Motorola & Amp

Case Study : Motorola & Xerox

Motorola’s Share in the world wide cellular market has been, of late declining. In an effort to reverse the trend, the MNC has now committed itself to an increased presence in Europe and Asia. For example, the company recently decided to build $150 million plant in Germany. The Company also decided to expand operations in Asia, notably in China, Korea, the Philippines and Taiwan .Simultaneously, Motorola has been restructuring its worldwide operations in order to increase efficiency and cut down costs. The company has recently merged half dozen separate businesses into two huge divisions, one focusing on consumers and the other on infrastructure equipment. Motorola hopes that this new organizational arrangement will help it better adapt to the global market which is becoming more competitive.

Xerox is another example of worldwide reorganization of operations. It intended to cut 9000 jobs by the beginning of 21st century with a view to trim costs. It has plans to replace traditional copiers by less expensive digital ones. If the company continues to manufacture high cost traditional copiers, it will lose out to its competitors. Motorola and Xerox are indicative of the trend to show how MNCs are reorganizing their operations to compete more effectively in the international arena.

Questions:

1. Why do the MNCs like Motorola and Xerox reorganize their operations? Discuss.

2. Elaborate the benefits of competitive strategies in the context of Motorola and Xerox.

3. Explain the financial and other strategic gains of reorganization to MNCs as mentioned in the case study.