focus on selling networking equipment, facilities for cable television and radio stations - these lines of business are considered profitable and fast-growing. I recall that earlier this year Nokia split into three parts in general. But this was done in order to optimize the business of an already successful company. In the case of Motorola are entirely different: the volume of its sales steadily declining in recent years. The company had ceded much of its market share to competitors of cellular phones. In 2007, Motorola fell by sales from the second to third place in the market, Samsung Passing forward, and now it is about passed Sony-Ericsson.

After the decision to allocate "mobile" Motorola unit into a separate company, experts have spoken about that this manoeuvre undertaken to facilitate the creation potential investor alliance with manufacturer Hynix. Tero Kuittinen, Avian Securities analyst company, gave such a comment: "I think this is a prelude to the joint venture in the field of mobile phones. Probably negotiate with a separate company will be much easier. This positive news, they mean that the company is moving forward - toward serious restructuring process. " But according to the news these investors - one of the Chinese companies producing mobile communications. Presumably - ZTE.

While analysts have built assumptions scandals around Motorola went their course. In late March, many American media got open letter Numaira Faraza, first worked in Motorola adviser to the late vice president and chief marketing Geoffrey Frost. The letter "a full reel" won Edu Zanderu company managers and Greg Brown. Fully lead voluminous letter is not possible, here are some quotations:

"The main problem is that Motorola, which makes excellent Samsung phones."

"I told the senior designers: all you need - to create a more attractive and more expensive apparatus than any device on the market, and everyone immediately wanted to buy it."

"I just begged: please note that the company is an urgent need to improve the software to create Master for the opportunity to participate in social networks (this was in the years before the giants appeared MySpace and Facebook)."

"Zander more interested in their results on a golf course than the management of one of the great technology companies of America, and all the responsibilities placed on Jeffrey. strategy ... For if all the profits the company responsible chief director of marketing - but not other leaders, who were incompetent, and then those still remain. "

"Related to Jeffrey people felt that Zander driven him to death, giving his shoulders full responsibility for the fate of the company. ... His wife, Lynne, accused the company of his premature death and later committed suicide."

"But you are much different from other Motorola incompetent senior managers: you were not merely inadequate head, you kill the company. Lack of understanding of Motorola phones for the production did not give you any justification for the alleged decision to sell the unit."

"Create a phone that looks and works as a symbol of luxury and status. Priznayte superiority of American software, return those jobs that you blindly moved to China and Russia. Android Support Linux and Google's out of the operating system phones Stone Age."

"Understand that the most popular feature of future mobile phone - this is not the camera or player, is social relationship, please experience in the field, make part of corporate values."

"With such people like you or Zander, Motorola symbolizes all the worst that can be found in corporate culture. disaster ... Motorola as a bastion of the American spirit of innovation and creativity, if it happens, will be entirely on your conscience."

In my opinion, there should be no reason we do not write.

Pisec outcome. The decision to allocate unit for the production of mobile phones into a separate company made not only to the telephone business was not a negative impact on the remaining two units, the financial health of which is fear. This maneuver would prevent and reduce the capitalization of the company, in fact, to attract investment. Here are just in the way most likely investment - the Chinese - probably face of American laws, which recently severely limit foreign investment in high-tech industries dollars.

However, not everyone in the company is already bad. Recently, developers have been able to combine network Motorola CDMA EV-DO and LTE. Technology companies allow one device to switch between networks without losing the connection. During the test was able to transfer streaming video and voice between networks without loss of information or any delays. Motorola experiment showed that CDMA operators, it may be advantageous to deploy network-LTE fourth generation. Compatible client hardware will be able to switch between them as well as between GSM and UMTS.

According to the experts, seamless hendover between EV-DO and LTE gives operators confidence that the LTE - the right choice in terms of networking. During the public display technology used laptops with special adapters that work in networks CDMA / EV-DO Rev.A and LTE. The equipment in the transmission of voice and video between networks turned away, with no loss of packets of information.

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